(a) Contractors shall annually submit to the CDE Audits and Investigations Division an acceptable annual financial and compliance audit.

(b) All audits shall be performed by:

(c) Non-school district contractors shall submit the audit by the 15th day of the fifth month following the end of the contractor's fiscal year or earlier if specified by the CDE.

(d) The audits for school districts and county offices of education shall be submitted to the State Controller by November 15, or by December 31 if an extension has been approved by the applicable county superintendent of schools.

(e) If, for any reason, the contract is terminated during the contract period, the audit shall cover the period from the beginning of the contract through the date of termination.

(f) Public agencies may have their audits prepared by in-house auditors if the public contractor has internal audit staff that performs auditing functions and meets the tests of independence found in Standards for Audits of Governmental Organization, Programs, Activities, and Functions issued by the Comptroller General of the United States.