Retention of Quality Control (QC) Records

The purpose of this policy memo is to notify state agencies of the specific record retention requirements for recent QC review periods. As required by regulations, QC records must be retained for three years following fiscal closure.

For all years prior to Fiscal Year (FY) 2003, fiscal closure was the point when all states with liabilities signed settlement agreements. For those state agencies that pursued appeal through the Administrative Law Judge process, fiscal closure occurred when all judicial actions ceased and decisions rendered at the end of that process were resolved or settlement agreements were signed.

QC Records for the FY 1997 review periods and earlier were previously released and should have been destroyed. At this point in time, the three year period following fiscal closure for all records for the FY 1998, 1999 and 2000 review periods has expired. All records for those years can now be destroyed.

For the FY 2001 and FY 2002 review periods, fiscal closure occurred on Jan. 21, 2005. All state agency records must continue to be maintained for three years following the fiscal closure date. These records may be destroyed after Jan. 22, 2008.

Beginning with the FY 2003 review period, fiscal closure for QC records will be determined on an individual state agency basis. Fiscal closure for all state agencies not incurring a liability amount will be based upon the announcement date of the error rates. Fiscal closure for those state agencies incurring a liability amount will be based upon the signed date of the settlement agreement.

Since no state agency incurred a liability amount for the FY 2003 review period, fiscal closure for all state agencies occurred on June 22, 2004. All state agencies will still need to maintain FY 2003 review period records for the required three years, through June 23, 2007.

For the FY 2004 review period, fiscal closure occurred on June 24, 2005 for all state agencies except the four states that were assessed a liability amount. State agencies not assessed a liability amount must maintain the records through June 25, 2008. The fiscal closure dates for those states with liabilities are:

Idaho-July 21, 2005, Maine-August 25, 2005, Oregon-July 13, 2005, and Rhode Island-July 21, 2005. Records for these state agencies must be maintained as follows: Idaho-July 22, 2008, Maine-August 26, 2008, Oregon-July 14, 2008, and Rhode Island-July 22, 2008. Attached is a table that lays out the information in an easily readable format, including the earliest destruction date per QC review period.

Karen J. Walker
Director
Program Accountability Division