MI HB4701

State agencies must include audit provisions in all service procurement contracts allowing the department or auditor general to verify vendor compliance with contract terms.

Financial and accounting records for service contracts must be made available to the department and auditor general upon request during the contract term and for 3 years after expiration or final payment.

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

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

Audit authority is limited to matters within the scope of individual contracts or grants unless there is a separate constitutional or statutory basis for broader audits.