Fillable Printable Sample Document Retention and Destruction Policy

Sample Document Retention and Destruction Policy

Document Retention and Destruction Policy

University of Wisconsin. Center for Community and Economic Development

I. Purpose

In accordance with the Sarbanes-Oxley Act, which makes it a crime to alter, cover up,

falsify, or destroy any document with the intent of impeding or obstructing any official

proceeding. This policy provides for the systematic review, retention and destruction of

documents received or created by the Organization in connection with the transaction of

organization business. This policy covers all records and documents, regardless of

physical form (including electronic documents), contains guidelines for how long certain

documents should be kept and how records should be destroyed. 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 the Organization’s operations by

promoting efficiency and freeing up valuable storage space.

II. Document Retention

The Organization 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.

III. Corporate Records

Annual Reports to Secretary of Stat e/At t orney General Permanent

Articles of Incorporation Permanent

Board Meeting and Board Committee Minutes Permanent

Board Policies/Resolutions Permanent

By-laws Permanent

Construction Documents Permanent

Fixed Asset Records Permanent

IRS Application for Tax-Exempt Status (Form 1023) Permanent

IRS Determination Letter Permanent

State Sales Tax Exemption Letter Permanent

Contracts (after expiration) 7 year s

Correspondence (general) 3 year s

Accounting and Corporate Tax Records

Annual Audits and Financial Statements Permanent

Depreciation Schedules Permanent

Gener al Led ge rs Permanent

IRS 990 Tax Returns Permanent

Business Expense Records 7 year s

IRS 1099s 7 year s

Journal Entries 7 year s

Invoices 7 year s

Sales Records (box office, concessions, gift shop) 5 year s

Petty Cash Vouchers 3 yea rs

Cash Receipts 3 year s

Credit Card Receipts 3 year s

Bank Records

Check Registers Permanent

Bank Deposit Slips 7 year s

Bank Statements and Reconciliation 7 year s

Electronic Fund Transfer Documents 7 year s

Payroll and Employment Tax Records

Payroll Registers Permanent

State Unemployment Tax Records Permanent

Earnings Records 7 year s

Garnishment Records 7 year s

Payroll Tax returns 7 year s

W-2 Statements 7 year s

Employee Records

Employment and Termination Agreements Permanent

Retirement and Pension Plan Documents Permanent

Records Relating to Promotion, Demotion or Discharge 7 years after termination

Accident Reports and Worker’s Compensation Records 5 year s

Salary Schedules 5 year s

Employment Applications 3 year s

I-9 Forms 3 years after termination

Time Cards 2 year s

Donor Records and Acknowledgement Letters 7 year s

Grant Applications and Contracts 5 years after completion

Legal, Insurance and Safety Records

Appraisals Permanent

Environmental Studies Permanent

Insurance Policies Permanent

Real Estate Documents Permanent

Stock and Bond Records Permanent

Trademark Registrations Permanent

Leases 6 years aft er ex p irat i on

OSHA Documents 5 year s

General Contracts 3 years after termination

IV. 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 email 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.

V. Emergency Planning

The Organization’s records will be stored in a safe, secure and accessible manner.

Documents and financial files that are essential to keeping the Organization operating in

an emergency will be duplicated or backed up at least every week and maintained off site.

VI. Document Destruction

The Organization’s Executive Director is responsible for the ongoing process of

identifying its records, which have met the required retention period and o verseein g their

destruction. Destruction of financial and personnel-related 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.

VII. Compliance

Failure on the part of employees or contract staff to follow this policy can result in

possible civil and criminal sanctions against the Organization and its employees or

contract staff and possible disciplinary action against responsible individuals. The

Treasurer will periodically review these procedures with legal counsel or the

organization’s certified public accountant to ensure that they are in compliance with new

or revised regulations.