The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Finance Records

Reference Number: MTAS-686
Tennessee Code Annotated
Reviewed Date: July 25, 2015
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FINANCE RECORDS RETENTION SCHEDULE

 

Description of Record

Retention Period

Legal Authority/Rationale

F-1. Accounts Paid Files and Ledgers. Paid invoices filed by vendor showing company, date, amount, date paid, and invoice number. Ledgers show name of vendor, amount of each invoice, amount paid on each account, and amount outstanding.

Retain 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109.

F-2. Accounts Payable.

Retain 10 years.

Recommendation of the comptroller set forth in the Internal Control and Compliance Manual for Tennessee Municipalities.

F-3. Accounts Receivable.

Retain 10 years.

Recommendation of the comptroller set forth in the Internal Control and Compliance Manual for Tennessee Municipalities.

F-4. Annual Reports to City Officials. Submitted by city departments, boards, or agencies.

Permanent Record.

Keep for historical purposes.

F-5. Appropriation Ordinance or Resolution. Record of appropriations made by the municipal legislative body for maintenance of city offices and departments, and for the payment of claims against the city, showing date of meeting, date claim filed, to whom payable, nature of claim or purpose of appropriation, and amount.

Permanent Record.

Keep for audit and historical purposes.

F-6. Audit Reports. All audit reports relative to city finances. Audit reports show name of office, name of fund or account, account of all receipts and disbursements, date of audit, and signature of auditor.

Permanent Record.

Recommendation of the comptroller set forth in the Internal Control and Compliance Manual for Tennessee Municipalities. Audit working papers of an internal audit staff are confidential. See 2013 Pub. Chptr. 15.

NOTE: T.C.A. § 6-56-104 requires the city to place a copy of the audit in the main branch of the public library.

F-7. Bank Deposit Books. Bank books showing name and location of bank, and amounts and dates of deposits.

Retain 6 years plus 1 year after last entry.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109

F-8. Bank Deposit Slips. Slips showing name and location of bank, and amounts and dates of deposits.

Retain 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109

F-9. Bank Statements. Statements showing name and location of bank, and amounts and dates of deposits, amounts and dates of check withdrawals, and running balance.

Retain 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109

F-10. Bids, On Equipment and Supplies. Records showing bidder’s name, complete description of item(s), delivery date, amount of bid, and any correspondence with bidder. Include record of unsuccessful bids in this file.

Retain 7 years after contract expires.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109

F-11. Bonded Indebtedness, Record of.   Register book shows bond issue, date, and amount set up by year; as bonds and coupons are returned, these are shown in the book. Other records include trust indenture, loan agreements, bond counsel opinion, documentation on expenditure of bond proceeds, copies of management contracts and research agreements, documentation of all sources of payment or security for the bonds, and documentation of investment of bond proceeds. Other records may also include documentation specific to any single and multifamily housing bonds and small issue industrial development bonds.

Bonds and coupons may be destroyed 15 years after the maturity date of such bonds.

Based on procedures established in T.C.A. § 9-21-123.

Based on the length of time a bond payee has to take action against the issuer T.C.A. § 28-3-113.

F-12. Budget Records and Reports. These pertain to the general fund and the street fund, debt service fund, the general purpose school fund and all other city funds. They show anticipated revenues, anticipated expenditures for the year, and fund balance at the end of the year.

The annual budget is preserved permanently in city legislative body minutes. Retain other budget records and reports 5 years.

Keep for audit purposes.

F-13. Canceled Checks. Canceled checks showing date check issued, name of bank on which drawn, check number, to whom payable, purpose of payment, amount of check, and date canceled.

Retain 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109.

F-14. Cash Journals. Records of all receipts and disbursements as distributed to various city accounts, showing date of entry, amount, source of receipt or purpose of payment, amount of debit or credit, and name of account credited or charged.

Permanent record.

Recommendation of the comptroller set forth in the Internal Control and Compliance Manual for Tennessee Municipalities. Comptroller’s office considers the record important for demonstrating patterns in investigations of misappropriation of funds. Prior to the advent of general budgetary practices, the Recorder’s Cash Journal was the best record for tracking the total revenue stream of the city and has historical value. For this reason, older records should be kept permanently.

F-15. Cash Reconciliation Report. Shows balances at beginning of the month, outstanding checks, cash balances, checks issued during month, checks paid, cash and outstanding checks at end of the month.

Retain 1 year after audit.

Keep for audit and review purposes.

F-16. Check Books. Books containing stubs of checks issued by the recorder showing check number, date issued, name of payee, amount, and purpose of payment.

Retain 7 years after date of last check.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109

F-17. Check Stubs. From all city accounts and accounts of all departments.

Retain 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109

F-18. Development and Proposal Files. Reports, planning memos, correspondence, studies, and similar records created for and used in the development of grant proposals submitted to state or federal agencies and contracts relating to the grant.

Retain all unsuccessful applications for 5 years. Retain all records regarding grants that are received for life of grant plus 7 years.

Keep unsuccessful proposals in case of appeal or for administrative use in re-application. Keep records of grants received based on statute of limitations for contract actions.

T.C.A. § 28-3-109.

F-19. Financial Report to City Legislative Body. (1) General; (2) Final – Report  gives information on different accounts, balances on last report , receipts, disbursements, commissions, transfers, balances on this report, totals, bank balances of city accounts in different banks, and classification of receipts (sources received from, e.g., state, local, etc.). Reports of street department chief administrative officer and other officials when required by law.

Permanent Record.

These reports should be recorded in the minutes of the city legislative body. Permanent retention is recommended by the comptroller in the Internal Control and Compliance Manual for Tennessee Municipalities.

F-20. General Ledger Accounts. Record of all receipts and disbursements for the various city accounts, showing date of entry, amount, source of receipt or purpose of payment, amount of debit or credit, and name of account credited or charged.

Permanent Record.

Recommendation of the comptroller set forth in the Internal Control and Compliance Manual for Tennessee Municipalities.

 

F-21. General (Miscellaneous) Receipt Ledgers. Record of funds received on general accounts, including such payments as state and city taxes, interest, fees, and penalties on delinquent taxes, showing date of payment, name of payer, amount, funded credited, and balance. This information is included in the journal package of most software in computerized cities. If stored electronically in compliance with electronic data processing standards, paper copy is not necessary.

Retain 7 years after last entry. If stored electronically, retain 7 years after date of creation of record.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109.

F-22. Grant Documentation and Files. Records and materials regarding grants applied for and/or money received through state and federal grants.

Retain for life of grant plus 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109.

F-23. Investment Ledgers. Surplus cash investments, rate of interest, date, and amount collected.

Retain 10 years.

Keep for audit purposes and to address arbitrage concerns.

F-24. Invoices. Original invoices, purchase orders, and requisitions used in purchasing goods.

Retain 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109.

F-25. Miscellaneous Receipts from other Offices Receiving Money, Records of. Records of receipts collected by other city offices and departments. Examples: fees collected by the ambulance service, building permits, etc.

Retain 7 years.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109.

F-26. Receipt Books. Receipts for revenue collected, showing from whom received, date receipt given, receipt number, amount and purpose of payment, and account credited. Receipts may be or may have been issued for funds received from other city offices for payments or transfer tax, delinquent taxes, state funds, utilities tax, etc. Receipts may be loose rather than in books.

Retain 7 years after last entry. If stored electronically, destroy file 7 years after date of creation. Additional copies of the receipts that are not needed for any purpose are working papers that may be destroyed as soon as it is determined they are superfluous.

Based on statute of limitations for legal actions for breach of contract plus 1 year.

T.C.A. § 28-3-109.

F-27. Sale Tax report. Report from the state showing total tax collection less cost of state collection. Report shows amounts distributed to incorporated municipalities.

Retain 10 years.

The record series is kept longer than the usual audit standard in case of dispute regarding city/county distribution of revenues.

F-28. Travel Authorizations.

Retain 5 years.

Keep for audit purposes.

F-29. Unclaimed Funds, Record of. Records of funds in hands of official unclaimed for 7 years and turned over to state, showing information about source of funds and amount.

Retain 10 years.

Keep record for audit purposes and a reasonable period to allow interested parties to make inquiries.

 

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