Writing Sample: Report

Contracting an Information Services Agency to Develop, Implement and Maintain a Records Management Program

INTRODUCTION

Background

Why Build a Records Management Program

Changes in federal laws concerning the retention of business records has put a spotlight on the need for developing policies to manage this area of an enterprise. The increase in litigation has also contributed to this need. Many companies rely on sparsely formed records policies and loose delegation of records responsibilities to a variety of staff members. This methodology often proves to be faulty because job descriptions are not revised to include records management duties and so employees can easily deny accountability when problems arise. When faced with litigation and compliance with federal regulations such as the Sarbanes-Oxley Act of 2002, a company’s failure to have staff dedicated to managing its records can lead to serious legal troubles.

A records information management program will rectify problems posed by litigation and non-compliance with federal and local laws regarding records retention. Developing an in-house records management program will involve recruitment and training and the added expense of dealing with turnover rates. Contracting a company that specializes in records management design, development, and implementation will lower costs, save time, and insure the availability of trained professionals to maintain company records.


Problem

Failed Corporate Recordkeeping

There have always been state and federal rules regarding the retention and destruction of records produced by businesses. However, the inappropriate destruction of records by infamous companies such as ENRON Corporation and its accounting firm, Arthur Andersen, resulted in a stricter federal law being passed to dissuade such behavior in the future. Today, companies that fail to implement a records management program may be in violation of the Sarbanes-Oxley Act of 2002. Sarbanes-Oxley ushered in new records retention regulations and added penalties more severe than former records specific laws. “Under the Sarbanes-Oxley Act, the government can bring charges of obstruction of justice if a company destroys potentially relevant records before a subpoena is issued. Violations are punishable by a fine and up to 20 years in prison” (ARMA International, 2008, p. 4).

In addition to assuring compliance with federal regulations, a records management program will protect an organization in the event of litigation. This becomes an even greater point to focus on when electronic records are considered. E-mail, voice and text messages are all considered company records, but this is not often made clear by a company’s senior management. According to HR Focus (2008) only “…21% of organizations [have] given employees a formal definition of “electronic business records.” Since, as the article emphasizes, all records produced by a business can be subpoenaed, it is crucial that all members of an organization clearly understand how records should be managed and eventually destroyed. A solid records management program can make this happen.


Purpose

Program Recommendations

The purpose of this report is two-fold: to recommend the development of a records management program and to argue that the program should be established and run by an outside information services agency as opposed to in-house staff. A records management program will keep the company compliant with state and federal regulations. If the program is contracted out, there will be the added benefit of achieving the goals of a records management program without the costs associated with recruitment, hiring, training new, permanent employees.

Read the entire report: Contracting an Information Services Agency