[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR74.53]

[Page 125-126]
 
                           TITLE 34--EDUCATION
 
PART 74_ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 
 
                    Subpart C_Post-Award Requirements
 
Sec. 74.53  Retention and access requirements for records.

    (a) This section establishes requirements for record retention and 
access to records for awards to recipients. The Secretary does not 
impose any other record retention or access requirements upon 
recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report or, for awards that are renewed quarterly or 
annually, from the date of the submission of the quarterly or annual 
financial report, as authorized by the Secretary. The only exceptions 
are the following:
    (1) If any litigation, claim, or audit is started before the 
expiration of the 3-year period, the records shall be retained until all 
litigation, claims, or audit findings involving the records have been 
resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by the Secretary, 
the 3-year retention requirement is not applicable to the recipient.
    (4) Indirect cost rate proposals, cost allocations plans, etc. as 
specified in Sec. 74.53(g).
    (c) Copies of original records may be substituted for the original 
records if authorized by the Secretary.
    (d) The Secretary requests transfer of certain records to its 
custody from recipients when it determines that the records possess long 
term retention value. However, in order to avoid duplicate 
recordkeeping, the Secretary may make arrangements for recipients to 
retain any records that are continuously needed for joint use.
    (e) The Secretary, the Inspector General, Comptroller General of the 
United States, or any of their duly authorized representatives, have the 
right of timely and unrestricted access to any books, documents, papers, 
or other records of recipients that are pertinent to the awards, in 
order to make audits, examinations, excerpts, transcripts,

[[Page 126]]

and copies of documents. This right also includes timely and reasonable 
access to a recipient's personnel for the purpose of interview and 
discussion related to these documents. The rights of access in this 
paragraph are not limited to the required retention period, but shall 
last as long as records are retained.
    (f) Unless required by statute, the Secretary does not place 
restrictions on recipients that limit public access to the records of 
recipients that are pertinent to an award, except when the Secretary can 
demonstrate that the records must be kept confidential and would have 
been exempted from disclosure pursuant to the Freedom of Information Act 
(5 U.S.C. 552) if the records had belonged to ED.
    (g) The starting date for retention of the following types of 
documents (including supporting records) is specified in paragraphs 
(g)(1) and (2) of this section: indirect cost rate computations or 
proposals; 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).
    (1) If submitted for negotiation. If the recipient submits to the 
Secretary or the subrecipient submits to the recipient the proposal, 
plan, or other computation to form the basis for negotiation of the 
rate, then the 3-year retention period for its supporting records starts 
on the date of submission.
    (2) If not submitted for negotiation. If the recipient is not 
required to submit to the Secretary or the subrecipient is not required 
to submit to the recipient the proposal, plan, or other computation for 
negotiation purposes, then the 3-year retention period for the proposal, 
plan, or other computation and its supporting records starts at the end 
of the fiscal year (or other accounting period) covered by the proposal, 
plan, or other computation.

(Approved by the Office of Management and Budget under control number 
1880-0513)

(Authority: 20 U.S.C. 1221e-3 and 3474; OMB Circular A-110)

[59 FR 34724, July 6, 1994, as amended at 60 FR 6660, Feb. 3, 1995; 60 
FR 46493, Sept. 6, 1995]

                       Termination and Enforcement