Both from a legal and historical point of view, there is a need to pay attention to the proper retention of documents. The fundamental legal requirement is that most legally-binding documents and financial records should be retained (in a manner in which they can be retrieved) for a minimum of six years.
The Church Council must ensure there is supporting documentation for all transactions, including any spoilt cheques, and that it is made available to the auditor/independent examiner (IE). These may be computerised and, if so, then a secure back-up system is advisable.
The Archivist Handbook contains detailed guidance on keeping records. The Retention Schedule gives a detailed list of what to keep and for how long, but as a rule of thumb, records should be kept for six years and include but are not limited to:
offerings journal
offerings record for the treasurer
cash receipts records
invoices and receipts
bank statements
expenses claim forms
cash analysis book
Gift Aid declarations
insurance documents (40 years)
All financial transactions must be recorded gross which includes all money received and paid out. For example, if a coffee evening is held and raises £200, but expenses are £50, record £200 under receipts and £50 under payments.
Investment income from a bank or the Central Finance Board (CFB) account will normally have its own statement to support the transaction.