MI HB5892

State agencies must include audit provisions in all service procurement contracts beginning January 1, 2013, allowing the department or auditor general to verify contract compliance with access to financial and accounting records during the contract term and for 3 years after expiration.

Grant recipients receiving state funds must agree to allow audits to verify compliance with grant terms, with financial and accounting records available to the department or auditor general during the grant term and for 3 years after the later of expiration or final payment.

Proprietary financial and accounting data associated with contracts or grants are exempt from Freedom of Information Act disclosure, except as provided in subsection (5).

Beginning October 1, 2015, service contracts exceeding $500,000 annually must require vendors to provide financial, operational, and accounting records related to governmental function performance, which the state agency shall post on its website.

Audits are limited to matters within the scope of individual contracts or grants unless there is separate constitutional or statutory authority for broader audits; nothing limits the auditor general's constitutional or statutory authority.