Record Retention Policy
Purpose:
The purpose of this Record Retention Policy is to establish guidelines for managing, storing, and disposing of business records at [Dealership Name]. This policy ensures compliance with applicable federal, state, and industry regulations, including Arizona’s record retention requirements, and supports operational efficiency.
1. Scope
This policy applies to all employees, contractors, and departments at [Dealership Name] and covers all records, whether physical or electronic, that are created, received, or maintained in the course of dealership operations.
2. Policy Statement
[Dealership Name] is committed to maintaining accurate and secure records while ensuring compliance with applicable retention requirements. Records will be stored securely, retained for specified periods, and disposed of properly when no longer required.
3. Record Retention Periods
Records must be retained for the following minimum periods, unless otherwise specified by applicable laws:
| Document Type | Retention Period |
| Permanent Retention | |
| Annual Reports Filed with AZSOS | Permanent |
| Articles of Incorporation | Permanent |
| Board and Committee Minutes | Permanent |
| Governance Policies/Resolutions | Permanent |
| Bylaws | Permanent |
| Legal and Tax Correspondence | Permanent |
| Fixed Asset Records | Permanent |
| Tax Returns | Permanent |
| IRS Audit Results | Permanent |
| Payroll Registers | Permanent |
| Pension and Retirement Documents | Permanent |
| Copyright Registrations | Permanent |
| All Insurance Policies | Permanent |
| Stock and Bond Records | Permanent |
| Trademark Registrations | Permanent |
| Retention Period: 7 Years | |
| Deal Jackets | 7 years |
| Retail Installment Sales Contracts | 7 years |
| Service Contracts and Extended Warranties | 7 years |
| Voluntary Protection Plan Documents | 7 years |
| Accounts Receivable/Payable Ledger | 7 years |
| Cash Disbursement Journal | 7 years |
| Cash Received Journal | 7 years |
| Expense Reports | 7 years |
| Expense Ledger | 7 years |
| Financial Statements (audited) | 7 years |
| Inventory Records (annual only) | 7 years |
| Invoices | 7 years |
| Journal Entries | 7 years |
| Inventory Log | 7 years |
| Repaid Notes Journal | 7 years |
| All Banking Documents | 7 years |
| Electronic Fund Transfer Documents | 7 years |
| IRS Forms 1099 | 7 years |
| Garnishment Records | 7 years |
| Non-Payroll Employee Related Documents | 7 years |
| Accident Reports | 7 years |
| FTC Buyers Guide | 7 years |
| All Vehicle Purchase and Sale Documents | 7 years |
| Credit Applications (approved/denied) | 7 years |
| All Vehicle Service Documents | 7 years |
| Retention Period: 5 Years | |
| Tax Return Work Papers | 5 years |
| IRS Forms 8300 | 5 years |
| OSHA Documents | 5 years |
| Salary Schedules | 5 years |
| Retention Period: 4 Years | |
| All Payroll Records | 4 years |
| Unemployment Tax Returns | 4 years |
| Withholding Tax Returns (U.S. and state) | 4 years |
| Retention Period: 3 Years | |
| Non-Tax or Legal Related Correspondence | 3 years |
| Employment Applications | 3 years |
| Dealer Plate Logs | 3 years |
| Expired Contracts | 3 years |
| Retention Period: 2 Years | |
| Advertising Records (all mediums including print and digital) | 2 years |
| Individual Vehicle Pricing History (all mediums) | 2 years |
| Time Cards | 2 years |
| Sales Scripts | 2 years |
| Complaint Resolutions | 2 years |
| Customer Reviews | 2 years |
4. Responsibilities
4.1 Employees
- Ensure records are created, stored, and maintained in accordance with this policy.
- Protect records from unauthorized access, damage, or loss.
4.2 Management
- Ensure employees are trained on record retention requirements.
- Monitor compliance with this policy and address any violations.
4.3 Compliance Officer
- Oversee the implementation of this policy.
- Conduct periodic audits to ensure adherence to retention and disposal requirements.
5. Secure Storage
5.1 Physical Records
- Store paper records in locked, access-controlled cabinets or rooms.
- Ensure records are organized for easy retrieval and audit purposes.
5.2 Electronic Records
- Store digital records on secure servers with proper encryption and access controls.
- Regularly back up electronic records to prevent data loss.
6. Record Disposal
- Dispose of records securely when their retention period has expired, unless otherwise required for legal or operational reasons.
- To meet the requirements of the FTC Disposal Rule, we will burn, pulverize, or shred papers containing consumer report information so that the information cannot be read or reconstructed; destroy or erase electronic files or media containing consumer report information so that the information cannot be read or reconstructed; or conduct due diligence and hire a document destruction contractor to dispose of material specifically identified as sensitive or personal.
6.1 Physical Records
- Use cross-cut shredders or certified document destruction services.
6.2 Electronic Records
- Use data-wiping tools or certified e-waste disposal services to ensure complete deletion.
7. Litigation Hold
In the event of actual or anticipated litigation, a Litigation Hold will be implemented to preserve all relevant records.
7.1 Implementation
- The Compliance Officer will issue a Litigation Hold Notice to all relevant employees and departments.
- The notice will specify:
- The types of records to be preserved.
- The duration of the hold.
7.2 Suspension of Routine Disposal
- All routine record disposal processes for the specified records will be immediately suspended.
- Employees must ensure the preservation of all physical and electronic records subject to the hold, including emails, documents, and communications.
7.3 Monitoring and Compliance
- The Compliance Officer will monitor adherence to the Litigation Hold.
- Failure to comply with the Litigation Hold may result in disciplinary action and legal consequences.
7.4 Release of Hold
- Once the litigation or investigation concludes, the Compliance Officer will issue a written notice releasing the hold, and routine record retention schedules will resume.
8. Monitoring and Auditing
- Conduct periodic audits to verify adherence to record retention and disposal policies.
- Identify and correct any gaps in record management practices.
9. Training
- Provide training to employees on:
- Record retention schedules and legal requirements.
- Proper storage, handling, and disposal of records.
- Litigation Hold procedures.
10. Penalties for Non-Compliance
Failure to comply with this policy may result in:
- Regulatory penalties or legal consequences.
- Damage to [Dealership Name]’s reputation.
- Disciplinary action for employees, up to and including termination.
11. Policy Review and Updates
This policy will be reviewed annually and updated as necessary to reflect changes in legal requirements or dealership operations.
Acknowledgment
I acknowledge that I have read and understand the Record Retention and Disposal Policy, including the Litigation Hold provisions, and agree to comply with its requirements.
Employee Signature: ___________________________
Date: ___________________________
Manager Signature: ___________________________
Date: ___________________________
This revised policy incorporates a Litigation Hold section to ensure relevant records are preserved during legal matters, safeguarding compliance and legal integrity. Let me know if you need further refinements!