Mississippi Administrative Code › Title 27 - STATE PERSONNEL BOARD › Part 1 › Chapter 3 - SOURCE SELECTION AND CONTRACT FORMATION › Section 27-1-3-602 - RIGHT TO AUDIT RECORDS

Current through June 25, 2024
(a)
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.
(b)
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.
3-602.01
Statutory Authority to
				Audit
Pursuant to Mississippi Code Annotated §
										25-9-120
				  (1972, as amended), the PSCRB may request the State Auditor to conduct
				  performance audit on any personal or professional service contract.
3-602.02
Auditors;
				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.
3-602.03
Cost or Pricing Data
				Audit
3-602.03.1
General
The PSCRB may require an audit of cost or pricing data that
				  has been submitted under Section 3-403 (Cost or Pricing Data).
3-602.03.2
Conditions 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.