Review Questions
1. Why is a records retention program useful to an
organization?
By developing and implementing policies and procedures that control
what records are stored, where they are stored, and how long they are
stored, an organization is able to have available all records necessary to
conduct their business. It will also be able to comply with laws and
regulations that apply to the business and the type of records created
within that business. A records retention schedule is used to guide the
transfer of documents from active to inactive storage or destruction.
Following a records retention schedule can save money because
valuable office space is not wasted with the accumulation of old records.
Filers can also save time when retrieving active records because fewer
records must be searched. When an established and approved records
Business 205
Review Questions
1. Why is a records retention program useful to an
organization? (cont)
retention schedule is used regularly, and records are routinely destroyed
in compliance with that schedule, an organization is less likely to have
any legal problems associated with records being destroyed too soon or
with keeping records too long.
Business 205
Review Questions
2. List and describe each of the four values of
records. Provide a record example for each
value.
The four values of records are nonessential, useful, important, vital.
Nonessential records are not worth keeping or using valuable storage
space, Example include bulk or junk mail and routine telephone, e-mail,
and fax messages after action has been taken on them. Useful records
may be stored for up to three years. These records may be helpful for
conducting business. However, if lost or destroyed, they can usually be
replaced at a small cost. Examples include business letters, and memos,
reports, and bank statements. Important records need to be retained
for 7 – 10 years because they contain important information. These
records must be recreated if they are lost before the end of their use life.
Examples include financial and sales data and credit histories.
Business 205
Review Questions
2. List and describe each of the four values of
records. Provide a record example for each
value. (cont.)
Vital records are essential for the continued existence of an organization
and should be stored permanently. Examples include records that prove
who owns the company, where its bank accounts are located,
information about its customers, especially which ones owe money to
the organization.
Business 205
Review Questions
3. What is a records inventory? Discuss why an
inventory is conducted and what is included in
the inventory.
A records inventory is a detailed listing, obtained through a
survey, of all records owned and stored by an organization. It
includes information about the format of the records (paper,
electronic, or image), how they are stored (i.e., in alphabetic,
subject, numeric, or geographic arrangement), where they are
stored (i.e., in cabinets, on shelves, etc.), and the dates of the
records. The goal is to learn where and how all records are
stored as the first step to preparing a records retention
schedule.
Business 205
Review Questions
4. Describe a records retention schedule and
explain why one is prepared and the purpose it
serves.
A records retention schedule is a list if records that also includes
information about the time records are to be maintained for active use,
inactive storage, and permanent storage. The schedule assists records
and information managers in making decisions about the type and
location of storage equipment and facilities to ensure that records are
maintained as long as necessary to be incompliance with laws,
regulations, and statutes covering certain business and accounting
records as well as archival records. By adhering to the retention periods
provided on the schedule, records are destroyed at the end of their
usefulness, which frees space for the addition of new records.
Business 205
Review Questions
5. What is records retrieval? Name at least three
ways that requests for stored records may be
made.
Retrieval is the process of locating and removing a record or
file from storage. Requests for stored records may be made
by telephone, face to face, by intercom, by messenger, by
memo, on a requisition form, by e-mail, by fax, by letter, etc.
Business 205
Review Questions
6. Explain the steps in a manual charge-out
procedure.
When a record is requested, a requisition form is completed. Then the
requested record is found, and an OUT indicator takes the place of the
record that is removed from storage. The requisition is attached to the
OUT indicator. One copy of the requisition for may be used as an OUT
indicator. Information from the requisition form is entered into the
charge-out log. When records are returned, the date is entered on the
charge-out log, the record is returned to storage, and the OUT indicator
is either reused or destroyed. At the end of a specified time, the chargeout log is checked to see whether records have been returned . If not, a
message is sent via an agreed upon correspondence, depending on the
urgency of the record that needs to be retrieved, to the borrower,
requesting return of the borrowed record.
Business 205
Review Questions
7. Explain how records are charged out in an
automated records center.
In an automated system, preparing requisitions is not necessary. Bar
codes can be printed onto labels and attached to records that will
indicate when a record is checked out, who has the record, and how
long they may keep the record. RFID tags may be placed onto records or
folders. The filer needs only to pass tagged records near a RFID reader
to see information about the record on a computer screen. This
information will include the name of the person borrowing the records
and how long they can keep the record. Follow up on borrowed records
is made through the same methods as for a manual system.
Business 205
Review Questions
8. What is the purpose of using follow-up procedures for
borrowed records?
Follow-up procedures are used to maintain control over
records; checking on the return of borrowed records within
a reasonable length of time. The longer records are allowed
to remain out of storage, the more likely they are to become
lost.
Business 205
Review Questions
9. List six reasons for transferring records.
Records are transferred for many reasons: 1. The lack of
storage space 2. The need to save money by using less
costly equipment and space 3. the inactivity of records 4.
Workloads are lighter, and time is available for transferring
records 5. The records pertain to cases or projects that
have ended or been completed and, 6. Organizational policy
dictates a specific transfer time. Any other reasons??
Business 205
Review Questions
10. Describe two methods of records transfer.
The most commonly used methods of records transfer are
perpetual and periodic. Using the perpetual transfer
method, records are continuously transferred from active
storage to in active storage areas. As soon as a records is no
longer used frequently, it is transferred to inactive storage.
Using the periodic transfer method, records are transferred
from active to inactive storage at the end of a stated time.
Business 205
Review Questions
11. An inactive records center usually maintains
four control files. Discuss these files.
The four inactive records center control files are: 1. Inactive Records
Index 2. Charge-Out and Follow-up File 3. Destruction Date File and 4.
Destruction File. An inactive records index is an index of all records in
the inactive records storage center. It contains details about the inactive
records such as creation dates, a description of the records series, the
department that owns the records, a transfer authorization, the location
of the records in the records center, the retention period, and the
disposition date. A charge-out and follow-up file contains the requisition
forms for all borrowed records and information about any follow-up that
may be needed. The destruction date file is a tickler file that is checked
regularly to be sure that records are destroyed on schedule and by the
proper method and that proper authorization for destruction is on file.
Business 205
Review Questions
11. An inactive records center usually maintains
four control files. Discuss these files. (cont.)
A notice is sent to the proper department notifying them that their
records will soon be destroyed. If the department manager wants the
records to be destroyed as scheduled, destruction will proceed. If not,
destruction may be put on hold until a later date. When destruction is
completed, the date and type of destruction are entered into the
destruction file. The destruction file contains information on the actual
destruction of inactive records. Transmittal forms are moved from the
destruction date file to the destruction file after records are destroyed.
These forms are filed by department names and dates on which
destruction was carried out. The type of destruction is also noted on the
transmittal form.
Business 205
Review Questions
12. List five capabilities of typical records center
software.
1. Location software, check out software, user activity
software, cross-reference or duplicate part software, barcoding software, managing storage function software, audit
trail software, etc.
Business 205
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