What is considered to be adequate documentation when funds are paid through an automated clearing house instead of a paper check or draft? Is a "screen shot" of our internal system indicating the vendor name and vendor number, purchase order number, and the amount sufficient support documentation in the event of a HUD Financial Audit?
Date Published: May 2015
HUD, like all other federal agencies is looking at digital documentation. You should work with your Field Office financial staff to determine whether the documentation you have is sufficient to show "proof of payment". However, even if that is determined to be sufficient, you are still required to maintain support documentation such as time sheets (# number of hours, rate of pay and benefits ties to the CDBG activity), invoices / proof of payment (contacts, purchase orders, copies of checks, receipts for work completed or equipment purchased), or completed product (i.e., plan, study, survey). References: 2 CFR Part 225, Appendix B, #8(h)(3) and 24 CFR 570.502(a)(4).