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FYI ­ MAY 2006
RECORDS RETENTION CHART

I trust that you are all aware that new records inspection requirements go into effect on July 1, 2006. You can get the full scoop on my website (above). There is a link on the front page to "Records Inspection After AB 1098. There is even a sample policy for you to consider, with some blanks. Many people ask about how long records need to be retained. The following chart should help.

  TABLE FOR [SUGGESTED] RETENTION OF RECORDS*
İBeth A. Grimm, P.L.C.

Item IRS CPA (WG) ATTORNEY (BG)
Minutes Of Meetings NA NA Permanent
General Ledger Permanent Permanent Permanent
Financial Statements Permanent Permanent Permanent
Fixed Asset Purchases Permanent Permanent Permanent
Loan Payment Schedules 7 Years   5 Years After Payoff
Tax - Related Records 7 Years 7 Years At Least 7 Years
Retirement Plan Reports - IRAs Permanent Permanent Permanent
Developer Disclosures Permanent   Permanent
Deeds   Permanent Permanent
Title Insurance Policies Permanent Permanent Permanent
Real Property Records Permanent   Permanent
Lease Records Life + 4 Permanent Life + 4
Construction Records Permanent Permanent Permanent
Maintenance Records On Property And Common Area Permanent Permanent Permanent
Insurance Policies Life + 3 Years   Life + 3 Years
Insurance Claims History   4 Years 4 Years
Loans Term + 7 Years   Term + 7 Years
Bank Records, Statements And Deposit Slips 7 Years 4 Years 4 Years
Brokerage Statements, Mutual Fund Reports, Investment Documents Ownership + 7 Years   0 + 7
Documents Related To Architectural Changes   Permanent Permanent
Building Drawings And Blueprints   Permanent Permanent
Home Improvement Receipts And Cancelled Checks Ownership + 7 Years   0 + 7
Governing Documents Permanent Permanent Permanent
Inventory And Expense Records 7 Years 4 Years 7 Years
Contracts   Retain Until Superseded Life (Incl Warranty Period) + 3 Years, And Perhaps Longer If A Possibility Of Litigation Ensues
Disciplinary Action Letters-Owner Files At Least 5 Years From Date Of Incident (Perhaps Longer For Chronic Offenders)
Billing And Collection Documents 4 Years 7 years
Membership Meeting Notices And Agendas, Check In Sheets   4 Years One Year, Since That Is The Period For Challenge To An Election
Ballots From Any Election   4 Years One Year, Since That Is The Period For Challenge To An Election
Association Meeting Minutes - Open And Closed (Executive Session) Meetings     Indefinitely, And In A Separate Minute Book As Well As In The Corporate Records For The Board, CPA And Other Uses
Minutes Of Committee Meetings     Life Of Commit-Tee + 5 Except That ACC Meetings, At Least 10
Corporate Tax Returns And Other Tax ­ Related Communications     At Least 7 Years
Operations (Items Like Blue Prints, Building Drawings And Details Of Additions Or Modifications, Major Component List)    Life of Project

  *This Chart Is Compiled From A Comparison Of IRS Guidelines, Those Provided By Walt Grady, A Local CPA Knowledgeable About CID Accounting Issues, And Beth A. Grimm, From A Legal Perspective. It Is Merely Meant As A Point Of Discussion, Each And Every Person Who Uses It Should Do It Only With The Advice Of Individual Or The Association's Legal Counsel.

By Beth A. Grimm, Attorney. A "service oriented" attorney and member of ECHO and CAI and various other industry organizations in California and nationally, host of the website www.californiacondoguru.com; two Blogs: California Condominium & HOA Law Blog, and Condolawguru.com Blog, and author of many helpful community association publications which can be found in the webstore on her site.