Section 25-11-119.1 - On-site compliance audits of employers by Public Employees' Retirement System; penalties(1)(a) The system may perform on-site compliance audits of employers to determine compliance with reporting, contributions, and certification requirements under this title.(b) The system may request records to be provided by the employer at the time of the audit.(c) Audits shall be conducted at the sole discretion of the system after reasonable notice to the employer of at least five (5) working days.(d) The employer shall extract and provide records as requested by the office in an appropriate, organized and usable format.(e) Failure of an employer to allow access, provide records or comply in any way with an audit by the system under this section shall result in the employer being liable to the system for: (i) Any liabilities and expenses, including administrative expenses and travel expenses, resulting from the employer's failure to comply with the audit; and(ii) A penalty equal to one percent (1%) of the employer's contribution for the month preceding the notification of the audit.(2) If the audit reveals an employer's failure to make contributions as required under Section 25-11-124, a failure to correctly report eligibility as required under Section 25-11-103(s), or a failure to maintain records as required under the rules and regulations of the system, the employer shall reimburse the system for the cost of the audit.(3) The executive director may waive all or any part of the penalties and expenses if the executive director finds there were extenuating circumstances surrounding the employer's failure to comply with this section.