1. (a) A grantee and a subcontractor of a grantee under 13 AAC 95.220 shall retain grant and subcontract records, including records of the receipt and disposition of grant income, for a period of three years, with the following qualifications:

   1. (1) the grantee or the subcontractor shall retain the records as long as an audit is in progress or as long as audit findings, litigation, or claims involving the records are pending;
   2. (2) the grantee or the subcontractor shall retain records for non-expandable personal property of the grant project for three years after the final disposition of, or appropriate reimbursement for, that property to the state; and
   3. (3) the retention period for each year's records begins at the date of submission to the council of the grantee's or subcontractor's annual or final financial status report or its equivalent.
2. (b) The provisions of (a) of this section do not apply to records transferred to or maintained by the council. The council will, in its discretion, request a transfer of the records described in (a) of this section to the custody of the council at any time during the retention period established in (a) of this section if the council determines that the records possess long-term retention value. The council will make arrangements with the grantee to retain records that are continually needed for joint access.

(Eff. 6/25/88, Register 106)

Authority: AS 18.66.050