Mastering Record Values, Retentions, and Rules for ARMA Chicago Seminar 2025

1 RECORD VALUES, RECORD RETENTIONS, and the RECORD RETENTION RULE APPROVAL PROCESS ARMA Chicago Spring Seminar 2025 May 20, 2025 Joseph Suster, CRM (Ret.) joes6748@gmail.com

2 Learning Objectives 1. Define record values. 2. Discuss how these values relate to drafting reasonable record retention rules that well serve your organization. 3. Describe how a draft retention rule may be typically approved. 4. Have an enjoyable session. (Not boring!)

3 Things to Remember 1. Not all record values may apply to the records you have or are drafting a retention rule for. 2. You may already take some or all of these values into consideration when drafting your organization s retention rules. 3. Take what you like from the presentation and leave the rest. 4. Don t hesitate to ask questions or comment at any time.

4 What is a record? Recorded information, regardless of medium or characteristics, created or received by an organization that is evidence of its operations, and has value requiring its retention for a specified period of time. (ARMA International) Four key points: Informational content Any medium Created or received Maintained and retained

5 Other Characteristics of a Record Content (The what) Context (The who, when, where, how, and why) Structure (The organization)

6 What is information? Data that has been given value through analysis, interpretation, or compilation in a meaningful form. (ARMA International)

7 What is a record retention rule? Guidance that provides specific and mandatory instructions for what to do with a record that is no longer needed for current business. or A specific item described in a records schedule that defines a record series and its disposition. May be referred to as any of the following terms: Retention rule Records schedule item Records control schedule item Records disposition authority Disposition authority

8 Basic Types of Record Retentions Temporary (98-100%?) Permanent/Archival/Life of Organization (0-2%?) Transitory (short-term interest or value) R.O.T. (contingent until someone decides to dispose of, also known as file and forget )

9 Record Values Primary Secondary

10 Primary Values: The Organization s Use Records are valuable because they: Are the basic tools by which the organization conducts or documents its business. Document the organization s structure, functions, policies, decisions, procedures, and essential transactions. Furnish the information necessary to protect the legal and financial rights of the organization. Primary record values fall into three possibly overlapping categories: ???

11 Primary Values: The Organization s Use Records are valuable because they: Are the basic tools by which the organization conducts or documents its business. Document the organization s structure, functions, policies, decisions, procedures, and essential transactions. Furnish the information necessary to protect the legal and financial rights of the organization. Primary record values fall into three possibly overlapping categories: 1. Administrative 2. Financial 3. Legal

12 What is Administrative Value? The administrative value of a record refers to its usefulness and significance for an organization's ongoing operations, management, and daily business. Records with administrative value include documents that are retained because they facilitate the operations and management of an organization, but do not relate directly to programs that help the organization achieve its mission. These include documents relating to budget, personnel, supplies, travel, and training. Administrative value is invariably a temporary value.

13 An Example of Administrative Value 102 Administrative Correspondence Files Administrative correspondence files relating to administrative matters such as finance, supplies, equipment, and travel. TEMPORARY Cut off at end of the calendar year. Retain a minimum of three years or a maximum of six years, based on the business needs of the office.

14 What is Financial Value? The financial value of records, also known as fiscal value, refers to its importance in documenting financial transactions, obligations, and authorizations within an organization. Examples of Records with Financial Value: Budget records: Document how expenditures were planned. Voucher or expenditure records: Show where funds were spent. Accounting records: Classify and summarize agency expenditures. Invoices and receipts: Provide evidence of sales and payments. Bank statements: Show the flow of funds into and out of a business. Payroll records: Document employee compensation. Financial value is usually a temporary value.

15 Another Example of Financial Value GRS 010 Financial transaction records related to procuring goods and services, paying bills, collecting debts, and accounting. Procurement and payment records include those such as: contracts requisitions purchase orders interagency agreements Military Interdepartmental Purchase Requests (MIPRs) printing requisitions to the Government Printing Office memoranda of agreement specifying a financial obligation solicitations/requests for bids, quotations or proposals for contracts and competitive grants proposals, quotations, bids (accepted, rejected, unopened) for contracts and competitive grants contingent fee justifications legal and financial instruments such as bond and surety records FAIR Act (A-76) records linked directly to specific procurement actions credit card/purchase card/charge card statements and supporting documentation vendor tax exemption records invoices leases recurring financial transactions such as utility and communications invoices documentation of contractual administrative requirements submitted by contractors. TEMPORARY Destroy 6 years after final payment or cancellation, but longer retention is authorized if required for business use.

16 What is Legal Value? Legal value refers to the value protecting an organization's legal rights and interests or the rights and interests of other individuals and organizations. Examples of records with legal value include formal decisions and legal opinions; documents containing evidence of actions in particular cases, such as claims papers and legal dockets; and documents involving legal agreements, such as leases, titles, and contracts. Also included are records relating to workers' compensation, and the issuance of licenses and permits. Legal value can be either a temporary or permanent value.

17 Secondary Values: The Organization s Legacy The organizationdesignates certain records as permanent (archival) if the records have sufficient historical, research, or other value that warrants their continued preservation by the organization. There are two types of secondary values: 1. Informational 2. Evidential Note that these two values are not mutually exclusive.

18 What is Informational Value? The permanent value that attaches to records because of the information they contain. The information may relate, in a general way, to either individuals or corporations, places, buildings, physical objects, and other material things or to studies, phenomena, databases, activities, programs, and events.

19 What is Evidential Value? The permanent value that attaches to records because of the evidence they contain relating to the organization, function or mission, and policies of the creating entity. Examples of records with evidential value include???

20 What is Evidential Value? The permanent value that attaches to records because of the evidence they contain relating to the organization, function or mission, and policies of the creating entity. Examples of records with evidential value include organization charts, annual reports, articles of incorporation, bylaws, governing board meeting minutes, newsletters, photographs, and press releases.

21 An Example of Evidential Value 101 Program Correspondence Files Ingoing and outgoing correspondence files maintained at the division level or above in the organization s headquarters office and accumulated by the CEO, CFO, and COO, and their immediate staffs, documenting policy-making decisions or significant program management functions. PERMANENT Cut off files at end of the calendar year. Transfer to inactive storage five years after cutoff. Hold for the life of the organization.

22 The Retention Rule Review and Approval Process Varies from organization to organization according to its size. Sometimes called records appraisal . Who is involved? It depends! Here are some possibilities: 1. ? 2. ? 3. ? 4. ? 5. ? 6. ? 7. ?

23 The Retention Rule Review and Approval Process Varies from organization to organization according to its size. Sometimes called records appraisal . Who is involved? It depends! Here are some possibilities: 1. Record or information users 2. Program management 3. RM/IG manager 4. IT 5. Compliance 6. Legal counsel 7. Archivist

24 THANK YOU! Please join ARMA Chicago for its next education session on Tuesday, September 9th, at the East Bank Club.