All consultant contracts entered into by state agencies are required to be on file with the Office of State Auditor.
SDCL 1-24A-1. Consulting contracts filed with state auditor -- Time. A copy of all consulting contracts entered into by a state agency with a non-governmental party shall be filed by the agency with the state auditor within five days after such contract is entered into and finally approved by the contracting parties.
SDCL 1-24A-2. "State agency" defined. The term "state agency," as used in § 1-24A-1, means any association, authority, board, commission, committee, council, department, division, office, officer, task force, or other agent of the state vested with the authority to exercise any portion of the state's sovereignty.
SDCL 1-24A-3. "Consulting contract" defined. The term "consulting contract," as used in § 1-24A-1, means a written contract or written agreement for consulting services to the state paid out of contractual services accounts as defined by the state accounting manual, in effect as of January 1, 1980.
SDCL 5-18D-26. Order by state auditor to stop letting or execution of improper contract. The state auditor is authorized to stop the letting or the execution of any contract with the state, or with any state officer, commission, board, institution, or agency by serving a written notice of such order, stating the grounds on which he has determined that such contract is illegal, unauthorized, or improper, on the officer, commission, or board involved, the secretary of state, the attorney general, and on the contractor, if any.
SDCL 5-18D-27. Appeal of state auditor stop order. From any order or decision of the state auditor stopping execution of any contract obligation of the state, any person aggrieved or interested may appeal to the State Board of Finance at any time within twenty days after the stop order was filed with either the attorney general, the secretary of state, the state treasurer, or the department involved by serving notice of appeal on the state auditor and the Governor. The notice shall state the decision being appealed and shall ask for a hearing on the appeal. Upon receiving the notice, the Governor shall call a meeting of the State Board of Finance. The board shall consider the appeal, make a decision, enter the decision in the journal, and give notice to the appellant and the department involved. Any order of the Board of Finance as expressed in the board's decision is binding upon the state department, institution, agency, or office involved and shall be carried out accordingly.
For more information contact: Robert A. Swanson