La. Admin. Code tit. 34 § V-134
Current through Register Vol. 50, No. 11, November 20, 2024
Section V-134 - Cost Reimbursement ContractsA. If a nongovernmental provider is expected to receive $100,000 or more per year of state funds via one or more cost-reimbursement contracts, then those contracts shall contain at least one of the following requirements: 1. source documentation verification (evidenced by invoices, canceled checks, certified payroll sheets, etc.) shall be submitted to the state to justify each payment request; or2. utilizing internal auditors, the using agency shall perform frequent, unannounced contract compliance audits of the contractor. "Frequent" shall mean no less than once per contract or per 12 months if the contract is longer than 12 months and all disallowed expenditures shall be reimbursed to the using agency; or3. the contract shall require the contractor to obtain a contract compliance audit of expenditures charged to the contract. This compliance audit shall be performed by a certified public accountant or the Louisiana legislative auditor's office. A contract compliance audit must include an examination of reimbursed expenditures to determine if they are in accord with contract terms, not reimbursed by any other source, and in accord with any guidelines set by the using agency or other relevant authority. This examination shall be conducted in accordance with generally accepted auditing and sampling procedures, including the Government Auditing Standards ("Yellow Book"). See §201, Appendix G of this Part for sample opinion letter for this contract compliance audit. a. Such an audit may be performed in conjunction with a financial audit, but results must be available to the using agency within 12 months after the fiscal year end of the contractor. It is the intention of this rule not to require audits at a different time of year if annual audits are currently being performed. Thus, a contract period may be covered by two separate audits.b. For multi-year cost-reimbursement contracts, the provider may with the using agency's consent, elect to have a multi-year contract compliance audit done to cover the entire contract period.c. If a single provider has multiple cost-reimbursement contracts subject to the requirements of §134, then the provider may elect to have an audit done using the single audit model. In these instances, a major state contract means any state contract for which expenditures during the year exceed the greater of $100,000 or 3 percent of such total expenditures.d. All disallowed expenditures shall be reimbursed to the using agency. Such disallowances shall normally be recouped by the using agency in current or future contracts with the provider. For cost-reimbursement contracts, any audit of the contract period issued pursuant to the Single Audit Act of 1984, P.L. 98-502, OMB Circular A- 110, or other federal legislation and regulations, shall fulfill the audit requirements of this Paragraph 3.La. Admin. Code tit. 34, § V-134
Promulgated by the Office of the Governor, Division of Administration, Office of Contractual Review, LR 15:82 (February 1989).AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1490(B) and 39:1521.