§ 14-237-112 - Maintenance and destruction of accounting records. - Arkansas Statutes

14-237-112. Maintenance and destruction of accounting records.

(a) Accounting records can basically be divided into two (2) groups:

(1) Support Documents. (A) Support documents consist primarily of the following items:

(i) Canceled checks;

(ii) Invoices;

(iii) Bank statements.

(B) These records shall be maintained for a period of at least three (3) years and in no event shall be disposed of prior to being audited for the period in question;

(2) Permanent Records. Permanent records consist of journals, ledgers, subsidiary ledgers, minutes, and fixed assets and equipment detail records, and shall be maintained by the water and sewer department for a period of not less than seven (7) years, after which the permanent records may be destroyed once an audit has been made of the permanent records.

(b) When documents are destroyed, the department shall document the destruction by the following procedure:

(1) An affidavit is to be prepared stating which documents are being destroyed and which period of time is the period to which they apply, indicating the method of destruction. This affidavit is to be signed by the department's employee performing the destruction and one (1) commission member;

(2) In addition, the approval of the commission for destruction of the documents shall be obtained and an appropriate note of the approval indicated in the commission's minutes along with the destruction affidavit. Commission approval shall be obtained prior to the destruction.