RECORDS RETENTION POLICY

Storage of records can become problematic as the volume of records increases from year to year. Following is a general guideline for how long records should be kept. Boards should check with the association's attorney and CPA before disposing of records.

Seven Years
Financial Records
    a. general ledgers, journals and charts of account
    b. year-end financial statements
    c. tax returns and worksheets
    d. accounts payable
    e. accounts receivable ledgers, trial balances and billing records
    f.  canceled checks
    g. expense analyses and expense distribution schedules
    h. invoices from vendors
Expired Contracts
Personnel Records
    a. payroll records
    b. employee records after termination
Insurance Records
    a. accident reports
    b. settled claims
    c. expired policies
    d. fidelity bonds

Four Years
Financial Records
    a. bank statements
    b. deposit slips
    c. reconciliations
    d. budgets
    e. petty cash vouchers
    f. purchase orders
General Correspondence

Three Years
All records must be kept for at least three years (current fiscal year and two prior) for inspection by the membership. Civ. Code §1365.2(i)(2)

Updated by ADAMS KESSLER 8/19/2008