More Related Content More from MER Conference (11) M12S04 - Retention & ESI - Paths to Success - Part One1. Cohasset Associates, Inc.
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Retention & ESI
Paths to Success
Part One
Christine M. Burns & Carol Stainbrook
May 7, 2012 1
ESI Friendly Retention Schedules
Use Functional, not Detailed Retention
Schedules
Simplify Conflicting Legal Requirements
Consolidate R
C lid Retention P i d
i Periods
Eliminate “Events”
Balance Detail Against Simplicity for IT
© 2012 May 7, 2012 2
Functional Retention
Schedules
Streamline Retention
Schedules
© 2012 May 7, 2012 3
2012 Managing Electronic Records Conference 4.1
2. Cohasset Associates, Inc.
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Detailed Schedules Include
Retention Period Per Document Type
Financial Financial Financial
Statements Statements Statements
Monthly Quarterly Annual
Retain 12M Retain 2Y Retain 7Y
© 2012 May 7, 2012 4
Functional Schedules Typically Apply To
All Records of a Business Process
Financial
Statements
Data & Directories
Retain “X” Years or
“Max. of X Years”
© 2012 May 7, 2012 5
Know Your Laws
Simplify Conflicting Legal
Requirements
© 2012 May 7, 2012 6
2012 Managing Electronic Records Conference 4.2
3. Cohasset Associates, Inc.
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General Accounting Records:
Some Legal Retention Requirements
Permanent (General Ledger)
50 Years - General and Subsidiary
Wisconsin Ledgers
(Domestic Tax + 3 7 Years
3-7
Insurers) U.S. Utility
Companies IRS – 3-6 Years;
Georgia (Banks) (Per SEC) Worthless
Securities Loss
Canada
Claims – 7 Years
Most State Tax
Authorities – 3-6
Years
© 2012 May 7, 2012 7
General Accounting Records
General Accounting Records:
Accounts receivables and payables
Transactions account entry support
Reconciliation of accounts ledgers and sub
accounts, sub-
ledgers
Final accounting transaction reports and data
© 2012 May 7, 2012 8
General Accounting Records:
Operational Retention Considerations
Typically Current with Tax Audits?
Must Retain General Ledgers Longer
than other Accounting Records?
Impact of Escheat Filings?
© 2012 May 7, 2012 9
2012 Managing Electronic Records Conference 4.3
4. Cohasset Associates, Inc.
NOTES
Payroll Records:
Some Legal Retention Requirements
Employment + 2 or 5 Years
Current Year + 8 Years
British 6 Years or Less
Columbia, Minnesota
Columbia 3 Years
Saskatchewan Other
States United
States
(Federal)
© 2012 May 7, 2012 10
Payroll Records
Retention Based on Creation Date
Payroll Processing Records
Salary, merit and status changes
Vacation and overtime payment
authorizations
Employee reimbursements for tuition and/or
relocation services
Adjustments and manual compensation check
support
Payroll registers and period-ending reports
© 2012 May 7, 2012 11
Payroll Records
Retention Based on an “Event”
Payroll Deductions & Authorizations
Tax status and withholding forms, e.g., W-4s
Direct deposit forms
Deductions authorizations
Defined Benefit Pension Calculation
Support
© 2012 May 7, 2012 12
2012 Managing Electronic Records Conference 4.4
5. Cohasset Associates, Inc.
NOTES
Payroll Records:
Operational Retention Considerations
Calculate Pension Benefit?
Consider Personal Injury/Property
Limitation of Action Periods?
Consider Potential Liability Under
Lilly Ledbetter Fair Pay Act?
Consider Limitation Periods in the Dodd-Frank
Wall Street Reform &Consumer Protection Act?
Destroy Personally Identifiable
When Eligible?
© 2012 May 7, 2012 13
General Contracts
Obligations + 30 Years
British Columbia & Manitoba Obligations + 15 Years
Kentucky, Ohio,
Ontario, Saskatchewan, & New Brunswick
Obligations + 10 Years
Illinois, Indiana, Iowa Louisiana, Missouri,
Illinois Indiana Iowa, Louisiana Missouri Rhode
Island, West Virginia & Wyoming;
6 Years or Less
Alberta, Newfoundland and Labrador & Quebec
All remaining states and provinces
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21 May 7, 2012 14
Contract Records
Contract records
RFPs and Responses
Contract Review Records
Agreements and Exhibits
Amendments
Certificates of Insurances
© 2012 May 7, 2012 15
2012 Managing Electronic Records Conference 4.5
6. Cohasset Associates, Inc.
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Contract Records:
Operational Retention Considerations
Difference Between “Major” and
“Minor” Contracts?
Are Certificates of Insurance Filed
With Contracts?
Is the “Active” Period Consistent?
Do NDA’s “Expire”? If not, what is
a reasonable validity period?
© 2012 May 7, 2012 16
Consolidate Retention
Limit Number of Retention
Periods
© 2012 May 7, 2012 17
Establish ONE Retention Period for
Internal, Non-Regulated Records
X Years
Current + X Years
No Longer than X
After Last Use
© 2012 May 7, 2012 18
2012 Managing Electronic Records Conference 4.6
7. Cohasset Associates, Inc.
NOTES
Combine Retention Periods for
Longer-term Regulated Records
Payroll
General
G l
Accounting
Privacy
X Years
© 2012 May 7, 2012 19
Number of Retention Periods Will
Vary, Often Based on Regulations
More Regulated
Less Regulated Functions or Jurisdictions
© 2012 May 7, 2012 20
Lightly Regulated, U.S. Based Only
Retention Period
Active Use + 3 Years
Active Use + 7 Years
“Indefinite”
“Indefinite” ~ 6 Categories with a Required
Minimum and a Not to Exceed Maximum Retention
Period “Active Use” Period Varies by Record Type
© 2012 May 7, 2012 21
2012 Managing Electronic Records Conference 4.7
8. Cohasset Associates, Inc.
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Moderately Regulated,
Canadian & U.S. Locations
Retention Years Record Types
7 Years General accounting records (excluding
the general ledger)
10 Years Payroll records
Employment + Payroll records - British Columbia,
10 Years Saskatchewan
15 Years General contracts
Permanent General ledger
© 2012 May 7, 2012 22
New York Based Organization,
U.S. Federal & 50 State Jurisdictions
Retention Years Record Types
7 Years General accounting records and
general contracts
9 Years Payroll-related records, excluding year-
end payroll registers
d ll i t
50 Years Payroll registers, compensation plan
records
©02
21 May 7, 2012 23
Eliminate “Events”
Whenever Possible
Choose How to Handle
“Event-Based” Retention
©1
22
0 May 7, 2012 24
2012 Managing Electronic Records Conference 4.8
9. Cohasset Associates, Inc.
NOTES
Eliminate Event-Based Retention Periods
Whenever Possible
Tax Audit or Exam
Project Completion
Termination
Updated
© 2012 May 7, 2012 25
Consider Change “Until Tax
Audit” or “Exam”
Alternatives to:
Before Using
XX Years = Typical
“Conditional” Tax Settlement
Retention /Exam Cycle
Periods:
Accounting Use Records Holds
for Exceptions
© 2012 May 7, 2012 26
Separate Projects
by
Consider Metadata, Librarie
Alternatives s, Folders...
Before Using
Change “Project
“Conditional”
Completion
Completion” to:
Retention
Periods: Last Action for
Projects Specific Project’s
Library or Folder
© 2012 May 7, 2012 27
2012 Managing Electronic Records Conference 4.9
10. Cohasset Associates, Inc.
NOTES
Longest
Consider Employment
Period?
Alternatives
Before Using
Change
“Conditional”
“Termination” to:
Termination
Retention
Periods: 50 Years (Longest
Payroll Employment + 7-
10 Year Period)
© 2012 May 7, 2012 28
Establish 3-Year
Consider P&P Review
Process
Alternatives
Before Using
Change “Until
“Conditional”
Updated
Updated” to:
Retention
Periods: 10 Years (3-Year
P&Ps Review + 7 Year
Period)
© 2012 May 7, 2012 29
Understand
Competing
Needs
Balance Detail Against
Simplicity for IT
© 2012 May 7, 2012 30
2012 Managing Electronic Records Conference 4.10
11. Cohasset Associates, Inc.
NOTES
Understand that IT Has
Competing Needs
Fewer More
Periods Detail
© 2012 May 7, 2012 31
“Finishing” the Retention Schedule
is Just a Beginning
© 2012 May 7, 2012 32
Q&A
© 2012 May 7, 2012 33
2012 Managing Electronic Records Conference 4.11
12. Cohasset Associates, Inc.
NOTES
Retention & ESI
Paths to Success
Part One
Christine M. Burns & Carol Stainbrook
May 7, 2012 34
2012 Managing Electronic Records Conference 4.12