THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, November 26, 1994 TAG: 9411240501
SECTION: REAL ESTATE WEEKLY PAGE: 18 EDITION: FINAL
SOURCE: G. Robert Kirkland and Michael A. Inman
LENGTH: Short : 49 lines
Q. Our homeowners association has been in place for about 12 years and we've never discarded any records, but we're running out of storage space in our clubhouse office.
We need some guidance on what records to keep and what to discard. Is there a particular rule on tax returns and other financial records? Also, is there any reason to keep expired contracts?
A. It is wise to discuss your record-disposition plans with your attorney and your accountant before you take action.
Obviously, the best of all worlds is to microfilm or place on computer disks old business records if you have the money and capability of doing it.
The schedule below is based on records retention policies used by many companies. The suggested retention time generally begins at the end of the fiscal year in which the document was created.
In the case of contracts, employment records and the like, the schedule begins after termination. Tax returns and their supporting documents should be retained for a minimum of three years after the tax return was filed.
10 Years - permanent records, annual financial statements, general ledgers, minutes of meetings, property records, titling documents.
Seven years - accident reports, depreciation schedules, asset records, contracts of all types (after termination), maintenance and repair records.
Five years - correspondence, covenant violation files, expense reports, freight bills and claims, fire damage reports, daily time reports.
Three years - Insurance policies (after expiration), bank reconciliations, delivery receipts, purchase order copies, remittance statements, requisition and travel records, bank deposit slips, licenses (after termination).
Keep in mind that this is simply a guideline and not an absolute prescription for every organization. MEMO: G. Robert Kirkland, president of a Virginia Beach property management
consulting firm, and attorney Michael A. Inman specialize in Virginia
community association issues and are affiliated with the Southeastern
Virginia chapter of the Community Associations Institute. Send comments
and questions to them at Real Estate Weekly, 150 W. Brambleton Ave.,
Norfolk, Va. 23510. To submit questions by phone, call 446-2033; fax:
446-2531.
by CNB