§ 473.11. Audit and recordkeeping requirements.
(a) General.
(1) A sponsor receiving an aviation development grant shall keep records as the Department may prescribe, including records which fully disclose the amount and the disposition by the sponsor of the proceeds, the total cost of the plan or program in connection with which the aviation development grant is given or used and the amount and nature of that portion of the cost of the plan or program supplied by other sources and records as will facilitate effective audit.
(2) The Department will have access, for the purpose of audit and examination, to books, documents, papers and records of the sponsor that are pertinent to an aviation development grant received under this chapter. This includes progress audits during the project.
(3) A sponsor is required to establish and maintain an adequate accounting record for an individual project, which will allow the Department to determine the allowability of costs incurred for the project.
(4) A sponsor shall maintain effective control over and accountability for all funds, property and other assets. Sponsors shall adequately safeguard assets and shall assure that they are used solely for authorized purposes.
(5) A sponsor shall establish procedures to minimize the time elapsing between the transfer of funds from the Department and the disbursement by the sponsor whenever funds are advanced by the Department. If this elapsed time exceeds the standards of this chapter, the Department may require the return of interest earned on payments made.
(6) The sponsor shall include in a contract related to a project funded by an aviation development grant, a clause which allows the Department access to the sponsor’s records for purposes of accounting and audit.
(b) Retention of records.
(1) A sponsor shall retain, for a period of 3 years after the date of the submission of the final Department payment, documentary evidence such as invoices, cost estimates, appraisal reports and negotiation documents relating to an item of project cost. These documents shall include, but are not limited to, vendor’s invoices, applicable purchasing orders, receiving reports, inventory records, method of pricing, returns, production cost reports, weight tickets, physical inventories production cost accounts, final inspection report showing acceptance of the airport development performed under the project and a record of disposition or correction of unsatisfactory work.
(2) A sponsor shall retain, for a period of 3 years after the date of the submission of the final Department payment, evidence of payments for items of project costs including, but not limited to, vouchers, cancelled checks or warrants and receipts for cash payments.
(3) If audit findings have not been resolved, records shall be retained until the findings have been resolved.
Source The provisions of this § 473.11 adopted October 3, 1986, effective October 4, 1986, 16 Pa.B. 3693; readopted July 20, 1990, effective July 21, 1990, 20 Pa.B. 3982. Immediately preceding text appears at serial pages (113684) to (113685).
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