information management 101 arkansas school business officials october 25, 2010

Information ManagementInformation Management101101

Arkansas School Business Arkansas School Business OfficialsOfficials

October 25, 2010October 25, 2010

Presented by:Presented by:

L. Freeman Wish, CPAL. Freeman Wish, CPA

Clarksville School DistrictClarksville School District

1701 Clark Road1701 Clark Road

Clarksville, AR 72830Clarksville, AR 72830

479-705-3200479-705-3200

[email protected]@csdar.org

Why Record Why Record Management?Management?

Important to the way the school Important to the way the school operatesoperates

Evidence of decisions, transactions, Evidence of decisions, transactions, operationsoperations

School historySchool history

Strategic PlanningStrategic Planning

Components of Record Components of Record ManagementManagement

ArchiveArchive - A place where records of permanent value - A place where records of permanent value

(inactive (inactive data) are kept for legal, compliance, data) are kept for legal, compliance, historical or historical or research purposesresearch purposes..

Records Management CenterRecords Management Center- A place where semi-active data are kept for - A place where semi-active data are kept for

legal, legal, compliance, historical or research compliance, historical or research purposes and are purposes and are accessed frequently.accessed frequently.

Records ManagementRecords Management- The systematic control of recorded - The systematic control of recorded

information from information from creation to final disposition.creation to final disposition.

What is a Record?What is a Record?

Recorded information, regardless of medium Recorded information, regardless of medium or characteristics, received by an or characteristics, received by an organization that is evidence of its organization that is evidence of its operations, and has value requiring its operations, and has value requiring its retention for a specified period of time.retention for a specified period of time.

Information created, received and Information created, received and maintained by an organization or person in maintained by an organization or person in pursuance of legal obligations or in the pursuance of legal obligations or in the transaction of business.transaction of business.

What is a Record?What is a Record?

Information, often detailing business Information, often detailing business transactions, that is preserved transactions, that is preserved because of the value of its data.because of the value of its data.

Sources of Sources of Information/RecordsInformation/Records CorrespondenceCorrespondence InvoicesInvoices Purchase OrdersPurchase Orders Payroll RecordsPayroll Records School Board Meeting School Board Meeting

MinutesMinutes Bond IssuesBond Issues ElectionsElections E-MailE-Mail Telephone CallsTelephone Calls

Let’s Talk About E-MailLet’s Talk About E-Mail

Types of E-MailTypes of E-Mail

1. Non-Record Material1. Non-Record Material

2. Official Records2. Official Records

Non-Record MaterialsNon-Record Materials

Personal CorrespondencePersonal Correspondence

Any e-mail not received or created in the Any e-mail not received or created in the course of school business, may be deleted course of school business, may be deleted immediately, since it is not an official record: immediately, since it is not an official record: the “Let’s do lunch” (not a school business the “Let’s do lunch” (not a school business lunch) or “Can I catch a ride home” type of lunch) or “Can I catch a ride home” type of note. note.

Other examples would include any personal Other examples would include any personal messages not conveying school business.messages not conveying school business.


Transient CorrespondenceTransient Correspondence

E-mail that is determined to have E-mail that is determined to have insufficient value to warrant its preservation insufficient value to warrant its preservation may be deleted upon receipt. may be deleted upon receipt.

Examples are list serve messages, Examples are list serve messages, announcements regarding departmental announcements regarding departmental bake sales and other agency memos without bake sales and other agency memos without legal, administrative, fiscal or historical legal, administrative, fiscal or historical valuevalue


Non-State PublicationsNon-State Publications

Publications, promotional material from Publications, promotional material from vendors, and similar materials that are vendors, and similar materials that are “publicly available” to anyone, are not “publicly available” to anyone, are not official records unless specifically official records unless specifically incorporated into other official records.incorporated into other official records.

Examples are unsolicited promotional Examples are unsolicited promotional materials (spam), files copied or downloaded materials (spam), files copied or downloaded from internet sites, etc.from internet sites, etc.


Non-State PublicationsNon-State Publications

However, for example, if you justify the However, for example, if you justify the purchase of a particular filing system by purchase of a particular filing system by incorporating the reviews you saved from a incorporating the reviews you saved from a list serve in your proposal to your list serve in your proposal to your supervisor, those list serve messages supervisor, those list serve messages become official records and must be become official records and must be retained in accordance with the retention retained in accordance with the retention schedule for purchasing proposals.schedule for purchasing proposals.


Duplicate records are not normally Duplicate records are not normally considered records and do not have considered records and do not have to be retained.to be retained.

Duplicates may become the only Duplicates may become the only official record if the original is official record if the original is destroyed or lost.destroyed or lost.

Official RecordsOfficial Records

Transient RetentionTransient Retention

Much of the communication via e-mail has a Much of the communication via e-mail has a very limited administrative value and is very limited administrative value and is deemed transient. For instance, an e-mail deemed transient. For instance, an e-mail message notifying employees of an message notifying employees of an upcoming meeting would only have value upcoming meeting would only have value until the meeting date has been attended or until the meeting date has been attended or the employee receiving the message has the employee receiving the message has marked the date and time.marked the date and time.


Transient RetentionTransient Retention

The user may delete these types of e-mail The user may delete these types of e-mail messages immediately after they have messages immediately after they have served their intended purpose. served their intended purpose.

Other e-mail messages that have limited Other e-mail messages that have limited administrative value would include: administrative value would include: telephone messages, drafts and other telephone messages, drafts and other limited documents that serve to convey limited documents that serve to convey information of temporary importance in lieu information of temporary importance in lieu of oral communication. It would only be of oral communication. It would only be necessary to retain these records until no necessary to retain these records until no longer of administrative value.longer of administrative value.


Intermediate RetentionIntermediate Retention

E-mail messages that have more significant E-mail messages that have more significant administrative, legal and/or fiscal value but administrative, legal and/or fiscal value but are not scheduled as transient or permanent are not scheduled as transient or permanent should be categorized under the appropriate should be categorized under the appropriate record series.record series.


Intermediate RetentionIntermediate Retention– These may include (but not limited to)These may include (but not limited to)

General Correspondence: Includes internal General Correspondence: Includes internal correspondence (letters, memos): also, correspondence (letters, memos): also, correspondence from various individuals, correspondence from various individuals, companies, and organizations requesting companies, and organizations requesting information pertaining to agency and legal information pertaining to agency and legal interpretations and other miscellaneous interpretations and other miscellaneous inquiries.inquiries.

This correspondence is informative: it does This correspondence is informative: it does not attempt to influence agency policy.not attempt to influence agency policy.



Routine Correspondence. Referral letters, Routine Correspondence. Referral letters, requests for routine information or requests for routine information or publications provided to the public by the publications provided to the public by the agency, which are answered by standard agency, which are answered by standard form letters.form letters.

Monthly and Weekly Reports: Document Monthly and Weekly Reports: Document status of on-going projects and issues; status of on-going projects and issues; advising supervisors of various events and advising supervisors of various events and issues.issues.



Minutes of Agency Staff Meetings: Minutes Minutes of Agency Staff Meetings: Minutes and supporting records documenting and supporting records documenting internal policy decisions. internal policy decisions.


Permanent RetentionPermanent Retention

– E-mail messages and other E-mail messages and other memorandums having significant memorandums having significant administrative, legal and/or fiscal value administrative, legal and/or fiscal value and are scheduled as permanent should and are scheduled as permanent should be categorized under the appropriate be categorized under the appropriate record series.record series.


Permanent RetentionPermanent Retention– These may include (but not limited to):These may include (but not limited to):

Executive Correspondence: Correspondence Executive Correspondence: Correspondence of the head of an agency dealing with of the head of an agency dealing with significant aspects of the administration of significant aspects of the administration of their offices. Correspondence includes their offices. Correspondence includes information concerning agency policies, information concerning agency policies, program, fiscal and personnel matters.program, fiscal and personnel matters.


Permanent RetentionPermanent Retention– These may include (but not limited to):These may include (but not limited to):

Department Policies and Procedures: Department Policies and Procedures: Includes published reports, unpublished Includes published reports, unpublished substantive reports and policy studies.substantive reports and policy studies.

Reflect official actions taken.Reflect official actions taken.

Convey statements of official policy or Convey statements of official policy or rationale for official decisions.rationale for official decisions.

What is Record What is Record Management?Management?

File Plan ImplementationFile Plan Implementation

Records RetrievalRecords Retrieval

Retention and DispositionRetention and Disposition

Preservation of Significant or Historical Preservation of Significant or Historical RecordsRecords

AuditingAuditing

What is Record Management?What is Record Management?

The systematic control of all The systematic control of all records from their creation or records from their creation or receipt, through processing, receipt, through processing, distribution, organization, distribution, organization, storage and retrieval to their storage and retrieval to their ultimate disposition.ultimate disposition.

Why Do I Need Record Why Do I Need Record Management?Management?

Comply with Government RegulationsComply with Government Regulations Reduce Legal LiabilityReduce Legal Liability Control Valuable Company AssetsControl Valuable Company Assets Reduce Record Archive SizeReduce Record Archive Size

Essential Elements ofEssential Elements ofRecord ManagementRecord Management

RecordRecord File PlanFile Plan Retention ScheduleRetention Schedule Records RetrievalRecords Retrieval DispositionDisposition

File PlanFile Plan

A system for categorizing records, A system for categorizing records, divided into categories.divided into categories.

Each category has its own retention Each category has its own retention schedule.schedule.

All records in the system are assigned All records in the system are assigned to a category.to a category.

Retention ScheduleRetention Schedule

The amount of time a record should The amount of time a record should remain in the system.remain in the system.

When (and if) the record should be When (and if) the record should be disposed.disposed.

How the record should be disposed.How the record should be disposed.

Record RetrievalRecord Retrieval

Structured query, full text search, or a Structured query, full text search, or a combination of both.combination of both.

Export records into their native formats.Export records into their native formats. Print or e-mail records.Print or e-mail records. Version records.Version records. Add notes or comments to original Add notes or comments to original

record.record.

DispositionDisposition

The method by which a record is The method by which a record is removed from the system. removed from the system.

Disposition is based on time, event, Disposition is based on time, event, or a combination of time and event.or a combination of time and event.

The process is generally either The process is generally either transfer or destruction.transfer or destruction.

Why Dispose of Records?Why Dispose of Records?

Not all records are permanent records.Not all records are permanent records. Non-permanent records may have set Non-permanent records may have set

retention rules.retention rules. Enforcing retention rules removes Enforcing retention rules removes

records when they become obsolete.records when they become obsolete. Example: Destroy employee personnel Example: Destroy employee personnel

records seven (7) years after records seven (7) years after retirement.retirement.

Record Retention PolicyRecord Retention Policy

Lack of a formal Arkansas School Record Lack of a formal Arkansas School Record Retention and Disposal Plan.Retention and Disposal Plan.

West Virginia Records Retention ScheduleWest Virginia Records Retention Schedule

Michigan Public Schools Record Retention Michigan Public Schools Record Retention PlanPlan

Recommend that each school adopt a Record Recommend that each school adopt a Record Retention Plan and follow it.Retention Plan and follow it.

Legislative ActionLegislative Action19-4-1108. Retention of documents.19-4-1108. Retention of documents.

(a) The original evidences of indebtedness, including documents prepared in (a) The original evidences of indebtedness, including documents prepared in connection with purchasing procedure, and all original contracts, invoices, connection with purchasing procedure, and all original contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other original supporting papers shall be drawn upon bank accounts, and other original supporting papers shall be retained in the permanent file of the business office of each state agency. retained in the permanent file of the business office of each state agency. These documents shall be kept in a safe place subject to audit and shall not be These documents shall be kept in a safe place subject to audit and shall not be destroyed until authorization is given for their destruction by the Legislative destroyed until authorization is given for their destruction by the Legislative Auditor. Auditor.

(b) With the approval of the Legislative Auditor of the state, a state agency may (b) With the approval of the Legislative Auditor of the state, a state agency may retain evidences, to satisfy record retention policies, of indebtedness and other retain evidences, to satisfy record retention policies, of indebtedness and other contracts, invoices, statements, receipts, petty cash tickets, bank statements, contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other supporting papers by cancelled checks drawn upon bank accounts, and other supporting papers by microform or a form of stored images in a computer system or other form of microform or a form of stored images in a computer system or other form of computer technology in lieu of retaining the originals of such documents. computer technology in lieu of retaining the originals of such documents.

History. History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 1997, No. 541, Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 1997, No. 541, § 2; 2001, No. 1453, § 33.§ 2; 2001, No. 1453, § 33.

DFA InterpretationsDFA Interpretations

R1-19-4-1108 Public Records

The law defines public records as writings, recorded sounds, films, tapes, electronic or computer-based information or data compilations in any medium required by law to be kept or otherwise kept and which constitute a record of the performance or lack of performance of official functions which are or should be carried out by a public official or employee, a governmental agency or any other agency wholly or partially supported by public funds or expending public funds.

All public records shall be open to inspection and copying by any citizen of the State of Arkansas during the regular business hours of the custodian of the records, except as otherwise specifically provided by law.Refer to Arkansas Code ACA 25-19-105 for exceptions, charges for providing copies of records and required response time to requests for copies and ACA 25-19-109 for special requests for electronic information.

R2-19-4-1108 Records Retention

All records that are public property are required to be maintained by the agencies that generate the documents. The type of business record in question and the business process it supports determines the length of retention. Generally, all records should be maintained a minimum of three fiscal years. All records and supporting documentation must be maintained until they have been audited and may not be destroyed until permission has been granted by the Division of Legislative Audit. Other records such as records for grants are maintained according to State or Federal laws.

Public records can only be destroyed after permission is granted by the Division of Legislative Audit.

Storage of records in electronic form is permissible in some cases. Refer to Arkansas Law ACA 19-4-815, 19-4-1108, 25-32-112, 13-4-203, 25-32-117, 25-32-118.

Effective January 1, 2006, the Executive Chief Information Officer shall promulgate rules and guidelines governing the retention and management of public records and issue periodic updates as necessary. Each State agency shall comply with these rules and guidelines by the earlier of July 1, 2007, or when the line item appropriation is established to comply with this requirement.

ACT 918 of 2005ACT 918 of 2005

Applies to all cities, county or local Applies to all cities, county or local governments in Arkansasgovernments in Arkansas

Requires the development of rules Requires the development of rules and guidelines for the retention of and guidelines for the retention of public records commonly found in public records commonly found in state agenciesstate agencies

Requires rules and guidelines to be Requires rules and guidelines to be effective July 1, 2007effective July 1, 2007

Arkansas Record Retention Arkansas Record Retention Schedule Schedule

Agency Directives, Agency Directives, Internal Policies Internal Policies and Proceduresand Procedures

Keep until Keep until superseded plus superseded plus three yearsthree years

Arkansas Record Retention Arkansas Record Retention ScheduleSchedule

Meeting Agenda Meeting Agenda and Minutes of and Minutes of Governing BodiesGoverning Bodies

PermanentPermanent


Employee Benefit Employee Benefit Records and Records and Employee Personnel Employee Personnel RecordsRecords

Workers Workers Compensation Compensation Accident ReportsAccident Reports

5 years after 5 years after separation or until separation or until closure of closure of unresolved unresolved personnel issues, personnel issues, whichever is whichever is greatergreater

3 years from date 3 years from date of injuryof injury


Accounts PayableAccounts Payable

Accounts Accounts ReceivableReceivable

Until authorized by Until authorized by the legislative the legislative auditor (as required auditor (as required by Arkansas Code)by Arkansas Code)

Until authorized by Until authorized by the legislative the legislative auditor (as required auditor (as required by Arkansas Code)by Arkansas Code)

Let’s Take A Look At A Let’s Take A Look At A Few Examples of Record Few Examples of Record

Retention PeriodsRetention Periods

(Comparing West Virginia, (Comparing West Virginia, Michigan and Arkansas)Michigan and Arkansas)

Accounting Accounting RecordsRecords

Bank Statements, Deposit Bank Statements, Deposit SlipsSlips

West Virginia – Audit + 3 yearsWest Virginia – Audit + 3 years

Michigan – Current FY + 7 yearsMichigan – Current FY + 7 years

Arkansas – Until authorized by Arkansas – Until authorized by legislative auditorlegislative auditor

Cash Receipts/Receipt Cash Receipts/Receipt BooksBooks




A/P Invoices/Purchase A/P Invoices/Purchase OrdersOrders




Journal EntriesJournal Entries




BondsBonds

West Virginia – PermanentWest Virginia – Permanent

Michigan – Expiration + 7 yearsMichigan – Expiration + 7 years

Arkansas – Expiration + 5 yearsArkansas – Expiration + 5 years

Audit ReportsAudit Reports

West Virginia – PermanentWest Virginia – Permanent

Michigan – PermanentMichigan – Permanent

Arkansas – Until the next audit report Arkansas – Until the next audit report is issued by Legislative Auditis issued by Legislative Audit

Let’s Talk Payroll RecordsLet’s Talk Payroll Records

Employment History RecordsEmployment History RecordsPayroll History (Annual Payroll History (Annual

Earnings)Earnings)

West Virginia – 50 yearsWest Virginia – 50 years

Michigan – Current Fiscal Year + 50 Michigan – Current Fiscal Year + 50 yearsyears

Arkansas – PermanentArkansas – Permanent

Unemployment CompensationUnemployment CompensationRecordsRecords

West Virginia – At least 4 yearsWest Virginia – At least 4 years

Michigan – Current Fiscal Year + 1 Michigan – Current Fiscal Year + 1 yearyear

Arkansas – 5 years after case closedArkansas – 5 years after case closed

Forms W-2Forms W-2

West Virginia – At least 4 yearsWest Virginia – At least 4 years


Arkansas – Not Addressed in Arkansas – Not Addressed in Arkansas Record Retention ScheduleArkansas Record Retention Schedule

Time and Attendance Time and Attendance RecordsRecords

West Virginia – Not AddressedWest Virginia – Not Addressed



Salary SchedulesSalary Schedules

West Virginia – 25 yearsWest Virginia – 25 years

Michigan – Creation Date + 6 yearsMichigan – Creation Date + 6 years

Arkansas – Not Addressed in Arkansas – Not Addressed in Arkansas Record Retention ScheduleArkansas Record Retention Schedule

Case Study of Record Case Study of Record Retention Policies That Don’t Retention Policies That Don’t

WorkWorkCarlucci vs. Piper AircraftCarlucci vs. Piper Aircraft

A Piper Cheyenne crashed in Ireland – 3 A Piper Cheyenne crashed in Ireland – 3 men died as a resultmen died as a result

Clara Carlucci sued Piper for design Clara Carlucci sued Piper for design defects that caused the pilot to lose defects that caused the pilot to lose control and crashcontrol and crash

Records were subpoenaed from PiperRecords were subpoenaed from Piper2 Employees in Flight Test Department had 2 Employees in Flight Test Department had

been told by supervisor to “selectively” been told by supervisor to “selectively” purge hundreds of records that might be purge hundreds of records that might be detrimental to Piper in future lawsuits.detrimental to Piper in future lawsuits.

Carlucci vs. Piper AircraftCarlucci vs. Piper Aircraft

Piper claimed these records were Piper claimed these records were destroyed under retention proceduresdestroyed under retention procedures

Piper could not demonstrate that these Piper could not demonstrate that these procedures were in place or that they procedures were in place or that they were being followed.were being followed.

Judge entered default judgment against Judge entered default judgment against Piper for $10 million – for selective Piper for $10 million – for selective destruction of records.destruction of records.

Carlucci vs. Piper AircraftCarlucci vs. Piper Aircraft

Judge did not even consider merits of Judge did not even consider merits of casecase

Milestone decision about destruction of Milestone decision about destruction of records – courts will not tolerate records – courts will not tolerate selective destruction of recordsselective destruction of records

Major Issue – Piper could not document Major Issue – Piper could not document to court that it destroyed its records to court that it destroyed its records in the regular course under an in the regular course under an approved records retention scheduleapproved records retention schedule

The Andersen LessonThe Andersen Lesson

After a 6-week trial and 10 days of After a 6-week trial and 10 days of deliberation, a jury found Arthur deliberation, a jury found Arthur Andersen guilty of obstruction of Andersen guilty of obstruction of justice when it destroyed Enron Corp. justice when it destroyed Enron Corp. documents while on notice of a documents while on notice of a federal investigation by the SEC.federal investigation by the SEC.


The jury rejected Arthur Andersen’s The jury rejected Arthur Andersen’s defense that the documents were defense that the documents were destroyed as part of its destroyed as part of its housekeeping duties and not as a housekeeping duties and not as a ruse to keep Enron documents away ruse to keep Enron documents away from the regulators.from the regulators.


Arthur Andersen received the maximum Arthur Andersen received the maximum sentence of 5 years probation and a sentence of 5 years probation and a $500,000 fine.$500,000 fine.

35,000 people lost their jobs worldwide.35,000 people lost their jobs worldwide. Since the initial court decision, the Since the initial court decision, the

Anderson Case was reversed but it was too Anderson Case was reversed but it was too late to save the companylate to save the company


The lesson to be learned from the The lesson to be learned from the Arthur Andersen experience is that a Arthur Andersen experience is that a Document Retention Program, an Document Retention Program, an otherwise critical part of a company’s otherwise critical part of a company’s risk management program, will not risk management program, will not save you from sanction if the policy save you from sanction if the policy does not conform to law, either in does not conform to law, either in content or in implementation.content or in implementation.

In ConclusionIn Conclusion

Records and information are the key Records and information are the key component to the existence of any component to the existence of any organization.organization.

Good record keeping processes and Good record keeping processes and policies are imperative.policies are imperative.

Litigation issues.Litigation issues. What happens if the organization What happens if the organization

ceases to exist?ceases to exist?

How to ComplyHow to Comply If a record retention policyIf a record retention policy

– Is reasonable, has a genuine business purpose and Is reasonable, has a genuine business purpose and establishes appropriate retention periodsestablishes appropriate retention periods

– Is not selective – it wasn’t designed to destroy all Is not selective – it wasn’t designed to destroy all records quickly so that nothing would be available if records quickly so that nothing would be available if anyone should ever sue the organization or anyone should ever sue the organization or commence an investigationcommence an investigation

– Is implemented in an evenhanded manner by Is implemented in an evenhanded manner by employees who understand the policyemployees who understand the policy

– Provides for prompt cessation of destruction Provides for prompt cessation of destruction programs if and when the organization learns of an programs if and when the organization learns of an investigation or litigationinvestigation or litigation

ThenThenA company should not incur criminal liability for an A company should not incur criminal liability for an innocent failure to retain potential evidence.innocent failure to retain potential evidence.

Sites To RememberSites To Remember

The Arkansas General Records The Arkansas General Records Retention Schedule Retention Schedule

http://www.dfa.arkansas.gov/offices/intergovernmhttp://www.dfa.arkansas.gov/offices/intergovernmentalServices/Pages/entalServices/Pages/recordRetentionSchedule.aspxrecordRetentionSchedule.aspx


West Virginia Public School Records West Virginia Public School Records Retention ScheduleRetention Schedule

http://wvde.state.wv.us/finance/manuals/

recordretentionschedule.pdfrecordretentionschedule.pdf


General Retention Schedule #2General Retention Schedule #2

Michigan Public SchoolsMichigan Public Schools

http://www.michigan.gov/documents/http://www.michigan.gov/documents/hal_mhc_rms_local_gs2_171482_7.pdhal_mhc_rms_local_gs2_171482_7.pdff

Thank You Thank You ForFor

Your AttendanceYour Attendance

GOOD LUCK

I HOPE I HAVE HELPED

ALWAYS REMEMBER THIS!

IT IS NEVER TOO LATE TO HAVE A HAPPY

CHILDHOOD

information management 101 arkansas school business officials october 25, 2010

Documents

official records slide

historical value slide

school business lunch

course of school business

information management

records management center

email types of email

transaction of business