§2600.1315. Records and Audits

a)         Retention of Books and Records

            Books and records that relate to performance of a contract, including subcontracts, and that support amounts charged to SBEL, shall be maintained:

 

1)         by the agency, for three years, in the procurement file.  The procurement file shall include substantive documents and records of communications that pertain to the procurement and resulting contract, Procurement Bulletin postings, vendor responses, evaluation material, modification or withdrawal of bids, and contractor reviews, any protest documents, and a record of the successful bidder.  The solicitation document and contract, as well as any amendments, renewals or extensions to those documents, must also be included.

 

2)         by a vendor, for three years from the date of final payment under the prime contract;

 

3)         by a subcontractor, for at least three years from the date of final payment under the subcontract; and

 

4)         by a vendor and subcontractor for such longer period of time as is necessary to complete ongoing or announced audits.

 

b)         Contract Audit

 

1)         Types of Contracts Audited.  The type of contract under which books and records should be audited is that in which price is based on costs or is subject to adjustment based on costs, or that in which auditing would be appropriate to assure satisfactory performance, such as a time and materials contract.

 

2)         Situations in which an audit may be warranted include, but are not limited to, when the CPO determines that a question has arisen in connection with:

 

A)        the financial condition, integrity, and reliability of the vendor or subcontractor;

 

B)        any prior audit experience;

 

C)        the adequacy of the vendor's or subcontractor's accounting system;

 

D)        the number or nature of invoices or reimbursement vouchers submitted by the vendor or subcontractor for payment;

 

E)        the use of federal assistance funds;

 

F)         the fluctuation of market prices affecting the contract; or

 

G)        any other situation in which the CPO finds that an audit is necessary for the protection of the State's best interest.