Poor records management can lead to more than just a 'slap on the wrist'
Financial records management is important for many companies and organizations, and improper storage of records can lead to many issues, both internally and legally. According to the Dayton Daily News, Greater Dayton Premier Management, the city's housing authority, recently learned this the hard way, as it incurred nearly $80,000 in legal bills related to missing paperwork regarding the agency's home-ownership program - including a residence purchased by the recently resigned CEO's mother.
According to the news source, the agency has been unable to produce about 80 percent of its records for properties involved in the program, which is designed to help disadvantaged people buy homes.
"According to the agency’s retention policy, records only have to be retained for a limited time," the agency told the news source in a written statement. "Some records were kept, some were not - it is unclear why that is the case."
The agency has purchased 248 homes since the late 1970s and sold 232, according to the report. It is unknown whether or not the current CEO's resignation is related to the poor records storage controversy.
Records management solutions are an important aspect of business, particularly for finance requirements. Problems, such as those at Greater Dayton Premier Management, can not only create massive fines for an organization, but also result in other legal problems, including jail time if compliance laws are broken or illegal activities are discovered.
Relying on the offsite records storage services of a professional firm will allow an organization to avoid the headaches and high costs of managing information on premise. When dealing with matters that can result in legal action, and organization can lean on a partner firm to ensure records are properly stored and maintain in line with all compliance and industry standards.