RETENTION NOTE: PAYROLL RECORDS - For records relating to the disbursement of payroll see Schedule GR, Part 3, Section 3-2.

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.

1025-25 ACCOUNTING POLICIES AND PROCEDURES DOCUMENTATION - Policy and procedure directives and similar records documenting accounting methodology. US + 5 years

1025-26 ACCOUNTS PAYABLE AND DISBURSEMENT RECORDS - Claims, invoices, statements, copies of checks and purchase orders, expenditure authorizations, and similar records that serve to document disbursements, including those documenting claims for and reimbursement to employees for travel and other employment-related expenses. RETENTION: FE of date of payment + 7 years

a) Accounts payable records sufficient to document the purchase costs of capital equipment or other fixed assets if capital asset documentation of the type noted under item number 1025-05(a) is not created. RETENTION: FE of date of disposal + 7 years

b) Fund transmittal reports accompanying the transmittal of funds to federal, state, or other local government agencies (e.g., sales tax to the State Comptroller for Public Accounts), to retirement systems, or to other entities if the funds are collected in whole or in part on behalf of other agencies or individuals (e.g., retirement deductions of employees), except those accompanying the transmittal of federal and state payroll and unemployment taxes (see item number 1050-53(b). RETENTION: FE of period covered by report + 3 years

1025-27 ACCOUNTS RECEIVABLE RECORDS - Bill copies or stubs, statements, billing registers, account cards, deposit warrants, cash receipts, receipt books, cash transfers, daily cash reports, cash drawer reconciliation, and similar records that serve to document money owed to or received by a local government and its collection or receipt. RETENTION: FE of date of receipt + 7 years

a) Accounts receivable records documenting the receipt of any monies by any local government that are remittable to the State Comptroller of Public Accounts (e.g., court costs in criminal cases, sales tax). RETENTION: Remittance due date + 7 years

b) Account card or similar record documenting payments to a local government in which the government holds a property lien until the debt is satisfied (e.g., liens arising from demolition, lot cleaning), including original liens and lien releases. RETENTION: FE of date of final payment and release of lien + 3 years

c) Account card or similar record relating to the receipt of cash deposits as sureties for the delivery of services (e.g., water and wastewater). RETENTION: FE of termination of service or refund of deposit + 3 years

d) Records of accounts deemed uncollectible, including write-off authorizations. RETENTION: FE of write-off date + 7 years

RETENTION NOTE: For accounts receivable records associated with the collection of property taxes, refer to Schedule TX.

1025-28 BANKING RECORDS - Bank statements, canceled checks, check registers, deposit slips, debit and credit notices, reconciliation, notices of interest earned, etc. RETENTION: FE + 7 years

1025-29 COST ALLOCATION AND DISTRIBUTION RECORDS - Records created to document the allocation of costs among accounts and funds of a local government, including records relating to charge-backs and other interdepartmental or interfund accounting transactions. RETENTION: FE + 7 years

RETENTION NOTE: If any of the records in this group are used as ledger and journal entry documentation, they must be retained for FE + 5 years (see item number 1025-30).

1025-30 LEDGERS, JOURNALS, AND ENTRY DOCUMENTATION.

RETENTION NOTE: Be certain to verify before the disposal of any ledger or journal under this item number, that the ledger or journal does not serve to document financial activities that require a longer retention period (e.g., investment documentation of proceeds of tax exempt bonds under item number 1025-09).

a) General ledger showing receipts and expenditures from all accounts and funds of a local government.

1) For fiscal years for which an annual audit report (see item number 1025-01) exists. RETENTION: FE + 7 years

RETENTION NOTE: Review before disposal; some ledgers may merit permanent retention for historical reasons.

2) For fiscal years for which an annual audit report (see item number 1025-01) does not exist. RETENTION: Permanent

b) Subsidiary ledgers. RETENTION: FE + 7 years

RETENTION NOTE: Review before disposal; some ledgers may merit permanent retention for historical reasons.

c) Receipt, disbursement, general, or subsidiary journals. RETENTION: FE + 7 years

RETENTION NOTE: Review before disposal; some journals may merit permanent retention for historical reasons.

d) Journal vouchers and entries or similar posting control forms (including supporting documentation such as correspondence and auditor adjustments that evidence journal entries and amendments). RETENTION: FE + 7 years

1025-31 TRANSACTION SUMMARIES - Periodic summaries or reports of accounting transactions or activity by department, budget code, program, account, fund, or type of activity, including trial balances, unless the summary is of a type noted elsewhere in this part.

c) Monthly, bimonthly, quarterly, or semiannual. RETENTION: 2 years

d) Annual. RETENTION: FE + 7 years

RETENTION NOTE: If an annual trial balance is not maintained, then the least frequent; sub-yearly trial balance must be retained for FE + 7 years.