Document Rpkqz8qyrNLBvqOa23mxYObdV

s IKTCR-ORGANIZATIOH CORRCSPONOCNCC UNITED STATES STEEL COMPANY to Chief Accounting Officers Divisions and Associated Companies date October 13, 1952 from H. F. van Gorder yf s'v v A '< - subject Retention of Records as Required By The Hardy Act, Pnblic Law 2k$ Public Law 21*5, known as the Hardy Act, in substance, requires that on and after October 31, 1951 there shall, be inserted in all prime contracts, negotiated without advertising, a clause permitting the Comp troller General, or any of his duly authorized representatives, to audit any "directly pertinent" books, documents, papers and records of the contractor and his subcontractors at any time within three years after final payment. Because of the uncertainty that might constitute "any time " within three years after final payment," it is conceivable that large quantities of records might have to be retained far beyond your jnonsal record retentionlierioad? ~~ " ' In view of the record retention problems which we have en countered as a result of Federal Statutes and Regulations with, respect to World War H records, and in the light of our experience, we believe that all Divisions and Associated Companies should, if they have not already done so, take immediate action to provide proper segregation of those records affected by the Hardy Act. The failure to do so now will undoubtedly require, in the future, either a ranch more costly segrega tion of Hardy Act records, or, the retention of all inactive records for an indefinite period. To assist you in formulating a procedure for the earmarking, V\ segregation, and subsequent retention of these records, we are attaching\\ copies of accounting and sales procedures developed for the tfnited State Steel Company. If you have any questions concerning these procedures, or if we can be of any assistance in developing your program for the preser vation of records affected by the Hardy Act, please advise* Director, Methods Planning Division USX-1230