HB-5158, As Passed House, March 14, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 5158

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

(MCL 18.1101 to 18.1594) by adding section 470.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 470. (1) Beginning January 1, 2013, if a state agency

enters into a procurement contract for services, the contract shall

provide that the department or its designees may audit the vendor

to verify compliance with the contract and that the financial and

accounting records associated with the contract shall be made

available to the department, its designees, and the auditor

general, upon request, during the term of the contract and any

extension of the contract and for 3 years after the later of the

expiration date or final payment under the contract. The department

and its designees shall not audit any matters outside the scope of

the contract.

     (2) Beginning January 1, 2013, if a person receives a grant of

state funds, the person shall agree to allow the department or its

designees to audit the person to verify compliance with the terms

of the grant. The person shall also agree that the financial and

accounting records associated with the grant shall be made

available to the department, its designees, and the auditor

general, upon request, during the term of the grant and any

extension of the grant and for 3 years after the later of the

expiration date or final payment under the grant. The department

and its designees shall not audit any matters outside the scope of

the grant.

     (3) As used in this section, "auditor general" means the

auditor general or a certified public accounting firm selected by

the auditor general to conduct the audit.