Council on archives international records management trust

Protecting the Information in Electronic Records²

There are particular issues and risks associated with processing and retaining records on a computer system that are not encountered in wholly paper-based systems. These include

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  the inadvertent destruction or corruption of electronic records
  
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  unauthorised tampering with electronic records
  
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  the possibility that electronic records and operating systems will become obsolete because of constant upgrading or changing of computer systems over time.
  

Various precautions must be in place to protect against the loss of data during a temporary or permanent loss of computer facilities. This precautions include

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  introducing a disaster recovery plan
  
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  regularly producing back-up copies of systems software, financial applications and underlying data files
  
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  storing back-ups together with a copy of the disaster recovery plan in an off-site fire safe
  
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  introducing arrangements with one or more organisations possessing compatible data processing equipment to handle essential work in the event of a computer crashing.
  

For more information on protecting electronic records, see Managing Electronic Records. See also Preserving Records and Emergency Planning for Records and Archives Services.

Managing Forms

Forms and reports are used extensively in accounting and financial information systems. Controlling of their design, eliminating unnecessary forms and limiting the number of copies produced and distributed are essential aspects of forms management.

Financial forms should be eligible for audit, legal or informational purposes, and it is helpful if forms can be printed on self-carboning paper when multiple copies are required. The use of carbon paper and separate forms results in illegible copies, particularly if these are handled by more than one person.

The purpose, use and distribution of financial management forms should be kept under regular review. For example, forms may be revised when changes take place in the operating environment, such as with the development of computer networks or the introduction of a new accounting system.

Monitoring and Reviewing Records Systems

The financial records management system should be monitoring regularly to ensure that it is meeting its objectives cost-effectively. Such monitoring should also identify weaknesses or areas for improvement. Users and external auditors should be asked for feedback.

It is also important to monitor changes in the financial and technological environments, particularly the impact of information technology.

Conducting a Records Management Audit

A records management audit should be carried out on financial records at random intervals two or three times a year. The audit or inspection should check that records management procedures are understood and are being carried out consistently. It can be undertaken more frequently where computerised accounting applications are in use and provide for audit trails. This audit should be performed by the internal audit unit or by the records authority.

Audits should check that

1. 
   the financial records required by law and internal regulations are maintained and readily accessible
   
2. 
   standard disposal actions have been carried out under approved disposal authorities.
   

Copies of the audit report should be forwarded to the records authority and to the accountable head of the agency, who should be able to take responsibility for ensuring that appropriate action is taken on any recommendations made.

The audit report provides a basis for action where a records problem is identified. It should be particularly useful to accounting officers, who are responsible for producing and maintaining financial records, and to the head of the ministry of finance, who has broad policy responsibility for the operation of the government’s financial and accounting system.

Appraising and Disposing of Financial Records

Despite the introduction of computerisation, the volume of financial information and records in most organisations continues to grow. The appropriate and timely disposal of these records is an essential aspect of managing financial records. Disposal is also at the centre of accountability. As Chris Hurley, a former Keeper of Public Records in Victoria, Australia, expressed it:

The statutory regulation of the disposal and treatment of government records is the foundation, in a democratic society, upon which all other measures of public and internal scrutiny of the affairs of government rest.³

These two concerns, the reduction of records holdings and the retention of records as evidence in support of accountability, need to be reconciled in the disposal of financial records.

Perhaps more than other types of records, financial records are found in a range of records systems throughout an organisation. The planning, appraisal and implementation of the disposal process requires co-operation and co-ordination throughout the organisation to ensure that audit trails and the evidential qualities of records are maintained while the volume of records is controlled. Three key points to consider are outlined below.

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  The extensive use of forms and the practice of copying of documents in accounting and financial transactions leads to a high level of duplication of records. As auditors generally require the original of a document, it is important to clearly establish which records are duplicates and which copies may be used in place of originals. For example, is it appropriate for accounting and auditing purposes to attach supporting documents to a copy of a voucher instead of the original?
  
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  The period of the financial year is also a determining factor in the creation and use of many financial records. This fact can be used in a positive way to assist in the disposal process, to ‘trigger’ action when disposal is required.
  
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  Accountable documents, such as licence receipt books, are usually subject to financial regulations or instructions that provide for their handling and disposal. Care needs to be taken to identify these and accommodate their accounting requirements in the records management process.