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Citations: (R)676.19 AsOfDate: 12/31/95

Fiscal procedures and records. (a) Fiscal Procedures. (1) In administering its FSEOG program, an institution shall establish and maintain an internal control system of checks and balances that insures that no office can both authorize payments and disburse funds to students. (2) An institution shall maintain funds received under this part in accordance with the requirements in Sec. 668.164. (b) Records and reporting. (1) An institution shall establish and maintain on a current basis financial records that reflect all program transactions. The institution shall establish and maintain general ledger control accounts and related subsidiary accounts that identify each program transaction and separate those transactions from all other institutional financial activity. (2) The institution shall also establish and maintain program and fiscal records that-(i) Are reconciled at least monthly; (ii) Identify each student's account and status; (iii) Show the eligibility of each student aided under the program; and (iv) Show how the need was met for each student. (3) The institution shall maintain on file all FSEOG applications for those students it reports on the Fiscal Operations Report and Application to Participate in the Federal Perkins Loan, FSEOG, and FWS Programs (FISAP). (4) The institution shall maintain all records supporting its application for funds under this part. (5) Each year an institution shall submit a Fiscal Operation Report plus other information the Secretary requires. The institution shall insure that the information reported is accurate and shall submit it on the form and at the time specified by the Secretary. (c) Retention of records. (1) Records. Each institution shall keep intact and accessible records of the application, the receipt, and the expenditure of Federal funds, including all accounting records and original and supporting documents necessary to document how the funds are spent. *(2) Period of retention. Except for audit questions, an institution shall keep records for an award year for five years after it submits its FISAP for that year. *(3) An institution may keep the records required in this section on microforms, optical disk, other comparable imaging technology, or in computer format. If an institution keeps its records in computer format, it shall maintain, in either hard copy, microforms, optical disk, or other comparable imaging technology, the source documents supporting the computer input.

*(4) Audit questions. An institution shall keep records on any claim or expenditure questioned by Federal audit or program review until any audit questions are resolved. (Authority: 20 U.S.C. 1070b, 1094, and 1232f) (Approved by OMB under control number 1840-0535) Note: (a)(2) amended December 1, 1994, effective July 1, 1995. (c)(3) amended December 1, 1995, effective July 1, 1996.