Louisiana Administrative Code › Title 34 - GOVERNMENT CONTRACTS, PROCUREMENT AND PROPERTY CONTROL › Part V - Procurement › Chapter 25 - Procurement of Professional, Personal, Consulting, Social Services, and Energy Efficiency Contracts › Subchapter A - General Provisions › Section V-2534 - Cost Reimbursement Contracts [Formerly LAC 34:V.134]

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.
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 herein, 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.