KRS 45A.150: Right to inspect -- Right to audit.

(1) The Finance and Administration Cabinet may inspect the plant or place of business

of a contractor or any subcontractor under any contract awarded or to be awarded by

the Commonwealth.

(2) The Finance and Administration Cabinet may audit the books and recor ds of any

person who has submitted cost or pricing data under KRS 45A.120 at any time until

the period of record retention as set forth in subsection (3) of this section shall have

expired. The right to audit hereunder shall only extend to those books and records

reasonably connected with cost or pricing data submitted under KRS 45A.120, and

such books and records shall be maintained by the contractor or subcontractor for

the period specified in subsection (3) of this section.

(3) The Finance and Administra tion Cabinet shall be entitled to audit the books and

records of a contractor or any subcontractor under any negotiated contract or

subcontract other than a firm fixed -price type contract, provided, however, that this

subsection shall not limit the right t o audit as set forth in subsection (2) of this

section. Such books and records shall be maintained by the contractor for a period

of three (3) years from the date of final payment under the prime contract and by the

subcontractor for a period of three (3) years from the date of final payment under

the subcontract.