greater than ||content|| ,000), 95 percent for class B-high readiness (item military essentiality code 3,4, or 5),95 percent for class C-high variability (average quarterly demand greater than 3 or unit of issue not equal to each [EA]), and 95 percent for class D-all other. Stock points will maintain a location survey of no less than 98 percent each quarter. The computation for gross monetary adjustment (GMA) rate excludes SERVMART/manual ready supply stores/shop stores and fuel. The gross adjustment rate is expressed as the ratio of absolute dollar value of gains plus losses to the value of line items inventoried plus in-house receipt losses. The gross adjustment rate should not exceed 3 percent per quarter. The location reconciliation between the NAVICP and stock points will be maintained at no less than 97 percent accuracy rate. The financial adjustments (gains and losses) to SERVMART must not exceed one percent of the dollar value of sales that have transpired since the last scheduled inventory. The net total of the adjustment gains and losses for shop stores/manual ready supply stores are computed by cognizance (COG) symbol. The adjustments for each Navy Stock Account (NSA) and Appropriation Purchase Account (APA) COG should not exceed one percent of dollar value throughput (receipts and issues). When the adjustment goal is exceeded, the stock point must provide an explanation for adjustments. Refer to NAVCOMPT Manual, Volume VIII, Financial Inventory Accounting, Reporting, and Billing for additional information. Gains and losses of bulk petroleum products must not exceed the standards provided by DOD Manual 4140.25-M and OPNAVINST 4020.25. All monthly loss adjustments greater than established standards require survey action. Retention of Records It is necessary to keep records of inventories and actions directly affecting inventories such as location surveys, warehouse refusals, receipts, and so forth, to provide an audit trail. These records help in conducting research and in preparing required reports. Stock points must retain records as follows: l Retain records pertaining to physical inventory such as the inventory counts, adjustments, schedules, and so forth for a minimum of one year. For sensitive items, arms, ammunitions, and explosives, retain for 1 year if there is no adjustments or 2 years if adjustments are processed. . Retain transaction ledgers and causative’ research packages for two years. . Retain the location survey listings and unmatched and manually prepared location survey cards for one year. STATLOC activities are required to retain only the listings and reports applicable to errors that have been corrected. l Retain source documents of receipts and issues for one year. Foreign military sale (FMS) issues are retained for 2 years. . Retain reports of discrepancy (ROD), MLSRs, and surveys (Financial liability investigation of property loss, DD Form 200) for 2 years. l Retain location reconciliation listings, cards, and other records pertaining to location reconciliations for 1 year. . Retain physical inventory, location survey, and location reconciliation reports for 2 years. AFLOAT The procedures of inventory management afloat are basically the same as the procedures ashore. They require an accurate allowance list, stock records, transaction processing, and a system of adjusting stock record balances with actual physical quantities of material on hand. In addition, establish a method to record and evaluate material usage data so that future requirements can be anticipated. The main objective of supply inventory managers and supervisors afloat is to make sure there is a balance between material requirements and assets on hand to support the ship’s assigned mission. MATERIAL MANAGEMENT Effective material management procedures afloat require personal involvement by supply managers and supervisors in all supply functions. Supervision and training are vital to the supply department’s ability to support the assigned operating departments and deployed units. Properly performed tasks, along with keen supervision often results in an effective material management program. Some of these supply tasks are allowance list maintenance, issue control processing, 5-13