HB-5158, As Passed Senate, June 14, 2012
SENATE 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 designee may audit the vendor to
verify compliance with the contract. The financial and accounting
records associated with the contract shall be made available to the
department or its designee 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 designee shall
not audit any matters outside the scope of the individual contract
unless there is a separate constitutional or statutory basis for
that audit.
(2) Beginning January 1, 2013, if a person receives a grant of
state funds, the person shall agree to allow the department or its
designee 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 or its designee 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 designee shall not audit any matters outside the scope of
the individual grant unless there is a separate constitutional or
statutory basis for that audit.
(3) Proprietary financial and accounting data and records
associated with the contract or grant shall be exempt from
disclosure under the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
(4) Nothing in this section shall limit the constitutional or
statutory authority of the auditor general.
(5) 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.