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. Open Reports
2. Ask the AI assistant for the dataset and date range you want
3. Download the generated export
4. Store backup files 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

How GrantLink supports this today

GrantLink helps by organizing QBO-backed allocations, budget lines, fund receipts, funding shares, documents, report outputs, and activity history. It supports audit preparation, but it does not replace funder guidance, accounting policy, or professional review.