Record keeping

Started by KW3 • 3 replies • 2935 views

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KW3 (California)
Posts: 146

Posted:

Hi,

In CA, is there a law that requires or allows certain aged HOA records (e.g., 10+ or 20+ years old) to be deleted or transferred to other party so that they cease to exist and unavailable for inspection? (Please I acknowledge that old records could be missing or lost for many reasons, but I am not talking or concerned about the "lost" course.)

The specific record concerned here is one that covered the very first members' annual meeting taking place about 25 years ago (the minutes or any record).

GlenL (Ohio)
Posts: 5,491

Posted:

KW, minutes are one of the things that should be kept forever, however as you said things disappear over time. This is a sample records retention policy from davis-stirling.com:

Records Retention Policy
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.

Permanent
Governing Documents
a. CC&Rs
b. Bylaws
c. Articles of Incorporation
d. Condominium Plan
e. construction plans (if available)
Minutes of board and membership meetings. Civil Code §1365.2(i)(2).
Minutes of committees with decision-making authority.
Deeds to property owned by the association.

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. Civil Code §1365.2(i)(1).

One Year
Ballots must be stored by associations in a secure place for no less than one year after the date of the election. Civil Code §1363.03(i).

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KW3 (California)
Posts: 146

Posted:

Thanks, Glen. It's clear that the minutes of board meeting and membership meeting are legally "permanent" records. An interesting side question as the guideline states that Ballots should be kept for 1+ year: now the secret ballots are returned as in the "ballot kits" (double-envelop kit) and the kits are remained sealed until the election meeting. After being checked and counted, each kit is opened and the sealed ballot inside is dropped in a ballot box or put in one place, but the outer envelop with voter's name and sig is put in another place... until all the return kits are opened. Then the secret ballots are opened and votes counted, tablet to produce election result. Now after the election, all secret ballots must be kept, but how about the outer envelops with voter's name and sig? My reckoning: they should be kept too; reason: members should have the right to inspect them for the purpose of making sure their votes are counted.

MaryA1 (Arizona)
Posts: 388

Posted:

KW,

The info Glen posted is from the Adam Kessler website; it is not state law. I suggest you read the statutes referenced for a better understanding as they apply to inspection of records, not records retention.

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