INFORMATION MANAGEMENT101

Arkansas School Business Officials

October 25, 2011

PRESENTED BY:

L. Freeman Wish, CPAClarksville School District

1701 Clark RoadClarksville, AR 72830

479-705-3200Freeman.Wish@csdar.org

WHY RECORD MANAGEMENT?

Important to the way the school operatesEvidence of decisions, transactions, operationsSchool historyStrategic Planning

Components of Record Management

Archive - A place where records of permanent value (inactive data) are kept for legal, compliance, historical or research purposes.Records Management Center- A place where semi-active data are kept for legal, compliance, historical or research purposes and are accessed frequently.Records Management- The systematic control of recorded information from creation to final disposition.

What is a Record?Recorded information, regardless of

medium or characteristics, received by an organization that is evidence of its operations, and has value requiring its retention for a specified period of time.

Information created, received and maintained by an organization or person in pursuance of legal obligations or in the transaction of business.

What is a Record?

Information, often detailing business transactions, that is preserved because of the value of its data.

Sources of Information/Records Correspondence Invoices Purchase Orders Payroll Records School Board Meeting Minutes Bond Issues Elections E-Mail Telephone Calls

Let’s Talk About E-Mail

Types of E-Mail

1. Non-Record Material

2. Official Records

Let’s Talk About E-MailQuestion: Is e-mail really a public record?

Answer: All e-mail conducted on state government computers is owned by the state of Arkansas and is a public record. Arkansas Code § 13-4-103 defines a public record as:

“… all papers, correspondence, memoranda, accounts, reports, maps, plans, photographs, sound recordings, or other documents, regardless of physical form, and which have been or shall be created or received by any agency or its lawful successor, or official thereof in the exercise of his or her office or in the conduct of any business or function pursued in accordance with law.”

Let’s Talk About E-MailQuestion: Who is responsible for retaining the email, the

sender or recipient?

Answer: In most cases where e-mail communication is between a sender and a recipient, the sender’s copy would be designated as the official copy (copy of record). In other words, it is the sender’s copy to which any retention requirements would apply. For example, an intra agency communication is sent via email from an agency’s Personnel Office to all its employees. The copy of record would be the copy within the Personnel Office. All other copies sent are merely “duplicates” and can be disposed of at will. Cases where this principle may not apply include email received from the public.

Non-Record Materials

Personal Correspondence

Any e-mail not received or created in the course of school business, may be deleted immediately, since it is not an official record: the “Let’s do lunch” (not a school business lunch) or “Can I catch a ride home” type of note.

Other examples would include any personal messages not conveying school business.

Non-Record Materials Transient Correspondence

E-mail that is determined to have insufficient value to warrant its preservation may be deleted upon receipt.

Examples are listserve messages, announcements regarding departmental bake sales and other agency memos without legal, administrative, fiscal or historical value

Non-Record Materials Non-State Publications

Publications, promotional material from vendors, and similar materials that are “publicly available” to anyone, are not official records unless specifically incorporated into other official records.

Examples are unsolicited promotional materials (spam), files copied or downloaded from internet sites, etc.

Non-Record Materials Non-State Publications

However, for example, if you justify the purchase of a particular filing system by incorporating the reviews you saved from a listserve in your proposal to your supervisor, those listserve messages become official records and must be retained in accordance with the retention schedule for purchasing proposals.

Non-Record Materials

Duplicate records are not normally considered records and do not have to be retained.

Duplicates may become the only official record if the original is destroyed or lost.

Official Records

Transient Retention

Much of the communication via e-mail has a very limited administrative value and is deemed transient. For instance, an e-mail message notifying employees of an upcoming meeting would only have value until the meeting date has been attended or the employee receiving the message has marked the date and time.

Official Records Transient Retention

The user may delete these types of e-mail messages immediately after they have served their intended purpose.

Other e-mail messages that have limited administrative value would include: telephone messages, drafts and other limited documents that serve to convey information of temporary importance in lieu of oral communication. It would only be necessary to retain these records until no longer of administrative value.

Official Records Intermediate Retention

E-mail messages that have more significant administrative, legal and/or fiscal value but are not scheduled as transient or permanent should be categorized under the appropriate record series.

Official Records Intermediate Retention

These may include (but not limited to)

General Correspondence: Includes internal correspondence (letters, memos): also, correspondence from various individuals, companies, and organizations requesting information pertaining to agency and legal interpretations and other miscellaneous inquiries.

This correspondence is informative: it does not attempt to influence agency policy.

Official Records Intermediate Retention

These may include (but not limited to)

Routine Correspondence. Referral letters, requests for routine information or publications provided to the public by the agency, which are answered by standard form letters.

Monthly and Weekly Reports: Document status of on-going projects and issues; advising supervisors of various events and issues.

Official Records Intermediate Retention

These may include (but not limited to)

Minutes of Agency Staff Meetings: Minutes and supporting records documenting internal policy decisions.

Official Records Permanent Retention

E-mail messages and other memorandums having significant administrative, legal and/or fiscal value and are scheduled as permanent should be categorized under the appropriate record series.

Official Records Permanent Retention

These may include (but not limited to):

Executive Correspondence: Correspondence of the head of an agency dealing with significant aspects of the administration of their offices. Correspondence includes information concerning agency policies, program, fiscal and personnel matters.

Official Records Permanent Retention

These may include (but not limited to):

Department Policies and Procedures: Includes published reports, unpublished substantive reports and policy studies.

Reflect official actions taken.

Convey statements of official policy or rationale for official decisions.

What is Record Management?

File Plan ImplementationRecords RetrievalRetention and DispositionPreservation of Significant or Historical

RecordsAuditing

What is Record Management?

The systematic control of all records from their creation or receipt, through processing, distribution, organization, storage and retrieval to their ultimate disposition.

Why Do I Need Record Management?

Comply with Government Regulations Reduce Legal Liability Control Valuable Company Assets Reduce Record Archive Size

Essential Elements ofRecord Management

Record File Plan Retention Schedule Records Retrieval Disposition

File Plan

A system for categorizing records, divided into categories.

Each category has its own retention schedule.

All records in the system are assigned to a category.

Retention Schedule

The amount of time a record should remain in the system.

When (and if) the record should be destroyed.

How the record should be destroyed.

Record Retrieval

Structured query, full text search, or a combination of both.

Export records into their native formats. Print or e-mail records. Version records. Add notes or comments to original

record.

Disposition

The method by which a record is removed from the system.

Disposition is based on time, event, or a combination of time and event.

The process is generally either transfer or destruction.

Why Dispose of Records?

Not all records are permanent records. Non-permanent records may have set

retention rules. Enforcing retention rules removes records

when they become obsolete. Example: Destroy employee personnel

records seven (7) years after retirement.

Record Retention Policy Lack of a formal Arkansas School Record

Retention and Disposal Plan.

West Virginia Records Retention Schedule

Michigan Public Schools Record Retention Plan

Recommend that each school adopt a Record Retention Plan and follow it.

Legislative Action19-4-1108. Retention of documents.

(a)  The original evidences of indebtedness, including documents prepared in connection with purchasing procedure, and all original contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other original supporting papers shall be retained in the permanent file of the business office of each state agency. These documents shall be kept in a safe place subject to audit and shall not be destroyed until authorization is given for their destruction by the Legislative Auditor. 

(b)  With the approval of the Legislative Auditor of the state, a state agency may retain evidences, to satisfy record retention policies, of indebtedness and other contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other supporting papers by microform or a form of stored images in a computer system or other form of computer technology in lieu of retaining the originals of such documents. 

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 1997, No. 541, § 2; 2001, No. 1453, § 33.

ACT 918 of 2005 Applies to all cities, county or local

governments in Arkansas

Requires the development of rules and guidelines for the retention of public records commonly found in state agencies

Requires rules and guidelines to be effective July 1, 2007

Arkansas Record Retention Schedule

Agency Directives, Internal Policies and Procedures

Keep until superseded plus three years

Arkansas Record Retention Schedule

Meeting Agenda and Minutes of Governing Bodies

Permanent

Arkansas Record Retention Schedule

Employee Benefit Records and Employee Personnel Records

Workers Compensation Accident Reports

5 years after separation or until closure of unresolved personnel issues, whichever is greater

3 years from date of injury

Arkansas Record Retention Schedule

Accounts Payable

Accounts Receivable

Until authorized by the legislative auditor (as required by Arkansas Code)

Until authorized by the legislative auditor (as required by Arkansas Code)

Let’s Take A Look At A Few Examples of Record Retention

Periods

(Comparing West Virginia, Michigan and

Arkansas)

Accounting Records

Bank Statements, Deposit Slips

West Virginia – Audit + 3 years

Michigan – Current FY + 7 years

Arkansas – Until authorized by legislative auditor

Cash Receipts/Receipt Books

West Virginia – Audit + 3 years

Michigan – Current FY + 7 years

Arkansas – Until authorized by legislative auditor

A/P Invoices/Purchase Orders

West Virginia – Audit + 3 years

Michigan – Current FY + 7 years

Arkansas – Until authorized by legislative auditor

Journal Entries

West Virginia – Audit + 3 years

Michigan – Current FY + 7 years

Arkansas – Until authorized by legislative auditor

Bonds

West Virginia – Permanent

Michigan – Expiration + 7 years

Arkansas – Expiration + 5 years

Audit Reports

West Virginia – Permanent

Michigan – Permanent

Arkansas – Until the next audit report is issued by Legislative Audit

Let’s Talk Payroll Records

Employment History RecordsPayroll History (Annual Earnings)

West Virginia – 50 years

Michigan – Current Fiscal Year + 50 years

Arkansas – Permanent

Unemployment CompensationRecords

West Virginia – At least 4 years

Michigan – Current Fiscal Year + 1 year

Arkansas – 5 years after case closed

Forms W-2

West Virginia – At least 4 years

Michigan – Current Fiscal Year + 7 years

Arkansas – Not Addressed in Arkansas Record Retention Schedule

Time and Attendance Records

West Virginia – Not Addressed

Michigan – Current Fiscal Year + 3 years

Arkansas – Until authorized by legislative auditor

Salary Schedules

West Virginia – 25 years

Michigan – Creation Date + 6 years

Arkansas – Not Addressed in Arkansas Record Retention Schedule

Case Study of Record Retention Policies That Don’t Work

Carlucci vs. Piper AircraftA Piper Cheyenne crashed in Ireland – 3 men

died as a resultClara Carlucci sued Piper for design defects

that caused the pilot to lose control and crash

Records were subpoenaed from Piper2 Employees in Flight Test Department had

been told by supervisor to “selectively” purge hundreds of records that might be detrimental to Piper in future lawsuits.

Carlucci vs. Piper Aircraft

Piper claimed these records were destroyed under retention procedures

Piper could not demonstrate that these procedures were in place or that they were being followed.

Judge entered default judgment against Piper for $10 million – for selective destruction of records.

Carlucci vs. Piper Aircraft

Judge did not even consider merits of caseMilestone decision about destruction of

records – courts will not tolerate selective destruction of records

Major Issue – Piper could not document to the court that it destroyed its records in the regular course under an approved records retention schedule

The Andersen Lesson

After a 6-week trial and 10 days of deliberation, a jury found Arthur Andersen guilty of obstruction of justice when it destroyed Enron Corp. documents while on notice of a federal investigation by the SEC.

The Andersen Lesson

The jury rejected Arthur Andersen’s defense that the documents were destroyed as part of its housekeeping duties and not as a ruse to keep Enron documents away from the regulators.

The Andersen Lesson

Arthur Andersen received the maximum sentence of 5 years probation and a $500,000 fine.

35,000 people lost their jobs worldwide. Since the initial court decision, the

Anderson Case was reversed but it was too late to save the company

The Andersen Lesson

The lesson to be learned from the Arthur Andersen experience is that a Document Retention Program, an otherwise critical part of a company’s risk management program, will not save you from sanction if the policy does not conform to law, either in content or in implementation.

In Conclusion Records and information are the key

component to the existence of any organization.

Good record keeping processes and policies are imperative.

Litigation issues. What happens if the organization ceases

to exist?

How to Comply If a record retention policy

Is reasonable, has a genuine business purpose and establishes appropriate retention periods

Is not selective – it wasn’t designed to destroy all records quickly so that nothing would be available if anyone should ever sue the organization or commence an investigation

Is implemented in an evenhanded manner by employees who understand the policy

Provides for prompt cessation of destruction programs if and when the organization learns of an investigation or litigation

ThenA company should not incur criminal liability for an innocent failure to retain potential evidence.

Sites To Remember

The Arkansas General Records Retention Schedule

http://www.dfa.arkansas.gov/offices/intergovernmentalServices/Documents/rec_retention_schedule.pdf

Sites To RememberThe Arkansas General Records Retention

Schedule

Questions and Answers

http://www.dfa.arkansas.gov/offices/intergovernmentalServices/Documents/

retention_faq.pdf

Sites To Remember

West Virginia Public School Records Retention Schedule

http://wvde.state.wv.us/finance/manuals/recordretentionschedule.pdf

Sites To Remember

General Retention Schedule #2Michigan Public Schools

http://www.michigan.gov/dmb/0,4568,7-150-9141_21738_31548-62562--,00.html

Thanks for your attendance

Always remember this

It is never too late to have a happy childhood