WillR
Posts: 68
Posts: 68
Posted:
How long should you keep books and records? I ask because our Board has gotten rid of records that are only a few years old and none over seven years. All old insurance policies, and other paperwork.
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PetunkaM
Posts: 993
Posts: 993
Posted:
Will,
the best I can do is to quote Florida law but not sure if that is going to of any help to you:
h) All of the association’s insurance policies or a copy thereof, which policies must be retained for at least 7 years.
(i) A current copy of all contracts to which the association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility. Bids received by the association for work to be performed must also be considered official records and must be kept for a period of 1 year.
(j) The financial and accounting records of the association, kept according to good accounting practices. All financial and accounting records must be maintained for a period of at least 7 years. The financial and accounting records must include:
1. Accurate, itemized, and detailed records of all receipts and expenditures.
2. A current account and a periodic statement of the account for each member, designating the name and current address of each member who is obligated to pay assessments, the due date and amount of each assessment or other charge against the member, the date and amount of each payment on the account, and the balance due.
3. All tax returns, financial statements, and financial reports of the association.
4. Any other records that identify, measure, record, or communicate financial information
the best I can do is to quote Florida law but not sure if that is going to of any help to you:
h) All of the association’s insurance policies or a copy thereof, which policies must be retained for at least 7 years.
(i) A current copy of all contracts to which the association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility. Bids received by the association for work to be performed must also be considered official records and must be kept for a period of 1 year.
(j) The financial and accounting records of the association, kept according to good accounting practices. All financial and accounting records must be maintained for a period of at least 7 years. The financial and accounting records must include:
1. Accurate, itemized, and detailed records of all receipts and expenditures.
2. A current account and a periodic statement of the account for each member, designating the name and current address of each member who is obligated to pay assessments, the due date and amount of each assessment or other charge against the member, the date and amount of each payment on the account, and the balance due.
3. All tax returns, financial statements, and financial reports of the association.
4. Any other records that identify, measure, record, or communicate financial information
JohnM48
Posts: 89
Posts: 89
Posted:
For whatever it's worth, I've attached a copy of our Document Retention & Destruction Policy.
Hope it helps.
Hope it helps.
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MelissaP1 (Alabama)
Posts: 13,734
Posts: 13,734
Posted:
I think it's good to keep as many records in regards to contracts signed and many meeting notes. If possible, I would try to scan the documents into a computer to save. This way you can get rid of the hard copies and have them electronically. Plus it allows easier access and review. Just have to have a scanner and someone willing to do the work...
Former HOA President
BradP
Posts: 2,548
Posts: 2,548
Posted:
Quote:
Posted By WillR on 10/08/2011 12:28 PM
How long should you keep books and records? I ask because our Board has gotten rid of records that are only a few years old and none over seven years. All old insurance policies, and other paperwork.
How long should you keep books and records? I ask because our Board has gotten rid of records that are only a few years old and none over seven years. All old insurance policies, and other paperwork.
Will...i would advise you to check your state statutes, every state is different. For example, Kansas just passed a law requiring 5 years of record keeping for certain things. Your documents may also spell out what to do. I woudl also advocate keeping as much information as you possibly can, electronic storage is great if you have the capability to do so. Flash drives are relatively cheap and I would advocate at least 2 copies be kept.
LawrenceC1
Posts: 480
Posts: 480
Posted:
Will,
While there are some things that you will want to keep permanently, there are other things that *must* be destroyed after a period of time.
The Fair and Accurate Credit Transactions Act of 2003 (FACTA) requires destruction of documents that contain information about an individual’s creditworthiness, character, general reputation, personal characteristics, or mode of living and which can be used to determine the individual’s eligibility for credit, insurance, or employment. This would include records of any delinquencies in paying homeowner fees, and any documents retrieved during collection such as a credit report.
While the FACTA does not specify when these documents must be destroyed, keeping them past 7 years is probably not a good idea.
And unless a document has some value, it ought to be discarded. This makes it easier to find relevant information without having to wade through piles of junk.
Finally, any time a document is retained, there is a risk that the information in it could be used against the Association in litigation. The fewer such documents that exist, the less risk of their being misused.
So check state and federal laws to see how long you have to retain each kind of document, and look critically at keeping anything beyond the legally mandated retention period.
While there are some things that you will want to keep permanently, there are other things that *must* be destroyed after a period of time.
The Fair and Accurate Credit Transactions Act of 2003 (FACTA) requires destruction of documents that contain information about an individual’s creditworthiness, character, general reputation, personal characteristics, or mode of living and which can be used to determine the individual’s eligibility for credit, insurance, or employment. This would include records of any delinquencies in paying homeowner fees, and any documents retrieved during collection such as a credit report.
While the FACTA does not specify when these documents must be destroyed, keeping them past 7 years is probably not a good idea.
And unless a document has some value, it ought to be discarded. This makes it easier to find relevant information without having to wade through piles of junk.
Finally, any time a document is retained, there is a risk that the information in it could be used against the Association in litigation. The fewer such documents that exist, the less risk of their being misused.
So check state and federal laws to see how long you have to retain each kind of document, and look critically at keeping anything beyond the legally mandated retention period.
WillR
Posts: 68
Posts: 68
Posted:
Thanks to all that provided input. I have also reached some and have found the U.S act that covers corporation for /and non-profit. The Sarbanes-Oxly act of 2002. It would seem that the best thing to do is "ALWAYS", check before destroying any document or record, if you have the means electronically store all you can. Flash drive, memory card, Cd etc.
JamesC
Posts: 279
Posts: 279
Posted:
Quote:
Posted By WillR on 10/09/2011 9:55 AM
Thanks to all that provided input. I have also reached some and have found the U.S act that covers corporation for /and non-profit. The Sarbanes-Oxly act of 2002. It would seem that the best thing to do is "ALWAYS", check before destroying any document or record, if you have the means electronically store all you can. Flash drive, memory card, Cd etc.
Thanks to all that provided input. I have also reached some and have found the U.S act that covers corporation for /and non-profit. The Sarbanes-Oxly act of 2002. It would seem that the best thing to do is "ALWAYS", check before destroying any document or record, if you have the means electronically store all you can. Flash drive, memory card, Cd etc.
Will:
I would add: Retain "ALL" minutes of the meetings of your Board of Directors.
Jim
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