Appendix A to Part 749 - Record Retention Guidelines
12:7.0.2.3.31.0.11.7.29 : Appendix A
Appendix A to Part 749 - Record Retention Guidelines
Credit unions often look to NCUA for guidance on the appropriate
length of time to retain various types of operational records. NCUA
does not regulate in this area, but as an aid to credit unions it
is publishing this appendix of suggested guidelines for record
retention. NCUA recognizes that credit unions must strike a balance
between the competing demands of space, resource allocation and the
desire to retain all the records that they may need to conduct
their business successfully. Efficiency requires that all records
that are no longer useful be discarded, just as both efficiency and
safety require that useful records be preserved and kept readily
available.
A. What Format Should the Credit Union Use for Retaining Records?
NCUA does not recommend a particular format for record
retention. If the credit union stores records on microfilm,
microfiche, or in an electronic format, the stored records must be
accurate, reproducible and accessible to an NCUA examiner. If
records are stored on the credit union premises, they should be
immediately accessible upon the examiner's request; if records are
stored by a third party or off-site, then they should be made
available to the examiner within a reasonable time after the
examiner's request. The credit union must maintain the necessary
equipment or software to permit an examiner to review and reproduce
stored records upon request. The credit union should also ensure
that the reproduction is acceptable for submission as evidence in a
legal proceeding.
B. Who Is Responsible for Establishing a System for Record
Disposal?
The credit union's board of directors may approve a schedule
authorizing the disposal of certain records on a continuing basis
upon expiration of specified retention periods. A schedule provides
a system for disposal of records and eliminates the need for board
approval each time the credit union wants to dispose of the same
types of records created at different times.
C. What Procedures Should a Credit Union Follow When Destroying
Records?
The credit union should prepare an index of any records
destroyed and retain the index permanently. Destruction of records
should ordinarily be carried out by at least two persons whose
signatures, attesting to the fact that records were actually
destroyed, should be affixed to the listing.
D. What Are the Recommended Minimum Retention Times?
Record destruction may impact the credit union's legal standing
to collect on loans or defend itself in court. Since each state can
impose its own rules, it is prudent for a credit union to consider
consulting with local counsel when setting minimum retention
periods. A record pertaining to a member's account that is not
considered a vital record may be destroyed once it is verified by
the supervisory committee. Individual Share and Loan Ledgers should
be retained permanently. Records, for a particular period, should
not be destroyed until both a comprehensive annual audit by the
supervisory committee and a supervisory examination by the NCUA
have been made for that period.
E. What Records Should Be Retained Permanently?
1. Official records of the credit union that should be retained
permanently are:
(a) Charter, bylaws, and amendments.
(b) Certificates or licenses to operate under programs of
various government agencies, such as a certificate to act as
issuing agent for the sale of U.S. savings bonds.
2. Key operational records that should be retained permanently
are:
(a) Minutes of meetings of the membership, board of directors,
credit committee, and supervisory committee.
(b) One copy of each financial report, NCUA Form 5300 or 5310,
or their equivalent, and the Credit Union Profile report, NCUA Form
4501, or its equivalent as submitted to NCUA at the end of each
quarter.
(c) One copy of each supervisory committee comprehensive annual
audit report and attachments.
(d) Supervisory committee records of account verification.
(e) Applications for membership and joint share account
agreements.
(f) Journal and cash record.
(g) General ledger.
(h) Copies of the periodic statements of members, or the
individual share and loan ledger. (A complete record of the account
should be kept permanently.)
(i) Bank reconcilements.
(j) Listing of records destroyed.
F. What Records Should a Credit Union Designate for Periodic
Destruction?
Any record not described above is appropriate for periodic
destruction unless it must be retained to comply with the
requirements of consumer protection regulations. Periodic
destruction should be scheduled so that the most recent of the
following records are available for the annual supervisory
committee audit and the NCUA examination. Records that may be
periodically destroyed include:
(a) Applications of paid off loans.
(b) Paid notes.
(c) Various consumer disclosure forms, unless retention is
required by law.
(d) Cash received vouchers.
(e) Journal vouchers.
(f) Canceled checks.
(g) Bank statements.
(h) Outdated manuals, canceled instructions, and nonpayment
correspondence from the NCUA and other governmental agencies.
[66 FR 40579, Aug. 3, 2001, as amended at 74 FR 35769, July 21,
2009]