Arkansas Code
Chapter 237 - Arkansas Municipal Water And Sewer Department Accounting Law
§ 14-237-112. Maintenance and destruction of accounting records

(a) Accounting records can basically be divided into three (3) groups:
(1)
(A) Support Documents. Support documents consist primarily of the following items:
(i) Canceled checks;
(ii) Invoices;
(iii) Bank statements;
(iv) Receipts;
(v) Deposit slips;
(vi) Bank reconciliations;
(vii) Check book register or listing;
(viii) Receipts listing;
(ix) Monthly financial reports;
(x) Payroll records;
(xi) Budget documents; and
(xii) Bids, quotes, and related documentation.

(B) These records shall be maintained for a period of at least four (4) years and shall not be disposed of before any required audit for the period in question;

(2)
(A) Semipermanent Records. Semipermanent records consist of:
(i) Fixed-asset records and equipment detail records;
(ii) Investment and certificate of deposit records;
(iii) Journals, ledgers, or subsidiary ledgers; and
(iv) Annual financial reports.

(B)
(i) These records shall be maintained by the water and sewer department for a period of not less than seven (7) years and shall not be disposed of before any required audit for the period in question.
(ii) For investment and certificate of deposit records, the seven (7) years of required maintenance will begin on the date of maturity;

(3)
(A) Permanent Records. Permanent records consist of:
(i) Minutes;
(ii) Employee retirement documents; and
(iii) Annual financial audits.

(B) These records shall be maintained permanently.

(b) When documents are destroyed, the department shall document the destruction by the following procedure:
(1) An affidavit is to be prepared stating which documents are being destroyed and to which period of time they apply, indicating the method of destruction. This affidavit is to be signed by the department's employee performing the destruction and one (1) member of the governing body;
(2) In addition, the approval of the governing body for destruction of the documents shall be obtained and an appropriate note of the approval indicated in the governing body's minutes along with the destruction affidavit. Governing body approval shall be obtained before the destruction.