It’s important to have a Statement of Policy on Record Retention.

This is particularly so where you have a number of subsidiaries in different countries where they need to comply with various local regulation like the Inland Revenue. By having a clear-cut policy and procedure, you can demonstrate to outsiders that from the Head Office’s view point that your group is trying its best to uphold all requirements.

Secondly, you might derive cost benefits from lesser storage space by destroying unwanted or time-lapsed documents.

Append below is a sample of SOP on Record Retention which should at least cover the following areas:
• The purpose,
• Who is responsible in the company,
• Classification of permanent and non-permanent,
• The various types of documents and procedures

SAMPLE:

Purpose:

To ensure records are systematically maintained and discarded in accordance with a predetermined approved plan.

Compliance with policy will guarantee that records are available when required for management use and to comply with local regulations.

Record Retention Schedule should assist us to:
• reduce expense of keeping unneeded and outdated material and
• demonstrate that the Company utilizes established procedures for disposing of records in an orderly manner within the normal course of business with no intention of destroying records to conceal possible unfavourable information.

Responsibility:

Each department/support unit is responsible for establishing a record retention program.

The Finance & Admin Unit will be responsible for communicating changes in documents or retention period.

The established manual shall be implemented by all Finance & Admin Units within the entire XXX Asia Pacific Group Of Companies.

Destruction:

A log (refer Appendix C) should be prepared for all records identified for destruction and must be approved by the Unit Manager.

Records should be destroyed with the presence of an Executive. This can involve shredding, burning or whichever means is more appropriate.

The log of records destroyed should be maintained indefinitely.

POLICY & PROCEDURES

Storage

Prior to the packing of any documents into the cartons for storage at our warehouse the list to be archived should be discussed and approved by the Relevant Departmental Head. After it has been approved by the Departmental Head, an Archive Form should be used. The particulars in the Archive Form are as follow:-

a) The contents of documents
b) The month and year
c) Initial of the custodian/owner of the documents
d) Date sent to the store
e) Proposed date for the documents to be destroyed

2. After (1) the Schedule of Archived Documents are to be updated.
The sample of the Schedule of Archived Documents should clearly define all the individual documents for archive and the duration of years to be kept.

3. Append below the various sample of documents to be used for record retention process:

Appendix A - Format of Record Retention Form
Appendix B - Schedule of Archived Documents
Appendix C - Log of Documents / Records Destroyed

Appendix A

CONTENTS MM YY NO

INITIAL

DATE SENT TO STORE

TO BE DESTROYED AFTER

INITIAL

Appendix B

PERMANENTLY RETAINED
LIST OF DOCUMENTS/RECORDS DESTROYED

DATE SENT
TO STORE DATE TO BE DESTROYED CARTON NO.

CUSTODIAN DESCRIPTION
OF DOCUMENTS

Appendix C

DATE
DESTROYED CARTON NO. CUSTODIAN

DESCRIPTION
OF DOCUMENTS YEAR OF DOCUMENTS

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Related Entries

• SOP: Conducting Physical Stock-count
• Month End Close: Proper Classifications And Others
• Financial Operations: Audit Fee Management
• SOP: Treasury Function
• SOP on Current Account or Inter-Company Accounts