§ 349.21. Approval of final costs.

 (a)  Audit required. Final project costs shall not be approved until after submission to and audit of project financial records by the Department.

 (b)  Subsidy reduction. The Department will withhold a proportion of the estimated annual or semiannual building amortization subsidy until project financial records are properly submitted, audited, and approved. Following project audit, a final subsidy factor shall be determined and appropriate retroactive adjustments authorized.

 (c)  Changes following bid cost approval. Any change which affects the approved cost of a project or any accounting line item within the approved cost shall be authorized by board action upon a Change Order or a Supplemental Contract. Necessary accounting adjustments shall be properly supported by copies of the Change Order or Supplemental Contract document.

 (d)  Format. The Department will establish, maintain, and distribute an approved Change Order/Supplemental Contract form.

 (e)  Extension of contracts; procedure. A board may, following recorded advice from its solicitor concerning advertising or solicitation of bids, exercise discretion concerning the solicitation of sealed quotations or the extension of an existing contract to authorize a Change Order expenditure. Reference should be made to Hibbs v. Arensberg, 276 Pa. 24 (1923).

 (f)  Supplemental contract. When a proposed change is sufficiently large, or varies from the original plan to such an extent that it can reasonably be considered to be a separate undertaking it shall be processed as a supplemental contract and subject to bid solicitation procedures.



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