Officers and directors of corporations have two essential duties to which their actions must conform. The first is a fiduciary duty to act with complete loyalty, honesty, good faith and in the best interests of the corporation. Iowa Code ' 490.830(l)(a). The second requirement is a duty of care. The duty of care is the objective standard by which directors action are measured. The duty of care states that directors must act with the same care an ordinarily prudent person in a like position would exercise under similar circumstances. Iowa Code ' 490.830(l)(b).
The duty of care requires directors and officers of a board to keep and maintain appropriate records of the corporation. In fact, the Iowa Code states that a school corporation is required to file and preserve copies of all reports made and all papers transmitted pertaining to the business of the corporation, a complete record of the minutes of all meetings, records of all elections, and an accurate and complete accounting of all money spent and claims made. Iowa Code ' 291.6. The Iowa Supreme Court has stated that a governing body should establish policies and procedures for retaining records which must be kept and disposing of those it has no duty to maintain. Clark v. Banks, 515 N.W.2d 5, 7 (Iowa 1994).
Generally, federal and state laws dictate the length of time which some records must be kept. Iowa law makes no particular reference to the length of retention of school district records except that the school board is authorized to make rules and regulations for the care of school property (279.8). The Statute of Limitations (Chapter 614 and the Iowa Municipal Record Manual,1982,) are the basis for the following suggested retention procedures for just some of the documents you may encounter in the school business office. Please note that in many cases, where the retention period is not governed by state or federal law, these are suggested guidelines only and each retention case may warrant an individual review.
It is also suggested that school districts explore the economics of electronic storage of all permanent district records. Iowa law expressly provides that if a law requires that a record be retained, the requirement is satisfied by retaining an electronic record of the information in the record which does both of the following: a) Accurately reflects the information set forth in the record after it was first generated in its final form as an electronic record or otherwise and b) Remains accessible for later reference. Iowa Code ' 554D.114.
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LEGAL DOCUMENT |
RETENTION |
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The official minutes of the school board, including resolutions |
Permanently |
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Board meeting agendas |
2 years |
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Detailed minutes and audio tapes of closed sessions |
1 year beyond the date of the meeting |
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A copy of board policies |
Until superseded |
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Oaths of Office |
Permanently with the minutes |
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Fidelity bonds of officials |
5 years after expiration |
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Bids accepted |
5 years |
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Bids rejected |
1 year beyond audit |
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Citizens petitions |
3 years after close of issue |
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Ballots |
6 months after the election if not contested |
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Articles of Incorporation |
Permanently |
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Records of patents, copyrights, trademarks etc. |
Permanently |
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CORRESPONDENCE |
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Financial correspondence |
5 years |
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Personnel correspondence |
7 years after termination |
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Credit and collection correspondence |
7 years |
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General correspondence |
3 years of as long as administratively useful or of historical value |
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FINANCIAL REPORTS AND RECORDS |
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Secretary’s and Treasurer’s financial accounting records |
Permanently (general ledger, annual financial report, CAR) |
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Disbursement journals/register, receipt journals/register, check register, general journals and bank statements |
10 years |
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Canceled warrants, check stubs, bills, invoices, receipts, purchase orders, requisitions, petty cash vouchers, cost accounting commutations, investment records, and bank reconciliations |
5 years |
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Records and report regarding uncollectible accounts |
10 years |
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Interim financial reports |
5 years |
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Claims for sales tax or fuel tax refunds
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5 years |
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Audits |
Permanently |
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BUDGET |
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Budget estimate worksheets |
5 years |
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Final budget and certification summary |
Permanently |
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Budget amendments |
Permanently |
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Certified enrollment officials summaries |
Permanently |
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FIXED ASSET RECORDS |
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Documents relating to fixed asset |
5 years beyond disposal of fixed asset |
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Fixed asset repair records |
3 years |
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Inventories |
5 years |
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Documents relating to real property transactions
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Permanently |
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LEGAL DOCUMENTS |
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Written contracts |
10 years beyond the end of the contract |
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Purchase or service agreements for equipment or supplies |
5 years after expiration |
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Record of payment or judgments against the district |
20 years |
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Accidents on school property, settled out of court |
10 years after settlement |
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Accidents on school property, court decisions |
Permanently |
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Fire damage reports |
5 years |
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Insurance policies |
3 years after expiration |
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Special events permits and licenses |
3 years |
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BOND ISSUES |
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Bond certificates |
11 years after final recall (or possibly permanently) |
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Redeemed coupons should be stamped and paid |
11 years |
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Bond register |
Permanently |
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Records and documents pertaining to cancellation, transfer, redemption or replacement of public bonds or obligations |
Preserved by the issuer or its agent for a period of not less than 11 years |
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Other records related to bonds |
During the outstanding period of the bonds, (plus any refunding bonds) plus 3 years |
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STUDENT RECORDS |
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The individual permanent record of each pupil
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Permanently either in its original form or electronic media except as listed next |
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FEDERAL PROGRAMS |
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Child nutrition records pertaining to participation, financial information and free and reduced price meal applications |
3 years in addition to the current fiscal year. this is the federal fiscal year, so it really is 4 years. Records of an unresolved audit must be retained until that audit is resolved |
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JTPA contracts and claims |
5 years |
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Asbestos medical records or records of licensure |
Minimum of 30 years |
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Generally records related to federal aid |
5 years if audited. If there is a non-compliance problem/questioned cost, the records should be retained 3 years after settlement |
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AFFIDAVITS OF PUBLICATION |
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Regarding budget |
Until audited or 5 years |
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Regarding bond issues |
5 years after final recall |
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Regarding other issues |
5 years except real estate which should be kept permanently if proof not filed with deed. |
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UNION/ASSOCIATION RECORDS |
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Negotiation records |
As long as administratively useful |
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Master contracts |
Permanently |
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Case files |
10 years |
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EMPLOYEE ACCIDENTS |
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Employer reports |
5 years |
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OSHA reports |
5 years |
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Worker compensation reports |
5 years after final payment, however, if the case may result in future claims, the reports should be retained 60 years |
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PAYROLL |
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Payroll journals |
60 years |
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Supporting payroll documentation |
5 years |
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W-2s, W-3s, W-4s, 941s, deposits, 1099s, 1096s |
5 years |
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Iowa withholding reports, job service reports |
5 years |
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PERSONNEL RECORDS |
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Job descriptions |
Permanently |
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Applications and resumes of those hired |
60 years |
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Applications and resumes of those not hired |
3 years |
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Results of tests/placements of those hired |
60 years |
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Employment contracts |
10 years after termination |
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Evaluations, continuing education records, employee medical exams |
60 years |
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Resignations and reasons for termination |
60 years |
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IPERS claims |
60 years |
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Unemployment claims |
5 years |
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Garnishment records |
3 years beyond closure |
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Enrollments for direct deposits, insurance etc |
As long as current |
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Health insurance payments and claims |
5 years |
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EEO-4 Reports |
5 years |
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EEO Plans |
As long as current |
*Adopted: 04/13/15
*Reviewed: 09/09/19