LEGISLATIVELY-MANDATED CLOSE-OUT AUDIT
A close-out audit will be performed by the Office of the Budget or its representative for all projects. The Applicant will not be required to pay for this audit. A portion of the final grant proceeds shall be retained by the Office of the Budget until the completion of the legislatively-mandated close-out audit. The Commonwealth may withhold up to 10% of the grant value from the last payment request. This percentage may be reduced at the discretion of the Office of the Budget.
Executed Grant Agreements between the Commonwealth and a successful Applicant, who then becomes a Grantee, include requirements as to “records and audits.” Generally, the Grantee, among other things, is required to:
- Maintain books, records, documents, correspondence and evidence pertaining to the costs and expenses to the project funded with the Grant Agreement.
- Retain records for a period ending the late of 1) seven (7) years after final payment is made by the Grantee with funds awarded via the Grant Agreement; 2) seven (7) years after the Grant Agreement has expired; or 3) seven (7) years after the effective date of any termination of the Grant Agreement.
- Provide access to Commonwealth auditors or its representatives during the term of the Grant Agreement and after as specified in the Grant Agreement for record retention.
- Repay to the Commonwealth with interest amounts that were expended on ineligible costs, unless otherwise directed in writing by the Office of the Budget.