Developing a Records Retention Schedule
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Transcript of Developing a Records Retention Schedule
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Developing a Records Retention Schedule
The Basics
&
A Case Study
Debra Robinson, CRMOctober16, 2003
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The Basics
Why do organizations need a Retention Schedule? – To identify the organizations “Official Policy” for
retention and disposal of information assets– To achieve economic benefits– To achieve legal benefits
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The Basics - What
A retention schedule states the length of time that records must be retained and is based on the idea that all records have a “life cycle”
The Life Cycle is the useful span of time that a records should be retained
Remember…the Records Retention Schedule is only one component of an organization’s records management program
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Retention Schedule The Development Process
Obtain Management Support Assign Primary Responsibility Include Other Participants Conduct a Records Inventory Classify Records to “Records Series”
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Retention Schedule The Development Process, cont.
Conduct Legal Research Determine the Retention Values Design and Prepare the Retention Schedule Distribute for Review and Approval Publish, Communicate and Implement Take Steps to Ensure Ongoing Success
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Management Support
Success is dependent on the amount of support received from the top– When the initial push comes from the top, this
support already exists and can be harnessed to obtain the resources needed
– When initiated by records management, the benefits may need to be “sold” to those at the top
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Assign Responsibility
The Records Manager Use of Existing Personnel Consultants
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Include Other Participants
Establish a team comprised of representatives from major functions/departments in the organization– Legal, Internal Auditing, Finance, Tax, Human
Resources, Regulatory, etc.
Team members should be knowledgeable of the records and their operational needs as used by their function
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The Records Inventory
Consider a preliminary file purge Survey the organization’s records to obtain a
complete and accurate account Survey ALL media types Document the inventory on a form designed
specifically to facilitate obtaining and organizing the information needed
Interview department contacts
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Classify Records to Records Series
Use the Records Inventory to group related records into Records Series or Classification Subjects for evaluation of retention requirements
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Legal Research
There are over 4,700 federal statutes and tens of thousands of state statutes
Some statues are applicable to businesses or governmental agencies in general
Most requirements apply to specific classes of records maintained by certain types of business engaged in providing specific types of products or services
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Legal Research – Planning
Consult with your organization’s legal council to discuss the scope of research required
Statutes applicable to most organizations include ones related to:– Business Incorporation– Labor and employment practices– Tax administration
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Legal Research – Planning
Other areas of research to consider:– Products or services performed that may be
subject to recordkeeping requirements– Geographic locations of business activities– What federal, state or other government agencies
regulate activities of the organization– Litigation history of the organization and related
concerns
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Legal Research - Issues
The following are the types of results that may be found in the legal research process– No recordkeeping requirement is found– A requirement is found requiring a specific
retention period– A requirement is found containing a requirement
to “maintain” the record with no specific time period identified
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Legal Research - Issues
– A statute of limitation is found– A limitation of assessment period is found– Case Law
Many requirements are vague and difficult to interpret
Two or more requirements are found with different retention requirements
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Legal Research - Sources
Researching Federal Requirements– Laws and regulations are contained in the United
States Code, United States Code Annotated or United States Code Service, Lawyer’s Edition
– Regulations are contained in the Code of Federal Regulations and the Federal Register
– Office of the Federal Register’s Guide to Retention Requirements
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Legal Research - Sources
Federal Requirements On-line– http://www.washlaw.edu/searchlaw.html#Federal%20Statutes– http://www.gpoaccess.gov/nara/index.html– http://uscode.house.gov/usc.htm– http://cfr.law.cornell.edu/cfr/
Some Suggested Search Terms– Records– Recordkeeping– Limitations of Action– Maintain– Keep
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Legal Research - Sources
Researching California Requirements– California Code of Regulations– 29 Codes Covering Various Areas
Contact State Agencies for Copies of Rules and Regulations
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Legal Research - Sources
California Requirements On-line– http://www.leginfo.ca.gov/– http://california.lp.findlaw.com– http://www.netlawlibraries.com/
California Municipal and County Codes and Ordinances
– http://california.lp.findlaw.com/ca01_codes/municode.html
Use the Same Search Terms as for Federal Research
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Legal Research - Sources
Other Sources for Retention Requirements:– Legal Requirements for Business Records: The
Electronic Edition, Edited by Donald S. Skupsky, JD, CRM; Information Requirements Clearinghouse
http://www.irch.com
– Retention 6.1, Zasio Enterprises
http://www.zasio.com/
– Guide to Professional Resources – ARMA International
http://www.arma.org/bookstore/default.cfm
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Legal Research - Documentation
Reproduce the Full Text of all legal requirements
Note the applicable statue or regulatory citation(s) for each records series or classification
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Determine the Retention Values
Determine Records Values– Operational/Administrative– Legal– Fiscal/Tax– Historical
Records Appraisal– Primary Value – Secondary Value
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Determine the Retention Values
Cost/Benefit Considerations
Note: Don’t assume that because a person has stated that there is a specific requirement for retention that it must be so. Obtain justification.
Make Retention Decisions
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Determine the Retention Values
Optimum Distribution of Retention Periods
RETENTION
RANGE
% OF TOTAL RECORDS
Less than 1 year 2-5
1 to 3 years 10-20
4 to 5 years 20-30
6 to 7 years 20-30
8 to 10 years 10-20
11 to 20 years 5-10
Indefinite 2-5
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Design and Prepare the Retention Schedule
Determine the Retention Schedule Format– Description of Record– Department Owner– Retention Period
Active Period (Maintained within the Department) Inactive Storage Total Retention Period
– Media– Vital Records Identification
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Distribute for Review and Approval
Final Draft Reviewed and Approved by the Retention Schedule Development Team
Reviewed by the Legal Department Route for Approval to Managers and
Executives in Key Positions within the Organization
Maintain Records of the Approval
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Publish, Communicate and Implement
Utilize the Organization’s Normal Process for Publishing the Retention Schedule as Would Occur for Other Important Policies
Develop a Communication Plan to Ensure that Everyone is Made Aware of their Recordkeeping Responsibilities
Plan How it will be Implemented throughout the Organization
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Take Steps to Ensure Ongoing Success
Make Sure the Retention Schedule Is Legally Acceptable by Making Sure it is Adhered to Throughout the Organization
Promote Recordkeeping Activities Provide Training to the Organization Develop Procedures
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Case Study
The 1998 Process Used
In GTE
(Eight Months of my Life)
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Team Established
– Legal– Regulatory– Finance– Tax– Human Resources
– GTE Directories– GTE Wireless– GTE Supply– GTE Telops– GTE Service Corporation
A Cross-Organizational Project Team was
Chosen
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Team Goals Developed
Keep it Short and Simple Adhere to Actual Legal and/or Regulatory
Requirements Linking Responsibility for Compliance at a
High Level in the Organization Policy Development Criteria
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Legal Research
2,758 Federal and/or State Legal Requirements, Statute of Limitation Periods or Regulatory Requirements were Identified, Documented and Categorized
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SUBJECT CLASSIFICATION LEGAL OR REGULATORY
CITATION
RECORD-
KEEPING
REQUIREMENT
STATUTE OF
LIMITATION
ACTION
- Check Requisitions, Invoices US 17 CFR 257.2-14(e)US 49 CFR 1220.6-C4(b)AL NARUC 59fIL 83 ICC 705 53(f)NC NCGS 105-113-58NC NCGS 105-164.22SC SCCA 12-35-1250
6 Y3 Y6 Y3 Y3 Y3 Y3 Y
- Donations
- Expense Reports US 26 CFR 1.162-17US 48 CFR 4.705-1(c)VA VRR 300-01-2
Maintain4 Y4 Y
- Accounts Payable Ledgers US 17 CFR 257.2-11 Settlement
- Property Tax US 26 CFR 1.274-5TCA CC 1506KS KSA 79-201-fTX Rule 3.281
MaintainMaintain
Legal Research - Example
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Skipping a Records Inventory!
GTE had 120,000 Employees Local Phone Service in 28 States Wireless Service in 17 States 8 International Operations 8 Retention Schedules
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Comparison of Existing Retention Schedules
Spreadsheet Developed to Compare 8 Existing Retention Schedules Used by Various Operating Units
1,814 Record Titles/Subjects Were Compared
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Comparison of Existing Retention Schedules - Example
SUBJECT CLASSIFICATION L-901 DIRECT GOVT HR/PAY SVC CORP
SUPPLY TELOPS WIRELESS PROPOSED
Accounts PayableAnalysisBatch LogCapital Project Interface Detail ReportConstruction BillsDirect Deposit RecordsDistributionDrafts PaidDistribution SummariesIntercarrier PayablesListingRoyalty FilesWire Transfer Requests
3
7
7
CT 333
6
CT 3
CT 3
6 CY 5
CY 3
3
CY 6 3
3
2
10
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Retention Periods Recommended
Consolidation of Record Subjects Consensus on Utilizing the “3-Year Rule” Identified the Longest Recordkeeping
Requirement Considered Risk Taking Team Consensus on Proposals Development of Cross-Reference Listing
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Proposed Retention Schedule Routed to SME’s
Initial Team Recommendations for the Proposed Retention Schedule were Routed to Subject Matter Experts to Obtain Feedback
Feedback Used to Further Adjust Proposed Retention Periods, Add Classifications, etc.
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Distribute for Review and Approval
Task Team Members were Responsible for Disseminating the Proposal to the Proper Individuals within their Organization for Approval
Modifications Made and Resubmitted Final Sign-Off was Obtained
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Published, Communicated and Implemented
Corporate Procedures were Utilized to Publish the New Retention Schedule and Records Management Policy
Public Affairs was Charged with Communicating
Records Management was Charged with Implementation
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Questions?