XYZ Corporation

Policies and Procedures

Records Retention
DRAFT

Insert Date

Prepared by
 XYZ Corporation
Records Retention Policy

Table of Contents
15.0 Related Agencies and Provisions.................................................................................3
15.1 Records Retention........................................................................................................4
15.1.A Policies.................................................................................................................4

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 XYZ Corporation
Records Retention Policy

Effective Date: Insert Date Last Updated: Insert Date

Section: Records Retention Next Review: 1 year from last update

Sub-Process: N/A Other Related Topics: N/A

Divisions or Departments Affected: All XYZ Subsidiaries

Approved By: Approval Date:

15.0 Related Agencies and Provisions

 Sarbanes-Oxley SEC Rules and Provisions
o Section 802 – Retention of records relevant to audits and reviews
o Section 1519 - Destroying, altering or falsifying records in federal
investigations and bankruptcy
o Section 1520 - Destruction of corporate audit records
o Section 1512 - Strengthening existing obstruction of justice
provisions
 Internal Revenue Service (IRS)
o Internal Revenue Code (IRC) section 6001
o Internal Revenue Code (IRC) section 6511
o IRS Income Tax Regulation section 1.6001-1
 Occupational Health and Safety Administration (OSHA)
 Equal Employment Opportunity Commission (EEOC)
 Wage Hour Law

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Records Retention Policy

15.1 Records Retention

15.1.A Policies
 Management is required to monitor compliance with the records retention
policy, through periodic audits, to ensure that records are consistently and
periodically purged and that the records retained are the records that satisfy
the business objectives of the XYZ.
 Critical records should be stored in a secure environment and kept from
the elements.
 Access to critical records should be limited to authorized personnel only.
Exceptions should be approved by management.
 Management must approve all requests for copies of records from third
parties.
 Management should authorize the disposal and destruction of any critical
records.
 Backups of financial and operations systems should be completed on a
daily basis and stored at an offsite location.
 Written policies and procedures should be reviewed, updated, approved
and communicated to applicable personnel annually or when any significant
changes occur in business practices.
 The table below shows a recommended retention schedule for some of the
more common business records and should be used as a guideline for retaining
financial, tax, and business records. (Note: AT = After Termination, AD =
After Disposal)

Category Record Type Number of Years

records should be
maintained
Accounting Records
Accounting Correspondence 5 years
Accounts Payable Ledger 7 years
Accounts Receivable Ledger 7 years
Audit Reports Indefinitely
Cash Journal 10 years
Chart of Accounts Indefinitely
Credit and Collection Correspondence 7 years
Customer Ledger 7 years
Delivery Receipts/Reports 3 years
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Depreciation Schedules 7 years AD

Category Record Type Number of Years
records should be
maintained
Equipment Leases (After Expiration) 7 years AD
Equipment Repair Records 3 years
Expense Records 7 years
Financial Statements (Annual and Indefinitely
Audited)
Financial Statements (Interim) 3 years
Fixed Asset Purchases Indefinitely
Fixed Asset Reports 7 years AD
Freight Drafts, Shipping Tickets, Bills 5 years
of Lading, Claims
General Journal 10 years
General Leases 7 years AT
General Ledger Indefinitely
Inventory Records 7 years AD
Invoices (Issued or Received) 7 years
Invoices Fixed Assets 7 years AD
Journal Entries – Year End Indefinitely
Loan Payment Schedules 7 years
Plant Ledger Indefinitely
Purchase Invoices 7 years
Purchase Order Copies 3 years
Purchase Orders 7 years
Purchases Journal 10 years
Requisitions 3 years
Sales Journal 10 years
Sales Records 7 years
Tax Returns Indefinitely
Uncollectable Accounts Records 7 years
Voucher Journal 10 years
Voucher Register 10 years
Vouchers (Copies) 7 years
Corporate Records
Articles of Incorporation Indefinitely
Board Minutes Indefinitely
Business Licenses Indefinitely

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Category Record Type Number of Years

records should be
maintained
Bylaws Indefinitely
Contracts – Corporate 20 years AT
Contracts – Employee 7 years AT
Contracts – Vendor 7 years
Dividend Register Indefinitely
Fire Damage Reports 6 years
General Correspondence 3 years
Insurance Policies Life + 3 years
Insurance Policies (after expiration) 3 years
Leases/Mortgages Indefinitely
Licenses 1 year AT
Maintenance Records (Building) 7 years
Maintenance Records (Machinery) 5 years
Partnership Agreements Life of Contract
Patents/Trademarks Indefinitely
Shareholder Records Indefinitely
Stock Ledger Indefinitely
Stock Registers Indefinitely
Stock Transactions Indefinitely
Union Contracts Indefinitely
Taxes
Tax Records (Including Worksheets, 10 years
Bills and Agent’s Reports
Tax Returns – Estate Indefinitely
Tax Returns – Gift Indefinitely
Tax Returns – Income Indefinitely
Tax Returns – Payroll 7 years
Tax Returns – Personal Property 10 years
Tax Returns – Sales and Use 10 years
Tax Returns – Social Security 7 years
Real Property Records
Construction Records Indefinitely
Leasehold Improvements Indefinitely
Lease Payment Records Life + 4 years
Category Record Type Number of Years
records should be
maintained
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Records Retention Policy

Real Estate Purchases (Titles and Indefinitely

Mortgages)
Bank Records
Bank Deposit Slips 3 years
Bank Reconciliation’s 3 years
Bank Statements 7 years
Canceled Checks 7 years (indefinitely
for real estate
purchases)
Electronic Payment Records 7 years
Loan Records 7 years (from date of
last payment)
Payroll & Employee Records
Accident Reports (Settled) 7 years
Benefit Plans Indefinitely
Daily Time Reports 5 years
Disability Claims 7 years AT
Earnings Records 7 years
Employee Files (Ex-employee) 7 years or statute of
limitations for
employee lawsuits
Employee Service Records 7 years AT
Employment Applications 3 years
Employment Taxes 7 years
Expense Reports 5 years
Garnishments 3 years AT
Labor Contracts 7 years AT
Pay Checks 7 years
Payroll Journal 10 years
Pension/Profit Sharing Plans Indefinitely
Salary and Wage Changes 7 years AT
Salary Receipts 7 years AT
Times Cards, Tickets, and Clock 5 years
Records
Travel Records (Employees) 3 years

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Records Retention Policy

Category Record Type Number of Years

records should be
maintained
W-2 Forms 7 years
Unemployment Claims 7 years AT
Withholding Certificates 7 years AT
Worker’s Compensation Reports 10 years

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