Certified Texas Contract Manager Practice Exam

What is the minimum retention period for records pertaining to fiscal audits?

1. 3 years

2. 7 years

3. 5 years

4. Indefinite

The correct answer is: 7 years

The minimum retention period for records pertaining to fiscal audits is determined by various regulatory guidelines and best practices in record management. A period of four years is established as the standard duration. This timeframe aligns with the requirements set forth by federal grant management rules, as well as several state regulations that govern accountabilities related to financial activities. During this retention period, agencies are expected to maintain adequate documentation to ensure transparency and compliance with financial transactions, allowing for audits if necessary. Although some records may need to be retained for longer or even indefinitely based on specific regulations or historical value, the standard period of four years provides a solid foundation for fiscal accountability without imposing excessive archival burdens. This duration helps ensure that records are available for review and verification following the completion of audits, as discrepancies or issues often require a review of several years of data to ensure an accurate understanding of the financial activities in question.