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• <br />• <br />4/13/76 AC 150/5100-10A <br />CHAPTER 1. GENERAL <br />1. PURPOSE. This advisory circular sets forth detailed explanations of <br />requirements for financial management systems, accounting records, and/or <br />data necessary to support payments to sponsors under the Airport Develop- <br />ment Aid Program (ADAP) and the Planning Grant program (PGP). <br />2. RECORDKEEPING REQUIREMENTS. <br />a. Sponsor's Assurance. Section 18 of the Airport and Airway Development <br />Act of 1970, as amended, (hereinafter referred to as the Act) states <br />that as a condition precedent to his approval of an airport develop- <br />ment project, the Secretary of Transportation shall receive assurance <br />in writing that: <br />":... (7) all project accounts and records will be kept in <br />accordance with a standard system of accounting prescribed <br />by the Secretary after consultation with appropriate public <br />agencies; •..." <br />b. Access to Records. Regarding ADAP and PGP grants, Section 26(a) of <br />the Act provides as follows: <br />".... RECORDKEEPING REQUIREMENTS. --Each recipient of a grant <br />under this part shall keep such records as the Secretary may <br />prescribe, including records which fully disclose the amount <br />and the -disposition by the recipient of the proceeds of the <br />grant, the total cost of the plan or program in connection <br />with which the grant is given or used, and the amount and <br />nature of that portion of the cost of the plan or program <br />supplied by other sources, and such records as will facilitate <br />effective audit." <br />3. AUDIT REQUIREMENTS. Audit requirements relating to ADAP/PGP grants are <br />stated in Sections 26(b) and (c) of the Act as follows: <br />Chap 1 <br />Par 1 <br />"(b) AUDIT AND EXAMINATION. --The Secretary and the Comptroller <br />General of the United States, or any of their duly authorized <br />representatives, shall have access for the purpose of audit <br />and examination to any books, documents, papers, and records <br />of the recipient that are pertinent to grants received under <br />this part. <br />"(c) AUDIT REPORTS. --In any case in which an independent audit <br />is made of accounts of a recipient of a grant under this part <br />relating to the disposition of the proceeds of such grant or <br />relating to the plan or program in connection with which the grant <br />was given or used, the recipient shall file a certified copy of <br />such audit with the Comptroller General of the United States not <br />later than six months following the close of the fiscal year for which <br />Page 1 <br />