Section 22-B9813. AUDITS

 

9813.1At reasonable times and places, the Hospital may audit the books and records of any contractor, subcontractor, prospective contractor, or prospective subcontractor which are related to any contract with the Hospital when one of the following circumstances exist:

 

(a)A question as to the adequacy of accounting policies or cost systems;

 

(b)A substantial change in the methods or levels of operation;

 

(c)Previous unfavorable experience indicating doubtful reliability of estimating, accounting, or purchasing methods;

 

(d)A lack of cost experience due to the procurement of a new supply or service; or

 

(e)Other evidence that an audit is in the Hospital’s best interest as determined by the CO.

 

9813.2Where the CO requires an audit of a Hospital contractor, the Hospital shall procure the services of an independent certified public accountant (“CPA”) firm or use the services of its internal audit staff to perform an audit or audit review. The audit or audit review shall be conducted in accordance with generally accepted accounting principles, and include such tests as are necessary to render an opinion on the fairness of the contractor’s financial presentation.

 

9813.3Books or records shall be maintained by a contractor or subcontractor for a period of three (3) years from date of final payment.

 

source

Final Rulemaking published at 41 DCR 4508, 4563 (July 8, 1994).