| 1. The Office of Commissary and Recreation Affairs (A/OPR/CR) has recently updated the following guidance to assist employee associations (EAs) in the establishment of central files and file retention policies. 2. It is recommended that files be categorized by subject to include, but not be limited to: operating documents, financial/audit records, Internal Revenue Service reporting, human resource (HR) files, membership files, fixed asset records, spoilage records with supporting documentation, monthly bank reconciliations with supporting documentation (one file per bank), vendor correspondence (one file per vendor), insurance records (including policies, record of payment and documentation of claims), and concessionaire/vendor agreements (one file per contractor). 3. Operating documents must include the current charter, bylaws, and license agreement(s) approved by A/OPR/CR. In addition, a current insurance waiver must be retained (where issued by A/OPR/CR). 4. Financial files to include monthly financial statements and supporting documentation should be categorized by accounting period. 5. HR files must be properly secured to prevent unauthorized access. The general manager’s original personnel file must be safeguarded by the board of directors. A personnel file for each employee should generally include a summary schedule to document his/her service compensation date, salary history, and other personnel actions, job application/resume, employment agreement(s), position description, payroll records, performance reviews, disciplinary actions, Form W-4 for U.S. citizen personnel, copy of work permit/visa where applicable, awards and other documents pertaining to his/her employment. For terminated employees, also include a check-out list to document last day worked, reason for termination, and supporting documentation for final wages paid. 6. Membership files should be maintained alphabetically and properly secured. EAs should take every effort to minimize the collection of personally identifiable information (PII) by having a designated member of post management’s office approve membership applications. This will alleviate the need to maintain copies of official orders or passport data pages. 7. Legal files for all past and current/pending litigation (due to the sensitive nature, legal files should be safeguarded by the Board Secretary). 8. In establishing the above files, EAs may find the need to review and possibly retire some existing files. The following guidelines are provided for the retention of files: a) The current charter and bylaws are to be retained until approval is granted for amendments/revisions by A/OPR/CR. Should the EA need this historical information, original copies of prior charters and bylaws are retained on file in A/OPR/CR and can be provided upon request. b) Current license agreements are to be retained until approval is granted for amendments/revisions by A/OPR/CR. Again, this historical information is available from A/OPR/CR. c) Board minutes are to be retained indefinitely. Boards of directors are strongly encouraged to retain these files in soft copy utilizing a SharePoint or similar site. d) Hard copy financial statements and audit reports should be retained for a period of seven years. Source documents utilized in the preparation of financial statements and audit reports are to be retained for a period of seven years. It is further recommended to retain a soft copy of audit reports indefinitely. e) Fixed asset records are to be retained until such time that the asset has been retired. f) Bank statements are to be retained for three years. g) Internal Revenue Service reporting records (Forms 941, W-2, W-3, and W-4) and record of payment are to be retained for a period of seven years. IRS notices and supporting documentation on resolution should also be retained for a period of seven years. h) Employee files are to be maintained for current employees. In addition, employee files for separated employees are to be retained for seven years following the separation date. Employee files for local national employees must be retained for an additional period of time if required by local law. In instances of litigation, employee files must be retained until such time that the litigation is fully resolved. Employee contracts for the current contract and one contract prior for each employee should be retained for seven years. However, employee contracts for local national employees must be retained for an additional period of time if required by local law. In instances of litigation, contracts must be retained until such time that litigation is fully resolved. i) Membership files are to be retained until the member departs post and all receivables have been satisfied. j) Concessionaire/vendor agreements (where applicable) and other contracts to which the EA is a party are to be retained on file for the duration of the current contract plus an additional seven years. Contracts under dispute or in litigation must be retained until such time that litigation is fully resolved. k) Insurance records are to be retained indefinitely. 9. Please keep in mind that all files must be disposed of based on the above retention periods and, in the case of PII, properly shredded. 10. We encourage all EAs to ensure that accurate, up-to-date files exist. If you have any questions, please contact the A/OPR/CR staff at foodandfun@state.gov. |
