Council on archives international records management trust

Identifying Financial Records of Archival Value

Among the classes of financial records that should be considered for retention as archives are

• 
  strategic fiscal planning documents
  
• 
  policy and expenditure guidelines
  
• 
  approved published budgets (including supplementary budgets)
  
• 
  public accounts committee reports
  
• 
  audit reports
  
• 
  financial statements and end-of-year accounts
  
• 
  statistical reports
  
• 
  records of exceptional events, activities or transactions, especially when these events or activities set a precedent.
  

Activity 9

What criteria is used to appraise financial records in your organisation? Describe the main criteria and the processes followed. Then, write at least three recommendations for how you would improve the process of appraising financial records.

Summary

This lesson has considered the implications for managing financial records in a mixed paper/electronic environment. Financial systems produce both paper and electronic records. Most of the electronic records do not need to be kept for long periods. At the moment, it is wise for the records manager to focus on managing the paper inputs and outputs rather than trying to preserve electronic records. This lesson has examined the implications of computerisation and discussed the issues surrounding the recommendation to care for records in paper form.

This lesson has also looked in more detail at the steps involved in managing financial records, including

• 
  understanding the roles and responsibilities of electronic records managers
  
• 
  clarifying the objectives and general principles of financial records management
  
• 
  determining the criteria for an electronic records system.
  

The lesson then examined the specific actions that can be taken to manage financial records in a mixed environment, including

• 
  controlling series
  
• 
  identifying financial records
  
• 
  arranging financial records
  
• 
  determining storage and security needs
  
• 
  managing the physical location and movement of records
  
• 
  protecting the electronic record
  
• 
  managing forms
  
• 
  monitoring and reviewing records systems
  
• 
  conducting a records management audit.
  

It then discussed the issues involved with appraising and disposing of financial records, including

• 
  determining appraisal criteria
  
• 
  developing retention schedules
  
• 
  identifying financial records of archival value.
  

Study Questions

1. 
   What are the basic questions the records manager needs to be able to answer when making decisions about records from mixed paper/electronic financial systems?
   
2. 
   What are the main principles that provide the basis for managing financial records?
   
3. 
   What information is needed to identify and maintain financial records?
   
4. 
   What factors does the records manager need to take into account in maintaining control of the physical movement of financial records?
   
5. 
   What are the main issues that must be taken into account when appraising financial records?
   
6. 
   Name four categories of financial records that could be considered for permanent preservation as archives.
   

Activities: Comments

Activities 6-9

Each of these activities is designed to help you compare the information provided in this lesson with the reality of financial records management in your organisation. Answer each question to the best of your ability and focus your attention on understanding current practices and how they are different from or the same as the practices discussed in this lesson.

Appendix 1

Accounting Records Retention Schedule⁴

Bank Account Records

TYPE	ITEM	DESCRIPTION	DISPOSAL
Cheques and associated records	1	cheque book/butts for all accounts	2 years
	2	cancelled cheques	2 years
	3	dishonoured cheques	2 years
	4	fresh cheques	6 years
	5	paid/presented cheques	6 years
	6	stoppage of cheque payment notices	2 years
	7	record of cheques opened books	2 years
	8	cheque registers	2 years
	9	record of cheques drawn for payment	6 years
Bank deposits	10	bank deposit books/slips/butts	2 years
	11	bank deposit summary sheets; summaries of daily banking; cheque schedules	2 years
	12	register of cheques lodged for collection	2 years
Bank reconciliations	13	reconciliation files/sheets	2 years
	14	daily list of paid cheques	2 years
	15	unpaid cheque records	2 years
Bank statements	16	Bank statements	2 years
	17	bank certificates of balance	2 years
Electronic banking and funds transfer	18	cash transactions; payment instructions; deposits; withdrawals	Disposal action in line with paper records
	19	audit trails	Retain for the same period as the base transaction record

Expenditure Records

TYPE	ITEM	DESCRIPTION	DISPOSAL
Cash books/sheets	1	Expenditure sheets	6 years
	2	Cash books/sheets	6 years
Petty cash records	3	Petty cash records/books/sheets	2 years
	4	Petty cash receipts	2 years
	5	Postal cash book/sheets; postage/ courier account/cash records; register of postage expenditure; postage paid record; postage books/sheets	2 years
	6	Summary cash books	2 years
Creditors	7	Creditors’ history records; lists/reports	6 years
Statements	8	Statements of accounts outstanding; outstanding orders	2 years
	9	Statements of accounts – rendered/payable	2 years
Subsidiary records	10	Copies of extracts and expenditure dissections	1
	11	Credit note books	2 years
	13	Debit note books	2 years
Vouchers	14	Vouchers – claims for payment, purchase orders, requisition for goods and services, accounts payable invoices etc	6 years
	15	Wages/salaries vouchers	6 years
	16	Copies of vouchers	1 year
	17	Voucher registers	2 years
	18	Voucher registration cards and payment cards	6 years
	19	Voucher summaries	1 year
	20	Advice/schedule of vouchers despatched; delivery notice	1 year
Costing records	21	Cost cards	2 years
	22	Costing records, dissection sheets, etc	2 years