Skip To Content

Document Retention Policy

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.

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.

Corporate Records

Annual Reports to Secretary of State/Attorney GeneralPermanent
Articles of IncorporationPermanent
Board Meeting and Board Committee MinutesPermanent
Board Policies/Resolutions Permanent
By-lawsPermanent
Construction DocumentsPermanent
Fixed Asset RecordsPermanent
IRS Application for Tax-Exempt Status (Form 1023)Permanent
IRS Determination LetterPermanent
State Sales Tax Exemption LetterPermanent
Contracts (after expiration)7 years
Correspondence (general)3 years

Accounting and Corporate Tax Records

Annual Audits and Financial StatementsPermanent
Depreciation SchedulesPermanent
General LedgersPermanent
IRS 990 Tax ReturnsPermanent
Business Expense Records7 years
IRS 1099s7 years
Journal Entries7 years
Invoices7 years
Sales Records (box office, concessions, gift shop)5 years
Petty Cash Vouchers3 years
Cash Receipts3 years
Credit Card Receipts3 years

Bank Records

Check RegistersPermanent
Bank Deposit Slips7 years
Bank Statements and Reconciliation7 years
Electronic Fund Transfer Documents7 years

Payroll and Employment Tax Records

Payroll RegistersPermanent
State Unemployment Tax RecordsPermanent
Earnings Records7 years
Garnishment Records7 years
Payroll Tax returns7 years
W-2 Statements7 years

Employee Records

Employment and Termination AgreementsPermanent
Retirement and Pension Plan DocumentsPermanent
Records Relating to Promotion, Demotion or Discharge7 years after termination
Accident Reports and Worker's Compensation Records5 years
Salary Schedules5 years
Employment Applications3 years
I-9 Forms3 years after termination
Time Cards2 years
Donor Records and Acknowledgement Letters7 years
Grant Applications and Contracts5 years after completion

Legal, Insurance and Safety Records

AppraisalsPermanent
Copyright RegistrationsPermanent
Environmental StudiesPermanent
Insurance PoliciesPermanent
Real Estate DocumentsPermanent
Stock and Bond RecordsPermanent
Trademark RegistrationsPermanent
Leases6 years after expiration
OSHA Documents5 years
General Contracts3 years after termination

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.

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.

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 overseeing 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.

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.