November 8, 2011, Introduced by Reps. Forlini and Poleski and referred to the Committee on Oversight, Reform, and Ethics.
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, 2012, 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, 2012, 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.