g&a102 files and records management

7/27/2019 G&A102 Files and Records Management

1/14

Accounting Policies, Procedures and Forms paragonbusinessmanuals.com

SOP # Revision: Prepared by:Effective Date: Approved by:

Title: G&A102 FILES AND RECORDS MANAGEMENT

Policy: The Company will retain records in an orderly fashion for time periods that

comply with legal and governmental requirements and as needed forgeneral business requirements.

Purpose: To outline the methods for filing, retaining and disposing of businessrecords.

Scope: This procedure applies to all business documentation generated by thecompany. However, this does not necessarily cover internal or certain day-to-day business correspondence.

Responsibilities:

The File Manager will be responsible for categorizing and maintaining a

listing of records maintained and the location (i.e. by wall unit and shelfrow number).

The Controller is responsible for overseeing the execution of companypolicy for Record Retention, Storage and Destruction of obsolete companyrecords.

Procedure:

1.0 FILING SYSTEM

1.1 To ensure efficient access, filing centers will be established in each department. Toreduce the amount of duplicate and unnecessary record retention, individual desk

files should be avoided unless they are used in daily operations. All otherdepartmental or company records should be filed in the departmental central filingareas.

1.2 Unless necessary, records should usually only be kept by the originator or senderand not by the receiver to avoid duplicate filing systems.

1.3 The following filing guidelines should be adhered to optimize filing efficiency andrecords access:

All file cabinets and files should follow recognized rules of order, such as Left

to Right, Top to Bottom, Front to Back and in the case of chronologicalrecords, newest to oldest.

File markers or label headings should always be placed at the beginning orfront of a file or group of files.

Alphabetical files should always be filed under broad topical categories. Files

should never be filed under individual employee names (except HumanResources records) to avoid confusion and re-filing in the event of turnover.Files should always be filed under the "proper" or company names whenever

G&A102 Files and Records Management page 1 of 14


2/14


appropriate. In the case of individuals, files should be maintained according tothe persons "Last name" then First name and Middle initial.

Alphanumeric codes should be attached to colored end tabs of all file sets to

show type of file by subject area and sub-category. For instance, all filesdealing with Accounting will have a green end tab on the lateral file folder with

the alpha code of AC followed by a three digit numeric code to designate thesub-category (i.e. Financial Planning is AC 200, General Accounting is AC300, Payroll is AC 340, etc.). Payroll is a function of Accounting thus the AC,payroll is a function of General Accounting (under Accounting) thus the 300series numeric, and under General Accounting the Payroll file is series number40, which translates to a file of AC 340. Refer to G&A102 Ex1 MASTERFILE GUIDE INDEX for a sample of the subject and sub-category file guide.

Extra care should be used for sensitive or private information. Company

financial data or personnel records that contain performance reviews, salaryinformation, and any health related information should be kept in a secure areawith limited access to only those that have a need to know such as theDirector of Human Resources or the Controller.

2.0 RECORD RETENTION AND LONG-TERM STORAGE

2.1 Storage of archived records will be maintained in the locked storage area of thebuilding. Access to this area will be limited to the Controller, officers of theCompany and the File Manager.

2.2 Non-permanent files will be stored in cardboard file boxes. Each file box will belabeled on the front with the contents, dates covered, and destruction date ifapplicable. Permanent records will be maintained in metal fire-resistant filecabinets.

2.3 Files should be stored only in boxes with similar items, dates and retention periods.This will allow easier access and purging of records. A general rule to keep inmind is that it is better to only half-fill a file box than to file dissimilar types of filesin the same box.

2.4 The file manager will be responsible for categorizing and maintaining a listing ofrecords maintained and the location (i.e. by wall unit and shelf row number).

2.5 Maintain all files for as long as is necessary but only to the extent they serve a usefulpurpose or satisfy business or legal requirements. G&A102 Ex2 RECORDSRETENTION PERIODS, provides a guide to the typical business life of variousdocuments. The retention periods provided are suggested with federal

requirements in mind. Be sure to check with local and state authorities for specificrecord retention requirements.

2.6 Copies of critical records that are vital to the daily operations of the Company shouldbe kept off site in case of possible disasters. This may include information neededto file insurance claims (assets lists, insurance contacts, policy numbers), financialdata for tax purposes (wages paid, income and expenses), contacts lists to informor restart the business (vendors, customers, investors and employees), and other



3/14


data that would assist in rebuilding the business (business plans, intellectualproperty, or proprietary information).

3.0 RECORD DESTRUCTION

3.1 Three to six months after each year-end, the file manager will proceed with

destruction of all files that have exceeded their recognized holding period.3.2 A listing of file categories to be destroyed will be circulated to all managers thirty

days prior to destruction for review and comment. The actual listing of recordsdestroyed will be maintained permanently for future reference.

3.3 Destruction of the files will be performed by an independent, outside service forshredding and disposal. Disposal of records into the company's general trashservice is not allowed.

References: (AMERICANS LAW NEED NOT TO BE A PART OF NON USCOMPANIES)

A. HEALTH INSURANCE PORTABILITY ACCOUNTABILITY ACT (HIPAA)The Standards for Privacy of Individually Identifiable Health Information (thePrivacy Rule) creates national standards to protect individuals' personal healthinformation and gives patients increased access to their medical records. Asrequired by the Health Insurance Portability and Accountability Act of 1996(HIPAA), the Privacy Rule covers health plans, health care clearinghouses, andthose health care providers who conduct certain financial and administrativetransactions electronically. Most covered entities (certain health care providers,health plans, and health care clearinghouses) must comply with the Privacy Rule byApril 14, 2003. Small health plans have until April 14, 2004 to comply with theRule.

Note: Employment records maintained by a covered entity in its capacity as anemployer are excluded from the definition of protected health information. Themodifications do not change the fact that individually identifiable healthinformation created, received, or maintained by a covered entity in its health carecapacity is protected health information.

B. AGE DISCRIMINATION IN EMPLOYMENT ACT (ADEA)

ADEA applies to employers with 20 or more employees. If an EEOC charge orlawsuit is filed, keep records until final disposition of the charge or lawsuit.Otherwise, ADEA compliance suggests keeping basic employee files from one tothree years as listed:

Payrolls or other records (for temporary and permanent positions) for three

years.

Basic employee information such as employees names, addresses, birth dates,

occupations, rates of pay, and weekly compensation for three years.

Applications and personnel records relating to promotion, demotion, transfer,

selection for training, layoff, recall or discharge for one year.



4/14


Job advertisements and postings for three years.

Copies of employee benefit plans, seniority and merit systems must keep on file

for the full period the plan or system is in effect and for at least one year afterits termination

C. AMERICANS WITH DISABILITIES ACT (ADA)

ADA applies to employers with 15 or more employees. If an EEOC charge orlawsuit is filed, keep records until final disposition of the charge or lawsuit.Otherwise, ADA compliance suggests keeping employment applications and otherpersonnel records including promotions, transfers, demotions, layoffs, andtermination or requests for reasonable accommodation for at least 1 year from themaking of the record or the personnel action.

D. CIVIL RIGHTS ACT OF 1964

Applies to employers with 15 or more employees. If an EEOC charge or lawsuit is

filed, keep records until final disposition of the charge or lawsuit. Otherwise, basicnon-discrimination compliance suggests keeping employment applications andother personnel records including promotions, transfers, demotions, layoffs, andtermination or any EEO-1 Reports for at least one year from the making of therecord or the personnel action. If an employee is involuntarily terminated, his/herpersonnel records must be retained for one year from the date of termination.

E. EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA)

The ERISA reporting and disclosure obligations apply to all pension and welfareplans including summary plan descriptions, annual reports, reportable events, andplan termination, unless the company plan is exempt under ERISA.

ERISA suggests the company should maintain all reports, documents, information,and materials for a minimum of six years in order to disclose and or support alltransactions to participants and beneficiaries (and report to certain governmentalagencies), as requested or needed.

F. EMPLOYEE POLYGRAPH PROTECTION ACT

All polygraph test results and reasons for administering the test should be kept forthree years.

G. EQUAL PAY ACT

Payroll records including time cards, wage rates, deductions from wages, andrecords explaining the difference in wage rates between men and women in similarpositions should be kept for three years.

H. EXECUTIVE ORDER 11246

Applies to federal contractors and requires the preparation of affirmative actionplans. Affirmative action plans must be updated annually and retained for twoyears along with all applications and other personnel records that form the basis of



5/14


the companys employment decisions. Generally, personnel and employmentrecords must be retained for two years.

I. FAIR LABOR STANDARDS ACT (FLSA)

FLSA applies to employers engaged in or employees who work in interstate

commerce and suggests the following records are retained for three years:

Payroll and other records containing employees name, birth date, gender, and

occupation.

Employees beginning of workweek and time employee begins work.

Regular rate of pay or other basis of payment.

Hours worked per day and for workweek.

Daily and weekly straight time earnings.

Deduction from wages.

Total wages per pay period.

Date of payment and the pay period covered.

For exempt professional, executive and administrative employees, and those

employed in outside sales, the employer must maintain records that reflectbasis on which wages are paid to permit calculations of the employees totalremuneration.

In addition, employers must keep for at least two years all records (including

wage rates, job evaluations, seniority and merit systems, and collectivebargaining agreements) that explain the basis for paying different wages toemployees of opposite sexes in the same establishment.

J. FAMILY AND MEDICAL LEAVE ACT (FMLA)

FMLA applies to employers with 50 or more employees within a 75 mile radiusand whose employee must have worked for at least one year and accumulated atleast 1,250 hours of service with the employer during the previous year. FNLAsuggests the following records are retained for 3 years

Basic employee data including name, address, occupation, rate of pay, terms of

compensation, daily and weekly hours worked per pay period, deductions fromwages, and total compensation.

Dates of leave taken by eligible employees.

For intermittent leave, the hours of leave.

A copy of employee notices and documents describing policies and practices

regarding leave.

Records of any dispute regarding the designation of leave.



6/14


K. IMMIGRATION REFORM & CONTROL ACT (IRCA)

IRCA applies to all employers and requires a signed Form I-9 is retained for threeyears after the date of hire and at least one year after termination.

L. OCCUPATIONAL SAFETY & HEALTH ACT (OSHA)

OSHA applies to employers with 10 or more employees and suggest that the logof occupational injuries and illnesses is retained for five years. All other recordsshould be retained for at least 30 years after employee separation. Other recordsinclude:

Occupational injuries and illnesses.

The annual summary of injuries and illnesses.

Medical records and records of exposure to toxic substances.

M. REHABILITATION ACT OF 1973

Applies to federal contractors. If a charge or lawsuit is filed, keep records untilfinal disposition of the charge or lawsuit. Otherwise, basic compliance suggestskeeping personnel and employment records including requests for accommodation,physical exams, job advertisements and postings, applications, resumes and recordsregarding hiring, assignments, promotions, demotions, transfers, layoffs,terminations, rates of pay and selection for training for two years (only 1 year ifcontractor has less than 150 employees or a federal contract of $150,000 or less).Note: Affirmative action plans also may have to be maintained by the employer

N. RIGHT TO FINANCIAL PRIVACY ACT

The act establishes specific procedures and exceptions concerning the release of

customer financial records to the federal government. It provides customers offinancial institutions with a right to expect that their financial activities will have areasonable amount of privacy from federal government scrutiny.

O. GUIDE TO RECORD RETENTION REQUIREMENTS

A good source of federal retention requirements is the "Guide to Record RetentionRequirements" published by the Office of the Federal Register National Archivesand Records Administration. It can be purchased from the U.S. GovernmentPrinting Office in Washington DC. Additional sources of information include: IRSregulations, state and local government retention requirements or the AICPA(American Institute of Certified Public Accountants) Filing and Record Retention

Procedures Guide.

P. IRS REVENUE PROCEDURE 98-25 RECORDS RETENTION

The Income Tax Regulations require that, except for farmers and wage-earners,any person subject to income tax, or any person required to file an informationreturn with respect to income, must keep such books and records, includinginventories, as are sufficient to establish the amount of gross income, deductions,credits, or other matters reported. The books or records required by must be kept



7/14


available at all times for inspection by authorized internal revenue officers oremployees, and must be retained so long as the contents thereof may becomematerial in the administration of any internal revenue law.

Note: Section 6.01 requires taxpayers to maintain and make availabledocumentation of the business processes that (1) create the retained records, (2)

modify and maintain its records, (3) satisfy the requirements of section 5.01(2) ofthe procedure and verify the correctness of the taxpayer's return, and (4) evidencethe authenticity and integrity of the taxpayer's records.

Section 6.02 sets forth four elements that the documentation required undersection 6.01 must establish: (1) the flow of data through the system, (2) internalcontrols that ensure accurate processing, (3) internal controls that preventunauthorized record changes, and (4) charts of account.

Section 6.03 sets forth six specific types of documentation for each retained file:(1) record formats, (2) field definitions, (3) file descriptions, (4) evidence thatperiodic checks are undertaken to ensure that data remains accessible, (5) evidencethat the records reconcile to the taxpayer's books, and (6) evidence that therecords reconcile to the taxpayer's return.



8/14


Revision History:

Revision Date Description of changes Requested By

0 10/13/2013

Initial Release



9/14


G&A102 Ex1 MASTER FILE GUIDE INDEX

AC ACCOUNTINGAC-100 Accounts Administration

AC-200 Financial PlanningAC-300 General Accounting310 Checking Account Register 320 Accounts Payable330 Accounts Receivable340 Payroll350 Local, State, Federal taxes {FUTA, FICA, etc.}

360 Banking Services370 Property Inventory/Fixed Assets380 Corporate Accountant390 Corporate Tax Information File

AC-400 Employee Benefit Programs

AC-500 Employee Expense AccountsAC-600 Petty Cash ManagementAC-600 Corporate Loan ManagementAC-700 Grants Account ManagementAC-800 PurchasingAC-900 Open

AD ADMINISTRATIONAD-100 GeneralAD-200 Organizational ManualAD-300 Organizational ChartsAD-400 Corporate Correspondence Manual

AD-500 Policies and ProceduresAD-600 Records Management and RetrievalAD-700 Chief Executive Officer Administrative MemorandumsAD-800 Interoffice Staff Administrative MemorandumsAD-900 Open

BU BUSINESSBU-100 Corporate Business PlanBU-200 Business Project ManagementBU-300 Sub-Corp Business Project ManagementBU-400 Business Executive SummariesBU-500 Sub-Corp Business Executive SummariesBU-600 Domestic Business DevelopmentBU-700 International Business Development - EuropeBU-800 International Business Development - AsiaBU-900 International Business Development - Canada/S. America



10/14


CS COMPUTER INFORMATION SYSTEMSCS-100 GeneralCS-200 EquipmentCS-300 Operation and MaintenanceCS-400 Training in Systems OperationCS-500 Open

EN ENGINEERINGEN-100 General AdministrationEN-200 Research and DevelopmentEN-300 Chemical EngineeringEN-400 Graphics and Technical DrawingsEN-500 Product Information and Technical AnalysisEN-600 Product Raw Materials DataEN-700 Engineering Safety DataEN-800 Product Test ProgramsEN-900 Industry Information

IN INSURANCEIN-100 General Administration of InsuranceIN-200 Plant and Equipment PoliciesIN-300 Corporate Officer PoliciesIN-400 Product Liability PoliciesIN-500 Corporate Vehicles PoliciesIN-600 Health Program PoliciesIN-700 Life Insurance Programs for EmployeesIN-800 Off Site Special CoverageIN-900 Open

LG LEGAL

LG-100 GeneralLG-200 ReportsLG-300 ContractsLG-400 LitigationLG-500 DisputesLG-600 Legal Personnel IssuesLG-700 Agreements/PartnershipsLG-800 Product LiabilityLG-900 Open



11/14


MA MARKETINGMA-100 GeneralMA-200 Reports / StudiesMA-300 Marketing Plans

MA-400 Customer RelationsOF OFFICE MANAGEMENTOF-100 GeneralOF-200 ProceduresOF-300 Equipment / Furnishings / TelecommunicationsOF-400 Information Processing/Communications ProcedureOF-500 Property Lease/Management AgreementOF-600 Fax/Reproduction/Printing ProceduresOF-700 Protocol to VisitorsOF-800 MaintenanceOF-900 Open

OP OPERATIONSOP-100 GeneralOP-200 Daily ReportsOP-300 Weekly ReportsOP-400 Monthly ReportsOP-500 Quarterly/Annual ReportsOP-600 Performance AnalysisOP-700 Project Management Charts and PlansOP-800 Manufacturing and ProductionOP-900 Open

PE PERSONNELPE-100 GeneralPE-200 ReportsPE-300 Employee RecordsPE-400 Organizational ChartsPE-500 RecruitingPE-600 TrainingPE-700 Benefit ProgramsPE-800 OpenPE-900 Open



12/14


PP PATENTS, PERMITS AND PLANSPP-100 GeneralPP-200 ReportsPP-300 Licenses/Permits/Plans

PP-400 OpenPP-500 Open

PR PUBLIC RELATIONSPR-100 GeneralPR-200 Reports and StudiesPR-300 Corporate ReleasesPR-400 List of Clients/Industry ContactsPR-500 Open

RG REGULATORY DATARG-100 GeneralRG-200 ReportsRG-300 CorrespondenceRG-400 Acts/Laws/BillsRG-500 RegulationsRG-600 AgreementsRG-700 Guidelines/ Policies/ ResolutionsRG-800 International RegulationsRG-900 Open

SL SALESSL-100 GeneralSL-200 Domestic Business DevelopmentSL-300 International Business DevelopmentSL-400 Plans and BudgetsSL-500 Corporate Sales Procedures and Project Management



13/14


G&A102 Ex2 RECORDS RETENTION PERIODS

Accident reports and claims (settled cases)..........................................................7 yearsAccounts payable ledgers, schedules and trial balances .......................................7 yearsAccounts receivable ledgers, schedules and trial balances ...................................7 years

Assignments..........................................................................................................3 yearsAudit reports of accountants ...........................................................................PermanentlyBank reconciliations .............................................................................................1 yearBank statements, cancelled checks, and deposit slips ..........................................7 yearsBills of lading .......................................................................................................3 yearsCapital stock and bond records .......................................................................PermanentlyCash books ......................................................................................................PermanentlyCash receipts and disbursements .........................................................................7 yearsChart of accounts ............................................................................................PermanentlyChecks (cancelled, all other) ................................................................................7 yearsChecks (cancelled, for important payments, i.e. taxes, property purchases,special contracts, etc. File checks with the transaction papers).......................Permanently

Construction documents...................................................................................PermanentlyContracts and leases (expired) .............................................................................7 yearsContracts and leases still in effect...........................................................Expiration +7 yearsCorporate records and minutes .......................................................................PermanentlyCorrespondence (legal and important matters only) ........................................PermanentlyCorrespondence general ......................................................................................3 yearsCredit Applications (Consumer) ............................................25 Months (after notification)Credit Applications (Business) ......................................................1 year (after notification)Deeds, mortgages, and bills of sale ..................................................................PermanentlyDepreciation schedules.....................................................................................PermanentlyDuplicate deposit slips...........................................................................................1 year

Electronic fund transfer documents......................................................................7 yearsEmployee personnel records (after termination)...................................................7 yearsEmployment applications .....................................................................................3 yearsExpense analyses and Expense distribution schedules..........................................7 yearsExpired contracts and notes receivable ................................................................7 yearsExpired purchase contracts ..................................................................................7 yearsFederal, state and local tax returns ..................................................................PermanentlyFinancial statements (end-of-year trial balances) .............................................PermanentlyFixed asset records and appraisals ...................................................................PermanentlyForms W-4 ...........................................................................................................7 yearsGarnishments .......................................................................................................3 years

General Ledgers (end-of-year trial balances) ...................................................PermanentlyI-9s (after termination)..........................................................................................1 yearInsurance records, current accident reports, claims, policies, etc.....................PermanentlyInterim and year-end financial statements and trial balances............................PermanentlyInventories of products, materials, and supplies ..................................................7 years



14/14


Invoices 7 yearsJournals ............................................................................................................PermanentlyLicenses............................................................................................................PermanentlyLoan documents, notes.....................................................................................PermanentlyMinute books of directors and stockholders, including bylaws and charter... ..PermanentlyMonthly trial balances ......................................................................................PermanentlyNotes receivable ledgers and schedules ...............................................................7 yearsOSHA logs...........................................................................................................5 yearsPaid bills and vouchers ........................................................................................7 yearsPayroll journals ....................................................................................................7 yearsPayroll records and summaries ............................................................................7 yearsPayroll reports (federal & state) ..........................................................................7 yearsPerpetual inventory records .................................................................................7 yearsPetty cash vouchers .............................................................................................7 yearsPhysical inventory records ...................................................................................7 yearsPhysical inventory tags ........................................................................................7 years

Plant cost ledgers .............................................................................................PermanentlyPolygraph test results and reasons for test............................................................3 yearsProperty appraisals by outside appraisers ........................................................PermanentlyProperty records including costs, depreciation schedules, blueprints, plans.....PermanentlyProperty titles and mortgages ..........................................................................PermanentlyPurchase journals .................................................................................................7 yearsPurchase orders ...................................................................................................7 yearsReceiving sheets....................................................................................................1 yearRequisitions .........................................................................................................7 yearsSales journals .......................................................................................................7 yearsSales records.........................................................................................................7 years

Savings bond registration records of employees ..................................................7 yearsScrap and salvage records (inventories, sales, etc)...............................................7 yearsShipping tickets ...................................................................................................3 yearsStock and bond certificate (cancelled) ...................................................................1 yrStockroom withdrawal forms ..............................................................................7 yearsSubsidiary ledgers ................................................................................................7 yearsTax returns and worksheets, revenue agents reports and other documents....PermanentlyTime books/cards .................................................................................................7 yearsTrade mark registrations...................................................................................PermanentlyUncollectible accounts and write offs ..................................................................7 yearsVoucher for payments to vendors, employees, etc.(includes all allowances and reimbursement of employees, officers)....................7 yearsVoucher register and schedules ...........................................................................7 yearsW-4 forms.............................................................................................................4 yearsWorkmans comp documents..............................................................................11 years


g&a102 files and records management

Documents