DEPARTMENT OF COMMERCE
LICENSING AND REGULATORY AFFAIRS
PUBLIC SERVICE COMMISSION
PRESERVATION OF
RECORDS OF ELECTRIC, GAS, AND WATER STEAM UTILITIES
Filed with the secretary of state on
These rules take effect immediately upon filing with the secretary of state unless adopted under section 33, 44, or 45a(6) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after filing with the secretary of state.
(By authority conferred on the public
service commission by section 5 of Act No. 419 of the Public Acts of 1919
1919 PA 419, MCL 460.55, as amended, and section 4 of Act
No. 3 of the Public Acts of 1939, as amended, being 1939 PA 3, §
MCL 460.55 and 460.4 of the Michigan Compiled Laws)
R 460.2501, R 460.2503, R 460.2505, R 460.2506, R 460.2509, R 460.2519, R 460.2520, R 460.2521, R 460.2522, R 460.2524, R 460.2531, R 460.2532, R 460.2533, R 460.2534, R 460.2543, R 460.2545, R 460.2546, R 460.2568, R 460.2568a, R 460.2569a, R 460.2569b, and R 460.2572 of the Michigan Administrative Code are amended, and R 460.2505a, R 460.2505b, R 460.2505c, and R 460.2568b are rescinded, as follows:
PART I. GENERAL PROVISIONS
R 460.2501 Scope.
Rule 1. (1) These rules apply to all books
of account and other records prepared by or on behalf of the public utility. See
rule 82 of these rules R 460.2582 for records which that
come into the possession of the public utility in connection with the acquisition
of property, such as a purchase, consolidation, or merger.
(2) These rules shall not be construed as
excusing compliance with any other lawful requirement for the preservation of
records for periods longer than those prescribed herein in these
rules. Whenever a gas utility collects rates authorized by this commission
based on increased supplier rates collected under bond under the authority of the
federal energy regulatory commission Federal Energy Regulatory
Commission (FERC), such this utility shall maintain
sufficient gas consumption records to enable the calculation of refunds to
individual customers as may be ordered by the Michigan public service commission.
This requirement shall continues in effect until final action by
FERC or until the final decree of the court, if appealed thereto to
the court, and until such the time as when the
Michigan public service commission has entered its order authorizing appropriate
refunds if such be this is the case.
(3) Unless otherwise specified in part 2
of these rules, duplicate copies of records may be destroyed at any time if such
the duplicate copies do not contain significant information not shown on
the originals.
(4) Records other than those listed in part
2 of these rules may be destroyed at the option of the public utility of
provided that records that are used in place of those listed will be
preserved for the periods prescribed for the records used for substantially
similar purposes and if that the retention of records pertaining to
added services, functions, and plant, the establishment of which cannot be presently
foreseen, will conform to the principles embodied herein in these
records.
(5) Upon written request of a public utility, or on its own motion, the commission may waive any requirements of these rules when it determines that the waiver will further the effective and efficient administration of these rules and is in the public interest.
R 460.2503 Protection and storage of records.
Rule 3. The public utility shall provide
reasonable protection for records subject to these rules from damage by fires, floods,
and other hazards and, in the selection of storage spaces, shall safeguard
the records from unnecessary exposure to deterioration. from
excessive humidity, dryness, or lack of proper ventilation. The public
utility shall also operate a back-up system to preserve electronic information
and records that are required to be retained under these rules.
R 460.2505 Preservation of record storage media generally.
Rule 5. A public utility has the flexibility to select its own storage media, subject to the following conditions:
(a) For the purpose of these rules,
the data constituting the records listed in part 2 may be retained in any of
the media forms in figure 1, if the The storage media
selected has must have a standard life expectancy at
least equal to or in excess of the specified the applicable
record retention period provided in part 2 of these rules unless there
is a quality transfer from 1 media to another with no loss of data. However,
records supporting plant and licensed project cost shall be retained in their original
form, unless microfilmed. Media regeneration to achieve the full length of period
retention shall not be allowed without commission approval of the request of
the company, except in emergency situations. In emergency cases, management
shall take prudent action and shall notify the commission immediately
thereafter.
(b)(2) If the media
form of the record retained is other than a readable paper copy, then reader
equipment or printer equipment, or both, and related printout programs, if
required, shall be provided by the utility for data reference. A public
utility shall implement internal control procedures that ensure the reliability
of, and ready access to, data stored on machine-readable media. Internal
control procedures shall be documented by a responsible supervisory official.
(c)(3) The media form initially
selected for the record becomes the “original” for that particular record. If subsequent
conditions, such as improved media life expectancy, increased utility resources,
or environmental factors, require a change in media forms, and if the remaining
retention period permits a change in the media forms, the utility may convert
to another media and dispose of its old equipment if the certification processes
described in rule 5a are observed and data referencing capability is
maintained. A transfer of data from 1 media to another must be verified
for accuracy and documented. Software and hardware required to produce readable
records shall be retained for the same period as the media format is used.
(4) Figure 1 shall read as follows:
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R 460.2505a Rescinded.
Preservation of record media; microform and tape certification.
Rule 5a. (1) As the initial recording media,
each microform record series shall contain, at the beginning, a microform
introduction stating the title of the record series, the date prepared, and the
name of the official responsible for validating or confirming the data contained
therein. Each microform record series shall be closed with a clear and standard
microform notation indicating the completion of the series and the date. If after
validation, supplemental data or corrections, or both, are required, the
microform may be produced separately or as a part of the series rerun, but
shall be affixed to the original microform certificate as described in this
subrule.
(2) As the initial recording media, each
tape record series shall be externally labeled and shall include, as a basic
part of the program, at the beginning of that series, an introduction stating
the record series title, date prepared, the name of the official responsible for
validating or confirming the data contained therein, and an index where
appropriate. Each record series shall be closed with a clear and standard
notation indicating the completion of that series and the date.
(3) As converted from other media, each microform
record series shall include as an integral part a certificate or certificates which
state that the microforms are direct and facsimile reproductions of the original
records and that they have been made in accordance with prescribed
instructions. A certificate shall be executed by a person or persons who have personal
knowledge of the facts covered thereby.
(4) As converted from other media, each microform
record series shall begin and end with a statement as to the nature and arrangement
of the records reproduced and the date. Rolls of film shall not be cut. Supplemental
or retaken film, whether of misplaced or omitted documents or of portions of
microform found to be defective, shall be attached to the beginning of the
microform record series and the aforementioned certificate shall cover the
supplemental or retaken film and shall state the reasons for the subsequent
actions.
(5) If, in accordance with the
provisions of rule 5b, the utility elects to convert records to the tape media,
the same certification provision specified in subrule (2) shall be provided in
the conversion program.
R 460.2505b Rescinded. Preservation
of record media; change of media for existing records.
Rule 5b. Records prepared and maintained
under previous rules in a paper media whose remaining retention period falls
within the life expectancy range of any of the media detailed in figure 1 may
be converted to that media at the public utility’s or licensee’s option, if the
applicable certification processes described in rule 5a are observed and an audit
referencing capability is maintained.
R 460.2505c Rescinded. Preservation
of record media; records created or maintained in a media and format other than
readable entries on paper.
Rule 5c.(1) All records created or
maintained in a media and a format other than readable entries on paper shall
comply with all of the following:
(a) Be prepared, arranged, classified,
identified, and indexed to permit the subsequent location, examination, and reproduction
of the record as a readable media.
(b) Be stored in a manner that provides reasonable
protection from hazards, such as fire, flood, and theft, and be maintained in a
controlled environment.
(c) Be regenerated, including proper
certification, when damaged.
(2) The utility or company shall be prepared
to furnish, at its own expense, standard facilities for reading media and shall
additionally provide, if the commission directs, copies of the record in a
readable form.
(3) All film stock shall be of approved, operationally
permanent, record microcopying type which meets the current specifications of the
national bureau of standards.
R 460.2506 Destruction of records.
Rule 6. At the expiration of the
retention period, a public utility may use any appropriate method to destroy records
as long as the method ensures the full destruction of information contained in
the documents The destruction of the records permitted to be destroyed under
the provisions of these rules may be performed in any manner elected by the
public utility concerned. Precautions shall be taken, however, to macerate or otherwise
destroy the legibility of records containing information which that is
forbidden by law from being divulged to unauthorized persons.
R 460.2509 Retention periods designated “Destroy at option.”
Rule 9. Use of the retention period, “Destroy
at option,” in these rules constitutes authorization for authorizes the
destruction of records at management’s discretion under the conditions
specified for the particular types of records only if such optional destruction
is appropriate to limited managerial interest in such records and if the
destruction of the records does such optional destruction is not in
conflict with other legal retention requirements or usefulness of such these
records in satisfying pending regulatory actions or directives.
PART 2. SCHEDULE OF RECORDS AND PERIODS OF RETENTION
R 460.2519 Contracts and agreements; retention periods.
Rule 19. Except as provided elsewhere in these rules, the following contract and agreement records shall be retained for the periods listed:
(a) Service contracts, such as for management, accounting, and financial services including related memoranda and revisions. |
See rule 22(b)(i) if they affect cost of plant; otherwise, 6 years after expiration or cancellation or until the conclusion of any contract disputes or governmental proceedings pertaining to these contracts, whichever is later. |
(b) Contracts with other utilities for the purchase, sale, or interchange of product, including related memoranda or revisions. |
6 years after expiration or cancellation or until the conclusion of any contract disputes or governmental proceedings pertaining to these contracts, whichever is later. |
(c) Leases pertaining to rentals of property to or from others. |
6 years after expiration or cancellation or until the conclusion of any contract disputes or governmental proceedings pertaining to these contracts, whichever is later. |
(d) Contracts and agreements with individual employees, labor unions, company unions, and other employee organizations relative to wage rates, hours, and similar matters. |
6 years after expiration or cancellation or until the conclusion of any contract disputes or governmental proceedings pertaining to these contracts, whichever is later. |
(e) Contracts, agreements, and other essential records necessary to the carrying out of the functions of an employee’s stock purchase or other type of employees’ saving plan. |
6 years after expiration or cancellation. |
(f) Memoranda
essential to clarifying or explaining provisions of contracts listed in
subrules (a) through (e) |
For same periods as contracts to which they relate. |
(g) Card or book records of contracts leases, and agreements made, which show dates of expirations, dates of renewals, memoranda of receipts, and payments under such contracts, leases, and agreements. |
For same periods as contracts to which they relate. |
(h) Contracts or agreements for the acquisition or disposal of investments, excluding temporary cash investments. |
25 years after disposal. |
R 460.2520 General and subsidiary ledgers; retention periods.
Rule 20. The following ledger records shall be retained for the periods listed:
(a) General ledgers. |
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(b) Ledgers subsidiary or auxiliary to general ledgers, except ledgers provided for elsewhere in these rules. |
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(c) Indexes to general ledgers. |
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(d) Indexes to subsidiary ledgers except ledgers provided for elsewhere in these rules. |
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(e) Trial balance sheets of general and subsidiary ledgers. |
2 years. |
R 460.2521 Journals; retention period.
Rule 21. General and subsidiary journals,
including departmental and divisional journals shall be retained for a period
of 50 10 years.
R 460.2522 Journal vouchers and entries; retention periods.
Rule 22. The following journal voucher and entry records shall be retained for the periods listed:
(a) General, departmental, divisional, and petty journal vouchers. |
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(b) Materials and supplies disbursement, labor distribution, and other detail summarization and distribution records which support journal vouchers or journal entries as follows: |
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(i) Charging plant accounts. |
6 years, if accounting adjustments
resulting from reclassification and original cost studies have been approved
by the regulatory commissions having jurisdiction and if continuing plant
inventory records are maintained or unitization of construction costs appear
in work orders; otherwise 25 years. For licensed projects, time tickets, and
material issued and material returned tickets may be destroyed at option if
the basic information contained |
(ii) Charging all other accounts. |
6 years. |
(c) Papers
forming part of, or necessary to explain, journal vouchers or journal
entries, except as covered in |
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(d) Schedules for recurring journal Entries. |
Destroy when superseded. |
(e) Lists of standard journal entry numbers. |
Destroy when superseded. |
R 460.2524 Vouchers and voucher registers; retention periods.
Rule 24. (1) The following voucher records shall be retained for the periods listed:
(a) Paid and canceled vouchers (1 copy) analysis sheets showing detailed distribution of charges on individual vouchers and other supporting papers. |
6 years, as specified in R
460.2522(b)(i) and (ii), |
(b) Original bills and invoices for materials and services paid by vouchers. |
6 years |
(c) Paid checks and receipts for payments by voucher or otherwise. |
6 years. |
(d) Authorization for the payment of specific vouchers. |
6 years. |
(e) Lists of unaudited bills (accounts payable), lists of vouchers transmitted, and memoranda regarding changes in unaudited bills. |
Destroy at option. |
(f) Voucher indexes. |
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(2) Voucher
registers or similar records shall be retained for a period of 6 years (See
rule 22(b), (i) and ii)). , as specified in R 460.2522(b)(i) and
(ii).
R 460.2531 Automatic data processing record; retention periods.
Rule 31. (1) The following automatic data processing records shall be retained for the periods listed:
(a) |
Destroy at option. |
(b) Program
documentation and revisions |
Retain as long as it represents an active viable program or for periods prescribed for related output data, whichever is shorter. |
(2) Original
source data used as input for data processing and data processing report
printouts shall be retained for the applicable periods prescribed elsewhere in
the schedule. Plant and accumulated provision for depreciation.
R 460.2532 Plant ledgers; retention periods.
Rule 32. The following plant ledgers and records shall be retained for the periods listed:
(a) Ledgers of utility plant accounts, including land and other detailed ledgers that show the cost of utility plant by classes. |
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(b) Continuing plant inventory ledger, book, or card records that show the description, location, quantity cost, and similar information of physical units, or items, of utility plant owned. |
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R 460.2533 Construction ledgers, work orders, and supplemental records; retention periods.
Rule 33. The following construction work in progress ledgers, work orders, and supplemental records shall be retained for the periods listed:
(a) Construction work in progress ledgers. |
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(b) Work order
sheets |
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(c)
Authorizations for expenditures for additions to utility plant, including
memoranda that show the detailed estimates of cost and the basis |
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(d) Requisitions and registers of authorizations for utility plant expenditures. |
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(e) Completion or performance reports that show the comparison between authorized estimates and actual expenditures for utility plant additions. |
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(f) Analysis or cost reports that show quantities of materials used, unit costs, number of man-hours, and similar information in connection with completed construction projects. |
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(g) Records and reports that pertain to the progress of construction work, the order in which jobs are to be completed, and similar records that do not form a basis of entries to the accounts. |
Destroy at option. |
(h) Records of gas acreage owned, leased, or optioned; lease records; well-drilling logs and well-construction records; and geological and photographic maps of field. |
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R 460.2534 Retirement ledgers, work orders, and supplemental records; retention periods.
Rule 34. The following retirement work in progress ledgers, work orders, and supplemental records shall be retained for the periods listed:
(a) Work order
sheets |
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(b) Authorization for retirement of utility plant, including memoranda that show the basis for the determination of the cost of plant to be retired and estimates of salvage and removal costs. |
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(c) Registers of retirement work orders. |
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R 460.2543 Deposit records; retention periods.
Rule 43. The following deposit records shall be retained for the periods listed:
(a) Bank deposit books. |
1 year. |
(b) Copies of bank deposit slips. |
1 year. |
(c) Advice of
deposits made when information |
Destroy at option. |
(d) Statements from depositories that show the details of funds received, disbursed, and transferred and balances on deposits. |
Destroy at option. |
(e) Bank reconcilement papers. |
1 year. |
(f) Statements from banks of interest credits. |
1 year. |
(g) Check stubs, registers, or other records of checks issued. |
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(h) Correspondence and memoranda that relate to the stopping of payment of bank checks and to the issuance of duplicate checks. |
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R 460.2545 Customer service applications and contracts; retention periods.
Rule 45. The following customer service applications and contracts shall be retained for the periods listed:
(a) Applications for utility service for which contracts have been executed. |
Destroy at option.
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(b) Applications for utility service used in place of contracts. |
1 year. |
(c) Contracts and card files, or other records thereof, with customers for utility service. |
1 year after expiration or cancellation. If the contracts are with other utilities for the purchase, sale, or interchange of product, R 460.2519(b) applies.
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(d) Applications
for utility service |
1 year.
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(e) Contracts or sales agreements with customers and others for the sale of merchandise and appliances. |
1 year after sales agreement is discharged.
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(f) Contracts
for the lease of equipment to customers, including receipts for |
1 year after expiration of contract or return of equipment.
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(g) Applications and contracts for extensions covered by refundable deposits or guarantees of revenue and records that pertain to such contracts. |
1 year after entire amount is refunded. |
(h) Applications
and contracts for extensions for which donations or contributions are made by
customers or |
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R 460.2546 Rate schedules; retention periods.
Rule 46. The following rate schedule records shall be retained for the periods listed:
(a) General files of published rate sheets and schedules of utility service, including schedules suspended or superseded. |
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(b) Regional or local office copies of rate sheets and schedules of utility service. |
1 year after expiration or cancellation.
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R 460.2568 Electricity production records; retention periods.
Rule 68. The following electricity production records shall be retained for the periods listed:
(a) Boiler room, condenser room, turbine room, and pump room logs, including supporting data. |
3 years. |
(b) Boiler room and turbine room reports of equipment in service and performance. |
3 years. |
(c) Boiler-tube failure report. |
3 years. |
(d) Generation and output logs with supporting data. |
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(e) Station and system generation reports. |
25 years, except that those relating to
licensed projects, or additions or betterments |
(f) Generating high-tension and low-tension load records. |
3 years. |
(g) Oil and waste reports. |
3 years. |
(h) Load curves, temperature logs, and coal and water logs. |
3 years. |
(i) Gage reading reports. |
2 years, except that river-flow data collected in connection with hydro-operation shall be retained for the life of the corporation. |
(j) Recording instrument charts. |
1 year, except that where the basic
chart information is transferred to another record, the charts |
(k) Load dispatcher’s and station permits. |
1 year, except that where the basic
chart information is transferred to another record, the charts |
R 460.2568a Manufactured
Gas gas plant site production records;
retention periods.
Rule
68a. The following manufactured gas plant site production
records shall be retained for the periods listed: for a minimum of 10
years past United States Environmental Protection Agency (EPA) approval of the
completed remediation or 10 years after the final remediation amounts have been
approved by the commission, whichever is longer. The company shall offer to
submit all related documents to the commission prior to their
destruction.
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R 460.2568b Rescinded. Water supply
purification and pumping records; retention periods.
Rule 68b. The following water supply purification
and pumping records shall be retained for the periods listed:
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R 460.2569a Gas transmission and distribution records; retention periods.
Rule 69a. The following gas transmission and distribution records shall be retained for the periods listed:
(a) Transmission line logs. |
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(b) Transmission and distribution department load dispatching operating logs. |
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(c) Service interruption logs and reports. |
6 years. |
(d) Records of general inspections and operating tests. |
3 years. |
(e) Reports on inspections and repairs of all street openings. |
6 years. |
(f) Apparatus failure reports. |
6 years. |
(g) Records of meter tests. |
Until superseding test, but not less than 2 years or as may be necessary to comply with service rules regarding refunds on fast meters. |
(h) Meter history records. |
For the life of the meter. |
(i) Meter shop
reports that are |
3 years. |
(j) Gas measuring records. |
1 year, unless measurement data have been disputed or adjusted. |
(k) Transmission line operating reports. |
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(l) Compressor operation and reports. |
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(m) Gas pressure department reports. |
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(n) Recording instrument charts, such as pressure (static and differential), temperature, specific gravity, and heating value. |
1 year, unless measurement data have
been disputed or adjusted; except that where charts are exchanged with
the customer and the basic information is transferred to another record, the
charts |
R 460.2569b Rescinded Underground
storage of natural gas.
Rule 69b. The following underground storage of natural gas records shall be retained for the time periods listed:
(a) Well records, reports, and logs that include data relating to pressures, injected volumes, withdrawn volumes, core analysis, daily volumes of gas injected into and withdrawn from reservoir, cushion, and working gas volumes for each reservoir. |
1 year after reservoir, field, or relevant storage area is abandoned. |
(b) Records containing information relating to reservoir gas leakage, showing the total gas leakage, and recycled gas. |
1 year after reservoir, field, or relevant storage area is abandoned. |
(c) Records on back pressure tests field data. |
1 year or until superseded. |
(d) Records on back pressure test results, gas analysis. |
1 year or until superseded. |
R 460.2572 Statistics; retention periods.
Rule 72. The following statistical records shall be retained for the periods listed:
(a) Annual financial, operating, and statistical reports regularly prepared in the course of business for internal administrative or operating purposes (and not used as the basis for entries to the accounts of the companies concerned) to show the results of operations and the financial condition of the utility. |
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(b) Quarterly, monthly, or other periodic financial, operating, and other statistical reports as above. |
2 years. |
(c) All other statistical reports not covered elsewhere in these rules which are prepared for internal administrative or operating purposes only and which are not used as the basis for entries to the accounts of the company. |
Destroy at option. |
(d) Summaries of expenditures on maintenance and job orders and clearance to operating and other accounts, exclusive of plant accounts. |
6 years. |