(a) Records, including the records identified in section 165(g) of
the Act, shall be retained in accordance with section 165(e) of the Act.
In establishing the time period of record retention requirements for
records of subrecipients, the State may either:
(1) Impose the time limitation requirement of section 165(e) of the
Act; or
(2) Require that subrecipient records for each funding period be
retained for 3 years after the subrecipient submits to the awarding
agency its final expenditure report for that funding period. Records for
nonexpendable property shall be retained for a period of three years
after final disposition of the property.
(b) The Governor shall ensure that the records under this section
shall be retained beyond the prescribed period if any litigation or
audit is begun or if a claim is instituted involving the grant or
agreement covered by the records. In these instances, the Governor shall
ensure that the records shall be retained until the litigation, audit,
or claim has been finally resolved.
(c) In the event of the termination of the relationship with a
subrecipient, the Governor or SDA or title III SSG shall be responsible
for the maintenance and retention of the records of any subrecipient
unable to retain them.
(d) Record storage. Records shall be retained and stored in a manner
which will preserve their integrity and admissibility as evidence in any
audit or other proceeding. The burden of production and authentication
of the records shall be on the custodian of the records.
(e) Federal and awarding agencies' access to records--(1) Records of
recipients and subrecipients. The awarding agency, the Department of
Labor (including the Department of Labor's Office of Inspector General),
and the Comptroller General of the United States, or any of their
authorized representatives, have the right of timely and reasonable
access to any books, documents, papers, computer records, or other
records of recipients and subrecipients that are pertinent to the grant,
in order to conduct audits and examinations, and to make excerpts,
transcripts, and photocopies of such documents. This right also includes
timely and reasonable access to recipient and subrecipient personnel for
the purpose of interview and discussion related to such documents.
(2) Expiration of right of access. The right of access in this
section is not limited to the required retention period but shall last
as long as the records are retained.
