§ 14-59-114 - Maintenance and destruction of accounting records. - Arkansas Statutes

14-59-114. Maintenance and destruction of accounting records.

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

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

(i) Cancelled checks;

(ii) Invoices; and

(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) (A) Permanent Records. Permanent records consist of:

(i) Journals;

(ii) Ledgers;

(iii) Subsidiary ledgers;

(iv) Minutes; and

(v) Fixed assets and equipment detail records.

(B) These records shall be maintained for a period of not less than seven (7) years by the municipality, after which period the records may be destroyed after an audit has been made of the records.

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

(1) (A) An affidavit is to be prepared stating which documents are being destroyed and to which period of time they apply, indicating the method of destruction;

(B) This affidavit is to be signed by the municipal employee performing the destruction and one (1) council member.

(2) (A) In addition, the approval of the council for destruction of documents shall be obtained, and an appropriate note of such approval indicated in the council minutes along with the destruction affidavit;

(B) This council approval shall be obtained prior to the destruction.