RECORD RETENTION Michelle Likins

Introduction ◦As you have learned, records are documents that have value to the organization. Records may be valuable for legal, financial, or historical reference or for use in daily operations. ◦In this lesson, we will be reviewing the various classes of records and the schedules those records should follow.

Objectives ◦At the end of this lesson, the student will be able to describe the procedures for retaining records. ◦At the end of this lesson, the student will also be able to apply the procedures to various types of records. ◦At the end of this lesson, the student will be able to recommend a specific method for transferring files based on a specific criteria.

Retaining Records ◦Classifications of records ◦Vital records ◦Important records ◦Useful records ◦Nonessential records ◦Retention schedules ◦Types of records ◦Time period to retain 4

Retention Schedule 5 Heading Distribution list Click image for full list.

Retaining Records ◦Active to inactive file procedures ◦Perpetual transfer ◦Periodic transfer ◦Backing up files ◦Making copies ◦Storing copies in a safe place 6 Workplace Wisdom Backing up vital and important records should be part of a larger disaster recovery plan. Records should be stored off-site at a safe location.

Test Your Knowledge ◦Based on the information covered in the PowerPoint, what is the retention time for each of the following types of records. Click here to begin

Trademark Registrations Permanent 5 Years 3 Years 7 Years

Payroll records and summaries Permanent 5 Years 3 Years 7 Years

Invoices Permanent 5 Years 3 Years 7 Years

Mortgages Permanent 5 Years 3 Years 7 Years

Accounts payable ledgers Permanent 5 Years 3 Years 7 Years

Tax returns Permanent 5 Years 3 Years 7 Years

Minutes of stockholder meetings Permanent 5 Years 3 Years 7 Years

Equipment repair records Permanent 5 Years 3 Years 7 Years

Expired insurance policies Permanent 5 Years 3 Years 7 Years

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Discussion Questions ◦Please discuss the following discussion questions in the discussion forums in Angel: ◦What criteria can be used to distinguish between active and inactive records? ◦In creating a records retention schedule, what criteria are used to determine how long to store records? 19

Retentions procedures case study ◦You joined Ace Company four months ago as an administrative assistant. The owner, Alicia Ace, started this home decorating business four years ago. Ms. Ace is a talented decorator, but she does not know how to manage business records. All the records are currently in active storage. She has asked for your advice on setting up an inactive file storage area and transferring files from active to inactive storage. Write a memo to Ms. Ace explaining the difference between the periodic transfer method and the perpetual transfer method for moving files. Recommend one of the methods and give reasons for your recommendations. ◦Please submit your written document in Angel. It must be typed and grammatically correct.

Chapter 12: Retaining Records Quiz Please write your answer on a sheet of paper and submit before you leave class. 1.To avoid keeping records longer than needed, organizations use a records retention schedule. (T/F) 2. When distinguishing among records for retention purposes, use the following categories: a.active records, inactive records, and archive records. b.vital records, important records, and useful records. c.vital records, important records, and archive records. d.active records, archive records, and nonessential records.

MATCHING Match each item with the correct statement below. a.important records b.periodic transfer c.perpetual transfer d.records retention schedule e.useful records f.vital records 3. Records that cannot be replaced and should never be destroyed 4. A system by which active records are transferred to inactive status at the end of a stated time 5. A document that specifies how long various types of records should be kept 6. A system by which records are continuously transferred from the active to the inactive files 7. Records needed for the smooth, effective operation of the organization 8. Records necessary to an orderly continuation of the business and replaceable only at considerable cost of time and money