§ 20202. Audits.

(a) All contracts entered into with the Department shall be subject to audit.

(b) Prior to the conclusion of an audit or examination of a contractor, by or on behalf of the Department, the contractor shall be provided with:

(1) Information concerning the audit findings, the reasons for those findings, and the evidence on which those findings are based.

The contractor shall be allowed 30 calendar days after receipt of the above information in which to provide evidence to the auditor regarding misinterpretation of policies, regulations, or statutes; or errors in the audit process which were made and which impact theaudit results. The auditor shall consider such additional information in preparing the audit or examination report.

(2) A list of any specific instances in which no records or inadequate records were found to substantiate claims billed to the contract.

Within 30 calendar days of the date the list identified above is received by the contractor, the contractor shall make available to the Department any records which were identified as unavailable for review or missing in order to have those records considered in the audit or examination report. Records provided pursuant to this subsection shall be considered by the auditor in preparing the audit or examination report.

HISTORY

1.New section filed 5-31-89; operative 6-30-89 (Register 89, No. 23).

2. Change without regulatory effect of subsection (b)(2) pursuant to Section 100, Title 1, California Code of Regulations filed 2-20-90 (Register 90, No. 11).

Note

Note: Authority cited: Sections 208 and 38036, Health and Safety Code. Reference: Sections 11180 and 11181, Government Code; Section 38041, Health and Safety Code; and Stipulated Judgment in Planned Parenthood v. Department of Health Services, Sacramento Superior Court, No. 328490.