Every organization should seek legal counsel when preparing its retention policy and schedule. The sample below is not meant to be “one size fits all” and therefore should be referenced and used cautiously. In order to be considered a document with legal weight, a retention policy and schedule needs to be drafted, modified, and codified within each respective organization.

Record Retention Policy

The [COMPANY NAME] record retention policy has been developed to manage the paper and electronic records accumulated by [COMPANY]. By setting forth procedures for consistent and regular identification of historically valuable documentation, adherence to document retention schedules, and destruction of unnecessarily retained documents, [COMPANY] will preserve storage space, improve efficiency of document management, retain documents necessary for litigation, and will ultimately create an institutional archive. Excess record-keeping makes locating pertinent records more difficult, and causes the cost of record management to grow unreasonably. This policy applies to all records and documents that have been made or received by [COMPANY], including (but not limited to): written and printed matter; electronic databases; disks and computer files; e-mail; sound, audio and video recordings; voice messages; photographs; diagrams, plans and drawings; or information stored in any other media.  Note that each copy bearing notes or other markings that do not appear on the original is a separate “record.”

Records must be kept if they fit within any of the numbered categories below.  The lettered sub-headings below each numbered category are not inclusive, but are meant to provide examples, and they may in fact fit within several numbered categories. Each department head is responsible for identifying and recording the specific items to be retained by their department. General guidelines regarding the period of retention are attached as Exhibit 1.

All other records should be removed from the files and destroyed when no longer needed. During a designated “File Clean-Up” week (which should be the same week every year), under the supervision of each department head, all employees should review records in their control and destroy those that are beyond their retention life. The designated File Clean-Up week will be the last week of July each year, unless the department head designates a different week for a particular department. An exception to this rule is if the employee has reason to believe, or has been notified, that it is reasonably likely that a disagreement exists or that litigation or some governmental inquiry or investigation may be commenced, in which case all records potentially relevant to the disagreement or potential litigation or inquiry must be maintained until the General Counsel determines the records are no longer needed. All records that are protected by confidentiality statutes or contract provisions must be shredded when they are destroyed. Adherence to this Record Retention Policy by all employees is essential to protect us from potential liability for any accidental or innocent destruction of documents that later turn out to be relevant to some future investigation or litigation.

  1. Records that Provide [COMPANY] with Information and Data Needed for Its Operations
    1. Executed contracts, union agreements
    2. Leases, purchase agreements, rental agreements
    3. Grant agreements, publicly-filed documents
    4. Press releases
    5. Marketing and subscription documents
    6. Active files supporting the current business activity of a department
    7. Equipment instruction manuals and warranty documents
  1. Records Needed to Comply with Laws or Regulations (Federal, State or Local)
  1. Human Resources department documents such as employment applications, personnel files, accident reports, payroll records, employee benefits records, etc.
    1. Licenses and permits
    2. Corporate by-laws, certificate of incorporation, other corporate documents
    3. Fundraising records
    4. Audit reports, annual reports
  1. Records Needed for Tax Purposes
    1. Financial documents such as bank statements, canceled checks, etc.
    2. Tax returns
  2. Records Needed to Comply with Audit Requirements
    1. Accounting records
    2. Administrative records such as purchase orders, invoices, ledgers, journals, etc.
  3. Records Needed to Comply with Contract Provisions
    1. Documents reflecting construction work paid for with City or other public funding
  4. Board and Board Committee Materials
    1. Board of Directors meeting minutes
    2. Resolutions
    3. Conflict-of-interest forms
  5. Records Designated for Production/Artistic Archives
    1. Documents with historical value to the institution, including but not limited to production documents, costume sketches and notes, props sketches and notes,  correspondence, contracts and negotiations, stage plans, gala production documentation, play-reading documentation, subscriber surveys, ticketing and sales statistics, building plans, casting notes (video and paper), and renovation documentation
    2. Films, audio and video recordings, or photographs of [COMPANY] performances, productions, programs, or events
    3. Newsletters, brochures, posters, playbills, subscriber magazines, and other publications

                                                           

Exhibit 1: Retention Schedule

In each case, unless otherwise specified, the retention period begins when the fiscal year ends for the transaction reflected in the records. If a record falls within more than one category, apply the longest applicable time period. Any questions should be directed to the General Counsel, the Controller, or the Archivist.

Accident reports                                                        6 years

Accounting journals/ledgers                                   forever

Accounts payable records                                        7 years

Accounts receivable records                                    7 years

Annual reports                                                          forever

Audit reports                                                             forever

Banking records                                                        4 years

Blueprints/building plans/specifications              forever (if project was completed)

Board minutes                                                           forever

Board and committee materials                              10 years

Budgets                                                                      5 years

Clippings (institutional)                                           forever

Contracts/leases/license agreements                    7 years (after the term of the contract or lease ends)

Correspondence (routine)                                       2 years

Correspondence (legal & important matters)       forever

Corporate organizational documents/By-Laws     forever

Deeds/mortgages/other real property records    forever

Donor records (except endowment gifts)              10 years

Employee directories                                                5 years

Employee injury records                                          20 years

Employee records (including health)                     5 years after employment ends

Employment announcements & advertisements  2 years

Employment applications (non-employees)          2 years

Endowment records                                                 forever

Equipment instruction manuals                             as long as equipment is used

Equipment maintenance records                           5 years

Financial statements                                                 forever

Garnishment records                                                7 years

Human Resources policy/procedure manuals      6 years from end of effective period

Immigration records                                                 1 year after employment ends

Invoices                                                                      7 years after the term of the contract ends

Insurance policies                                                     10 years after policy term ends

Insurance claim records                                           3 years after settlement

Job classifications                                                      forever

Licenses/permits                                                      5 years after expiration

Marketing & sales records                                       6 years

Occupational incident reports                                 2 years

Organizational charts                                               6 years after end of effective period

OSHA-related employee health records                 30 years after employment ends

Overtime reports                                                      5 years

Payroll records                                                          5 years

Petty cash vouchers                                                  3 years

Pension/retirement plan records                           6 years after expiration

Photographs (institutional)                                     forever

Press releases                                                            forever

Property improvement records (capital)               5 years after property no longer owned

Property tax exemption records                             7 years after property no longer owned

Production/artistic records                                     forever

Publications (institutional)                                      forever

Publicly-filed documents                                         forever

Purchase orders                                                        10 years

Safety records                                                           6 years

Sales records                                                             10 years

Tax records                                                                6 years

Tax returns                                                                forever

Trademarks/copyrights                                           forever

Unemployment tax records                                     4 years

Union agreements                                                    forever

Workers’ Compensation records                             20 years

 

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