§ 66.43
(c) Starting date of retention period—{1)
General. When grant support is contin-
ued or renewed at annual or other in-
tervals, the retention period for the
records of each funding period starts on
the day the grantee or subgrantee sub-
mits to the awarding agency its single
or last expenditure report for that pe-
riod. However, if grant support is con-
tinued or renewed quarterly, the reten-
tion period for each year’s records
starts on the day the grantee submits
its expenditure report for the last quar-
ter of the Federal fiscal year. In all
other cases, the retention period starts
on the day the grantee submits its
final expenditure report. If an expendi-
ture report has been walved, the reten-
tion period starts on the day the report
would have been due.
(2) Real property and equipment
records. The retention period for real
property and equipment records starts
from the date of the disposition or re-
placement or transfer at the direction
of the awarding agency.
- (8) Records for income transactions
after grant or subgrant support. In some
cases grantees must report income
after the period of grant support.
Where there is such a requirement, the
retention period for the records per-
taining to the earning of the income
starts from the end of the grantee’s fis~
cal year in which the income is earned.
(4) Indirect cost rate proposals, cost al-
locations plans, etc. This paragraph ap-
plies to the following types of docu-
ments, and their supporting records:
indirect cost rate computations or pro-
posals, cost allocation plans, and any
similar accounting computations of
the rate at which a particular group of
costs is chargeable (such as computer
usage chargeback rates or composite
fringe benefit rates).
(i) If submitted for negotiation. If the
proposal, plan, or other computation is
required to be submitted to the Federal
Government (or to the grantee) to form
the basis for negotiation of the rate,
then the 3-year retention period for its
supporting records starts from the date
of such submission.
(ii) If not submitted for negotiation. If
the proposal, plan, or other computa-
tion is not required to be submitted to
the Federal Government (or to the
grantee) for negotiation purposes, then
28 CFR Ch, | (7-1-10 Edition)
the 3-year retention period for the pro-
posal plan, or computation and its sup-
porting records starts from end of the
fiscal year (or other accounting period)
covered by the proposal, plan, or other
computation.
(d) Substitution of microfilm. Copies
made by microfilming, photocopying,
or similar methods may be substituted
for the original records.
(e) Access to records—(1) Records of
grantees and subgrantees. The awarding
agency and the Comptroller General of
the United States, or any of their au-
thorized representatives, shall have the
right of access to any pertinent books,
documents, papers, or other records of
grantees and subgrantees which are
pertinent to the grant, in order to
make audits, examinations, excerpts,
and transcripts.
(2) Expiration of right of access. The
rights of access in this section must
not be limited to the required reten-
tion period but shall last as long as the
records are retained.
(f) Restrictions on public access. The
Federal Freedom of Information Act (5
U.S.C. 552) does not apply to records
Unless required by Federal, State, or
local law, grantees and subgrantees are
not required to permit public access to
their records.
§66.43 Enforcement.
(a) Remedies for noncompliance. If a
grantee or subgrantee materially fails
to comply with any term of an award,
whether stated in a Federal statute or
regulation, an assurance, in a State
plan or application, a notice of award.
or elsewhere, the awarding agency may
take one or more of the following ac-
tions, as appropriate in the cir-
cumstances:
(1) Temporarily withhold cash pay-
ments pending correction of the defi-
ciency by the grantee or subgrantee or
more severe enforcement action by the
awarding agency,
(2) Disallow (that is, deny both use of
funds and matching credit for) all or
part of the cost of the activity or ac-
tion not in compliance,
(3) Wholly or partly suspend or ter-
minate the current award for the
grantee's or subgrantee’s program,
(4) Withhold further awards for the
program, or
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