RubinBrown Team Member Manual

POLICY CONTINUED Policy Title: Policy Number:

Record Retention 1207

Section:

Risk Management

Red Files Each team member in charge of an engagement is responsible for organization and maintenance of the red files for that client. The intent is to maintain the current year and one prior year in the high density filing system. All prior years' files are to be filed at off-site storage facilities. Red file folders in poor condition should be replaced and files containing non-current material should be given to an Office Service Center team member for transfer to off-site storage facilities. Required red file contents may vary depending on the size of the client. Permanent file - Permanent information should be filed in a separate red file so it can be separately identified for retention purposes. Correspondence file - All items should be two-hole punched and bound in a legal size manila file folder in chronological order (most current on top). Nothing but correspondence should be stored in this file. Work paper file - File should contain current and prior year work papers. For those clients with a few work papers for any year, more than two years may be kept in one work paper file. NO LOOSE PAPERS SHOULD BE FOUND IN ANY RED FILE. Reviewers will consider the job incomplete if the file is not in proper order and will return the file to the team member responsible. The following client records will be retained as set forth by the following guidelines: • Work papers (including work product – report, financial statements, tax return) - 7 years with the exception of 'permanent files'. • Work papers for SEC engagements - 7 years including additional required information by the Sarbanes Oxley Act. • Financial statements and tax returns - 7 years with the exception of gift and estate tax returns which are to be retained permanently. Manual destruction of client files and purging of PFx Engagement files typically occur once a year after the October 15 th tax deadline. The seven year retention is calculated based on our 5/31 fiscal year end as follows: Fiscal year ended 5/31/XX – destroy all electronic files finalized prior to 5/31/(XX-7) and all paper files dated prior to 12/31/(XX-8). EXAMPLE: During fall 2017, all electronic files that were either finalized (PFx) before 5/31/10 will be destroyed. All un finalized binders with dated prior to 12/31/09 will be destroyed. All paper files dated prior or 12/31/09 will be destroyed.

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