Utah Admin. Code R33-112-605 - Right to Audit
(1) As used in this
section:
(a) "Authorized representative"
includes:
(i) a purchasing procurement
unit;
(ii) an internal auditor or
other employee of the procurement unit;
(iii) an audit firm, consultant, or examiner
under contract with the procurement unit;
(iv) the State Auditor;
(v) the Legislative Auditor General;
or
(vi) federal
auditors.
(b) "Books and
records" mean written or electronic information pertaining to the applicable
contract between the procurement unit and the contractor including:
(i) accounting information, financial
statements, files, invoices, reports, and statements;
(ii) pricing data;
(iii) usage reports;
(iv) transaction histories;
(v) delivery logs;
(vi) contracts, contract amendments, and
other legal documents; and
(vii)
performance evaluations.
(2) Any contract between a contractor and a
procurement unit that involves the expenditure of public funds may include or
incorporate by reference a right to audit clause that may contain the following
provisions:
(a) a statement indicating that
the procurement unit or its authorized representative has the right to audit
the books and records of a contractor or any subcontractor under any contract
or subcontract to the extent that the books and records relate to the
performance of the contract or subcontract;
(b) notification procedures for initiating an
audit and reporting audit findings;
(c) dispute resolution procedures, including,
to the extent practicable, negotiation, settlement, and final resolution of
audit findings;
(d) a statement
requiring the contractor and its subcontractors to:
(i) maintain books and records relating to a
contract for six years after the day on which the contractor receives the final
payment under the contract, or until audits initiated under this section within
the six-year period have been completed, whichever is later;
(ii) establish and maintain an accounting and
record-keeping system that enables the procurement unit or its authorized
representative to readily have access to the contractor's books and records in
both written and electronic format;
(iii) upon request, provide to the
procurement unit or its authorized representative an electronic copy of the
contractor's books and records within 30 days of the request;
(iv) allow the procurement unit or its
authorized representative to interview the contractor's employees, agents,
subcontractors, partners, resellers, and any other person who might reasonably
have information related to the contractor's performance of the
contract;
(v) correct errors and
repay overcharges to the contracting procurement unit within 30 days of
receiving written notice of the errors or overcharges documented in an audit
finding;
(A) payments relating to overcharges
or other audit findings involving state cooperative contracts shall be repaid
to the Utah Division of Purchasing; and
(vi) if contract errors or overcharges are in
dispute, correct errors and repay overcharges within 30 days of receipt of a
notice of decision issued by the procurement official after a hearing has been
conducted to attempt to resolve the dispute, or a court
order;
(e) a statement
indicating that:
(i) the procurement unit or
its authorized representative have the right to audit the contract at any time
during or after the term of the contract between the contractor and the
procurement unit; including the right to examine, make copies of, or extract
data from any record required to be maintained by the contractor; and
(ii) an audit or other request shall:
(A) be limited to records or other
information related to or pertaining to the applicable contract;
(B) include access to records necessary to
properly account for the contractor's performance under the contract and the
payments made by the procurement unit to the contractor; and
(C) be carried out at a reasonable time and
place;
(f) a
notice that if a contractor fails to maintain or provide records in accordance
with the contract, the procurement unit may:
(i) consider the contractor to be in breach
of its contract with the procurement unit;
(ii) enter into negotiations with the
contractor to initiate a corrective action plan to bring the contractor into
compliance; or
(iii) cancel the
contract;
(g) a notice
that the procurement unit may initiate debarment or suspension proceedings
against a contractor under Section
63G-6a-904, or pursue other legal
action, for any of the following:
(i) failure
to respond to an audit;
(ii)
failure to correct errors or repay overcharges;
(iii) an illegal act or fraud documented in
an audit; or
(iv) other reasons as
determined by the procurement official.
Notes
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