Workfile Requirements (AO-32)

The ETHICS RULE requirement to prepare a workfile applies to appraisals and mass appraisals performed for ad valorem taxation assignments.  An appraiser’s assignment workfile preserves evidence of the appraiser’s compliance with USPAP and other information as may be required to support the appraiser’s opinions and conclusions.

For a mass appraisal assignment, compliance with the Record Keeping section of the ETHICS RULE requires a workfile for the mass appraisal assignment, not a workfile for each property in the mass appraisal.  The workfile for a mass appraisal contains the information to support the valuation of all properties in the mass appraisal.  This supporting material may be documented in any form of media, including electronic files, and includes such items as property records, market data, sales ratios and other statistical studies, appraisal manuals and documentation, market studies, model building documentation, regulations, statutes, property photos, sketches, aerial imagery, maps, automated mapping and geographic information systems, worksheets, spreadsheets, and analysis reports.  USPAP does not dictate the form or format of workfile documentation.  There is no requirement that the contents of the workfile be held in a single location.

The retention of the workfile in support of an assignment for ad valorem taxation is governed by USPAP and may also be subject to retention schedules in the jurisdictions.  The record retention time frames referenced in the Record Keeping section of the ETHICS RULE are minimums.  Retention beyond the USPAP requirements is permitted.  Unless compelled by law or regulation, USPAP does not permit appraisers to destroy records prior to five years after preparation for any reason.  An appraiser citing a jurisdictional exception must comply with the requirements of the JURISDICTIONAL EXCEPTION RULE.