HOUSE BILL No. 5158

 

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.