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FM 112 RETENTION AND DISPOSAL OF FINANCIAL RECORDS
4. PPARC is required to follow the guidance contained in chapter 38 of Government Accounting (GA) concerning the retention of financial records. It should be noted that the National Audit Office (NAO) normally expects ledgers to be maintained for seven years and supporting documents to be retained for two years following the end of the financial year to which they relate. 5. The Public Record Office (PRO) is responsible for guiding, supervising and co-ordinating the selection, safekeeping and transfer of public records created by Government departments and NDPBs. Whilst not all of the documents on PPARC’s files are regarded as "public records", PPARC nonetheless chooses to follow the general principles laid down by the PRO for the management of its records. 6. The PRO publishes a number of booklets providing guidance on records management. Copies may be obtained direct from the PRO (see the Appendix to this FM for contact details) or accessed via the PRO’s web site http://www.pro.gov.uk/recordsmanagement/standards/. The guidance note entitled "Records Management, Retention Scheduling, 3. Accounting Records" sets out minimum periods for retention of accounting documents. Also relevant is the guidance note entitled "Records Management, Retention Scheduling, 5. Contractual Records" which describes best practice for managing and disposing of contractual records created by Government departments and agencies (including NDPBs). RETENTION OF ORIGINAL DOCUMENTS 7. Both RCIAS and the NAO require to see original documents when conducting audits. In addition, original documents such as contracts and agreements may be required for other purposes eg presentation as evidence to the Courts. 8. In general HMCE requires all VAT records to be retained for a period of six years. Where this causes storage difficulties HMCE has discretion to agree certain concessions. Any proposal to seek such a concession must be submitted to PPARC’s VAT Officer, David Wilkinson, (David.Wilkinson@pparc.ac.uk) in the first instance. 9. Each Establishment should determine for itself the length of time for which particular types of records should be kept, in the light of the Establishment’s administrative needs and the cost of storage, having regard to the considerations referred to in this FM and subject to the minimum periods of retention of financial records not being less than those laid down by the PRO in the guidance notes referred to in para 6 above. The minimum retention periods for Swindon Office accounting documents are set out in Annex A to this FM.Policy files 10. A first review of policy files should normally take place not later than five years after the date of the last paper on a file. Records retained at the first review should come up for a second review 25 years after their creation. In carrying out each review, the guidance issued by PPARC’s Departmental Records Officer, currently Bob Innes (bob.innes@pparc.ac.uk), should be followed. Before authorising destruction, each file should be inspected by the user section for possible historical interest and account should be taken of any local retention schedule superseding the schedules contained within the guidance notes published by the PRO. Short-lived documents 11. The period of retention of short-lived documents is determined by their significance in relation to possible claims arising within the six-year period prescribed by the Limitation Acts for pursuit of legal action in the UK under contract law. The retention periods shown in Annex A have been designed with this principle in mind. Short-lived documents should be reviewed at appropriate intervals and destroyed as soon as their administrative value has been exhausted.Contractual documents 12. When reviewing contract files, it should be noted that legal action may arise up to six years from supply of the goods or services or the date of payment of the final instalment whichever is the later. For contracts with long lead times or agreements of long duration, care should be taken to ensure that all documents of substance are retained throughout the duration of the contract and for a period of at least six years from completion of the contract.SAFEGUARDING OF FINANCIAL RECORDS 13. Appropriate arrangements should be made to ensure that financial records are:a) available when required (eg for inspection by auditors or HMCE); and b) protected against unauthorised alteration, removal or destruction. 14. The degree of safeguarding will depend on the importance of the document. In general, lockable cupboards or cabinets will suffice but consideration should be given to using a fire resistant box or cabinet for important documents such as legal conveyances. Access to financial records should be restricted to those who have a requirement to view such documents as part of their duties. 15. Any enquiries concerning the content or interpretation of this FM should be addressed to Rachel Preston, PPARC Finance Division, Swindon Office, tel: 01793 442050, e-mail: rachel.preston@pparc.ac.uk.16. Enquires concerning the general management of files and records should be addressed to Bob Innes, Departmental Records Officer, Business Administration Group, Swindon Office, tel: 01793 442048, e-mail: bob.innes@pparc.ac.uk.
PUBLIC RECORD OFFICE Further information on the management of public records may be obtained from: Records Management
Department Tel: 0208 876 3444 e-mail: records-management@pro.gov.uk web site: http://www.pro.gov.uk/ SCHEDULE RELATING TO THE RETENTION OF ACCOUNTING DOCUMENTS IN SWINDON OFFICE
NB All retention periods should be computed from the end of the financial year to which the records relate. Last updated: 29 June 2001 |