Record Retention and Document Destruction Procedure

Transcription

1 Record Retention and Document Destruction Procedure Statement of Purpose This policy provides for the systematic review, retention, and destruction of documents received or created by Every Nonprofit in connection with the transaction of organization business. The policy is designed to ensure compliance with federal and state laws and regulations, to eliminate accidental or innocent destruction of records, and to facilitate operations by promoting efficiency. Every Nonprofit follows the document retention procedures outlined below. Documents that are not listed, but are substantially similar to those listed in the schedule, will be retained for the appropriate length of time. Corporate Records Annual Report to Attorney General Articles of Incorporation Board Meeting and Board Committee Minutes Board Policies/Resolutions Bylaws Contracts and Agreements (government construction, partnership, employment, labor, etc.) Copyrights & Trademark Registration Legal Correspondence & Documents Mortgages & Note Agreements 15 + Intellectual Property Documentation Accounting Records Annual Audit Reports Bills of Lading Budgets Cash Disbursement Journal Cash Projections Cash Receipts Journal Contracts (purchase & sales) 7 + Credit Memos Depreciation Schedules + Retention periods begin after termination, expiration, disposal, etc. Depreciation Schedules may only be kept until the longest depreciable period OneOC 1901 E. 4 th Street, Suite 100 Santa Ana, California 92705

2 Accounting Records (cont.) Financial Statements Annual Interim + General Journal General Ledgers Internal Work Orders Inventory Lists Invoices/ Accounts Payable Sales & Cash Register Tapes Petty Cash Vouchers Purchase Journal Purchases (merchandise) Purchases (permanent asset) + Subsidiary Ledgers (accts. receivable, accts. payable, ect.) Bank Records Bank Statements Cancelled Checks General Payroll Taxes (payroll related) Taxes (income) Duplicate Bank deposit slips Corporate, Payroll and Employment Tax Records Informational Returns IRS Application for Tax-Exempt Status (Form 1023) IRS Determination Letter Payroll Tax Returns Sales & Use Tax Returns State Sales Tax Exemption Letter Tax Returns (federal, state & local) Employee Records Employee Expense Reports Employee Payroll Records Pension/Profit Sharing Personnel files * Timecards and Daily Time Reports Insurance, and Safety Records Accident Reports Fire Inspection Reports + Retention periods begin after termination, expiration, disposal, etc. * Employee records of exposure to workplace hazards must be retained 30 years after employment.

3 Group Disability Records Insurance Policies Safety Records Settled Insurance Claims Donor and Grant Records Approved Grants Applications Denied/ Withdrawn Grant Applications Donor Records and Acknowledgment Letters from completion Electronic Documents and Records Electronic documents will be retained as if they were paper documents. Therefore, any electronic files, including records of donations made online, that fall into one of the document types on the above schedule will be maintained for the appropriate amount of time. If a user has sufficient reason to keep an message, the message should be printed in hard copy and kept in the appropriate file or moved to an archive computer file folder. Backup and recovery methods will be tested on a regular basis. Emergency Planning Every Nonprofit s records will be stored in a safe, secure, and accessible manner. Documents and financial files that are essential to keeping Every Nonprofit operating in an emergency will be backed up automatically each night and maintained off-site with Western Digital. Document Destruction The financial director is responsible for the ongoing process of identifying its records, which have met the required retention period, and overseeing their destruction. Destruction of sensitive financial or personnelrelated documents will be accomplished by shredding. Document destruction will be suspended immediately, upon any indication of an official investigation or when a lawsuit is filed or appears imminent. Destruction will be reinstated upon conclusion of the investigation.

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5 i i CompassPoint is pleased to share with the nonprofit community some of their key governance documents. They invite you to adapt this document for your own use; please note that these materials are provided for informational purposes only and do not constitute legal advice. For more information, or more governance and financial documents, visit their website at