RETENTION NOTES: a) AUDIT REQUIREMENTS - With regard to any special fund of a local government for which there is no statutory audit requirement and the fund is not audited, any records listed under item numbers 1025-26, 1025-27, 1025-28, and 1025-30 associated with receipts and disbursements from or to the fund must be retained for FE + 10 years.

b) GRANT RECORDS - Because of the difficulty of effectively separating financial data that evidence the expenditure of federal funds from those that document the expenditure of local or state-allocated funds, a 7-year retention period has been adopted for most financial records of school districts.

1025-01 AUDIT RECORDS (by both internal and external auditors).

a) Annual or biennial cumulative audit. RETENTION: Permanent

b) Annual, biennial, or other periodic audit of a department, program , fund, or account if included in a cumulative audit under (a). RETENTION: 2 years

c) Annual, biennial, or other periodic audit of a department, program, fund, or account if not included in a cumulative audit under (a). RETENTION: Permanent

d) Special audits ordered by a governing body, a court or grand jury, or mandated by administrative rules of a state or federal agency. RETENTION: Permanent

e) Working papers, summaries, and similar records created for the purposes of conducting an audit. RETENTION: 3 years after all questions arising from the audit have been resolved

1025-02 BANK SECURITY RECORDS - Records documenting the pledging of bonds or securities by banks serving as depositories for public funds including depository contracts, security pledges and statements, surety bonds, and contractual obligations similar records. RETENTION: 4 years after termination, expiration, or release of contractual obligations.

1025-03 BOND RECORDS (see retention note to item number 1025-09).

a) Bond administrative records consisting of preliminary studies, proposals and prospectuses, authorizations and certifications for issuance or cancellation, and related policy correspondence. RETENTION: Permanent

b) Bond certificates and redeemed coupons. RETENTION: 1 year after payment (Exempt from destruction request requirement).

c) Bond registers. RETENTION: Permanent

d) Records relating to the exchange, conversion, or replacement of bonds by bondholders. RETENTION: 1 year if information is contained in a bond register; Permanent, if information not contained in a bond register. (Exempt from destruction request requirement).

1025-04 BUDGETS AND BUDGET DOCUMENTATION.

a) Annual budgets (including amendments). RETENTION: Permanent

b) Special budgets (includes budgets for capital improvement projects, grant-funded projects, or other projects prepared on a special or emergency basis and not included in an annual budget). RETENTION: Permanent

c) Working papers created exclusively for the preparation of budgets, including budget requests, justification statements, and similar documents. RETENTION: 2 years

d) Encumbrance and expenditure reports (status reports showing expenditures and encumbrances against a budget). RETENTION: 2 years

e) Budget change documentation, including line item or contingency/reserve fund transfers and supplemental budget requests. RETENTION: 2 years

1025-05 CAPITAL ASSET RECORDS - Documentation relating to the capital and fixed assets of a local government.

a) Equipment or property history cards or similar records containing data on initial cost, including disposal authorizations when disposed of. RETENTION: FE of date of disposal + 7 years

b) Equipment or property cost and depreciation schedules or summaries used for capital outlay budgeting or other financial or budget control purposes. RETENTION: FE + 7 years

c) Equipment or property inventories (including sequential number property logs). RETENTION: US + 3 years

d) Property sale, auction. or disposal records of government-owned equipment or property. RETENTION: 1 year (Exempt from destruction request requirement)

RETENTION NOTE: Property sale or auction records under (d) do not include records arising from the sale or auction of property foreclosed or seized by a taxing unit for failure to pay property taxes or for the sale or auction of property seized by law enforcement officers. For such records contact the Records Management Officer.

1025-06 FEDERAL REVENUE SHARING RECORDS - Records concerning the use of federal revenue sharing funds by a local government, including revenue and expenditure summaries; status, budget, and audit reports; and other reports or documentation required by law or regulation. RETENTION: 3 years [31 CFR 51.11(b), 51.12(c), and 51.108(a) and (d)]

1025-07 FINANCIAL REPORTS - Annual, sub-annual, or irregularly prepared financial reports or statements on the accounts, funds, or projects of a local government created either for internal use or for submission to state agencies as may be required by law or regulation, except reports of similar types noted in this or other commission schedules.

a) Monthly, bimonthly, quarterly, or semiannual reports. RETENTION: FE + 3 years

b) Annual, long range fiscal planning, or capital improvement reports. RETENTION: Permanent

1025-08 GRANT DEVELOPMENT AND ADMINISTRATIVE RECORDS.

a) Successful grant applications and proposals and any documentation that modifies the terms of a grant. RETENTION: FE + 7 years

b) Financial, performance, and compliance reports submitted to grantor or sub grantor agencies. RETENTION: FE + 7 years

c) Reports, planning memoranda, studies, correspondence, and similar records created for and used in the development of successful grant proposals. RETENTION: 3 years

d) Any records of the type noted in (a) or (b) relating to unsuccessful grant proposals. RETENTION: 1 year (Exempt from destruction request requirement).

1025-09 INVESTMENT TRANSACTION RECORDS - Documentation relating to the investment of public funds (e.g., certificates of deposit) that evidences the investment of funds, the performance or return of investments, the cancellation or withdrawal of investments, and similar activity. RETENTION: FE + 7 years

RETENTION NOTE: It is an exception to the retention period for this item that records of investments and the calculation of arbitrage rebate amounts (if any) on proceeds from the sale of tax exempt bonds must be retained for 6 years after the retirement of the last obligation of the bond issue.