Storage of old documents

CarmenJ (Texas)
Posts: 4

Posted:

I am in Texas and we are in a pickle. The old board was not taking any interest in managing the mgmt company and we are finding all kinds of issues. One thing I need to know is how long we have to keep old minutes, tax returns, financial documents etc. I always thought 7 years and in healthcare i know that is correct. The mgmt company says 10 and I cannot find anything with the state one way or the other. We would like to purge old so we can scan rest to store electronically and discontinue paying storage.

GlenL (Ohio)
Posts: 5,491

Posted:

Carmen this is from California but it gives a good idea of what needs to be kept and for how long. You could check with your HOA attorney and CPA for something specific for Texas.

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.
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.

One Year
Ballots must be stored by associations in a secure place for no less than one year after the date of the election.

Studies show that 5 out of 4 people have problems with fractions