organising your records
what's a record?
A record is any information that's written or entered on paper, computer or other media. It includes information that you either have to (by law) or want to keep for a period of time.
keeping good records
You might think that because we're well into the computer age, you may not need to keep quite so many paper-based records in addition to computer-based ones. But, in fact, you still need to do both!
This is not just because computers crash and faxes fade. It's good business practice to keep hard copies of faxes, emails, material stored on the computer, and items downloaded from the internet etc. In some circumstances, it's also required by law.
If you're going to make a success of running your business, you need to keep good accurate records. Making decisions about how these records are to be kept and maintained, and who has access to them, is also important if an organisation is to function well.
Basic information on all of these aspects will be covered in this section.
Keeping accurate and up-to-date records:
- allows you to control your business better i.e. up-to-date records help to determine if your business is making enough money to meet its expenses
- provides evidence of whether your business is being run professionally, which may help to judge how well your business is performing
- means audits will take less time.
classifications of records
The following is a guide to suggested categories of records that you may need to keep, together with examples of each. It is not intended to be a complete or mandatory list — what you keep in the end partly depends on the type and size of your organisation. The exceptions to this are the records you must keep by law regardless of the type and size of organisation (see later). This list can be used to form the basis of a filing system (see later).
Governance records:
- constitutional records (constitution/trust deed)
- board/trust/committee documents
- minutes of meetings
- annual reports
- annual accounts (signed copies)
- planning documents
- governance policies (and policy development documents).
Premises/assets records:
- premises leases
- equipment leases, warranties and other documents
- insurances.
Financial records:
- invoices
- cheque books
- bank statements
- budgets
- loan agreements
- monthly and year end accounts
- treasurer and auditor reports.
Funding records:
- funding calendar
- copies of applications and accountability reporting
- contracts for services (by funder and contract).
Employment records (for paid workers and volunteers):
- job descriptions
- recruitment records (note privacy requirements to not keep records too long)
- time and wage records (including holiday records)
- health and safety records
- performance management records.
Note the privacy requirements for employment records.
Operational records:
- operational plans
- operational policies
- programme/project records (separate files for each significant programme or project)
- client records and plans (note the privacy requirements for personal records)
- correspondence (regularly review what is on file to dispose of unnecessary items)
- details of lobbying/advocacy including submissions
- media and press clippings.
records to keep
Community groups, like other organisations, need to have clear policies about what documents and records they should keep, and what to dispose of.
Checklist of records to keep
The records that should be kept include:
- the constitution/trust deed and information about setting up the organisation
- all the valuable information you have that helps to run your organisation e.g. mortgages, contracts
- information about what is currently happening in or with or for your organisation
- information you are required by law to keep for a period of years (see below)
- information you want and need to keep for reference including historical information (see later)
- plans, letters, photos, videos, reports and stories about your organisation.
Records you must keep by law
The table on the next page sets out the records you are required to keep under certain legislation and the minimum length of time these records must be kept for (retention periods).
| Records |
Retention Details |
Legislation |
|
Business (financial) records including:
- books of account (whether manual or electronic)
- bank statements, vouchers, receipts, and payment details
- details of assets and liabilities
- details of services provided and invoices raised
- details of tax returns — including signed manual copies of electronic returns.
|
Retain for 7 years after the end of the year to which they relate
Keep the records in safe custody |
Tax Administration Act 1994
Goods and Services Tax Act 1985
Companies Act 1993 |
|
Annual accounts and audit reports
(if applicable). |
Permanently |
Not specified but good practice |
|
Employment records:
- wages and PAYE tax records
- wages and employee time records
- holiday pay records and entitlements
- accident and serious harm register.
|
- 7 years
- 6 years
- 6 years
- Not specified
|
- Tax Administration Act 1994
- Employment Relations Act 2000/Minimum Wages Act 1983
- Holidays Act 2003
- Health & Safety in Employment Act 1992
|
|
Vehicle mileage records/log books |
7 years |
Income Tax Act 2004 |
|
Charitable (tax-exempt) organisations need to keep records of donations received and how the funds have been spent. |
7 years |
Tax Administration Act 1994 |
- constitution
- share register (for a company) — register of members.
|
Permanently |
Companies Act 1993 (but this should guide other entities) |
- minutes of general meetings
- minutes of directors' meetings
- annual reports
- trustee, board or committee records for other organisations.
|
7 years |
Companies Act 1993 (but this should guide other entities) |
Tip
The information in this table may change if the legislation changes. Do not rely on it as legal advice. Also remember that the records need to be kept:
- in English unless specifically approved otherwise
- in written form or in a form that is easily accessible and can be converted to written form.
Historical records/archives
The list of records above gives a legal minimum period to keep certain records. You may want to keep some of them for longer periods, and there are others you may want to keep out of interest. Some records you may want to keep for historical interest could include:
- annual plans
- mission statements
- policies
- projects and programmes (all or selected)
- evaluation reports and media articles
- letters of appreciation
- minutes and meeting records.
If your community organisation ceases to exist you should consider having your records stored. Independent community organisations can contact the Alexander Turnbull Library, PO Box 12-349, Wellington for more information about archiving records.
Keeping records on computer
As electronic media deteriorate with time, you should follow a regular maintenance programme to ensure the safe keeping of your electronic records. You must make sure that the relevant electronic data is retrievable and readable at all times and follow appropriate backup procedures (see Section 12 — Information Technology).
Tip
Keep a paper copy of all significant records even if you have it electronically.
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