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AC 150/5100-10A 4/13/76 the audit was made. On or before January 3 of each year the Comptroller General shall make a report to the Congress describing the results of each audit conducted or reviewed by him under this section during the preceding fiscal year. The Comptroller General shall prescribe such regulations as he may deem necessary to carry out the provisions of this subsection." 4. FINANCIAL MANAGEMENT SYSTEM. Under FAR 152.63(a) and 152.143(e), each sponsor is required to establish and maintain a financial management system that meets the standards of FAR 152, Appendix K. These standards are discussed in Chapter 2. 5. ACCOUNTING RECORDS. To fulfill the statutory and regulatory requirements mentioned in paragraphs 2 and 4, each sponsor is required to establish and maintain, for each individual project, an adequate accounting record which will allow FAA representatives to determine the allowability of all costs incurred for the project. Such records are an integral part of the sponsor's financial management system and are described in Chapter 2. 6. RECORDS RETENTION. a. Documentary Evidence. Each sponsor shall obtain and retain, for a period of three (3) years after the date of the submission of the final expenditure report, documentary evidence such as invoices, cost estimates, payrolls, appraisal reports and negotiation documents relating to land acquisitions, etc., supporting each item of project costs. b. Evidence of Payment. Each sponsor shall retain, for a period of three (3) years after the date of the submission of the final expenditure report, evidence of all payments for items of project costs including vouchers, canceled checks or warrants, and receipts for cash payments. c. Availability of Sponsor's Records. The sponsor shall allow the Administrator and the Comptroller General of the United States, or an authorized representative of either of them, access to any of its books, documents, papers, and records that are pertinent to grants received under the ADAP/PGP program for the purposes of accounting and audit. Appropriate FAA personnel may make progress audits at any time during the project, upon notice to the sponsor. d. Availability of Contractor's Records. The sponsor shall include in each contract of the cost reimbursable type a clause which allows the FAA or the Comptroller General access to the contractor's records for purposes of accounting and audit. e. Unresolved Audit Findings. If audit findings have not been resolved, records shall be retained until such findings have been resolved. Page 2 Chap 1 Par 3 • •