55B - RESO FOR THE LITTLE FARMERS PROJECT

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Exhibit 2 STATE AUDIT AND ACCOUNTING REQUIREMENTS Audit Requirements Projects are subject to audit by the State annually and for three years following the final payment of grant funds. If the project is selected for audit, Grantee will be contacted in advance. The audit shall include all books, papers, accounts, documents, or other records for Grantee as they relate to the project. All project expenditure documentation should be available for an audit, whether paid with grant funds or other funds. Grantee must have project records, including source documents and evidence of payment, readily available and must provide an employee with knowledge of the project to assist the auditor. Grantee must provide a copy of any document, paper, record, etc., requested by the auditor. Further, Grantees must include planning, monitoring, and reporting necessary to ensure successful implementation of the project objectives and have documentation available for State review upon request. Accounting Requirements Grantee must maintain an accounting system that: • Accurately reflects fiscal transactions, with necessary controls and safeguards. • Provides a good audit trail, including original source documents such a purchase orders, receipts, progress payments, invoices, employee paystubs, and time cards, evidence of payment, etc. • Provides accounting data so the total cost of each individual project can be readily determined. Records Retention Records must be retained for a period of three years after final payment is made by the State. Grantee must retain all project records at least one year following an audit. 17 55B-26