Louisiana Administrative Code
Title 34 - GOVERNMENT CONTRACTS, PROCUREMENT AND PROPERTY CONTROL
Part V - Procurement
Chapter 1 - General Provisions
Section V-134 - Cost Reimbursement Contracts
Universal Citation: LA Admin Code V-134
Current through Register Vol. 50, No. 9, September 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.
AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1490(B) and 39:1521.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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