Document Retention Policy

Schools
Written By Katherine Stuart

BY SUSAN LAIR, PHD - CONSULTANT, EXECUTIVE COACH

Not the Ole Fireproof File Cabinets!

Why the changes? 

Congress enacted the American Competitiveness and Corporate Accountability Act in 2002, more commonly called the Sarbanes–Oxley Act, which contained rules for nonprofits about transparency, accountability, and corporate responsibility. The legislation is designed to prevent abuses of their tax-exempt status by nonprofits. Two matters within the Sarbanes-Oxley Act that directly pertain to private schools are whistleblower and document destruction policies and procedures. 

The Sarbanes-Oxley Act established a criminal statute relating to the destruction, alteration, or falsification of records in a federal investigation or bankruptcy. Under the terms of the Act, anyone who knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of the matter may be fined or imprisoned for 20 years, or both.

As a nonprofit and School, the following laws, acts, and agencies require record retention:

  • Internal Revenue Service (IRS).

  • Federal Insurance Contributions Act (FICA).

  • Americans with Disabilities Act of 1990(ADA).

  • Age Discrimination in Employment Act (ADEA).

  • Occupational Safety and Health Act (OSHA).

  • Employee Retirement and Income Security Act (ERISA).

  • Civil Rights Act of 1964.

  • Fair Labor Standards Act (FLSA).

  • Family and Medical Leave Act (FMLA).

  • Equal Employment Opportunity Commission (EEOC).

  • Health Insurance Portability and Accountability Act (HIPAA).

  • Federal Unemployment Tax Act (FUTA).

  • American Competitiveness and Corporate Accountability Act of 2002

  • Your State and Local Governments

  • Educational Licensing and Regulations

  • Your School's Accrediting Organizations

Where do we start?  

Your School's Board should develop a written Document Retention Policy and a Records, Retention, and Destruction Schedule in consultation with the School's auditors and legal counsel. A Document Retention Policy aims to ensure that essential records and documents are maintained in compliance with all federal and state laws concerning the retention and destruction of documents. Additionally, this policy provides a systematic review of the School's documents to decide whether documents should be retained or destroyed.

Policy Components:

Statement of Scope – Sample wording: "Under this Document Retention Policy, all records and correspondence (whether kept in hard copy or electronic form) are to be retained for a specific period of time and then destroyed periodically, except those specifically authorized or required to be preserved."

Statement of Purpose – Sample wording "The Policy ensures that:

  1. All records are retained for at least the minimum period required by applicable law

  2. All records that may substantially affect the School's operations are retained for a period of time that will reasonably assure the availability of those records when needed

  3. Adequate records are maintained to document the School's compliance with relevant laws 

  4. Operating expenses relating to the storage of unneeded records are minimized

  5. Vital records are identified and appropriately safeguarded 

  6. The privacy and security of records are adequately assured."

Records Subject to the Policy – Sample wording: "The records include documents written or printed on paper, as well as information stored in electronic form. The law regards information stored in an electronic medium as "documents."

These include: 

  • Files created by typical business applications, such as Word, Excel, Google Docs, etc.

  • E-mail messages 

  • Collaboration repositories, such as Exchange public folders

  • Snapshots databases, as well as databases themselves

  • Documents converted to .pdf, .tif, or another electronic image format

Special Cases

Physical, Medical Exam, and Medical Test Records – Where Will They Be Maintained? How will they be segregated? Who will have access?

Threatened or Pending Litigation – 

  1. Scope of Litigation Sample wording: "For purposes of this Policy, ‘litigation matter’ includes civil lawsuits, arbitrations, criminal prosecutions, grand jury proceedings, governmental or regulatory investigations, administrative agency proceedings, subpoenas, and bankruptcies. "Potential litigation matter" includes threats of legal action, demand letters, demands for arbitration, and other circumstances or situations in which an employee has a reasonable belief that a legal proceeding (including a bankruptcy proceeding) about the School may be commenced."

  2. What should an employee do when he becomes aware of a potential litigation matter about the School or that a litigation matter related to the School has commenced? 

  3. Who has the authority to consider, in consultation with legal counsel when deemed appropriate, and take the necessary steps to preserve and prevent the destruction of all documents that are reasonably related to the matter and within the possession, custody, or control of school employees? 

  4. School Closure – In the event of the school closing, precisely who or what organization would oversee all school records?

What are some of the most captivating and inspiring signature programs you’ve encountered in schools?  We’d love to hear from you, email design@educationgroup.com.

Katherine Stuart
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