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F E B R U A R Y 2 4 , 2 0 1 5
8 : 4 5 A M - 1 0 : 1 5 A M
2 0 1 5 K A I N A I W A C H I L D R E N ’ S S E R V I C E S
C O R P O R A T I O N C O N F E R E N C E
L I S A P E C K H A M
Best Practices
for Archiving Files

2.
Disclaimer
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Information presented to you today is considered to be
general best practices for organizations across Canada.
The information is not intended to provide legal
counsel or legal advice.

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Expectations Have Changed!
www. processexcellencenetwork.com
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Learning Objectives
 Record management overview
 File management
 What you need to keep
 How you need to keep it
 How long you need to keep it
 Where to keep files
 Employee files
 Financial files
 Destroying Files
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5.
Records Management
 Understanding records management
 Internal records management
 Physical and electronic filing
 External records management
www.ufv.ca
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6.
Why Documentation Procedures Matter
 Required to inform and justify a wide range of
decisions
 It is the law
 Can help to create and implement new policies and
procedures
 Creates a historical document
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7.
Understanding Records Management
 Records management involves identifying,
classifying, prioritizing, storing, securing, archiving,
preserving, retrieving, tracking, and destroying
records
 Records are created or received by an organization in
compliance with legal obligations or in the
transaction of business
 Can be tangible documents like a driver’s license or
correspondence or digital information such as data, website
content, and electronic mail
Source: http://en.wikipedia.org/wiki/Records_management
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Documentation and Legal Exposure
 Dated
 Signed where applicable
 Accessible
 Legible
 Factual
 Clearly indicate where supporting and referenced
documentation can be found
 Duplicated and secured
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9.
Internal Records Management
 Requires a dedicated staff member or department,
depending on the size of the organization
 Standardized across the organization with one point of
contact who can easily obtain requested records
 Abide by clear and well documented records
management policies
 Can be a combination of physical and digital records
management
 Be able to meet all applicable audit standards
 Should be audited on a regular basis
 Practices, systems, technologies, and facilities
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10.
Not the Way To Do It!
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11.
Decision Making
 Documented policies, procedures, and information
are required in order to make decisions that impact
the overall functioning of the organization
 Hiring
 Budgets and allocation of resources
 Salary increases and additional incentives
 Terminations
 Development of new policies and procedures
 Performance evaluation and management
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12.
Do DO NOT
 Do write and distribute
minutes as soon as
possible after the
meeting
 Do be neutral
 Do record topics
discussed, decisions
made, and outstanding
action items
 Do summarize accurately
and succinctly
 Don’t record
information that is
hearsay or gossip
 Don’t record
exhaustive details of
the meeting
 Don’t include
information that might
embarrass someone
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Do’s and Don’ts for Meeting Minutes

13.
How NOT to Take Meeting Minutes!
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14.
Historical Documents
 Order and efficiency
 Daily operations
 Promotion and public
relations
 Strategic planning
 Litigation
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Source: http://www.uic.edu/depts/lib/specialcoll/pdf/DTIA.pdf

15.
File Management
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File management is a
series of tools,
procedures, and policies
designed to organize and
file documents so
information can be easily
located and retrieved
when required.

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Types of File Management
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 Effective physical file management includes
 Analyzing and classifying records
 Determining retention schedules
 Appropriate arrangement
 Centralized filing
 Decentralized filing
 Electronic file management
 Analyzing and classifying records
 Determining retention schedules
 Naming files

17.
Analyzing Physical and Electronic Files
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 Who creates the file?
 Who accesses or uses the file and how often?
 What is the size of the file?
 How long is the file current?
 Is the file confidential?
 What are the legal requirements for
retaining the file?

18.
Classifying Physical and Electronic Files
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 Primary classification describes the broadest and
fundamental purpose of the file
 Administrative
 Organizational
 Program
 Case
 Secondary classification
 Committee files
 Personnel
 Payroll
 Purchase
 Planning
 Finance

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Filing Physical Files
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 Arrangement
 Alphabetic
 Chronological
 Numerical
 Serial
 Centralized filing
 Files are maintained in one central location and are accessible
to multiple employees
 Decentralized filing
 Files are located dependent on proximity to the primary users

20.
Naming Electronic Files
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 Appropriately and consistently named files ensures
electronic files are stored accurately within
classifications and retention schedules
 Having an organization wide electronic file naming
policy can help to improve the efficiency of the filing
system
 Electronic file names should fit logically with
corresponding physical files

21.
5 Tips for Effective Filing Systems
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1. Filing systems should support organizational needs
2. Filing systems should guarantee reliable document
capture
3. Filing systems should provide secure access for
sensitive and confidential documents
4. Filing systems should optimize workflow
5. Filing systems should help to efficiently manage
document life cycles

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Advantages of Centralized Filing
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 Thoughts?

23.
Advantages to Centralized Filing
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 There is greater control over the files
 Uniformity and consistency is easier to maintain
 All important information is located in a central
location
 All information regarding a specific subject is
located in a central location
 The need for duplicate files is eliminated
 Storage of records requires less equipment and
space

24.
Advantages to Decentralized Filing
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 There is less chance of folders being misfiled into
the wrong secondary classification series
 Limited access to a record series leads to greater
security and confidentiality
 The record series is physically located closer to the
user

25.
Disadvantages to Centralized Filing
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 What can you come up with?

26.
Disadvantages
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 Multiple copies of confidential information
 Costs of having several secure locations
 Too easy for someone to access information

27.
External Records Management
 Reduces costs associated with staffing, software, and
storage
 Provides up to date expert knowledge on compliance
regulations
 Can improve organizational efficiency
 Can provide offsite data backup and recovery
 Document management
 Scanning, retrieving, organizing
 Highly secure
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28.
Retention Schedules
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 All physical and electronic files should have a clearly
documented and displayed retention schedule
 Depending on the type of file, the retention schedule
may be determined by
 The organization
 External stakeholders
 Example: WCB, Insurance company
 Legal requirements
 Example: FOIP, Revenue Canada

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Third Party Access
 External human resources functions provider
 During the legal acquisition of a business
 Workers’ Compensation Boards
 Benefits providers
 Labour relations and union representatives
 Lawyers
 Provincial and national
government bodies
 Revenue Canada
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30.
Employee Files
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Documentation and Legal Exposure
Payroll and benefits information
Performance management
Health and
Safety
Harassment
complaints
Accommodation
Certifications
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32.
Discussion – Keeping files
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 What do you keep now?
 Where do you keep it?
 How long do you keep it?
 How do you get rid of it?

33.
What to Keep
 Employee information including name, address, SIN,
start date, hours worked, written agreements regarding
overtime, vacation time records, payroll information, and
leave information
 Documentation related to health and safety incidents
 Information regarding efforts to meet a duty to
accommodate
 Performance management documentation
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Employee Files
 Application
 Resume and cover letter
 Interview notes
 Testing results
 Reference check notes
 Signed offer letter
 Job description
 Emergency contacts
 Social Insurance number
 Signed TD1 form
 Orientation checklist
 Relocation agreements
and supporting
documentation
 Benefit enrolment forms
 Garnishee or court orders
 Signed confirmation of
receiving and reviewing
employee handbook
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35.
Employee Files
Updated information
 Written evaluations
 Raises, promotions, and commendations
 Warnings and disciplinary action
 Employment status up to date
 Most recent version of employee handbook reviewed
 Change in name or address
 Most current employment contract
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Adapted from: http://www.nolo.com/legal-encyclopedia/what-keep-employee-personnel-files-30240.html

36.
Employee Files
Do not include information that is not directly related
to the employee’s qualifications and performance.
This includes:
 Medical records
 Unsubstantiated criticism, rumors, or accusations
 Reference to race, sex, religion
 Reference to the employee’s private life
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Adapted from: http://www.nolo.com/legal-encyclopedia/what-keep-employee-personnel-
files-30240.html

37.
Employee Files
PIPEDA has established 10 privacy principles for the collection,
use, disclosure, and retention of personal information. These
are good standards to follow anywhere in Canada.
• Accountability
• Identifying purpose
• Consent
• Limiting collection
• Limiting use, disclosure, retention
• Accuracy
• Safeguards
• Openness
• Individual access
• Challenging compliance
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Documenting Employee Performance
 Timely documentation of incidents, deficiencies, and
significant accomplishments
 Build an employee performance file on EVERY employee and
document positive performance and performance concerns
 Confirm the facts
 Relevant supporting documentation
 Written correspondence
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39.
Access and Protection of Employee
Documentation
 Employee access
 Employer access
 Third party access
 Securing records
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40.
Employee Access
 Current and former employees have the right to
access their own employment records
 Records management policies should outline the
process for accessing employee records
 Records management process should outline criteria
that must be met to preserve the integrity of the file
 Cannot be removed from the area files are kept
 Employee can not remove or add anything to the file
 Employee must be accompanied by a Human Resources
professional when viewing the file
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41.
Employer Access
 Records management policies should outline the
process for allowing organization employees to
access employee records
 How and why Human Resources professionals can access
employee records
 Other employees in the organization that can access employee
records
 This is permitted if accessing employee records is necessary for the
performance of the employee’s job
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42.
Securing Records
 Privacy
 The right to privacy is met when an individual has the
opportunity to exercise some degree of control over personal
information by consenting to, or withholding consent, for the
collection, use, and/or disclosure of information
 Confidentiality
 Every organization has an obligation to protect information
from unauthorized access, use, disclosure, modification, loss or
theft.
 Security
 Organizations must employ physical, administrative, and
technical safeguards to ensure employee records remain secure
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43.
How long do we keep them?
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 The entire employee file should be kept while the
employee is active, longest employee on record?
 Inactive employee files should be kept secured but
conveniently located for a minimum of two years
 Inactive employee files should be kept for six to ten
years and must be kept in a secure location

44.
Financial Files
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45.
What are Records
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 Records are accounting and other financial
documents that should be kept in an organized way
 Records were traditionally kept in paper format, but
many now keep electronic records
 Records include ledgers, journals, vouchers, financial
statements and accounts, and income tax and excise
tax records. You must keep the supporting
documents

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Benefits of keeping files organized
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 Identify the sources of income
 Remind you of expenses you can deduct and tax
credits you can claim
 Make it easier for you to determine your taxes owing;
 Provide you with information on the past and
present financial position
 Help you make good business decisions
 Assist with getting loans and funding
 Can prevent problems if you get audited

47.
Consequences of not keeping good records
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 Government may disallow expenses that you are
unable to support
 Government may impose penalties if you:
 Do not keep adequate records
 Do not provide CRA officials with access to your records, when
requested
 Do not give information to CRA officials, when asked.

48.
What to keep
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 Sales invoices
 Purchase receipts
 Contracts
 Guarantees
 Bank statements including
deposit slips and cancelled
cheques
 Purchase orders
 Work orders
 Delivery slips
 General correspondence in
support of any transaction
 Cash register slips, credit
card receipts

49.
How to keep records
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 Books, records, and supporting documents produced
and kept in paper format
 Books, records, and supporting documents produced
on paper, and then converted and stored in an
electronic format
 Electronic records and supporting documents
produced electronically

50.
Additional records for corporations
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 Records of Internet business activities
 Meeting minutes of the directors of a corporation
 Meeting minutes of the shareholders of a corporation
 Any record of a corporation containing details about:
 the ownership of the shares of the capital stock of the corporation
 any transfers of these shares
 General ledger or other books of final entry, in paper or
electronic format, containing the summaries of the year-to-
year transactions of the corporation
 Any special contracts or agreements necessary to
understand the entries in the general ledger or other books

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Where to keep files
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 Financial files should be kept within the finance
department
 Must be kept secured
 Can be moved offsite once they have not been
accessed for at least two years
 If moved offsite they still need to be secured

52.
Keeping Files
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 Most records are kept for six years from the date of
tax filing
 Active records should be kept on site and convenient
in a secure location
 Old records can be kept off site in a storage facility as
long they are secured and when accessing the
records it is done by two people who have access

53.
Tax Files
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 Tax files, as stated by CRA, only have to be kept for six
years from year end filing
 Most organizations keep tax files, including payroll,
income tax and GST records indefinitely
 Supporting documents do not have to be kept for more
than six years
 Again, many corporations keep files for six to ten years
depending on policy

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Exceptions
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Records and supporting documents
concerning long-term acquisitions and
disposal of property, share registry and
other historical information that would
have an impact on the sale, liquidation or
wind-up of a business must be kept
indefinitely.

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More information
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For more detailed information please go to
www.cra-arc.gc.ca/

56.
Disposal of Records
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 How do you currently dispose of records?
 How old is the oldest record you have seen?
 Inactive
 Active

57.
Disposal of Records
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 Electronic records on your pc, can be deleted and
then wiped by IT department
 Electronic records on USB or other storage device
can be deleted and/or destroyed
 Hard copy files should be shredded and disposed of
 Internally
 3rd party

58.
Questions?
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60.
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61.
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