Record Retention Policy

RECORD RETENTION POLICY
4-17-06
1.0 ACCESS TO RECORDS AND RECORD RETENTION
1.1 Policies
The records of Montalvo Association are generally open to public inspection due
to IRS rules, open records laws and the spirit of public service. However, certain
information is not open to public examination and may only be released with the
permission of the Executive Director. Questions in this area are to be resolved by
the Executive Director. If the answer to a request is unclear the Executive
Director may contact an attorney for a consultation.
Various rules, statues of limitations and common sense govern record retention.
Certain documents must be retained indefinitely, while others may have little use
after a year.
1.2 Procedures
1.2.1 IRS forms
Payroll tax forms are not public information and will not be released.
IRS Forms 990 and 990A, the exempt organization information returns,
must be made available to anyone upon request. The specific rules are
outlined in the instructions for form 990. All pages, schedules and
attachments, except the detailed schedule of contributors must be made
available. The prior three years of 990s and 990As must be available upon
request for free review in our office. If the requestor wishes to have a
copy, that will be provided immediately or may be mailed to the person.
We ask that the person pay the legally allowed fee of $1.00 for the first
page and .15 cents for each additional page, plus actual postage, if
applicable.
The application for exempt status, Form 1023, and the IRS determination
letter are also available to anyone upon request for a free review in our
office. Copying charges are the same as for the 990 if the person wishes
to take a copy. The specific rules are outlined in the instructions for form
990.
The Chief Financial Officer is responsible for furnishing copies of these

documents to Receptionist in a form suitable for public release. The
Receptionist will keep a copy of each form and make photocopies if
requested.
4-17-06
1.2.2 California Annual Charitable Organization Report
Chief Financial Officer annually will insure application is process and

payment made.
1.2.3 Personnel Records
All requests for personnel records, job references and credit inquiries will
be referred to the Human Resources Manager.
1.2.4 Financial Information
A schedule of record retention follows. Any discarding of records should

follow this schedule. However, prior to discarding records, the permission
of the Chief Financial Officer and the Accountant are required to ensure
that they have no reason that an exception should be made to the policy.
All discarded documents are to be shredded or sent to our recycling
company, which has a confidentiality agreement with us.
For tax purposes, records should be maintained until the expiration of the
statute of limitations. Generally, that period expires three years after the
later of the due date of the return of the date filed. While there are a few
exceptions to this rule, the three-year period normally should be adequate.
For non-tax purposes, records should be maintained only as long as they

serve a business purpose or until all legal requirements are met.
Unfortunately, there are not specific standards that will cover all
situations. The following are some of the factors that should be
considered:
Federal, State, and Local statues and regulations
Industry requirements or standards
Potential claims or litigation
Contract requirements
1.2.5 Record Retention
Below is the retention period in years for each record type listed:
Accident reports and claims 7*

Appraisals P
Articles of incorporation, by laws P
Assets records 7*
Bank statements, reconciliation 4
Bills of sale-assets 7*
Budgets & projections 2
Cancelled checks-general 4**
Capital stock & bond records P
Charts of accounts P
Check vouchers, stubs 4
Contracts & agreements 7*
Correspondence
• Credit and collection 7
• Routine with customers or vendors 1
• Other 4***
Credit memos 4
Damage and theft reports 7
Deeds P
Deposit slips 4
Depreciation schedules 7*
Employee records
• Contracts 7*
• Disability, unemployment claims 7
• Employment applications 4
• Expense reports 4
• Personnel files 7*
• Time reports, earnings records 4
• Withholding & exemption certificates (W-2, W-4) 4*
Financial reports
• Annual, audited P
• Interim 4
Freight bills, bills of lading 4
Insurance policies & records 4
Internal reports, memos, work orders, etc. 2
Inventory records 4
Invoices
• Fixed assets 7
• Sales & general expenses 4
Leases 7*
Ledgers & journals
• Cash receipts & disbursements P
• General ledger, journal entries P
Payroll journal 4
• Purchases & sales 7
• Subsidiary ledgers 7
Licenses 4*
Minute books P
Mortgages/loan 7*
Notes 7*
Pension & profit sharing records P
Petty cash records 4
Purchase orders, invoices 4
Receiving reports 4
Repair & maintenance records 4
Sales records & cash register tapes 4
Shipping reports 4
Tax returns and related records
• Income P
• Payroll 4
• Sales and use 4
Union contracts P
P—means records should be kept permanently.

*Retention period begins with settlement of claims, disposal of asset,
termination of contract, warranties etc.
** Some should be kept longer, e.g. checks for tax payments should be
kept with the tax returns, checks for asset acquisitions should be kept with
bill of sale, etc.
*** Legal and important correspondence should be kept as long as the

documents to which they relate.

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RECORD RETENTION POLICY

1.0 ACCESS TO RECORDS AND RECORD RETENTION

1.2.1 IRS forms

The Chief Financial Officer is responsible for furnishing copies of these

Chief Financial Officer annually will insure application is process and

1.2.3 Personnel Records

1.2.4 Financial Information

A schedule of record retention follows. Any discarding of records should

For non-tax purposes, records should be maintained only as long as they

1.2.5 Record Retention

Accident reports and claims 7*

P—means records should be kept permanently.

*** Legal and important correspondence should be kept as long as the

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