1. (1) (a) Contract auditors shall be compensated for completed tax compliance audits based on professional staff hours incurred to complete the audit, multiplied by an hourly rate. As established by the revisions to Section 213.28, F.S., the hourly rate for a subject certified public accounting firm will be based on the fee proposal submitted by the firm. Professional fees will be based on a single blended hourly rate multiplied by the actual professional staff hours incurred, up to each contract limit. The single blended hourly rate for a subject C.P.A. firm is that firm’s submitted fee proposal.
2. (b) Contract auditors will be reimbursed for travel expenses at the rate provided under Chapter 112, F.S., and as approved by the Contract Manager.

3. (c) The Department will award the contracted C.P.A. firm, for each tax compliance audit satisfactorily completed, an incentive payment if the firm is eligible for such payment:

   1. The incentive payment is not guaranteed. The decision to award an incentive payment will be made solely by the Department.

   2. The Department will perform a calculation to determine if an incentive payment will be awarded. The calculation will be performed after the subject invoice is approved by the Contract Manager.

   3. The calculation will consist of determining the difference, if any, between total billed professional staff hours and the adjusted total audit hours budget. The Department reserves the right to adjust, as specified in Rule 12-25.0056, F.A.C., the total audit hours budget for the purpose of the incentive calculation. If the total billed professional staff hours for the subject audit are equal to or greater than the adjusted total audit hours budget, then the provider is not eligible for an incentive payment.

   4. The amount of an awarded incentive payment will be calculated by multiplying the single blended hourly rate by 50 percent of the calculated excess of the adjusted total audit hours budget over total billed professional staff hours.

4. (2) Private brokers shall be eligible for compensation based on the negotiated rate established through the competitive bidding process. Private brokers shall be entitled to bill the Department for payment for facilitating the securing of contract auditors at such time as the services of the contract auditor are contractually acquired by the Department.
5. (3) Contracts for auditing services which exceed $50,000 in professional fees must be approved by the Governor and Cabinet.
6. (4) Nothing in this rule chapter shall be construed to authorize any compensation of contract auditors or private brokers which is contingent on the amount assessed, the liability revealed, or the refund denied.

Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, 10-30-96, Technical Change 6-9-26.