FAQs on Records Retention Law, p. 2 POLICY UPDATES P …policy.ndsba.org/wp-content/uploads/2014/10/august15.pdf · Society for Human Resource Management (SHRM). ... retention guidelines,

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LEGISLATIVE UPDATE IV: RECORDS RETENTION On August 1, a new law related to school records went into effect. NDCC 15.1-07-25.2 requires the following: 1. A school district shall permanently retain the minutes of each school

board meeting.

2. Unless otherwise provided by law, a school district shall retain payroll

records and records of revenues and expenditures for a period of five

years.

3. A school district may consult with the state archivist before disposing of

records in order to determine whether the records may have any archival

value.

NDSBA has received questions concerning implementation of this law and requests by school districts to develop a sample records retention schedule. In response, NDSBA has created a records retention schedule and a policy on this topic. This issue of Policy Ponderings provides an explanation of the new law and an overview of our new records retention policy and schedule.

Background Information on NDCC 15.1-07-25.2 Many school districts have asked the NDSBA office why NDCC 15.1-07-25.2 (Senate Bill 2181) was enacted. NDSBA introduced this legislation in an effort to make the school records retention process more efficient. Senate Bill 2181 removed sections 21-06-05 and 21-06-06 from NDCC. These former sections of law required all school board proceedings, receipt and expenditure journals, and payroll records to be retained permanently. All other school records identified for destruction were required to be offered to the state archive and, if unwanted by the state, destroyed by board motion during the first board meeting in January.

August 2015

ponderings Policy

Background Information on Records Retention Law, pp. 1-2

FAQs on Records Retention Law, p. 2

IMPORTANT POLICY UPDATES, P. 4


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Compliance with this law proved difficult for many schools as January was an inopportune time for business managers to find and prepare of list of records to be destroyed. In addition, the former law placed burdensome record retention requirements on schools, forcing many districts to seek storage solutions for records that no longer had a purpose. To replace NDCC 21-06-05 and 21-06-06, NDSBA proposed retaining only school board minutes permanently. NDSBA further recommended that payroll and revenue/ expenditure records be retained five years unless otherwise stipulated by law. The state archive requested that the new school record retention law somehow reference their office for purposes of preserving historical records. NDSBA advised that the new law should allow, but not require, schools to consult with the state archive to determine which records should be submitted to the state for preservation purposes. All of NDSBA’s recommendations were enacted by the legislature and codified in NDCC 15.1-07-25. Questions concerning new law and overview of new policy NDSBA has received two questions about the new law.

First, schools have inquired about the definition of a payroll record. Second, school districts have asked for clarification on which minutes must be retained permanently—board meeting minutes only, committee meeting minutes, administrative cabinet meeting minutes, or all three. NDSBA’s records retention policy provides answers to both questions. It defines board minutes—items that must be retained permanently under NDCC 15.1-07-25.2—as minutes taken at any school board meeting where a quorum of the school board was present. The definition excludes board committee meeting minutes and administrative cabinet minutes. The policy also defines payroll record using a definition provided by the U.S. Department of Labor in a guidance document on the Fair Labor Standards Act (FLSA). This definition is a list of items

that contain information that is required to be retained under FLSA. In addition to providing clarification on implementing NDCC 15.1-07-25.2, NDSBA’s records retention policy contains directives concerning development of a records retention schedule and implementing a records hold when needed. While law does not require development of a records retention schedule, it is NDSBA’s view that implementation of such a schedule is the easiest way to comply with NDCC 15.1-07-25.2. Our policy directs either the business manager or superintendent to develop this schedule. This schedule should contain record retention deadlines, destruction methods, and list a record administrator for each document listed on the schedule. The role of the record administrator is to ensure that records are properly destroyed and to

http://www.dol.gov/whd/regs/compliance/whdfs21.pdf

http://www.dol.gov/whd/regs/compliance/whdfs21.pdf


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implement a records hold when needed. Our policy then provides guidance on determining when a records hold is appropriate. A records hold is a process whereby records are held longer than the retention deadline listed on the records retention schedule. Records holds are necessary when there is anticipated litigation against a school district and when there is an outstanding request for a specific record. A good records hold procedure will help schools districts avoid accusations that evidence was intentionally destroyed and will help preserve documentation necessary to defend against false or inaccurate allegations. Overview of NDSBA’s records retention schedule As a complement to our records retention policy, NDSBA has developed a records retention schedule. The schedule covers records related to school board actions and personnel. The recommended retention deadlines contained in the schedule were determined

based on state and federal law including NDCC 15.1-07-25.2 and the Lilly Ledbetter Act, North Dakota Information Technology Department recommendations, and recommendations from the Society for Human Resource Management (SHRM). Business managers enrolled in the North Dakota School Business Manager Certification Program were instrumental in developing personnel records retention recommendations based on guidance provided by NDSBA staff. A second group of business managers enrolled in this program will be responsible for developing records retention recommendations for school operational records this spring, which NDSBA will then make available to Policy Services members. In addition to listing record retention guidelines, NDSBA’s records retention schedule contains record destruction recommendations, which are threefold: shred, recycle, or submit to the state archives.

The destruction recommendations were determined based on laws related to open, closed, and exempt records. We also requested that the state archive provide a list of documents that have historical value and incorporated this list into our destruction recommendations. Conclusion We strongly encourage school districts to adopt a records retention policy and schedule. Keeping records too long can result in costly information breaches and keeping records for too short of a time can result in public scrutiny or may even have financial repercussions if subject to a state or federal audit or litigation.

While this issue of Policy Ponderings has been legally reviewed, Policy Ponderings, NDSBA’s sample policies, and other resource materials should not be considered as legal advice and are not intended as a substitute for the advice of your board’s legal counsel.

Keeping records too long can result in costly information breaches and keeping records for too short of a time can result in public scrutiny or may even have financial repercussions if subject to a state or federal audit or litigation.

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IMPORTANT UPDATES: PLEASE MAKE THE FOLLOWING CORRECTIONS TO YOUR POLICIES AND EXHIBITS POLICY DBAC: RECRUITING & HIRING TEACHERS Page 2, Paragraph 1: Teaching applicants must meet minimum qualification requirements contained in the job announcement and job description. Teaching applicants must not be are disqualified from employment based on if meeting the disqualifying factors listed in this policy. If no applicant is qualified, the Superintendent or designee may revise the announcement and shall repost the opening in accordance with this policy’s advertising protocol. POLICY FGDD: STUDENT PUBLICATIONS & FREEDOM OF EXPRESSION Paragraph 1: School-sponsored media, as defined by NDCC 15.1-19-25 Ch. 15.1-06, shall be supervised by a student media advisor but shall not be reviewed by an administrator unless the publication is believed to contain restricted content as listed below. NOTE: This policy was written before the new law on student speech was codified. The law was placed in a different chapter of NDCC than indicated in the final bill. EXHIBIT FGA-E6: MODEL FORM FOR DISCLOSURE TO PARENTS OF DEPENDENT STUDENTS Under the Family Educational Rights and Privacy Act (FERPA), the [School District] is permitted to disclose information from your education records to your parents if your parents (or one of your parents) if you are under 18 or if they claim you as a dependent for federal tax purposes. If you will turn 18 this school year, please indicate whether your parents claim you as a tax dependent.

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RECOMMENDED Descriptor Code: ABCD

RECORDS RETENTION Definitions For the purposes of implementing this policy and complying with NDCC 15.1-07-25.2:

Final action is the month, day, and year of the last action completed by the District to fulfill obligations to an individual or entity under the applicable program, policy, regulation, or law.

After separation is the month, day, and year that an employee separated from employment with the District.

Board minutes are defined as minutes taken at any school board meeting where a quorum of the school board was present.

Closed record is defined in NDCC 44-04-17.1 (2).

Exempt record is defined in NDCC 44-04-17.1 (5).

Payroll record is defined as documents containing the following: o Time and day of week when employee's workweek begins o Hours worked each day o Total hours worked each workweek o Basis on which employee's wages are paid (e.g., "$9 per hour,"

"$440 a week," "piecework") o Regular hourly pay rate o Total daily or weekly straight-time earnings o Total overtime earnings for the workweek o All additions to or deductions from the employee's wages o Total wages paid each pay period o Date of payment and the pay period covered by the payment

Record is defined in NDCC 44-04-17.1(16). Development of a District Records Retention Schedule The [Superintendent] [Business Manager] or designee shall develop a records retention schedule that complies with all applicable record retention deadlines in state and federal law. The schedule should contain retention deadlines, record destruction methods, and list a record administrator for each record. Role of Record Administrator Record administrators listed on the records retention schedule shall be responsible for properly retaining all records under their jurisdiction, implementing records holds when necessary, and ensuring that records are properly destroyed in accordance with destruction methods listed on the retention schedule. Records Hold A records hold should be placed on documents (including electronic documents such as email) when there is a need to retain a document for purposes such as, but not limited to, complying with an open records request or to prepare for foreseeable litigation (litigation hold). Below are indicators that a records hold is required: 1. A formal complaint, subpoena, or notification of a lawsuit is received

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2. Litigation is threatened 3. A regulatory or governmental body (e.g., OCR, Department of Justice,

Department of Labor) begins an investigation 4. An attorney requests facts or documents related to an incident or dispute 5. An injury occurs 6. An open records request is made 7. An employee or student/parent requests access to their records The [Superintendent] [Business Manager] shall determine the duration of records hold. S/he shall consult the district’s attorney for retention recommendations on items retained under a litigation hold.

End of [Name] District Policy ABCD .................................................... Adopted:

[08/15]

CFY: Current Fiscal Year The retention deadlines in this document shall be suspended in the event of a records hold. If you are uncertain whether or not current records holds are in place or have reason to believe that the District should institute a records hold, please contact the appropriate records administrator listed in this document.

EXHIBIT Descriptor Code: ABCD-E

BOARD DOCUMENTS RETENTION SCHEDULE

Description of Record

Retention Deadline Destruction Method

Record Administrator

1099s 13 yrs after CFY Shred Business Manager

Annexation, Reorganization, and Dissolution Committee Material

Permanently n/a; file copy with state archives

Business Manager

Annexation, Reorganization, and Dissolution Plans/Agreements

Permanently n/a; file copy with state archives

Business Manager

Board correspondence

3 yrs after CFY Recycle Business Manager

Board Election Ballots (including absentee)

Retain one copy permanently; ballots completed by voters retain 22 months

Shred Business Manager

Board Election Notices

45 days after election Recycle Business Manager

Board minutes Permanently n/a Business Manager

Budgets 10 yrs from date of approval Recycle Business Manager

Certificate of election

Retain for 10 yrs after CFY Send to state archives

Business Manager

Committee Meeting Minutes

Retain for 10 yrs after CFY Send to state archives

Business Manager

Election Official Oaths

45 days after election Recycle Business Manager

Executive Session Tapes

Minimum of 6 months; 6 yrs if the executive session was related to contract negotiations, nonrenewal, discharge, or expulsion

Destroy Business Manager

Joint Powers Agreements

Permanently n/a Business Manager

Meeting Agendas Retain for 10 yrs after CFY Send to state archives

Business Manager

Meeting Packets Retain for 10 yrs after CFY Send to state archives

Business Manager

New Board Member Training Verification

Term of office +6 yrs Recycle Business Manager

Oath of Office Retain for entire term of office + 6yrs Send to state archives

Business Manager

Petitions: Recall and Election

10 yrs from date approved Send to state archives

Business Manager





Policies related to board operations

Retain for life of policy plus 6 yrs once amended or rescinded

Recycle Business Manager

Poll books 10 yrs from date of election Send to state archives

Business Manager

Poll tallies 10 yrs from date of election Send to state archives

Business Manager

Statement of Interest (SFN 10172)

10 yrs after CFY Recycle Business Managerr

Travel Reimbursement Log/Reports

CFY +4 yrs Shred Business Manager

HR RECORDS RETENTION SCHEDULE




1099s 13 yrs after CFY Shred Business Manager

403 B Annuity Billings/ Payment Confirmation

5 yrs after separation Shred Business Manager

941 Federal Tax Form/EFTPS

5 yrs after separation of all employees on report


Absence Log 5 yrs after separation Shred Business Manager

Academic Records/ Transcripts

Until updated; destroy upon separation Shred Business Manager or HR Director

Annual Payroll Report (for Annual Financial Report)

5 yrs from date created n/a Business Manager

Awards/Honors records


Benefits Bills (e.g., BCBS bill, AFLAC bill)

6 yrs after plan yr Shred Business Manager

Certificate of Fitness for Duty (Bus Drivers)

Until new certificate is received; upon separation retain final certificate for 6 yrs

Shred HR Director, Facilities Manager, or Business Manager

Certificates of Insurance

6 yrs after final action Shred Business Manager

Check Register 6 yrs after created n/a Business Manager

Child Support Enforcement Reporting






Classroom Observation Notes

2 school yrs; if used for purposes of nonrenewal, retain 6 yrs after separation

Recycle Employee’s supervisor (principal or supt.)

COBRA Forms 6 yrs after final action Shred Business Manager

COBRA payments 6 yrs after final action Shred Business Manager

Cover Letters 6 yrs after hiring decision Recycle or shred (if contains ss#)

HR Director or Business Manager

Credit Checks 2 yrs after selection process Shred Superintendent

Criminal History Records

6 yrs after hiring decision (if not hired); 6 yrs after separation if hired

Shred Record Adjudicator

Deductions Register (by Deduction and by Employee)


Direct Deposit Information and Authorization Forms

Duration of employment or until new authorization forms are provided


Direct Deposit Register


Driver’s License Copy

1 yr after date of termination Shred Business Manager

Driving Record Check

Until updated or 6 yrs Shred Business Manager

Drug Testing 7 yrs after separation Shred HR Director or building administrator

Early Retirement Agreement

6 yrs after final payment made under agreement


Employee Contact Information Form

Duration of recall rights (for RIF’d teacher);1 yr after updated or separation

Shred HR Director or Business Manager

Employee Lifetime Wages Report

6 yrs after separation n/a Business Manager

Employee Work Agreement

6 yrs after separation Shred HR Director or Superintendent

Employment Contracts


Employment History Records (dates of employment, pay changes, dates of actions taken such as transfers, promotions, disciplinary measures)

50 yrs after separation Shred HR Director or Business Manager





Evaluations 6 yrs after separation n/a HR Director or Business Manager

Exit Checklist 6 yrs after separation Shred HR Director

Exit Interview Form 6 yrs after separation Shred HR Director

Flex Benefit/125/ Cafeteria Plan Application Form


Flex Benefit/125/ Cafeteria Plan Billings

6 yrs after plan’s termination Shred Business Manager

FMLA Forms

5 yrs after separation Shred Business Manager or HR Director

Garnishments 5 yrs after separation Shred Business Manager

Handbook Receipt Verification

6 yrs after separation Recycle Business Manager or HR Director

I-9 4 yrs after CFY or 3 yrs after separation (whichever is longer)


Improvement Plans 6 yrs after separation Shred HR Director

Insurance Applications (Medical, Vision, Aflac, Dental, Etc.)


Insurance Monthly Statements

6 yrs from date paid Shred HR Director or Business Manager

Interview Notes 6 yrs after hiring decision Shred HR Director

Interview Questions 6 yrs after hiring decision Recycle HR Director

Job Advertisement 6 yrs after hiring decision Recycle HR Director, Superintendent, or Business Manager

Job Application 6 yrs after hiring decision Shred HR Director or Business Manager

Job Description 6 yrs after separation Recycle HR Director

Job Service New Hire Report

1 yr after submission Shred HR Director/ Business Manager

Leave Balance Reports

3 yrs from date of creation Shred Business Manager or HR Director

Leave Request Forms (other than FMLA) (includes sick bank)






Letter of Resignation 6 yrs after separation Shred Superintendent Secretary

Medical Records 6 yrs after separation Shred Hr. Director or Business Manager

Medical Release to Return to Work


Negotiated Agreements (including Salary Schedules)

6 yrs after separation of last employee covered by the agreement (e.g., last teacher hired in 1980 retires in 2015; retain 1980 negotiated agreement until 2021)

Recycle Business Manager

Nonrenewal Notices 6 yrs after separation Recycle Business Manager or HR Director

Offer of Employment Letter

6 yrs after separation Shred Business Manager or HR Director

Orientation Checklist 6 yrs after separation Recycle HR Director, Business Manager, or Principal

Pay Period Entries for Taxable Reimbursement

5 yrs from date created Shred Business Manager

Payout of Remaining Leave upon Separation

5 yrs after separation Recycle Business Manager

Payroll Register Totals

5 yrs after created n/a Business Manager

Payroll Registers 5 yrs after all employees listed have separated employment

n/a Business Manager

Payroll Schedules 5 yrs after separation of last employee covered by the schedule (e.g., last employee hired in 1980 retires in 2015; retain 1980 payroll schedule until 2020)

n/a Business Manager

PERS Defined Benefit Retirement Membership Application (SFN 2561)

1 year after separation Contact PERS to ensure info is on file, then shred

Business Manager

PERS Designation of Beneficiary for Group Retirement Plan (SFN 25060)

1 year after separation Contact PERS to ensure info is on file, then shred

HR Director





PERS Monthly Report of Contributions

1 year after separation Shred Business Manager

Physical Exam Records

Until updated or 6 yrs after separation Shred HR Director

Policies Governing Personnel

6 yrs after separation of last employee covered by the policy (e.g., last employee hired in 1980 retires in 2015; retain 1980 policies until 2021)

Recycle Superintendent

Pre-Observation Teacher Form

2 school yrs; if used for purposes of nonrenewal, retain 6 yrs after separation

Shred Principal or supervisor

Reference Check Information/ Notes (e.g., Verification of Employment)

6 yrs after decision to hire Shred Business Manager

Reference Letters/Checks

6 yrs after decision to hire Shred Business Manager

Rejection Letter (Employment)

6 yrs after issuing Recycle HR Director, Business Manager, or Superintendent

Resumes 6 yrs after decision to hire Shred HR Director, Business Manager or Superintendent

Social Security Card (copy)

1 year after separation Shred Business Manager

Social Security Verification


State Income Tax Quarterly Reports

13 yrs after CFY Shred Recycle

Tax Deduction Register

13 yrs after CFY Shred Shred

Teacher License (Copy)

Until updated and 1 yr after separation Shred Business Manager or HR Director

TFFR Member Action Form (SFN 5098)

1 year after separation Contact TFFR to ensure info is on file, then shred

Business Manager

TFFR Member Certification (SFN 11732)

1 year after CFY Shred Business Manager

TFFR Monthly Report of Contributions

5 yrs after created Contact TFFR to ensure info is on file, then shred

Business Manager





TFFR Notice of Termination (SFN 17144)

5 yrs after separation Contact TFFR to ensure info is on file, then shred

Business Manager

TFFR Salary Verification—Pending Retiree (SFN 59158)

1 yr after separation Contact TFFR to ensure info is on file, then shred

Business Manager

Timecard Reports 5 yrs after created Shred Business Manager

Timecards 6 yrs after separation Recycle Business Manager or HR Director

Training Records 6 yrs after separation Shred HR Director or Business Manager

Travel Reimbursement Log/Reports


U.S. Department of Labor Monthly Report

1 yr after created Shred Business Manager

Unemployment Quarterly Reports

5 yrs from date created Shred Business Manager

Union Dues List 5 yrs from date created Shred if contains confidential info; otherwise recycle

Business Manager

Verification of Professional Development

6 yrs after separation Shred Superintendent

Verification of Wages to Employees


Voluntary Salary Deduction/ Reduction Agreements


W-2 Forms 13 yrs after CFY Shred Business Manager

W-4 Forms 13 yrs after CFY Shred Business Manager

W-9 forms 13 yrs after CFY Shred Business Manager

Wage and Batch Totals Listing Deductions


Waiver of Insurance 5 yrs after separation Shred Business Manager





Warnings/Write Ups 6 yrs after separation Shred HR Director or employee’s supervisor

WSI Annual Report CFY +2 yrs Shred Business Manager

WSI Claims 4 yrs after final action Shred Business Manager

Documents

FAQs on Records Retention Law, p. 2 POLICY UPDATES P …policy.ndsba.org/wp-content/uploads/2014/10/august15.pdf · Society for Human Resource Management (SHRM). ... retention guidelines,