May 1, 1986
Subject: State Audits
Assembly Bill No. 2430, signed by the Governor on September 19, 1985, amends Section 10532 of the Government Code to read, in Section 9:
It is the intent of the Legislature that the Regents of the University of California include in contracts involving the expenditure of state funds in excess of ten thousand dollars ($10,000) a provision stating that the contracting parties shall be subject to the examination and audit of the Auditor General for a period of three years after final payment under the contract.
New sections have also been added dealing with the authority of the Auditor General to issue subpoenas for witnesses and documents. In addition, language has been added to various sections dealing with whistle-blowing. The complete text of the Bill is enclosed (Enclosure A).
Accordingly, a clause which must be included in each Purchase Contract of over $10,000 or more which is issued on State of California funds has been prepared by Materiel Management, Office of the President, and approved by General Counsel. The wording of this clause is set forth in Enclosure B.
Campuses may begin to receive State-funded awards that contain a condition pursuant to Assembly Bill 2430, Section 9. This condition is acceptable to the University and should be implemented as follows:
Where the campus Contracts and Grants Office prepares or executes subagreements under State-funded awards, it is the responsibility of that office to insert the language set forth in Enclosure B in any new subagreement under those awards (provided the amount of the subagreement exceeds $10,000).
Where the campus Materiel Management Office prepares and executes such subagreements, the campus Materiel Manager will be guided by Coordinator Ove's instructions contained in Enclosure B.
Refer: Bill Sellers ATSS 8-582-3045 (415) 642-3045
David F. Mears
University Contracts and Grants Coordinator
Lab Contracts and Grants Officers
Lab Materiel Managers
UNIVERSITY OF CALIFORNIA
March 4, 1986
The following paragraph must be included in each Purchase Contract of $10,000 or more which is issued on State of California funds. This requirement is made necessary by the passage of Assembly Bill 2430 which amended section 10532 of the Government Code to include the University in this requirement.
This order shall be subject to the examination and audit of the Auditor General of the State of California for a period of three years after final payment under this order. The examination and audit shall be confined to those matters connected with the performance of the contract, including, but not limited to, the costs of administering the contract."
Associate Vice President Pastrone
Contract and Grant Officer Selufsky
Sponsored Projects Manager Caputo