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RMP-5, Records Retention Program for Financial Documents Pertaining to Federal Awards to the University - ExhibitsSeptember 15, 1986
FAC 84-12 JANUARY 20, 1986 EXHIBIT A
PART 4-ADMINISTRATIVE MATTERS
SUBPART 4.7-CONTRACTOR RECORDS
RETENTION
4.700 Scope of subpart.
This subpart provides policies and procedures for
retention of records by contractors to meet the records
review requirements of the Government. In this sub-
part, the terms "contracts" and "contractors" include
"subcontracts" and "subcontractors."
4.701 Purpose.
The purpose of this subpart is to generally describe
records retention requirements and to allow reductions
in the retention period for specific classes of records
under prescribed circumstances.
4.702 Applicability.
(a) This subpart applies to records generated under
contracts that contain one of the following clauses:.
(1) Examination of Records by Comptroller Gen-
eral (52.215-1).
(2) Audit-Sealed Bidding (52.214-26).
(3) Audit-Negotiation (52.215-2.
(b) This subpart is not mandatory on Department of
Energy contracts for which the Comptroller General
allows alternative records retention periods. Apart
from this exception, this subpart applies to record re-
tention periods under contracts that are subject to
Chapter 137, Title 10, U.S.C., and the Federal Property
and Administrative Services Act of 1949, as amended,
40 U.S.C. 471 et seq.
4.703 Policy.
(a) Except as stated in 4.703(b), contractors shall
make available books, records, documents, and other
supporting evidence to satisfy contract negotiation, ad-
ministration, and audit requirements of the contracting
agencies and the Comptroller General for (1) 3 years
after final payment or, for certain records, (2) the
period specified in 4.705 and 4.704, whichever of these
periods expires first.
(b) Contractors shall make available the foregoing
documents and supporting evidence for a longer period
of time than is required in 4.703(a) if-
(1) A retention period longer than that cited in
4.703(a) is specified in any contract clause; or
(2) The contractor, for its own purposes, retains
the foregoing documents and supporting evidence for
a longer period. Under this circumstance, the reten-
tion period shall be the period of the contractor's
retention or 3 years after final payment, whichever
period expires first.
(c) Contractors need not retain duplicate copies of
records or supporting documents unless they contain
significant information not shown on the record copy.
(d) Contractors need not retain intermediate data
records consisting of punched cards, electronic tape, or
comparable media if printouts or listings are prepared
and maintained. The printouts or listings must show the
details of the transactions charged or allocated to indi-
vidual Government contracts and must identify the
supporting source documents.
4.704 Calculation of retention periods.
(a) The retention periods in 4.705 are calculated from
the end of the contractor's fiscal year in which an
entry is made charging or allocating a cost to a Gov-
ernment contract or subcontract. If a specific record
contains a series of entries, the retention period is cal-
culated from the end of the contractor's fiscal year in
which the final entry is made. The contractor should
cut off the records in annual blocks and retain them for
block disposal under the prescribed retention periods.
(b) When records generated during a prior contract
are relied upon by a contractor for cost or pricing data
in negotiating a succeeding contract, the prescribed
periods shall run from the date of the succeeding con-
tract.
(c) If two or more of the record categories described
in 4.705 are interfiled and screening for disposal is not
practical, the contractor shall retain the entire record
series for the longest period prescribed for any catego-
ry of records.
4.705 Specific retention periods.
The contractor shall retain the records identified in
4.705-1 through 4.705-3 for the periods designated, pro-
vided retention is required under 4.702. Records are
identified in this subpart in terms of their purpose or
use and not by specific name or form number. Al-
though the descriptive identifications may not conform
to normal contractor usage or filing practices, these
identifications apply to all contractor records that come
within the description.
4.705-1 Financial and cost accounting records.
(a) Accounts receivable invoices, adjustments to the
accounts, invoice registers, carrier freight bills, ship-
ping orders, and other documents which detail the ma-
terial or services billed on the related invoices: Retain 4
years.
(b) Material, work order, or service order files, con-
sisting of purchase requisitions or purchase orders for
material or services, or orders for transfer of material
or supplies: Retain 4 years.
(c) Cash advance recapitulations, prepared as posting
entries to accounts receivable ledgers for amounts of
expense vouchers prepared for employees' travel
related expenses: Retain 4 years.
(d) Paid, canceled, and voided checks, other than,
those issued for the payment of salary and wages,
Retain 4 years.
(e) Accounts payable records to support disburse-
ments of funds for materials, equipment, supplies, and
services, containing originals or copies of the following
and related documents: remittance advices and state-
ments, vendors' invoices, invoice audits and distribution
slips, receiving and inspection reports or comparable
certifications of receipt and inspection of material or
services, and debit and credit memoranda: Retain 4
years.
(f) Labor cost distribution cards or equivalent docu-
ments: Retain 2 years.
(g) Petty cash records showing description of ex-
penditures, to whom paid, name of person authorizing
payment, and date, including copies of vouchers and
other supporting documents: Retain 2 years.
4.705-2 Pay administration records.
(a) Payroll sheets, registers, or their equivalent, of
salaries and wages paid to individual employees for
each payroll period; change slips; and tax withholding
statements: Retain 4 years.
(b) Clock cards or other time and attendance cards:
Retain 2 years.
(c) Paid checks, receipts for wages paid in cash, or
other evidence of payments for services rendered by
employees: Retain 2 years.
4.705-3 Acquisition and supply records.
(a) Store requisitions for materials, supplies, equip-
ment, and services: Retain 2 years.
(b) Work orders for maintenance and other services:
Retain 4 years.
(c) Equipment records, consisting of equipment usage
and status reports and equipment repair orders: Retain
4 years.
(d) Expendable property records, reflecting account-
ability for the receipt and use of material in the per-
formance of a contract: Retain 4 years.
(e) Receiving and inspection report records, consist-
ing of reports reflecting receipt and inspection of sup-
plies, equipment, and materials: Retain 4 years.
(f) Purchase order files for supplies, equipment,
material, or services used in the performance of a contract;
supporting documentation and backup files including,
but not limited to, invoices, and memoranda; e.g.,
memoranda of negotiations showing the principal
elements of subcontract price negotiations (see 52.244-1
and 52.244-2): Retain 4 years.
(g) Production records of quality control, reliability,
and inspection: Retain 4 years.
4.706 Microfilming records.
4.706-1 General.
(a) Contractors may use microfilm (e.g., film chips,
jackets, aperture cards, microprints, roll film, and
microfiche) for recordkeeping, subject to the limitations
in this subpart.
(b) In the process of microfilming documents, the
contractor shall also microfilm all relevant notes,
worksheets, and other papers necessary for reconstructing or
understanding the records.
(c) The contractor shall review all microfilm before
destroying the hard-copy documents to ensure legibility
and reproducibility of the microfilm.
(d) Unless earlier retirement of records is permitted
by 4.705, or the administrative contracting officer
agrees to a lesser retention period when the contractor
has established adequate internal controls including
continuing surveillance over the microfilm system, the
contractor shall not destroy original records that have
been microfilmed, until-
(1) All claims under the contract are settled;
(2) Eighteen months have passed since final pay-
ment; or
(3) The time original records are required to be
kept by other laws or regulations has elapsed.
4.706-2 Filing and retrieval.
The contractor shall-
(a) Maintain an effective indexing system to permit
timely and convenient access to the microfilmed
records by the Government;
(b) Provide strict security measures to prevent the
loss of microfilm and to safeguard classified informa-
tion;
(c) Store microfilm in a fireproof cabinet in an envi-
ronment ensuring the safety of these records for the
specified retention periods; and
(d) Have adequate viewing equipment and provide
printouts the approximate size of the original material.
4.706-3 Quality control
(a) Microfilm, when displayed on a microfilm reader
(viewer) or reproduced on paper, must exhibit a high
degree of legibility and readability.
(b) The quality of the contractor's record microfilm-
ing process is subject to periodic review by the admin-
istrative contracting officer.
EXHIBIT B
PART 1-20 RETENTION REQUIREMENTS FOR
CONTRACTOR AND SUBCONTRACTOR
RECORDS
1-20.102-3
1-20.000 Scope of part.
This part 1-20 provides policies and
procedures for the maintenance of records
retained by contractors and subcontractors
pursuant to specified contractual
clauses included in contracts and
subcontracts to satisfy certain statutory and
administrative records review requirements
of the Government.
Subpart 1-20.2 - Purpose and
Applicability
1-20.101 Purpose
The provisions of this Part 1-20 are
designed to relieve the burden of excessive
records retention requirements on
contractors and subcontractors while at
the same time ensuring that the records
review requirements of the Comptroller
General of the United States and those
of contracting agencies are fully met.
1-20.102 Applicability
1-20.102.1 General
This Part 1-20 applies to negotiated
contracts, and to formally advertised
contracts expected to exceed $100,000
which may entail certain changes or
other modifications in excess of $100,000
(see 1-3.814-2(b)), entered into on or
after April 28, 1969, which contain
records retention requirements set forth
in the contractual clauses included in
contracts and subcontractors as prescribed
by the provisions of the Federal Procurement
Regulations described and enumerated in 1-20.201(a).
1-20.102-2 Exemption of Atomic Energy
Commission contracts.
The requirements of this Part 1-20 are
not mandatory on the Atomic Energy
Commission.
1-20.102-3 Application to contracts
entered into prior to April 28, 1969.
Contractors and subcontractors may
follow the provisions of this Part 1-20
with respect to contracts and subcontracts
entered into prior to April 28, 1969,
in complying with any of the following
contractual clauses: (a) General
Accounting Office records examination
clauses pursuant to 41 U.S.C. 254(c) and
(b) records examination clauses relating
to cost and pricing data pursuant to
1-3.814-2.
FEDERAL PROCUREMENT REGULATIONS
(SECOND EDITION, FPR AMENDMENT 55, APRIL 1969) 2001
EXHIBIT B
Subpart 1-20.2 - General Provisions
1-20.201 General retention requirements.
(a) Contractors and subcontractors
are required to retain and make available
books, records, documents, and other
supporting evidence to satisfy contract
negotiations, administration, and audit
requirements of the contracting agency
and the Comptroller General of the
United States as set forth in the contract
clauses prescribed under 1-3.814-2, 1-
7.103-3, 1-7.103-18, 1-7.603-20, and 1-7.-
603-7.
(b) These contract clauses prior to
April 28, 1969, require contractors and
subcontractors to retain the records
identified therein and make them available
to the Comptroller General of the
United States or the contracting officer,
respectively, or their representatives,
until the expiration of 3 years after
final payment under the contract or subcontract.
As revised effective April 28,
1969, the clauses also provide that certain
of these records, enumerated under
1-20.301, need only be retained until
the expiration of the applicable records
retention period authorized by this Part
1-20, if such period expires earlier than
3 years after final payment under the
contract or subcontract.
(c) Section 1-20.301 identifies specific
records and designates retention periods
for each. These retention periods may be
applied by contractors and subcontractors
in complying with the general
records retention requirements of 1-
20.201 if longer retention periods are not
otherwise required (see 1-20.202).
1-20.202 Other record retention
requirements.
(a) Compliance with the records
retention requirements of the contract
clauses set forth in the sections cited in
1-20.201 does not relieve a contractor
or subcontractor from retaining any
records for whatever longer periods may
be required by any other clause of the
contract or subcontract, or by other
applicable statute or lawful requirement.
(For example, contract clauses and
related regulations issued by the Department
of Labor require contractors and
subcontractors to retain certain records
for a stated period, such as 29 CFR
1516.3.)
(b) In this regard, contractors and
subcontractors may find helpful the
"Guide to Retention Requirements" published
annually in the FEDERAL REGISTER
and codified in CFR, Appendix A. This
is a guide in digest form to the provisions
of Federal laws and regulations relating
to the keeping of records by the public.
It tells the user what records must be
kept, who must keep them, and how long
they must be kept. The guide does not
have the effect of law, but is published
to point out our legal requirements that
appear to be in effect as of January 1 of
the calendar year.
1-20.203 Disposition of records after
retention period.
At the conclusion of the applicable
time period for which any records must
be retained, destruction or other disposition
of the records is at the discretion of
the contractor or subcontractor, and
requires no authorization from the contracting
agency. However, nothing in this
Part 1-20 shall be construed as:
(a) Authorizing the destruction or
other disposition of any records where,
for any reason, the Comptroller General
of the United States, the contracting
officer, or their representative, requests
the contractor or subcontractor to retain
the records for a longer period than
would otherwise be required: or
(b) Requiring the contractor or
subcontractor to destroy or make other
disposition of any records he may desire to
retain for his own purposes (for example,
in connection with submitting to the
Government claims or requests for
adjustments).
1-20.204 Costs of certain retentions
under cost-reimbursement contracts.
With respect to cost-reimbursement
type contracts, reimbursement for costs
incurred by the contractor in retaining
for his own purposes any records beyond
an applicable time period desig-
nated in this Part 1-20 shall be governed
by the appropriate cost principles
set forth in Part 1-15.
FEDERAL PROCUREMENT REGULATIONS
(SECOND EDITION, FPR AMENDMENT 163, MAY 1976) 2003
EXHIBIT B
PART 1-20 RETENTION REQUIREMENTS FOR
CONTRACTOR AND SUBCONTRACTOR
RECORDS
1-20.205
1-20.205 Examination of records in
special situations.
Where the contractor or subcontractor
retains any records identified in 1-
20.301 beyond the retention periods
applicable thereto (a) because of other
records retention requirements, or (b) at
the request of the Comptroller General
of the United States, the contracting
officer, or their representatives, or (c) for
his own purposes, such records shall be
available for examination by the Comptroller
General of the United States or
the contracting officer, respectively, or
their representatives, for the extended
period of retention up to the expiration
of 3 years after final payment under
the contract or subcontract.
1-20.206 Identification of records.
Records are identified in this Part
1-20 primarily in terms or their purpose
or use, and not by specific name or form
number. The descriptive identifications
may or may not conform to contractor or
subcontractor usage or individual filing
practices. Nevertheless, these
identifications apply to all records kept by the
contractor or subcontractor which come
within the description.
1-20.207 Interfiled records.
If two or more or the records categories
described in 1-20.201 are interfiled and
screening for disposal is not practical,
the contractor or subcontractor shall retain
the entire record series for the
longest period prescribed for any category
of records filed within the series.
1-20.208 Calculation of records retention periods.
(a) The prescribed retention periods
for the records described in 1-20.201
shall be calculated from the end of the
contractor's or subcontractor's fiscal year
in which an entry is made charging or
allocating a cost to a Government contractor
or a subcontract thereunder. Where
there is a series of such entries involving
a specific record, the retention period
shall be calculated from the end of the
contractor's or subcontractor's fiscal year
in which the final entry is made. To apply
these retention periods, the contractor or
subcontractor should cut off the
records in annual blocks and retain them
for block disposal in accordance with the
prescribed retention periods under the
related contract or subcontract.
(b) An exception to the foregoing
starting time for the retention periods
shall be made where records generated
during a prior contract are relied upon
by a contractor for cost and pricing data
in negotiation of a succeeding contract;
here the 2- and 4-year periods shall run
from the date of the succeeding contract.
1-20.209 Duplicate copies of records
and intermediate data.
(a) Duplicate copies of records or
supporting documents need not be retained.
However, if a duplicate copy contains
significant information not shown on
the record copy maintained by the contractor
or subcontractor, it shall be retained
as if it were the record copy.
(b) Intermediate data records
consisting of punched cards, electronic tape,
or comparable media need not be retained
if printouts or listings are prepared
and maintained showing the details
of the transactions charged or allocated
to individual Government contracts
and identifying the supporting
source documents.
FEDERAL PROCUREMENT REGULATIONS
(SECOND EDITION, FPR AMENDMENT 55, APRIL 1969) 2004
EXHIBIT B
SUBPART 1-20.3 RETENTION REQUIREMENTS
1-20.301-3(G)
Subpart 1-20.3 - Retention
Requirements
1-20.301 Retention periods.
The records listed in this Subpart 1-
20.3 shall be retained by contractors and
subcontractors for the periods designated,
provided retention is required under
1-20.201. The designated retention
periods shall be calculated as shown in
1-20.207 and 1-20.208.
1-20.301-1 Financial and cost accounting records.
(a) Accounts receivable invoices,
adjustments to the accounts, invoice
registers, carrier freight bills, shipping
orders, or other documents which detail
the material or services billed on the
related invoices: Retain 4 years.
(b) Material, work order, or service
order files, consisting of purchase
requisitions or purchase orders for material
or services, or orders for transfer of
material or supplies: Retain 4 years.
(c) Cash advance recapitulations,
prepared as posting entries to accounts
receivable ledgers for amounts of expense
vouchers prepared for employees' travel
and related expenses: Retain 4 years.
(d) Paid, canceled, and voided checks,
other than those issued for the payment
of salary and wages: Retain 4 years.
(e) Accounts payable records to
support disbursements of funds for materials,
equipment, supplies, and services,
containing originals or copies of the
following and related documents;
remittance advices and statements, vendors'
invoices, invoice audits and distribution
slips, receiving and inspection reports or
comparable certifications of receipt and
inspection of material or services, and
debit and credit memoranda: Retain 4
years.
(f) Labor cost distribution cards or
equivalent documents: Retain 2 years.
(g) Petty cash records showing
description of expenditures, to whom paid,
name of person authorizing payment, and
date, including copies of vouchers and
other supporting documents: Retain 2
years.
1-20.301-3 Procurement and records.
(a) Payroll sheets, registers, or their
equivalent, of salaries and wages paid to
individual employees for each payroll
period: change slips; and tax withholding
statements: Retain 4 years.
(b) Clock cards or other time and
attendance cards: Retain 2 years.
(c) Paid checks, receipts for wages
paid in cash, or other evidence of payments
for services rendered by employees:
Retain 2 years.
1-20.301-3 Procurement and supply
records.
(a) Stores requisitions for materials,
supplies, equipment, and services: Retain
2 years.
(b) Work orders for maintenance and
other services: Retain 4 years.
(c) Equipment records, consisting of
equipment utilization and status reports
and equipment repair orders: Retain 4
years.
(d) Expendable property records:
reflecting accountability for the receipt
and use of material in the performance
of a contract: Retain 4 years.
(e) Receiving and inspection reports
records, consisting of reports reflecting
receipt and inspection of supplies, equipment,
and materials: Retain 4 years.
(f) Purchase order files for supplies,
equipment, materials, or services, to be
used in the performance of a contract
or subcontract: Retain 4 years.
(g) Production records of quality
control, reliability, and inspection: Retain 4
years.
(END OF PART)
FEDERAL PROCUREMENT REGULATIONS
(SECOND EDITION, FPR AMENDMENT 55, APRIL 1969) 2005
EXHIBIT C
1 JULY 1976
M:1
APPENDIX M
RECORDS RETENTION REQUIREMENTS
Part I - General
M-101 General.
(a) Contractors and Subcontractors are required to retain and make
available books, records, documents, and other supporting evidence required
to satisfy contract negotiation, administration, and audit requirements of
the Department of Defense and the Comptroller General of the United States.
These requirements are prescribed by contract clauses.
(b) The general record retention requirements of these contract clause
are subject to the exceptions set forth in this Appendix. The Appendix
identifies these exceptions and prescribes specific retention periods for
them.
(1) Records are identified herein primarily in terms of their purpose
or use and not by specific name or form number. The descriptive
identifications may or may not conform to contractor usage or individual
filing practices; but they are to apply to all records kept by the
contractor which come within the description, regardless of contractor
designations of such records. If two or more of the record categories
described are interfiled and screening for disposal is not practical, the
contractor or the subcontractor shall retain the entire record series for
the longest period prescribed for any of the records.
(2) The prescribed retention periods for the records described in
M-201 shall be calculated from the end of the contractor's fiscal year in
which an entry is made charging or allocating a cost to a Government contract.
Where there is a series of such entries involving a specific record, the
retention period or that record shall be calculated from the end of the
contractor's fiscal year in which the final entry is made. To apply these
retention periods, contractor or subcontractor should cut off the records in
annual blocks and retain for block disposal in accordance with the
prescribed retention periods under the related contract or
subcontract. An exception to the foregoing starting time for the retention
period shall occur where records generated during a prior contract are
relied upon by a contractor for cost and pricing data in negotiation of a
succeeding contract, and the two- and four-year periods will run for those
records from the date of the succeeding contract.
(c) The provision in this Appendix shall not be construed as exempting
the contractor from compliance, with any applicable statute or other lawful
requirement for the retention of records for longer periods than prescribed
herein. If the contractor should retain records described in M-201 for
longer periods because of justifiable purposes, such records shall be subject
to the right of the Comptroller General to have access to and to examine
within the statutory periods provided in the contract clause.
M-102 Retroactive Application. The prescribed retention periods set forth
in this Appendix are applicable to all contractual record retention
provisions in existence at the date of adoption of this Appendix.
DEFENSE ACQUISITION REGULATION (DAR)
EXHIBIT C
1 JULY 1976 M:3
RECORDS RETENTION REQUIREMENTS
Part 2-Retention Requirements
M-201 Retention Periods. Contractors and subcontractors shall retain
the records described in the contract or subcontract records causes, and
shall make them available to the Comptroller General of the United States,
the Contracting Officer, or their authorized representatives,(i) until
expiration of three years after final payment or, for certain records, for
the period specified in this paragraph M-201, whichever expires earlier, and
(ii) for whatever longer period, if any, is specified in the general
requirements of the applicable contract or subcontract records clause.
M-201.1 Financial and Cost Accounting Records. Retain for the
following periods, calculated as provided in M-101(b)(2):
(i) accounts receivable invoices, adjustments to the accounts,
invoice registers, shipping orders, carrier freight bills, or
other documents which detail the material or services billed on
the related invoices-RETAIN 4 YEARS.
(ii) material, work order, or service order files, consisting of
purchase requisitions or purchase orders for material or
services, or orders for transfer of material or supplies-RETAIN
4 YEARS.
(iii) cash advance recaps, prepared as posting entries to accounts
receivable ledgers for amounts of expense vouchers prepared for
employees' travel and related expenses-RETAIN 4 YEARS.
(iv) paid, canceled, and voided checks, other than those issued for
the payment of salary and wages-RETAIN 4 YEARS.
(v) accounts payable records to support disbursements of funds for
materials, equipment, supplies, and services, containing
originals or copies of the following and related documents:
remittance advices and statements, vendors' invoices, invoice
audits and distribution slips, receiving and inspection reports
or comparable certifications of receipt and inspection of
material or services, and debit and credit memoranda-RETAIN 4
YEARS.
(vi) labor cost distribution cards or equivalent
documentation-RETAIN 2 YEARS
(vii) petty cash records showing description of expenditures, to
whom paid, name of person authorizing payment, and date,
including copies of vouchers and other supporting
documents-RETAIN 2 YEARS.
M-201.2 Pay Administration Records. Retain for the following periods,
calculated as provided in M-101(b)(2):
(i) payroll sheets, registers, or their equivalent, of salaries and
wages paid to individual employees for each payroll period;
change slips; and tax withholding statements-RETAIN 4 YEARS.
(ii) clock cards or other time and attendance cards-RETAIN 2
YEARS.
(iii) paid checks, receipts for wages paid in cash, or other evidence
of payments for services rendered by employees-RETAIN 2 YEARS.
DEFENSE ACQUISITION REGULATION (DAR)
EXHIBIT C
M:4
1 JULY 1976
RECORDS RETENTION REQUIREMENTS
M-201.3 Procurement and Supplies Records. Retain for the following
periods, calculated as provided in M-101 (b)(2):
(i) stores requisitions for materials, supplies, equipment, and
services-RETAIN 2 YEARS.
(ii) work orders for maintenance and other services-RETAIN 4
YEARS
(iii) equipment records, consisting of equipment utilization and
status reports and equipment repair orders-RETAIN 4 YEARS.
(iv) expendable property records, reflecting accountability for the
receipt and use of material in the performance of a
contract-RETAIN 4 YEARS.
(v) receiving and inspection report records, consisting of reports
reflecting receipt and inspection of supplies, equipment, and
material-RETAIN 4 YEARS.
(vi) purchase order files for supplies, equipment, material, or
services, to be used in the performance of a contract or
subcontract-and supporting documentation and backup files
including but not limited to invoices, memoranda, etc., (e.g.,
memoranda of negotiations setting forth the principal elements
of subcontract price negotiations (see 7-104.23(a), 7-203.8(a),
and 7-402.8(a).)-RETAIN 4 YEARS.
(vii) production records of quality control, reliability, and
inspection-RETAIN 4 YEARS.
M-202 Nonapplicabilty of Retention Requirements. The retention periods
in M-201 are not applicable to extra copies of documents or intermediate
data records. These may be disposed as follows:
(a) Those duplicate copies of documents which are not required for
Government purposes may be destroyed at any time, provided such
copies do not contain significant information not shown on the
retained record copies.
(b) Intermediate data records consisting of punched cards, electronic
tape or comparable media may be disposed of if printouts or listen
are prepared and maintained showing the details of the transactions
charged or allocated to individual Government contracts and
identifying the supporting source documents.
DEFENSE ACQUISITION REGULATION (DAR)
EXHIBIT C
DAC #76-18 12 MAR. 1979 M:5
RECORDS RETENTION REQUIREMENT
Part 3-Microfilming of Records
M-301 General. Contractors and subcontractors may elect to use
microfilm for recordkeeping subject to the constraints contained in this
Part. Film chips, jackets, aperture cards, microprints, roll film and
microfiche are forms of microfilm available for permanent recordkeeping.
M-302 Microfilm Requirements.
(a) All microfilm shall be reviewed by the contractor prior to the
destruction of the hard copy documents to assure legibility, reproducibility
and readability of the microfilm. Contractor documents frequently contain
notes, worksheets and other papers which are helpful in reconstructing or
understanding past transactions. In the process of microfilming these
documents, all relevant notes, worksheets and other papers shall also be
microfilmed to preserve the rationale for the actions taken. Equipment
shall also be available to provide "hard copy" reproductions of any of the
forms of microfilm used.
(b) The quality of the contractor's record microfilming process is
subject to periodic review by the Administrative Contracting Officer.
(c) Unless earlier retirement of records is permitted under M-201,
original records which have been microfilmed shall not be destroyed prior to
(i) 18 months after final payment of the contract, (ii) all claims under the
contract being settled, and (iii) the time original records are required to
be kept by other laws or regulations. Under (i) above, the ACO, with advice
of OCAA, may agree to a lesser retention period where the contractor
has established adequate internal controls including continuing surveillance
over the microfilm system.
M-303 Filing and Retrievability. The contractor shall maintain an
effective indexing system which will permit timely and convenient
accessibility to the records by the Government. All systems used shall
provide for strict security measures to preclude the loss of microfilm and
the safeguarding of classified information. Since images on microfilm
cannot be read by the unaided eye, adequate viewing equipment is essential.
The contractor shall have a printout capability that will provide "hard
copy" printouts enlarged to the approximate size of the original
photographed material. Microfilm shall be stored in a fireproof cabinet in
an environment which ensures the safety of these records through the
retention periods specified in M, Part 2.
M-304 Legibility and Readability. Microfilm when displayed
on a microfilm reader (viewer) or reproduced on paper
must exhibit a high degree of legibility and readability. For
this purpose, legibility is defined as the quality of a letter
or numeral which enables the observer to positively and quickly
identify it to the exclusion of all other letters or numerals.
Readability is defined as the quality of a group of letters or
numerals of being recognizable as words or whole numbers.
DEFENSE ACQUISITION REGULATION (DAR)
EXHIBIT D
32016
NOTICES
OFFICE OF MANAGEMENT AND
BUDGET
[Circular No.A-110]
GRANTS AND AGREEMENTS WITH
INSTITUTIONS OF HIGHER EDUCATION,
HOSPITALS, AND OTHER NONPROFIT
ORGANIZATIONS
Uniform Administrative Requirements
JULY 1, 1976.
To the heads of executive departments
and establishments.
Subject: Uniform administrative
requirements for grants and other
agreements with institutions of higher
education, hospitals, and other nonprofit
organizations.
1. Purpose. This Circular promulgates
standards for obtaining consistency
and uniformity among Federal agencies
in the administration of grants to,
and other agreements with public and
private institutions of higher education,
public and private hospitals, and other
quasi-public and private nonprofit
organizations. This Circular does not apply
to grants, contracts, or other agreements
between the Federal Government and
units of State or local governments
covered by Federal Management
Circular 74-7.
2. Effective date.-The standards in
the attachments to this Circular will be
applied as soon as practicable but not
later than January 1, 1977.
3. Supersession.-This Circular
rescinds and replaces parts III and IV of
the Appendix to Federal Management
Circular 73-7. Administration of college
and university research grants.
4. Policy intent.-The uniform standards
and requirements included in the
attachments to this Circular replace the
varying and often conflicting requirements
that have been imposed by Federal agencies
as conditions of grants and
other agreements with recipients.
5. Applicability and scope.-Except as
provided below, the standards promulgated
by this Circular are applicable to
all Federal agencies. If any statue expressly
prescribes policies or specific
requirements that differ from the standards
provided herein, the provisions of
the statute shall govern.
The provisions of the attachments of
this Circular shall be applied to subrecipients
performing substantive work
under grants that are passed through or
awarded by the primary recipient if such
subrecipients are organizations described
in paragraph 1.
6. Definitions.
a. The term "grant" means money or
property provided in lieu of money paid
or furnished by the Federal Government
to recipients under programs that
provide financial assistance or that provide
support or stimulation to accomplish a
public purpose. The term "other agreements"
does not include contracts which
are required to be entered into and
administered under procurement laws and
regulations. Grants and other agreements
exclude (a) technical assistance
programs, which provide services instead
of money, (b) assistance in the form of
general revenue sharing, loans, loan
guarantees, or insurance and (c) direct
payments of any kind to individuals.
b. The term "recipient" includes the
following types of nonprofit organizations
that are receiving Federal funds
from a Federal agency or through a
State or local government:
Public and private institutions of higher
education; public and private hospitals;
and other quasi-public and private
nonprofit organizations such as (but
not limited to) community action agencies,
research institutes, educational
associations, and health centers.
The term does not include foreign or
international organizations (such as
agencies of the United Nations) and
Government-owned contractor operated
facilities or research centers providing
continued support for mission-oriented,
large scale programs that are
Government-owned or controlled, or are
designed as federally-funded research and
development centers.
7. Requests for exceptions.-The Office
of Management and Budget may grant
exceptions from the requirements of this
Circular when exceptions are not
prohibited under existing laws.
However, in the interest of maximum
uniformity, exceptions from the
requirements of the Circular will be
permitted only in unusual cases. Agencies
may apply more restrictive requirements
to a class of recipients when approved by
the Office of Management and Budget.
8. Attachments.-The standards
promulgated by this Circular are set forth
in the Attachments, which are:
Attachment A Cash depositories.
Attachment B Bonding and insurance.
Attachment C Retention and custodial requirements for records.
Attachment D Program income.
Attachment E Cost sharing and matching.
Attachment F Standards for financial management systems.
Attachment G Financial reporting requirements.
Attachment H Monitoring and reporting program performance.
Attachment I Payment requirements.
Attachment J Revision of financial plans.
Attachment K Close-out procedures.
Attachment L Suspension and termination procedures.
Attachment M Standard form for applying for federal assistance.
Attachment N Property management standards.
Attachment O Procurement standards.
9. Exceptions for certain recipients.
Notwithstanding the provisions of paragraph
7 if an applicant/recipient has a
history of poor performance, is not
financially stable, or its management
system does not meet the standards
prescribed in the Circular, Federal agencies
may impose additional requirements as
needed provided that such applicant/
recipient is notified in writing as to:
a. Why the additional standards are
being imposed;
b. What corrective action is needed.
Copies of such notifications shall be
sent to the Office of Management and
Budget and other agencies funding that
recipient at the same time the recipient
is notified.
10. Responsibilities.-Agencies responsible
for administering programs that involve
grants and other agreements with
recipients shall issue the appropriate
regulations necessary to implement the
provisions of this Circular. All portions
of such regulations that involve
recordkeeping and/or reporting requirements
subject to the provisions of the Federal
Reports Act and OMB Circular A-40
must be submitted to OMB for clearance
before being introduced into use. Upon
request all regulations and instructions
implementing this Circular shall be
furnished to the Office of Management
and Budget. Agencies shall also designate
an official to serve as the agency
representative on matters relating to the
implementation of this Circular. The
name and title of such representative
shall be furnished to the Office of
Management and Budget not later than
August 30, 1976.
11. Inquiries.-Further information
concerning this Circular may be obtained
by contracting the Financial Management
Branch, Budget Review Division,
Office of Management and Budget,
Washington, D.C. 20503, telephone 395-
3993.
James T. Lynn,
Director
ATTACHMENT A.- CIRCULAR No. A-110
CASH DEPOSITORIES
1. This attachment sets forth standards
governing the use of banks and other
institutions as depositories of funds advanced
under grants and other agreements.
2. Except for situations described in
paragraphs 3, 4, and 5, no Federal sponsoring
agency shall:
a. Require physical segregation of cash
depositories for funds which are provided to a
recipient.
b. Establish any eligibility requirements
for cash depositories for funds which are
provided to a recipient.
3. A separate bank account shall be require
when applicable letter-of-credit agreements
provide that drawdowns will be made when
the recipient's checks are presented to the
bank for payment.
4. Any moneys advanced to a recipient
which are subject to the control or regulation
of the United States or any of its officers,
agents or employees' (public moneys as
defined in Treasury Circular No. 176, as
amended) must be deposited in a bank with
Federal Deposit Insurance Corporation
(FDIC) insurance coverage and the balance
exceeding the FDIC coverage must be
collaterally secured.
5. Consistent with the national goal of
expanding the opportunities for minority
business enterprises, recipients and
subrecipients shall be encouraged to use
minority banks ( a bank which is owned at least 50
percent by minority group members).
ATTACHMENT B.-CIRCULAR No. A-110
BONDING AND INSURANCE
1.This attachment sets forth boding and
insurance requirements for grants and other
agreements with recipients. No other bonding
and insurance requirements shall be imposed
other than those normally required by
the recipient.
2. Except as otherwise required by law, a
grant or other agreement that requires the
contracting ( or subcontracting ) for
construction or facility improvements shall
provide for the recipient to follow its own
requirements relating to bid guarantees,
performance bonds, and payment bonds unless
the construction contract or subcontract
exceeds $100,000. For those contracts or
subcontracts exceeding $100,000, the Federal
agency may accept the bonding policy and
requirements of the grantee provided the
Federal agency has made a determination
that the Government's interest is adequately
protected. If such a determination has not
been made, the minimum requirements shall
be as follows:
a. A bid guarantee from each bidder
equivalent to five percent of the bid price.
The "bid guarantee" shall consist of a firm
commitment such as a bid bond, certified
check, or other negotiable instrument
accompanying a bid as assurance that the
bidder will, upon acceptance of his bid, execute
such contractual documents as may be
required within the time specified.
b. A performance bond on the part of the
contractor for 100 percent of the contract
price.-A "performance bond" is one executed
in connection with a contract to secure
fulfillment of all the contractor's obligations
under such contract.
c. A payment bond on the part of the
contractor for 100 percent of the contract
price.-A "payment bond" is one executed in
connection with a contract to assure payment
as required by law of all persons supplying
labor and material in the execution of
the work provided for in the contract.
3. Where the Federal Government guarantees
or insures the repayment of money
borrowed by the recipient, the Federal
agency, at its discretion, may require adequate
bonding and insurance if the bonding
and insurance requirements of the recipient
are not deemed adequate to protect the
interest of the Federal Government.
4. The Federal sponsoring agency may
require adequate fidelity bond coverage where
the recipient has no coverage and the bond is
needed to protect the Government's interest.
5. Where bonds are required in the situations
described above, the bonds shall be obtained
from companies holding certificates of
authority as acceptable sureties ( 31 CPR
223 ).
ATTACHMENT C.-CIRCULAR No. A-110
RETENTION AND CUSTODIAL REQUIREMENTS FOR
RECORDS
1. This attachment sets forth record
retention requirements for grants and other
agreements with recipients. Federal sponsoring
agencies shall not impose any record retention
requirements upon recipients other than
those described below.
2. Except for paragraph 1, this attachment
also applies to subrecipients as referred to
in paragraph 5 of the basic circular.
3. Financial records, supporting documents,
statistical records, and all other records
pertinent to an agreement shall be retained for a
period of three years, with the following
qualifications:
a. If any litigation, claim or audit is started
before the expiration of the 3-year period, the
records shall be retained until all litigations,
claims, or audit findings involving the records
have been resolved.
b. Records for nonexpendable property acquired
with Federal funds shall be retained
for 3 years after its final disposition.
c. When records are transferred to or
maintained by the Federal sponsoring agency, the
3-year retention requirement is not applicable
to the recipient.
4. The retention period starts from the
date of the submission of the final expenditure
report or, for grants and other agreements
that are renewed annually, from the
date of the submission of the annual
financial status report.
5. Recipient organizations should be
authorized by the Federal sponsoring agency,
if they so desire, to substitute microfilm
copies in lieu of original records.
6. The Federal sponsoring agency shall
request transfer of certain records to its
custody from recipient organizations when it
determines that the records possess
long-term retention value. However, in order to
avoid duplicate record-keeping, a Federal
sponsoring agency may make arrangements
with recipient organizations to retain any
records that are continuously needed for
joint use.
7. The head of the Federal sponsoring agency
and the Comptroller General of the United
States, or any of their duly authorized
representatives, shall have access to any pertinent
books, documents, papers, and records of the
recipient organization and their subrecipients
to make audits, examinations, excerpts and transcripts.
8. Unless otherwise required by law, no
Federal sponsoring agency shall place
restrictions on recipient organizations that will
limit public access to the records of recipient
organizations that are pertinent to a grant
or agreement except when the agency can
demonstrate that such records must be kept
confidential and would have been excepted
from disclosure pursuant to the Freedom of
Information Act ( 5 U.S.C. 552 ) if the records
had belonged to the Federal sponsoring
agency.
ATTACHMENT D.-CIRCULAR No. A-110
PROGRAM INCOME
1. Federal sponsoring agencies shall apply
the standards set forth in this attachment in
requiring recipient organizations to account
for program income related to projects
financed in whole or in part with Federal
funds. Program income represents gross
income earned by the recipient from the
federally supported activities. Such earnings
exclude interest earned on advances and may
include, but will not be limited to, income
from service fees, sale of commodities, usage
or rental fees, and royalties on patents and
copyrights.
2. Interest earned on advances of Federal
funds shall be remitted to the Federal agency
except for interest earned on advances to
States or instrumentalities of a State as
provided by the Intergovernmental Cooperation
Act of 1968 (Public Law 90-577).
3. Proceeds from the sale of real and
personal property either provided by the
Federal Government or purchased in whole or in
part with Federal funds, shall be handled in
accordance with Attachment N to this
circular pertaining to property management.
4. Unless the agreement provides otherwise,
recipients shall have no obligation to
the Federal Government with respect to
royalties received as a result of copyrights or
patents produced under the grant or other
agreements (see paragraph 8, Attachment N).
5. All other program income earned during
the project period shall be retained by the
recipient and, in accordance with the grant
or other agreement, shall be:
a. Added to funds committed to the project
by the Federal sponsoring agency and
recipient organization and be used to further
eligible program objectives;
b. Used to finance the non-Federal share
of the project when approved by the Federal
sponsoring agency; or
c. Deducted from the total project costs
in determining the net costs on which the
Federal share of costs will be based.
ATTACHMENT E.-CIRCULAR No. A-110
COST SHARING AND MATCHING
1. This attachment sets forth criteria and
procedures for the allowability of cash and
in-kind contributions made by recipients or
subrecipients (as referred to in paragraph 5
of the basic circular), or third parties in
satisfying cost sharing and matching
requirements of Federal sponsoring agencies. This
attachment also establishes criteria for the
evaluation of in-kind contributions made by
third parties, and supplements the guidance
set forth in Federal Management Circular
73-3 with respect to cost sharing on
federally-sponsored research.
2. The following definitions apply for the
purpose of this attachment:
a. Project costs.-Project costs are all
allowable costs (as set forth in the applicable
Federal cost principles) incurred by a recipient
and the value of the in-kind contributions
made by the recipient or third parties
in accomplishing the objectives of the grant
or other agreement during the project or
program period.
b. Cost sharing and matching.-In general,
cost sharing and matching represent that
portion of project or program costs not borne
by the Federal Government.
c. Cash contributions.-Cash contributions
represent the recipient's cash outlay,
including the outlay of money contributed to the
recipient by non-Federal third parties.
d. In-kind contributions.-In-kind
contributions represent the value of noncash
contributions provided by the recipient and
non-Federal third parties. Only when
authorized by Federal legislation may property
purchased with Federal funds be considered
as the recipient's in-kind contributions.
In-kind contributions may be in the form of
charges for real property and non-expandable
personal property, and the value of
goods and services directly benefiting and
specifically identifiable to the project or
program.
3. General guidelines for computing cost
sharing or matching are as follows:
a. Cost sharing or matching may consist
of:
(1) Charges incurred by the recipient as
project costs. (Not all charges require cash
outlays by the recipient during the project
period; examples are depreciation and use
charges for buildings and equipment.)
(2) Project costs financed with cash
contributed or donated to the recipient by other
non-Federal public agencies and institutions,
and private organizations and individuals,
and
(3) Project costs represented by services
and real and personal property, or use
thereof, donated by other non-Federal public
agencies and institutions, and private
organizations and individuals.
b. All contributions, both cash and
in-kind, shall be accepted as part of the
recipient's cost sharing and matching when such
contributions meet all of the following
criteria:
(1) Are verifiable from the recipient's
records:
(2) Are not included as contributions for
any other federally-assisted program:
(3) Are necessary and reasonable for proper
and efficient accomplishment of project
objectives:
(4) Are types of charges that would be
allowable under the applicable cost principles:
(5) Are not paid by the Federal
Government under another assistance agreement
(unless the agreement is authorized by
Federal law to be used for cost sharing or
matching):
(6) Are provided for in the approved budget
when required by the Federal agency: and
(7) Conform to other provisions of this
attachment.
4. Values for recipient in-kind contributions
will be established in accordance with
the applicable cost principles.
5. Specific procedures for the recipients in
establishing the value of in-kind contribu-
FEDERAL REGISTER, VOL 41, NO. 148 - FRIDAY, JULY 30, 1976
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