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Supporting Documentation Resource

This Guidance includes requirements for supporting documentation and examples of supporting documentation.  Agencies should use this guidance to assist them in compliance with the requirements for supporting documentation, understanding their role for their supporting documentation, and monitoring compliance with supporting documentation by their subrecipients.

Requirements for Supporting Documentation

Supporting Documentation is the foundation used to support accounting and cost records. The documentation should provide the means to verify proper segregation of spending between various Federal awards and non-Federal expenditures. This point is central to making sure funds are obligated and spent as they were intended by the Federal award. The extent of the documentation required is affected by the size and complexity of the organization or governmental unit, and the existing control mechanisms. The type of the documentation needed depends on the nature of the goods delivered or services performed.

Uniform Guidance

 The Uniform Guidance includes two sections on the requirements for supporting documentation as follows:
§200.403 Factors affecting allowability of costs - §200.403(g) requires that to qualify as an allowable cost under Federal awards, the cost must be adequately documented.
§200.302 Financial Management - §200.302(b)(3) requires that the financial management system must provide records that adequately identify the source and application of funds for federally-funded activities.  These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income, and interest and be supported by source documentation.

Examples of Supporting Documentation

  1. General ledger and subsidiary ledgers used to account for (a) the processes leading to federal award (b) the receipt of federal award payments and (c) the disbursements from such payments to meet eligible expenses;
  2. Evidence of risk assessments conducted for both the recipient and all subrecipients;
  3. Budget records for the period of performance and evidence as to whether the cost was budgeted before or after the inception of the federal award. If before additional notation describing how the use of that budget item is substantially different than what was intended as well as how it was allowable;
  4. Provide written approval and specific description of administrative task(s) performed by contractor/individual and how related to the activities prescribed in the federal award;
  5. Evidence that the expense was obligated (incurred) as prescribed in the federal award;
  6. Payroll register including name of person paid, payroll period covered, number of hours or % of time the employee spent on related duties, pay rate, and total amount paid. Documentation (which will probably be  separate from the payroll register) showing the number of hours or % of time the employee spent on  related duties, what those duties were, and justification on how such duties were related. NOTE: For Davis-Bacon Act wage requirements, typical documentation to support allocation of labor time to be provided by the Contractor includes timesheets, work orders, and approved schedules. Evidence of payment such as canceled checks or direct deposit notices need to demonstrate weekly pay;
  7. Agreements, contracts and subcontracts entered into using for administration payments and all documents related to such contracts;
  8. All documentation of reports, audits, and other monitoring of recipients and subrecipients, contractors and subcontractors;
  9. All documentation supporting performance measures and outcomes based on grant agreements, contracts and subcontracts;
  10. All internal and external email/electronic communications related to payments, training, and all other relevant activities/discussions related to the program;
  11. All investigative files and inquiry reports involving programmatic funding.