“ Got boxes? “ Record Retention – Article by Mark Fragola
Every Association must retain records to show they are performing their obligated duties. Does this mean you keep every record forever and ever? Not exactly. There are certain documents you need to keep permanently and those you keep for a designated amount of time. Here is a quick overview from the Davis Stirling Act on what records you need to retain and for how long:
Records Retention Policy
Following is a general guideline for how long records should be kept. Boards should check with the association’s attorney and CPA before disposing of records.
c. Articles of Incorporation
d. Condominium Plan
e. construction plans (if available)
Minutes of board and membership meetings. Civil Code §1365.2(i)(2).
Minutes of committees with decision-making authority.
Deeds to property owned by the association.
a. general ledgers, journals and charts of account
b. year-end financial statements
c. tax returns and worksheets
d. accounts payable
e. accounts receivable ledgers, trial balances and billing records
f. canceled checks
g. expense analyses and expense distribution schedules
h. invoices from vendors
a. payroll records
b. employee records after termination
a. accident reports
b. settled claims
c. expired policies
d. fidelity bonds
a. bank statements
b. deposit slips
e. petty cash vouchers
f. purchase orders
All records must be kept for at least three years (current fiscal year and two prior) for inspection by the membership. Civil Code §1365.2(i)(1).
Ballots must be stored by associations in a secure place for no less than one year after the date of the election. Civil Code §1363.03(i).