Record Retention Policy

According to the National Council of Nonprofit Associations, the Sarbanes-Oxley Act sets standards for document destruction for businesses.  While libraries are non-profit organizations, following appropriate record retention and destruction schedules are just as important.

The Director of the Topsham Public Library will serve as the library’s records management and access officer and will be responsible for the appropriate destruction of records when required.  Some records such as payroll records and summaries, retirement and pension records, and tax withholding statements, etc. will be handled and retained by the Town of Topsham Business Office.

The following table outlines the records retention schedule for the library:

Type of Document Minimum Requirement
Accounts payable ledgers and schedules 7 years
Audit reports Permanently
Bank Reconciliations 2 years
Bank statements 3 years
Checks (for important payments and purchases) Permanently
Contracts, mortgages, notes and leases (expired) 7 years
Contracts (still in effect) Permanently
Correspondence (general) 2 years
Correspondence (legal and important matters) Permanently
Correspondence (with customers and vendors) 2 years
Deeds, mortgages, and bills of sale Permanently
Depreciation Schedules Permanently
Duplicate deposit slips 2 years
Employment applications 3 years
Expense Analyses/expense distribution schedules 7 years
Year End Financial Statements Permanently
Insurance Policies (expired) 3 years
Insurance records, current accident reports, claims, policies, etc. Permanently
Internal audit reports 3 years
Inventories of products, materials, and supplies 7 years
Invoices (to customers, from vendors) 7 years
Minute books, bylaws and charter Permanently
Patents and related Papers Permanently
Payroll records and summaries 7 years
Personnel files (terminated employees) 7 years
Retirement and pension records Permanently
Tax returns and worksheets Permanently
Timesheets 7 years
Trademark registrations and copyrights Permanently
Withholding tax statements 7 years

©2004 National Council of Nonprofit Associations,

May be duplicated for non-commercial use, with attribution, by charitable organizations.

The National Council of Nonprofit Associations (NCNA) is the network of state and regional nonprofit associations serving over 22,000 members in 46 states and the District of Columbia. NCNA links local organizations to a national audience through state associations and helps small and mid-sized nonprofits: manage and lead more effectively; collaborate and exchange solutions; save money through group buying opportunities; engage in critical policy issues affecting the sector; and achieve greater impact in their communities.