[Code of Federal Regulations] [Title 42, Volume 3] [Revised as of October 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 42CFR457.226] [Page 376] TITLE 42--PUBLIC HEALTH CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED) PART 457_ALLOTMENTS AND GRANTS TO STATES--Table of Contents Subpart B_General Administration_Reviews and Audits; Withholding for Failure to Comply; Deferral and Disallowance of Claims; Reduction of Federal Medical Payments Sec. 457.226 Fiscal policies and accountability. A State plan must provide that the SCHIP agency and, where applicable, local agencies administering the plan will-- (a) Maintain an accounting system and supporting fiscal records to assure that claims for Federal funds are in accord with applicable Federal requirements; (b) Retain records for 3 years from date of submission of a final expenditure report; (c) Retain records beyond the 3-year period if audit findings have not been resolved; and (d) Retain records for nonexpendable property acquired under a Federal grant for 3 years from the date of final disposition of that property.