Arkansas Code
Chapter 59 - Arkansas Municipal Accounting Law
§ 14-59-114. Maintenance and destruction of accounting records

(a) Accounting records can basically be divided into the following three (3) groups:
(1)
(A) Support Documents. Support documents consist primarily of the following items:
(i) Cancelled 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 in no event shall be disposed of before being audited for the period in question.

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

(B)
(i) These records shall be maintained for a period of not less than seven (7) years and in no event shall be disposed of before being audited for the period in question.
(ii) For investment and certificate of deposit records, the seven (7) years of required maintenance begins on the date of maturity.

(3)
(A) Permanent Records. Permanent records consist of:
(i) City or town council minutes;
(ii) Ordinances;
(iii) Resolutions;
(iv) Employee retirement documents; and
(v) Annual financial audits.

(B) These records shall be maintained permanently.

(b) When documents are destroyed, the municipality shall document the destruction by the following procedure:
(1)
(A) 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;
(B) This affidavit is to be signed by the municipal employee performing the destruction and one (1) council member.

(2)
(A) In addition, the approval of the council for destruction of documents shall be obtained, and an appropriate note of the approval indicated in the council minutes along with the destruction affidavit;
(B) This council approval shall be obtained before the destruction.