Policy on Retention of Financial
Records
Status:
Approved
Custodian:
Director: Finance and Administration
Date approved:
2014-03-14
Decision No:
SAQA 08103/14
Implementation date:
2014-03-17
Due for review:
2016-03-13
File Number:
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
1
Table of Contents
1.
PREAMBLE ..........................................................................................................................................3
2.
PURPOSE .............................................................................................................................................3
3.
OWNERSHIP ........................................................................................................................................3
4.
SCOPE OF PRACTICE ......................................................................................................................3
5.
PROCEDURE .......................................................................................................................................3
6.
TYPE OF POLICY ...............................................................................................................................3
7.
DEFINITION ..........................................................................................................................................3
8.
MANAGEMENT OF ACCOUNTING RECORDS ............................................................................3
8.1
EFFECTIVENESS OF RECORD MANAGEMENT ....................................................................3
8.2
RESPONSIBILITIES .......................................................................................................................4
9.
SUB-PROCESSES ..............................................................................................................................4
9.1
SOURCE DOCUMENTATION ......................................................................................................4
9.2
DISPOSAL OF RECORDS ............................................................................................................5
9.3
RETENTION, FILING AND STORAGE OF DOCUMENTATION ............................................5
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
2
1.
PREAMBLE
The policy on Retention of Financial Records is to ensure the proper creation,
maintenance, use and disposal of records to achieve efficient, transparent and
accountable governance
2.
PURPOSE
To provide for the effective, efficient, and economical care, custody, and control of
SAQA’s accounting records in accordance with SAQA’s Policy on Records
Management.
3.
OWNERSHIP
The custodian of this policy is the Directorate: Finance and Administration.
4.
SCOPE OF PRACTICE
The policy is applicable to all SAQA staff and stakeholders.
5.
PROCEDURE
There is no procedure to be read and implemented with this policy.
6.
TYPE OF POLICY
This policy is of a strategic nature.
7.
DEFINITION
“Record” - Recorded information regardless of form or medium, evidence
of a transaction, preserved for the evidential information it contains.
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
3
8.
MANAGEMENT OF ACCOUNTING RECORDS
8.1
EFFECTIVENESS OF RECORD MANAGEMENT
8.1.1
A well-organised filing plan enables SAQA to find information
easily.
Records that are correctly filed and stored are easily
accessible, and this facilitates transparency and accountability.
8.1.2
The orderly and efficient flow of information enables SAQA to
perform its functions successfully and efficiently.
8.1.3
Authoritative and reliable records must be created and maintained
in an accessible and usable manner to support the business and
accountability requirements of the Board.
8.1.4
Efficiency and economy are ensured by eliminating unnecessary
duplication of records.
8.1.5
A retention and disposal programme ensures that SAQA
maintains only those records it really needs for functional
purposes.
8.1.6
Controls must be exercised to ensure that only authorised persons
have access to the information, thereby preventing information
and/or records themselves from being stolen or damaged. This
ensures the protection of privacy and confidentiality, and prevents
the inappropriate disclosure of information that could harm SAQA
or infringe the privacy rights of individuals.
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
3
8.2
RESPONSIBILITIES
8.2.1
The management of SAQA’s records holdings is a shared
responsibility amongst the finance department, the heads of
relevant Directorates and the record users.
8.2.2
All record users are obligated to handle SAQA records in
accordance with the SAQA’s Policy on Records Management.
9.
SUB-PROCESSES
9.1
SOURCE DOCUMENTATION
9.1.1
All entries in the financial records of SAQA must be supported by
duly authorised original documentation.
9.1.2
Staff is discouraged from using faxes or photocopies as source
documents.
9.1.3
Should the original documentation not be available at the time of
data capturing the fax or photocopy may be used but it should be
clearly marked as a duplicate awaiting original and should be kept
separate until such time as the original has been received.
9.1.4
The original must be compared to the fax/photocopy which must
be replaced with the original once the member of staff agreeing
the details is satisfied that the original does agree to the document
previously used as an input document. The original must be filed.
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
4
9.1.5
This does not apply to the copies of invoices forwarded to the
Finance Department.
9.2
DISPOSAL OF RECORDS
No changes to the retention periods set out in this document may be
made without prior written authorisation from the National Archivist.
9.3
RETENTION, FILING AND STORAGE OF DOCUMENTATION
9.3.1
Retention
9.3.1.1
All financial records and information must be retained
in conformity with the local regulations as required by
the Auditor-General, taking into account the National
Archives and Records Service of South Africa Act No.
43 of 1996 and its regulations.
9.3.1.2
The retention periods commence from the date of the
last entry in a particular record.
9.3.1.3
The recommended guidelines for the retention of
documentation and records in conformity with local
regulation are as follows:
Hard Copies of
Minutes including resolutions passed
Retention Period
Indefinite
Minute books
Annual Financial Statements
Books of account
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
5
Hard Copies of
Retention Period
Supporting schedules to books of account and
15 Years
ancilliary books of account
Fixed asset registers
Internal audit reports
System appraisals
Staff personnel records (after employment
ceased)
7 Years
Salary and wage registers
Paid cheques and bills of exchange
6 Years
Invoices – sales and purchases
Bank statements and vouchers
Year-end working papers
5 Years
Sales tax and VAT records
Other vouchers and general correspondence
9.3.1.4
Where financial information is required as evidence in
proceedings before a court, Parliament, a provincial
legislature, an official inquiry or otherwise, or for
purposes of an audit, it must be secured in its then
current form until no longer required, even if the
National Archivist has authorised its disposal.
9.3.1.5
If no provision is made in local regulation for specific
instances, the following guidelines must be adhered to:
9.3.1.5.1 All documents and records must be kept for
a minimum period of 5 years.
9.3.1.5.2 Any agreements or contracts exceeding the
minimum period should be kept for a period
of 5 years after the expiry date stated on the
agreement or contract.
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
6
9.3.2
Filing
9.3.2.1 A proper filing system in accordance with SAQA’s Policy
on Records Management must be maintained at all times
in such manner that a sufficient audit trail is always in
existence.
9.3.2.2 Documents must be filed in a logical manner and as
prescribed in this manual and should be uniquely
referenced to facilitate enquiries from the general ledger to
the source documents.
9.3.3
Storage
9.3.3.1 All documents stated above must be stored in a safe place
where proper precaution has been taken to prevent loss
caused by natural disasters.
9.3.3.2 Documents for the current year as well as the year
immediately preceding the current year should always be
kept in a secure filing room on the premises of SAQA.
9.3.3.3 Documents for years prior to the previous year should
preferably be stored off-site in archives and proper care
should be taken in storing the documents in such manner
that it remains easily accessible in case information is
required.
9.3.3.4 All confidential documents and contracts as well as
documents not in use (such as unused cheque books)
must be kept separate and must be locked away in a safe
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
7
or secure location.
Confidential documents amongst
others would include:
9.3.3.4.1
Corporate strategies
9.3.3.4.2 Business development strategies
9.3.3.4.3 New product development strategy
9.3.3.4.4 Contracts
9.3.3.4.5 Bursary status of student or apprentice
9.3.3.4.6 Records of disciplinary action
9.3.3.4.7 Salary, bonus and appraisal records
Policy on Retention of Financial Records
Status: Approved
Date: 2014-03-14
File Reference:
8