SECTION 19: RETENTION AND TRANSFERRING OF RECORDS

Transcription

1 SECTION 19: RETENTION AND TRANSFERRING OF RECORDS General Every Board member or Coordinator maintains a file or files containing correspondence, memos, reports and other material relating to NFPA activities. When applicable, procedures manuals and/or form files should also be maintained Retention Each new Board member and Coordinator should review the files when received, retain the historical material necessary to competently carry out responsibilities and forward the unneeded files to the Managing Director. Attached is the Document Retention Policy adopted for NFPA and which should be used to determine what materials should be kept and for what length of time. The Managing Director, with assistance from the President, determines ultimate disposition of the file materials received, either storage or destruction Transferring of Files All files and material should be transferred to the successor of every Board member and Coordinator within two weeks of the successor's taking the office or committee. The transfer should be done either in person, by licensed overnight delivery service such as United Parcel Service or Federal Express, priority mail or certified mail, via a secure FTP site and/or to assure the files are not lost in transit. Reimbursement of final expenses for the outgoing Board members or Coordinators will not be made until all files are properly transferred Storage of Files NFPA Management Company arranges a place for storing all old files under the direction of the Managing Director Document Retention Policy for NFPA This Document Retention Policy (the Policy ) was originally approved by the Board of Directors of NFPA on December 1, 2009, and represents NFPA's policy regarding the retention and disposal of records and electronic documents/media. The Policy was amended on March 31, 2014 to no longer require retention of documents in hard/paper copy format and instead allow document retention in electronic/digital copy format. Purpose The purpose of the Policy is: To ensure that necessary records and documents of NFPA are adequately protected and maintained. To ensure that records that are no longer needed by NFPA or are of no value are discarded at the appropriate time. To aid officers, directors, employees, independent contractors, and other service providers of NFPA (collectively referred to herein as Service Providers ) in understanding their obligations in retaining documents. Administration The Secretary and Director of Operations of NFPA (the Administrator ) is in charge of the administration of the Policy and the implementation of processes and procedures to ensure that the Document Retention Schedule, attached hereto as Exhibit A, is followed. The Administrator is also authorized, upon consultation with legal counsel and, as appropriate, with the assistance of legal counsel, to: (i) make modifications to the Document Retention Schedule from time to time to ensure that it is in compliance with local, state, and federal laws, and that it includes the

2 appropriate document, media and record categories for NFPA; (ii) monitor local, state, and federal laws affecting record retention; (iii) annually review the record retention and disposal program; and (iv) monitor compliance with the Policy. All questions regarding the application of the Policy to any particular document or record shall be directed to the Administrator, who shall have authority to interpret the Policy s requirements with respect to such document or record. Application The Policy applies to all physical records and electronic media, including both original documents and reproductions that relate to the business, operations, and affairs of NFPA. Electronic documents/media include, but are not limited to, , internet files, text files, sound and movie files, PDF documents, and all Microsoft Office or other formatted files. As documents and records become increasingly stored in electronic/digital format (rather than paper), the retention/destruction schedule for each record type shall apply and not the Electronic Media Schedule. Document Protection Documents will be stored in a protected environment for the time periods set forth on the Document Retention Schedule. Document Destruction Hardcopies of documents will be destroyed by shredding after they have been retained for the time periods set forth in the Document Retention Schedule. Media eligible for destruction will be identified and destroyed by appropriate methods and standards applicable by law, and as set forth in the Document Retention Schedule. This process shall be properly documented and certified. Exception to Document Retention Schedule In the event of a governmental audit, investigation, or threatened or pending litigation, record destruction shall be suspended upon the direction of the Administrator. In addition, the Administrator should be informed immediately of any threatened or actual legal action as soon as the situation becomes apparent and the Administrator shall consult with counsel and institute a legal hold as recommended until the threat of litigation or actual litigation has been finally resolved.

3 DOCUMENT RETENTION POLICY NATIONAL FEDERATION OF PARALEGAL ASSOCIATIONS, INC. OF This Document Retention Policy (the Policy ) was approved by the Board of Directors of NATIONAL FEDERATION OF PARALEGAL ASSOCIATIONS, INC. ( NFPA ) on March 31, 2014, and represents NFPA's policy regarding the retention and disposal of records and electronic documents/media. PURPOSE The purpose of the Policy is: To ensure that necessary records and documents of NFPA are adequately protected and maintained. To ensure that records that are no longer needed by NFPA or are of no value are discarded at the appropriate time. To aid officers, directors, employees, independent contractors, and other service providers of NFPA (collectively referred to herein as Service Providers ) in understanding their obligations in retaining documents. ADMINISTRATION The Secretary and Director of Operations of NFPA (the Administrator ) is in charge of the administration of the Policy and the implementation of processes and procedures to ensure that the Document Retention Schedule, attached hereto as Exhibit A, is followed. The Administrator is also authorized, upon consultation with legal counsel and, as appropriate, with the assistance of legal counsel, to: (i) make modifications to the Document Retention Schedule from time to time to ensure that it is in compliance with local, state, and federal laws, and that it includes the appropriate document, media and record categories for NFPA; (ii) monitor local, state, and federal laws affecting record retention; (iii) annually review the record retention and disposal program; and (iv) monitor compliance with the Policy. All questions regarding the application of the Policy to any particular document or record shall be directed to the Administrator, who shall have authority to interpret the Policy s requirements with respect to such document or record. APPLICATION The Policy applies to all physical records and electronic media, including both original documents and reproductions that relate to the business, operations, and affairs of NFPA. Electronic documents/media include, but are not limited to, , internet files, text files, sound and movie files, PDF documents, and all Microsoft Office or other formatted files.

4 As documents and records become increasingly stored in electronic/digital format (rather than paper), the retention/destruction schedule for each record type shall apply and not the Electronic Media Schedule. DOCUMENT PROTECTION Documents will be stored in a protected environment for the time periods set forth on the Document Retention Schedule. DOCUMENT DESTRUCTION Hardcopies of documents will be destroyed by shredding after they have been retained for the time periods set forth in the Document Retention Schedule. Media eligible for destruction will be identified and destroyed by appropriate methods and standards applicable by law, and as set forth in the Document Retention Schedule. This process shall be properly documented and certified. EXCEPTION TO DOCUMENT RETENTION SCHEDULE In the event of a governmental audit, investigation, or threatened or pending litigation, record destruction shall be suspended upon the direction of the Administrator. In addition, the Administrator should be informed immediately of any threatened or actual legal action as soon as the situation becomes apparent and the Administrator shall thereafter consult with counsel and institute a legal hold as recommended. The Legal Hold shall stay in place until counsel deems appropriate.

5 EXHIBIT A DOCUMENT RETENTION/DESTRUCTION SCHEDULE This Document Retention Schedule is organized as follows: I. Corporate Records II. Accounting and Financial Records III. IV. Correspondence and Internal Memoranda Electronic Media V. Legal Files and Papers VI. VII. VIII. IX. Insurance Records Management Company Records Property Records Tax Records X. Contribution Records XI. XII. Media/Marketing Materials Miscellaneous I. Corporate Records: Formation/Organizational Documents: Articles of Incorporation Bylaws Minute Book Board and committee meeting audio/visual recordings Board and committee meeting agenda, meeting materials Board Policies (e.g., Conflict of Interest Policy, Whistleblower Policy) Annual Corporate Filings Strategic Plan documents (final versions of Plan, NFPA s Core Purpose, Intellectual Property Records 2 years (as noted above, official minutes of such meetings should be kept permanently) 2 years (provided that anything referenced in such materials but subject to a longer retention time pursuant to this Document Retention Schedule shall be kept for such longer period) (current version with revision history)

6 II. Accounting and Financial Records: Accounts Payable (ledgers and schedules) Accounts Receivable (ledgers and schedules) Chart of Accounts Petty Cash Receipts/Documents Credit Card Receipts Annual Audit Reports and Financial Statements Annual Audit Records (including workpapers and other documents related to the audit) Annual Plans and Budgets Expense Reports General Ledgers Interim Financial Statements Notes Receivable (ledgers and schedules) Invoices Bank Statements Bank Reconciliations Investment Records Fiscal Policies and Procedures Dues Statements after completion of audit after sale of investment (current version with revision history) III. Correspondence and Internal Memoranda: GENERAL RETENTION PRINCIPLE: Most correspondence and internal memoranda should be retained for the same period as the documents they pertain to or support. For instance, a letter pertaining to a particular contract would be retained as long as the contract (10 years after expiration). It is recommended that records that support a particular project be kept with the project and take on the retention time of that particular project file. Correspondence or memoranda that do not pertain to documents having a prescribed retention period should generally be discarded sooner. Copies of interoffice correspondence and documents where a copy will be in the originating department file should be read and destroyed, unless that information provides reference to or direction to other documents and must be kept for project traceability.

7 Routine correspondence matters: Routine letters and notes that require no acknowledgment or follow-up, such as notes of appreciation, congratulations, letters of transmittal, and plans for meetings. Form letters that require no follow- up. Letters of general inquiry and replies that complete a cycle of correspondence. Letters or complaints requesting specific action that have no further value after changes are made or action taken (such as name or address change). Other letters of inconsequential subject matter or that definitely close correspondence to which no further reference will be necessary. Chronological correspondence files. Non-routine correspondence matters, or correspondence regarding matters of significant lasting consequence Travel Vouchers NFPA National Paralegal Reporter CLE materials CLE approval records 2 years 2 years 2 years IV. Electronic Media: GENERAL RETENTION PRINCIPLE: The Policy applies only to those electronic documents/media that relate to the business, operations, and affairs of NFPA. The Policy does not apply to correspondence that (1) does not relate to the business, operations, and affairs of NFPA, or (2) is an advertisement, targeted mass mailing, or electronic document of a similar character. All correspondence relating to the business, operations, and affairs of NFPA must be retained in electronic format for specified periods as set forth below. s that come through the NFPA listserves/discussion boards are hosted and stored by an outside vendor. All other s are stored at NFPA headquarters in archive files. It is recommended that NFPA Board members maintain s in an archive or other electronic format for the period set forth below.

8 Each day NFPA runs a tape backup copy of all electronic files (including ) on NFPA s server. This backup tape is a safeguard which is used to retrieve lost information within a seven-day retrieval period should documents on NFPA s server experience problems. The tape backup copy is considered a safeguard for the record retention system of NFPA but is not considered an official repository of NFPA s records. correspondence Webpage Files Text/Formatted Files (e.g. Microsoft Word documents, Microsoft Excel documents, etc.) Sound and Movie Files (e.g. MP3s, AVIs, etc.) PowerPoint Presentations PDF Documents V. Legal Files and Papers: Contracts and Related Correspondence Corporate Licenses and Permits Legal Memoranda and Opinions (including all subject matter files) Litigation Files Court Orders Request for Departure from Document Retention Policy Warranties Releases and Settlements VI. Insurance Records: Annual Loss Summaries Audits and Adjustments Certificates of Insurance Issued to NFPA 10 years after all obligations end (unless a longer period is specified for a particular type of contract) 10 years after expiration 10 years after the close of the litigation 10 years after expiration 10 years after final adjustment

9 Claims Files (including correspondence, medical records, injury documentation, etc.) Inspections Insurance Policies (including expired policies) Property, D&O, Workers Compensation, General Liability Journal Entry Support Data Loss Runs Releases and Settlements VII. Management Company Records: Records of Commissions, Bonuses, Incentives, Awards Management Contracts/Offer Letters Job Descriptions 10 years after the close of the claim 3 years 10 years after termination of contract 3 years after superseded VIII. Property Records: [See also TAX RECORDS below.] Property Deeds, Assessments, Licenses, Rights of Way, Related Correspondence Original Purchase/Sale/Lease/Mortgage Agreements Property Insurance Policies IX. Tax Records: GENERAL RETENTION PRINCIPLE NFPA must keep books of account or records sufficient to establish its gross income, deductions, credits, or other matters required to be shown on any tax return. These documents and records shall be kept for as long as the contents thereof may become material in the administration of federal, state, and local income, franchise, and property tax laws. Tax-Exemption Documents and All Related Correspondence (including Form 1023 and state applications and IRS and state determinations) Tax or Employer Identification Number

10 IRS Forms 1099 IRS Rulings Excise Tax Records Payroll Tax Records Tax Bills, Receipts, Statements Tax Returns - Income, Franchise, Property Annual Information Returns Federal and State IRS or other Government Audit Records Tax Workpaper Packages Originals Sales/Use Tax Records X. Contribution Records: Records of Contributions Wills, trusts or other documents evidencing terms of gifts XI. Media/Marketing Records: Press Releases Marketing Materials Marketing plan XII. Miscellaneous: Consultant s Reports Material of historical value, including pictures and publications PACE and PCCE scoring runs PACE applications and renewal applications PCCE renewal applications Membership Applications AIPS Review Course Registration forms Webinar registration forms 5 years; archive copies permanent to be determined on a case by case basis 2 years 2 years

11 Webinar (recorded) order forms Annual Convention registration forms Joint Conference registration forms Convention Binders (hotel agreements, maps, related correspondence) Convention Programs National Paralegal Reporter subscription forms (from website and subscription service companies) NFPA online store order forms PCCE Study Manual order forms PACE Study Manual order forms Scholarship applications Award nominations