27 Miss. Code. R. 100-3-602

Current through December 10, 2024

Section 27-100-3-602 - RIGHT TO AUDIT RECORDS

(a)Audit of Competitive Procedures

The PSCRB may, at reasonable times and places, audit the procurement records of any agency to ensure it has used competitive procedures to contract for the personal or professional service.

(b)Audit of Cost or Pricing Data

The State may, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data pursuant to Section 3-403 (Cost or Pricing Data) to the extent that such books and records relate to such cost or pricing data. Any person who receives a contract, change order, or contract modification for which cost or pricing data is required, shall maintain such books and records that relate to such cost or pricing data for three years from the date of final payment under the contract, unless a shorter period is otherwise authorized in writing.

(c)Contract Audit

The State shall be entitled to audit the books and records of a contractor or any subcontractor under any negotiated contract or subcontract to the extent that such books and records related to the performance of such contract or subcontract. Such books and records shall be maintained by the contractor for a period of three years from the date of final payment under the prime contract and by subcontractor for a period of three years from the date of final payment under the subcontract, unless a shorter period is otherwise authorized in writing.

3-602.01Statutory Authority to Audit

Pursuant to Mississippi Code Annotated § 25-9-120, the PSCRB may request the State Auditor to conduct performance audit on any personal or professional service contract.

3-602.02Auditors; Audit Reports

Audits requested under this subpart shall be performed by the State Auditor's Office. Such audit reports shall be made available to the party audited upon request.

3-602.03Cost or Pricing Data Audit

3-602.03.1General

The PSCRB may require an audit of cost or pricing data that has been submitted under Section 3-403 (Cost or Pricing Data).

3-602.03.2Conditions for an Audit

An audit should be required, in respect to the contractor, prospective contractor, subcontractor, or prospective subcontractor, when there is:

(a) a question as to the adequacy of accounting policies or cost systems;

(b) a substantial change in the methods or levels of operation;

(c) previous unfavorable experience indicating doubtful reliability of estimating, accounting, or purchasing methods;

(d) a lack of cost experience due to the procurement of a new supply or service; or,

(e) other evidence that an audit is in the State's best interests as determined by the PSCRB.

Note:Subject to final determination by the State Auditor, the report should contain the following in respect to the contractor, prospective contractor, subcontractor, or prospective subcontractor:

(a)a description of the original proposal and all submissions of cost or pricing data;

(b)an explanation of the basis and the method used in preparing the proposal;

(c)a statement identifying any cost or pricing data not submitted but examined by the auditor which has a significant effect on the proposed cost or price;

(d)a description of any deficiency in the cost or pricing data submitted and an explanation of its effect on the proposal;

(e)a statement summarizing those major points where there is a disagreement as to the cost or pricing data submitted; and

(f)a statement identifying any information obtained from other sources.

3-602.04Contract Audit

3-602.04.1Contract Audited

Under the authority of Mississippi Code Annotated § 25-9-120, any contract for personal or professional services may be audited when auditing would be appropriate to assure satisfactory performance.

3-602.04.2Conditions for an Audit

The requirement of a contract audit may be warranted when a question arises in connection with:

(a) the financial condition, integrity, and reliability of the contractor or subcontractor;

(b) any prior audit experience;

(c) the adequacy of the contractor's or subcontractor's accounting system;

(d) the number or nature of invoices or reimbursement vouchers submitted by the contractor or subcontractor for payment;

(e) the use of federal assistance funds;

(f) the fluctuation of market prices affecting the contract;

(g) contract performance or measurement of deliverables; or,

(h) any other situation in which the PSCRB finds that such an audit is necessary for the protection of the State's interest, including random audits to ensure compliance with these regulations.

The scope of the audit may be limited by the PSCRB.

Note:The scope of the report will depend on the scope of the audit ordered; however, the report should contain specific reference to the terms of the contract to which the audited data related and a statement of the degree to which the auditor believes the audited data evidences compliance with those terms.

3-602.05Retention of Books and Records

3-602.05.1Relating to Cost and Pricing Data

Any contractor who receives a contract, change order, or contract modification for which cost or pricing data is required under Section 3-403 (Cost or Pricing Data) shall maintain such books and records that relate to such cost or pricing data for three years from the date of final payment under the contract.

3-602.05.2Relating to State Contracts

Books and records that relate to a state contract, including subcontracts, other than a firm fixed-price contract, shall be maintained:

(a) by a contractor, for three years from the date of final payment under the prime contract; and,

(b) by a subcontractor, for three years from the date of final payment under the subcontract.

27 Miss. Code. R. 100-3-602

Adopted 1/15/2015

Amended 1/15/2015

Amended 4/14/2016

Amended 7/1/2016