Record REtention

Record RetentionMichelle Likins

IntroductionAs you have learned, records are documents that have value to the organization. Records may be valuable for legal, financial, or historical reference or for use in daily operations. In this lesson, we will be reviewing the various classes of records and the schedules those records should follow.

ObjectivesAt the end of this lesson, the student will be able to describe the procedures for retaining records.At the end of this lesson, the student will also be able to apply the procedures to various types of records.At the end of this lesson, the student will be able to recommend a specific method for transferring files based on a specific criteria.

Retaining RecordsClassifications of recordsVital recordsImportant recordsUseful records Nonessential recordsRetention schedulesTypes of recordsTime period to retain4

Retention Schedule 5HeadingDistribution list

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Retaining RecordsActive to inactive file proceduresPerpetual transferPeriodic transferBacking up filesMaking copiesStoring copies ina safe place6Workplace WisdomBacking up vital and important records should be part of a larger disaster recovery plan. Records should be stored off-site at a safe location.

Test Your KnowledgeBased on the information covered in the PowerPoint, what is the retention time for each of the following types of records.

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Trademark RegistrationsPermanent5 Years3 Years7 Years

Payroll records and summariesPermanent5 Years3 Years7 Years

InvoicesPermanent5 Years3 Years7 Years

MortgagesPermanent5 Years3 Years7 Years

Accounts payable ledgersPermanent5 Years3 Years7 Years

Tax returnsPermanent5 Years3 Years7 Years

Minutes of stockholder meetingsPermanent5 Years3 Years7 Years

Equipment repair recordsPermanent5 Years3 Years7 Years

Expired insurance policiesPermanent5 Years3 Years7 Years

Discussion QuestionsPlease discuss the following discussion questions in the discussion forums in Angel:What criteria can be used to distinguish between active and inactive records?In creating a records retention schedule, what criteria are used to determine how long to store records?

19Chapter 12: Retaining Records QuizPlease write your answer on a sheet of paper and submit before you leave class.

To avoid keeping records longer than needed, organizations use a records retention schedule. (T/F)

2. When distinguishing among records for retention purposes, use the following categories:a.active records, inactive records, and archive records.b.vital records, important records, and useful records.c.vital records, important records, and archive records.d.active records, archive records, and nonessential records.

MATCHINGMatch each item with the correct statement below.a.important recordsb.periodic transferc.perpetual transferd.records retention schedulee.useful recordsf.vital records

3. Records that cannot be replaced and should never be destroyed4. A system by which active records are transferred to inactive status at the end of a stated time5. A document that specifies how long various types of records should be kept 6. A system by which records are continuously transferred from the active to the inactive files7. Records needed for the smooth, effective operation of the organization8. Records necessary to an orderly continuation of the business and replaceable only at considerable cost of time and money