Group 3: For physical inventory documentation, including counts, adjustments, and reconciliation results, how long shall they be retained?

• A. 10 years
• B. 2 years
• C. 5 years
• D. 7 years

Answer: (A)

Retaining physical inventory documentation creates a durable audit trail that ties together counts, adjustments, and reconciliation results. These records establish accountability for on-hand assets, support accurate financial reporting, and enable traceability across asset lifecycles and organizational changes. Ten years is the period specified because it provides sufficient time to address audits, investigations, and any disputes that may arise long after the initial inventory, while still being a clear, defined retention span in the Navy’s property accountability practices. Keeping these documents for this duration ensures that adjustments and the reasons behind them remain verifiable and accessible when needed. Shorter retention would risk losing important evidence, whereas longer retention beyond policy is typically unnecessary.