Research Administration Office

University of California

Memo Operating Requirement

No. 86-9

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

Subject Index:

Organization Index:

S-005

Enclosures

David F. Mears

University Contracts and Grants Coordinator

cc:

Materiel Managers

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

Coordinator Mears

Contract and Grant Officer Selufsky

Sponsored Projects Manager Caputo