The new year is just around the corner. Are you ready? Do you have all your ducks, or should I say “docs” in a row? Although most associations have an inspection of records policy that identifies which records must be kept open for inspection under CCIOA, many boards and managers have been asking about the length of time they need to keep the records. Well, that depends on the record.
Did you know that both CCIOA and the Colorado Revised Nonprofit Corporation Act, provide retention timeframes for certain records? For example, did you know that the Nonprofit Act requires associations to keep the following records permanently:
- Member and Board meeting minutes;
- Records of all actions taken by the Members or Board without a meeting;
- Records of all actions taken by a committee of the Board in place of the Board on behalf of the Association; and
- Records of all waivers of notices of meetings of the Members and of the Board or any committee of the Board.
To reduce exposure to liability, associations need to comply with the above and all other record retention timeframes stated in both the Nonprofit Act and CCIOA. And, setting reasonable timeframes for retention and destruction of all the other Association records not addressed in the statutes further reduces liability. Knowing when to purge records and when to keep them is a critical part of good record-keeping. Plus, it avoids the Indiana Jones-like room full of boxes and boxes of records that have been untouched for years (and continue to be transferred from management company to management company).
If you do not already have a Document Retention policy in place, we highly recommend adopting one that establishes guidelines for identifying, retaining, storing, protecting and disposing of all of the Association’s documents. The policy should include, at a minimum:
- The list of all records to be retained;
- Who maintains the records;
- How long each category of records must be kept;
- Who is responsible for the annual purge of records; and
- Preservation of certain records for litigation purposes.
If you would like more information on adopting a Document Retention policy, or have other questions or require further assistance, please contact one of our Altitude attorneys at 303-432-9999 or email us at [email protected].