RETENTION NOTES: GRANT RECORDS - The 7-year retention period frequently established for records of school districts derives from federal requirements in 34 CFR 75.734, 76.734, and 80.42(a)(1) and (c) governing the retention of financial and programmatic records, including supporting documents, statistical reports, and other records pertinent to program regulations or the grant agreement relating to projects or programs funded by the U.S. Department of Education through sub grants using federal funds from the Texas Education Agency. These requirements are reiterated in the Texas Education Agency's Bulletin 679: Financial Accounting Manual.

Federal regulations require that all records of the types mentioned must be available for audit for 5 years after the date of submission of the single or last expenditure report by the Texas Education Agency as sub grantor, not by the school district. Because final expenditure reports are submitted by the Texas Education Agency after all reports from districts are received, a 7-year retention period for many records of school districts is necessary to satisfy this requirement adequately.

If an audit is pending in which an expenditure or the eligibility of a student to participate in a federal program is questioned, then all records affecting the outcome of the audit must be retained until the audit is settled.

Copies of reports or records submitted to the Texas Education Agency must be retained by school districts in accordance with this schedule.

3550-01 AGENCY FUND ACCOUNTING RECORDS - Any accounts payable; accounts receivable; or ledgers and journals used to document the receipt and expenditure of local agency funds from clearing accounts that are custodial in nature (e.g., student picture accounts). RETENTION: FE + 3 years

RETENTION NOTE: Compare item numbers 1025-26, 1025-27, and 1025-30 in this schedule. The minimum retention period for records of agency funds is an exception to the prevailing FE + 7 years retention period for school district financial records.

3550-03 APPLICATIONS FOR GUARANTY OF SCHOOL BONDS. RETENTION: Until receipt of guaranty documentation.