1. (a) Grantees must maintain all financial records, supporting documents, statistical records, and all other records pertinent to the award for at least three years following the closure of the most recent audit report or submission of the final expenditure if the audit report requirement has been waived. Records retention is required for the purposes of federal or state examination and audit. Grantees may retain records in an electronic format. All records are subject to audit or monitoring during the entire retention period.
2. (b) Grantees must retain records for equipment, non-expendable personal property, and real property for a period of three years from the date of the item's disposition, replacement, or transfer.
3. (c) If any litigation, claim, or audit is started before the expiration of the three-year records retention period, the grantee must retain the records under review until the completion of the action and resolution of all issues which arise from it or until the end of the regular three-year period, whichever is later.

Source Note:The provisions of this §3.2505 adopted to be effective February 24, 2000, 25 TexReg 1297; amended to be effective December 16, 2002, 27 TexReg 11729.