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Document Retention

FREEMAN & WILLIAMS, LLP
(and related entities)

DOCUMENT RETENTION/DESTRUCTION POLICY

Revised February 2008

Mission Statement

Our mission is to comply with all applicable government agencies and provide guidelines and procedures for document retention and destruction that we follow for all clients (both current and former).

Under no circumstances should any records, files or electronic data be destroyed, regardless of the retention periods identified in this policy, if there is a pending regulatory investigation, disciplinary action, legal action, or if the firm has knowledge of the intent by a regulatory agency to launch an inquiry or knowledge of a potential legal claim.

In 2006, Freeman & Williams, LLP included information on where to find this policy in its annual privacy notice mailer which is mailed to every current client.  In 2007, the President signed a bill stating that CPA firms were not required to mail privacy notices.

Current Clients

Freeman & Williams, LLP retains much information in-house, however, anything over a three-year period is sent to an off-site storage facility.  Retrieval from this facility will be approximately one working day.

Our record retention policy is stated clearly in our tax engagement letter and is included in the annual organizer mailed to all individual clients.  The letter clearly states our policy on retention, “Please note our record retention policy.  All client information will be kept indefinitely for current clients.  This information will be kept unless you cease to be a client of Freeman & Williams, LLP, and after three years from the termination of the relationship, all information will be destroyed without prior notice.”

Freeman & Williams, LLP retains copies of all filed tax returns along with working papers that were used in the preparation.  Original documents are returned to clients after successful completion of the tax preparation.

Any legal documents given to us by the client are retained.  Legal documents include, but are not limited to, land/building title, last will and testament, trust documents, etc.  However, these documents are retained for reference and not prepared by Freeman & Williams, LLP therefore the firm never retains the sole copy of these documents.

Correspondence between the client and the firm is retained along with any correspondence relating to the client.

All current client information is kept indefinitely with one exception.  All financial statements including compilations, reviews, and audits are kept for seven years (from period ended) then destroyed.  This includes any working papers used to perform this work.  However, certain items may be prepared during the course of the engagement that is destroyed at the completion.  These items include:

Superseded drafts of memoranda, financial statements, or regulatory filings,
Notes on superseded drafts of memoranda, financial statements or regulatory filings that reflect incomplete or preliminary thinking,
Duplicates of documents,
Copies of client records (unless the clients records contain evidence of audit or other procedures applied by the Firm),
Review notes,
To do lists (which have been completed), or
Documents that contain typographical errors or other minor errors that result from the normal business/learning process or from preliminary views based on incomplete information or data.

Former Clients

Freeman & Williams, LLP considers a former client to be an individual or entity which we no longer perform services for.  This includes clients that have terminated the relationship with us, clients that we terminated the relationship with them, or clients that have not returned for over one year.

Annually, Freeman & Williams, LLP pulls all in-house former client files and sends them off-site to a storage facility.  These files are marked for destruction after a period of three years (except where noted below – see financial statements).  Former clients that return within the three years will be removed from the destruction list. The files we have created are the property of Freeman & Williams, LLP, however, former clients may request copies of our files (they will be billed time and copy charges, which will be payable upon receipt).

Financial Statements - All former client information is destroyed after three years with one exception.  All financial statements including compilations, reviews, and audits are kept for seven years (from period ended) then destroyed.  This includes any working papers used to perform this work.  However, certain items may be prepared during the course of the engagement that is destroyed at the completion.  These items include:

Superseded drafts of memoranda, financial statements, or regulatory filings,
Notes on superseded drafts of memoranda, financial statements or regulatory filings that reflect incomplete or preliminary thinking,
Duplicates of documents,
Copies of client records (unless the clients records contain evidence of audit or other procedures applied by the Firm),
Review notes,
To do lists (which have been completed), or
Documents that contain typographical errors or other minor errors that result from the normal business/learning process or from preliminary views based on incomplete information or data.

Bibliography

Government guidelines considered in the preparation of this policy include:

American Institute of Certified Public Accountants ("AICPA")
Internal Revenue Service ("IRS")
Generally Accepted Accounting Principles ("GAAP")
Financial Accounting Standards Board ("FASB")
Statement on Auditing Standards ("SAS")
California Business and Professions Code Section 5097
Securities and Exchange Commission ("SEC")
Nevada Society of CPA's
California Society of CPA's
Health Insurance Portability & Accountability Act of 1996 ("HIPAA") Department of Health & Human Services
American's with Disabilities Act ("ADA")
This policy is reviewed annually to consider any changes in governmental policy.