Louisiana Administrative Code › Title 34 - GOVERNMENT CONTRACTS, PROCUREMENT AND PROPERTY CONTROL › Part V - Procurement › Chapter 1 - General Provisions › Section V-134 - Cost Reimbursement Contracts

Current through Register Vol. 50, No. 6, June 20, 2024
A. 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; or
2. 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; or
3. 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.