Maintaining Audit-Ready Documentation

Being "audit-ready" means you can produce documentation for any transaction at any time. This guide covers how to maintain that state.

Core Documentation Requirements

For Every Transaction

Keep these for each expense:

• Invoice or receipt - What was purchased
• Proof of payment - Check copy, bank record
• Approval documentation - Who authorized it
• Allocation rationale - Why charged to this grant

For Every Grant

Maintain a complete grant file:

• Award letter/agreement - Original terms
• Budget - Approved and modifications
• Correspondence - Funder communications
• Reports - Submitted reports and acknowledgments
• Modifications - Budget changes, extensions

For Your Organization

Policy documentation:

• Accounting policies - How you handle transactions
• Allocation methodology - Cost allocation procedures
• Internal controls - Approval thresholds, segregation of duties
• Personnel policies - Time tracking, payroll procedures

Document Retention Periods

Follow these minimums:

Document Type	Retention Period
Grant files	7 years after close
Financial records	7 years
Tax returns	7 years
Personnel files	7 years after separation
Board minutes	Permanent
Corporate records	Permanent

Note: Some funders require longer retention. Always check.

Organization Systems

Physical Files

If you maintain paper files:

• One folder per grant
• Consistent organization
• Clear labeling
• Secure storage

Digital Files

Recommended structure:

Grants/
├── [Funder Name]/
│   └── [Grant Name - Year]/
│       ├── Award Documents/
│       ├── Budget/
│       ├── Correspondence/
│       ├── Reports/
│       └── Supporting Documents/

GrantLink Integration

GrantLink stores:

• All allocation details
• Complete audit trail
• Synced transaction data
• Generated reports

Export regularly for backup.

Documentation Best Practices

At Transaction Time

1. Scan receipts immediately - Paper fades and gets lost
2. Add notes - Explain unusual items
3. Attach to the record - Link to QuickBooks or GrantLink
4. Verify approval - Document who authorized

Monthly

1. Reconcile accounts - Bank and grant balances
2. Review open items - Clear outstanding issues
3. File loose documents - Don't let piles accumulate
4. Backup digital files - Protect against loss

At Grant End

1. Complete all allocations - No pending items
2. Generate final reports - Document spending
3. Organize the file - Ready for audit or archive
4. Document close-out - Funder communications

Common Documentation Gaps

Watch for:

• Missing receipts - Implement policies early
• Verbal approvals - Document in writing
• Allocation explanations - Note the rationale
• Time records - Essential for personnel costs
• Modification approvals - Get them in writing

Using GrantLink for Documentation

Attach Files

Add supporting documents:

1. Open a transaction
2. Click Attachments
3. Upload the file
4. Add description

Add Notes

Document context:

1. Open a transaction or grant
2. Click Add Note
3. Enter details
4. Save

Export for Backup

Regular exports:

1. Go to Reports
2. Select date range
3. Include all data types
4. Download and store securely

Best Practices Summary

1. Document as you go - Don't play catch-up
2. Be consistent - Use the same system every time
3. Make it accessible - Others may need to find things
4. Protect the records - Secure and back up
5. Train staff - Everyone follows the same procedures