Move It Or Lose It ………. What Do You Do With All The Files and Papers ?
RETENTION OF ASSOCIATION RECORDS
Association records can be very important in detailing the history of an association’s activities and documenting decisions made by the board. It is important to keep these records but records can accumulate quickly even in a small association. Many associations have space constraints but unfortunately a board cannot use that as an excuse to discard important records.
An association is not required to keep all documents forever, so let’s figure out which ones to keep and for how long!
Records are kept to comply with laws, to document legal relationships and actions plus support good business judgment. An association board of directors creates a records retention policy that considers the documents to be retained and for how long. In general financial records that support an item of income or deduction on a tax return should be kept for a period of at least seven (7) years.
Our general guidelines are designed to be simple to administer. The suggested time periods for holding records may occasionally be longer than required but with only three categories, permanent, 7 years and 1 year it will be easier to administer. Our guidelines do not cover all records or all situations. Boards may wish to work with their attorney and accounting adviser to customize their own record retention schedule.
Download Records Storage Schedule and Download this full report Move It Or Lose It
Disposing of Association Records
Hopefully following these guidelines you will eventually have to dispose of records. There are many options including pulverizing, shredding or incinerating. Any of these work but these are confidential documents so don’t leave them in a wastebasket or a dumpster in the alley.
If there are electronic records to dispose of the association may want to consult with a computer tech adviser. It isn’t enough to just delete files from a computer or for that matter even from the recycle bin.
This is a typical page from our schedule:
This is the list of items in our schedule:
Schedule
| Documents/ Records | In Possession | Retention Period |
| Governing Documents & Records | Permanent | |
| Ownership/Membership Records | Permanent | |
| Map Plat or Survey | Permanent | |
| Deeds | Permanent | |
| Governing Documents – Declaration (current and past, amendments) | Permanent | |
| Governing Documents – Corporate Charter/Articles of Incorporation (current and past, amendments) | Permanent | |
| Governing Documents – Bylaws (current and past, amendments) | Permanent | |
| Governing Documents – Board Policies/Resolutions | Permanent | |
| Governing Documents – Rules and Regulations | Permanent | |
| Governing Documents – Architectural Approved and Disapproved | Permanent | |
| Governing Documents – Architectural Guidelines (current and past) | Permanent | |
| Minutes – Annual Meetings | Permanent | |
| Minutes – Board of Directors | Permanent | |
| Minutes – Special Meeting | Permanent | |
| Minutes – Committee Meetings | Permanent | |
| Archival and historical documentation relevant to the history or structure of the association | Permanent | |
| As built plans and specifications | Permanent | |
| Financial Records | ||
| Federal and state tax returns | Permanent | |
| Documents used for Tax Returns | Permanent | |
| Reserve Studies | Permanent | |
| Audits and Year-End Financials | Permanent | |
| General ledger fiscal year end | Permanent | |
| Insurance | ||
| Insurance Policies , Declaration Pages | Permanent | |
| Fidelity Bond | Permanent | |
| Benefits, Pension, Profit Sharing, Union Agreements | Permanent | |
| Worker Compensation program structure, compliance requirements, reporting | Permanent | |
| Legal | ||
| General legal advice and legal opinions | Permanent | |
| Employee Records | 7 Years | |
| Employee Personnel Records | 7 Years | |
| Payroll Records & Summaries | 7 Years | |
| Financial Records | ||
| Budgets | 7 Years | |
| Owner Assessment Records | 7 Years | |
| Accounts Payable and Receivable Ledgers | 7 Years | |
| Bank Statements, Cancelled Items and Reconciliation | 7 Years | |
| Cancelled Checks | 7 Years | |
| Bank Deposits | 7 Years | |
| Bank Signature Cards | 7 Years | |
| Certificates of Deposit | 7 Years | |
| Monthly Financial Statements | 7 Years | |
| General Ledgers (and end of year trial balances) | 7 Years | |
| Invoices | 7 Years | |
| Subsidiary Ledgers | 7 Years | |
| Notes Payable Documentation | 7 Years | |
| Insurance | ||
| Insurance Correspondence | 7 Years | |
| Insurance Claims Paid | 7 Years | |
| Accident Reports and Claims | 7 Years | |
| Contracts | ||
| Expired Contracts | 7 Years | |
| Expired warranties | 7 Years | |
| Legal | ||
| Closed litigation files | 7 Years | |
| Court Filings and Pleadings (foreclosures, small claims actions, etc.) | 7 Years | |
| Legal Correspondence | 7 Years | |
| Violation correspondence | 7 Years | |
| Litigation with 3rd parties | 7 Years | |
| General | ||
| Unit owner files | 7 Years after sale | |
| General Correspondence | 7 Years | |
| General | ||
| Election ballots | 1 Year | |
| Proxies | 1 Year | |
| Voting records | 1 Year | |
| Vote tallies | 1 Year | |
| Unsuccessful bids | 1 Year | |
