Illinois Department of Commerce and Economic Opportunity Grantee Training: Grant Records Retention

Overview

• Topics Covered:
  • Records to retain
  • Record retention time frame
  • Record accessibility
  • Collection and storage of records
  • Consequences of non-compliance

Key Concepts

• Record Retention: Process of deciding what records should be kept, how long to keep them, who will have access, and how they are stored.
• Importance: Ensures compliance with state requirements and tells the complete story of how grant funds were spent.

Types of Documents to Retain

• Financial Documents:
  • Source documents
  • Paid bills
  • Bank statements
  • Cancelled checks
  • Payroll, time, and attendance records
  • Contracts and subrecipient agreements
  • Copies of prior authorization of funds
• Procurement Records:
  • Procurement method rationale
  • Backup documents for contractor selection/rejection
  • Cost analysis
  • Documentation of prior approval if required
• Real Property and Equipment Records:
  • Property description, cost, and source
  • Vendor's name and contact information
  • Ownership documentation
  • Acquisition date
  • Percentage of Grant funds used
• Other Records:
  • Indirect cost rate proposals
  • Subrecipient monitoring documentation
  • Program reports
  • Compliance documentation

Record Retention Time Frame

• General Rule: At least 3 years from the final closeout report submission date.
• Exceptions:
  • Audit, monitoring, claim, or litigation started within that time frame: Records kept until resolution.
  • Real property and equipment: 3 years after disposal.
  • Negotiated indirect cost rates: 3 years from submission date.
  • Non-submission indirect cost rates: 3 years from the end of the fiscal year covered.

Record Accessibility

• Requirement: Allow any agent of the granter access to all records, books, documentation, and relevant personnel.
• Audit Cooperation: Full cooperation with any audit or inquiries.
• Duration: Access rights last as long as records are maintained.

Collection and Storage of Records

• Preferred Method: Electronic (legible scanned copies acceptable).
• Security: Safeguard personally identifiable information (PII).
  • Use password-protected computers,
  • Secure electronic transmission (encryption),
  • Limited access locked filing systems for paper storage.

Consequences of Non-Compliance

• Burden of Proof: Grantee must prove correct spending of grant funds.
• Non-Maintained Records: Could lead to refund of grant money.
• Responsibility: Grantee solely responsible for complete record retention.

Action Items

• Review your Grant agreement for specific requirements.
• Ensure compliance with monitoring and auditing requirements.
• Safeguard all personal identifiable information (PII).
• Contact Grant Manager with any questions.
• Visit DCEO Resource Page for more information:
  • DCEO Resource Page
• Contact: ceo.grel@illinois.gov

Closing

• Thank you for watching this presentation on record retention.
• For further questions, contact via email.