YBC Document retention and destruction policy

YBC Document retention and destruction policy


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Document Retention and Destruction Policy



PURPOSE OF THIS TOOL: Certain federal laws prohibit the destruction of certain documents. Policies such as this will eliminate accidental or innocent destruction. In addition, it is important for administrative personnel to know the length of time records should be retained to be in compliance. 

Document Destruction

The Document Retention and Destruction Policy identifies the record retention responsibilities of staff, and outsiders for maintaining and documenting the storage and destruction of Your Business Champions documents and records. 

Your Business Champion’s staff, and outsiders (independent contractors via agreements with them) are required to honor the following rules: 

a.    Paper or electronic documents indicated under the terms for retention in the following section will be transferred and maintained by Your Business Champion’s staff. 

b.    All other paper documents will be destroyed after two years;  

c.    All other electronic documents will be deleted from all individual computers, data bases, networks, and back-up storage after seven years.

d.    No paper or electronic documents will be destroyed or deleted if pertinent to any ongoing or anticipated government investigation or proceeding or private litigation (check with CEO for any current or foreseen litigation); and  

e.    No paper or electronic documents will be destroyed or deleted as required to comply with government auditing standards (Single Audit Act).  

f.    Those that no longer use Your Business Champion’s services will be served a written request to transfer their client files to the successor, if no successor then the client will be presented with the option to collect their files. Your Business Champion will not transfer any client files until either the client’s consent is obtained, or 90 days has elapsed. Upon transferring client files, Your Business Champion will destroy the client files.

Record Retention[1]

Type of Document

Minimum Requirement

Accounts payable ledgers and schedules

7 years

Accounts receivable ledgers and schedules

7 years

Audit reports

Permanently

Bank reconciliations

2 years

Bank statements

3 years

Capital stock and bond records

Permanently

Cash books

Permanently

Charts of accounts

Permanently

Checks (canceled-see exception below)

7 years

Checks (canceled for important payments)

Permanently

Contracts, mortgages, notes, and leases (expired)

Permanently

Contracts (still in effect)

Contract period plus 1 year

Correspondence (general)

2 years

Correspondence (legal and important matters)

Permanently

Correspondence (with customers and vendors)

2 years

Deeds, mortgages, and bills of sale

Permanently

Depreciation schedules

Permanently

Duplicate deposit slips

2 years

Employment applications

3 years

Expense analyses/expense distribution schedules

7 years

Financial statements

Permanently

Garnishments

7 years

General/private ledges, year-end trial balances

Permanently

Insurance policies (expired)

3 years

Insurance records

Permanently

Internal audit reports

3 years

Inventories of products, materials, and supplies

7 years

Invoice (to customer, from vendors)

Permanently

Journals

7 years

Magnetic tape and tab cards

7 years

Minute books of directors, stockholders bylaws and charter

Permanently

Notes receivable ledgers and schedules

7 years

Option records (expired)

7 years

Patents and related papers

Permanently

Payroll records and summaries

7 years

Personnel files (terminated)

7 years

Petty cash vouchers

3 years

Physical inventory tags

3 years

Plant cost ledgers

7 years

Property appraisals by outside appraisers

Permanently

Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints, and plans

Permanently

Purchase orders

7 years

Receiving sheets

1 year

Retirement and pension records

Permanently

Requisitions

1 year

Sales commission reports

3 years

Sales records

7 years

Sales invoices

7 years

Scrap and salvage records

7 years

Stenographers’ notebook

7 years

Stock and bond certificates (canceled)

7 years

Stockroom withdrawal forms

7 years

Subsidiary ledgers

7 years

Tax returns and worksheets, revenue agents’ reports, and other documents relating to determination of income tax liability

7 years

Time books/cards

7 years

Trademark registrations and copyrights

7 years

Training manuals

7 years

Union agreements

7 years

Voucher register and schedules

7 years

Vouchers for payments to vendors, employees etc.

7 years

Withholding tax statements

7 years

Year-end financial statements 

Permanently



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