Document Destruction and Retention Policy
Purpose
In accordance with the Sarbanes-Oxley Act, which makes it a crime to alter, cover up, falsify, or destroy any document with the intent of impeding or obstructing any official proceeding, and in accordance with the California Electronic Discovery Act, this policy provides for the systematic review, retention, and destruction of documents received or created by THE SAN FRANCISCO LESBIAN GAY BISEXUAL TRANSGENDER PRIDE CELEBRATION COMMITTEE in connection with the transaction of organization business.
This policy covers all records and documents, regardless of physical form, contains guidelines for how long certain documents should be kept, and how and whether documents and records may be destroyed (unless under a legal hold). The policy is designed to ensure compliance with federal and state laws and regulations, to eliminate accidental or innocent destruction of records, and to facilitate SF PRIDE’s operations by promoting efficiency and freeing up valuable storage space.
This Document Retention policy is designed to conform with the charitable laws of states which, like California, give the Attorney General an unusually long statute of limitations (10 years) within which to bring an action for breach of charitable trust.
Document Retention
SF PRIDE shall follow the document retention procedures outlined below. Documents that are not listed, but are substantially similar to those listed in the schedule, will be retained for the appropriate length of time.
Corporate Records
Annual Corporate Filings Permanent Annual Reports to Secretary of State/Attorney General Permanent Articles of Incorporation Permanent Board Meeting and Board Committee Minutes Permanent Minute books of Board of Directors, including Bylaws and Articles of Incorporation Permanent Board Policies/Resolutions Permanent Bylaws Permanent Construction Documents Permanent Fixed Asset Records Permanent IRS Application for Tax-Exempt Status (Form 1023) Permanent IRS Determination Letter Permanent State Sales Tax Exemption Letter Permanent Reports to the City’s Controller’s Office Permanent Contracts and leases still in effect Permanent Contracts and leases (after expiration) 10 years Correspondence, including emails (general) 10 years or more
Accounting and Corporate Tax Records
Annual Audits and Financial Statements Permanent Depreciation Schedules 10 years IRS Form 990 Tax Returns Permanent General Ledgers and schedules 10 years Business Expense Records 10 years Expense analyses and expense distribution schedules (includes allowance and reimbursement of employees, officers, etc., for expenses) 10 years IRS Form 1099 7 years Journal Entries 10 years Invoices to customers 10 years Invoices from vendors 10 years Sales Records (books) 10 years Scrap and salvage records 10 years Petty Cash Vouchers 3 years Voucher register and schedules 10 years Cash Receipts 3 years Credit Card Receipts 3 years Purchase Orders 5 years Correspondence, including emails 10 years or more
Bank Records
General ledgers Permanent Financial Statements (end of year) Permanent Bank Deposit Slips 10 years Bank Statements and Reconciliation 10 years Cash books 10 years Electronic Fund Transfer Documents 10 years Checks - Important Payments (i.e., taxes, purchase of property, special contracts, etc.) (canceled) Permanent Checks – Other (canceled) 10 years Account payable ledgers and schedules 10 years Accounts receivable ledgers and schedules 10 years
Payroll and Employment Tax Records
Payroll Registers and summaries 10 years State Unemployment Tax Records Permanent Earnings Records 10 years Garnishment Records 7 years Payroll Tax Returns Permanent Tax Returns and Worksheets Permanent Revenue agents’ reports Permanent Materials relating to determination of tax liability Permanent W-2 Statements 10 years Correspondence, including emails 10 years or more
Employee Records
Employment and Termination Agreements Permanent Retirement and Pension Plan Documents Permanent Records Relating to Promotion, Demotion or Discharge 10 years after termination Accident Reports & Worker’s Compensation Records 5 years Salary Schedules 5 years Employment Applications 5 years I-9 Forms 3 years after termination Time Sheets and Cards 10 years Volunteer records 5 years Correspondence, including emails 10 years or more
Donor and Grant Records
Donor Records and Acknowledgment Letters (endowment funds and of significant restricted funds) Permanent Donation records (Other - see Note 1) 10 years Grant Applications 7 years after completion Contracts Permanent Correspondence, including emails 10 years or more
Legal, Insurance, and Safety Records
Appraisals Permanent Copyright Registrations Permanent Environmental Studies Permanent Insurance Policies (expired) Permanent Insurance records, accident reports, claims, policies, etc. Permanent Real Estate Documents Permanent Stock and Bond Records Permanent Trademark Registrations Permanent Contracts and Leases still in effect Permanent Contracts and Leases - expired 10 years after expiration OSHA Documents 5 years Subsidiary ledgers 10 years Correspondence, including emails 10 years or more
Other
Archives (documents identified for historical import such as writings, pictures, letters, event flyers, sign-in and registration sheets, video recording, etc.) Permanent Inventories of products, materials, supplies – year end 10 years Digital files and records 10 years Correspondence - unimportant (such as scheduling meetings), including emails 5 years Internal reports, miscellaneous 5 years
Note 1: Donation records include a written agreement between the donor and the charity with regard to any contribution, an email communication or notes of or recordings of an oral discussion between the charity and the donor where the representative of the charity made representations to the donor with regard to the contribution on which the donor may have relied in making the gift.
Exceptions to this Policy
There may some documents that are worth saving for the community’s sake or for the sake of the public benefit that go beyond these legal guidelines.
All permitted document destruction shall be halted if the organization is being investigated by a governmental law enforcement agency or facing litigation, and routine destruction shall not be resumed without the written approval of General Counsel and the President of the Board of Directors.
Glossary of Terms
1. Board and Board Committee Materials
Meeting minutes should be retained in perpetuity in the SF PRIDE’s minute book.
2. Commercial Fundraiser
A commercial fundraiser for charitable purposes must maintain during each solicitation campaign, and for not less than 10 years following the completion of each solicitation campaign, records including any electronic records, containing information regarding:
a) The date and amount of each contribution received as a result of the solicitation campaign and, for non-cash contributions, the name and mailing address of each contributor.
b) The name and residence address of each employee, agent or other person involved in the solicitation campaign.
c) Records of all revenue received and expenses incurred in the course of the solicitation campaign.
d) For each account into which the commercial fundraiser deposited revenue from the solicitation campaign, the account number and the name and location of the bank or other financial institution in which the account was maintained.
i. If commercial fundraiser sells tickets to events and represents that they will be donated for use by another, then he or she must keep the number of tickets purchased and donated by each contributor, name address of all orgs receiving donated tickets. SF PRIDE must maintain a copy of its contract with the commercial fundraiser and records of solicitations and donations according to the table above.
3. Contracts
Final, executed copies of all contracts entered into by the SF PRIDE should be retained. SF PRIDE should retain copies of the final contracts for at least seven years beyond the life of the agreement, and longer in the case of publicly filed contracts.
4. Development/Intellectual Property and Trade Secrets
Development documents are subject to intellectual property protection in their draft and final form (e.g., patents, trademarks, trade secrets, and/or copyrights). The documents detailing the development process are often also of value to SF PRIDE and are protected as a trade secret where SF PRIDE:
a) derives independent economic value from the secrecy of the information; and
b) SF PRIDE has taken affirmative steps to keep the information confidential.
c) SF PRIDE should keep all documents designated as containing trade secret information for at least the life of the trade secret.
5. Legal Files
Legal counsel should be consulted to determine the retention period of particular documents, but legal documents should generally be maintained for a period of ten years.
6. Personnel Records
State and federal statutes require the Company to keep certain recruitment, employment and personnel information. SF PRIDE should also keep personnel files that reflect performance reviews and any complaints brought against SF PRIDE or individual employees under applicable state and federal statutes. SF PRIDE should also keep all final memoranda and correspondence reflecting performance reviews and actions taken by or against personnel in the employee’s personnel file. Personnel records should be retained for seven years.
7. Press Releases/Public Filings
SF PRIDE should retain permanent copies of all press releases and publicly filed documents under the theory that SF PRIDE should have its own copy to test the accuracy of any document a member of the public can theoretically produce against SF PRIDE.
8. Tax Records
Tax records include, but may not be limited to, documents concerning payroll, expenses, proof of deductions, business costs, accounting procedures, and other documents concerning SF PRIDE’s revenues. Tax records should be retained permanently. Payroll tax returns can be retained for only seven years.
Electronic Documents and Records
Electronic documents will be retained as if they were paper documents. Therefore, any electronic files, including records of donations made online, that fall into one of the document types on the above schedule will be maintained for the appropriate amount of time. If a user has sufficient reason to keep an e-mail message, the message should be printed in hard copy and kept in the appropriate file or moved to an “archive” computer file folder. Backup and recovery methods will be tested on a regular basis.
Emergency Planning
SF PRIDE’s records will be stored in a safe, secure, and accessible manner. Documents and financial files that are essential to keeping SF PRIDE operating in an emergency will be duplicated or backed up at least every week and maintained off-site.
Document Destruction
SF PRIDE’s manager of operations is responsible for the ongoing process of identifying its records, which have met the required retention period, and overseeing their destruction. Destruction of financial and personnel-related documents will be accomplished by shredding.
Document destruction will be suspended immediately, upon any indication of an official investigation or when a lawsuit is filed or appears imminent. Destruction will be reinstated upon conclusion of the investigation.
Compliance
Failure on the part of employees to follow this policy can result in possible civil and criminal sanctions against SF PRIDE and its employees and possible disciplinary action against responsible individuals. The manager of operations and finance committee chair will periodically review these procedures with legal counsel or the organization’s certified public accountant to ensure that they are in compliance with new or revised regulations.
Approved by the Board: 06/05/2012