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FINANCE POLICY
The Board of Trustees may modify, amend or supplement this policy, as it deems necessary and appropriate.
BUDGET
The Fountaindale Public Library District has a board-approved written budget. This budget is developed annually as a cooperative process between the Board of Trustees, the Executive Director and additional staff members with responsibility for budgetary elements. Each year, the Board of Trustees determines if the District’s revenues are adequate to meet the needs of the community. If the revenues are not adequate to meet the needs of the community, the Board of Trustees takes appropriate action.
The District undergoes an annual audit conducted by an accounting firm experienced in working with units of local government.
ROUTINE BANKING PROCEDURES
The Executive Director or designee is authorized to make deposits into appropriate District accounts. Such deposits include, but are not limited to, the deposit of accumulated fees and fines, gifts, donations, grants and tax receipts.
The Executive Director or designee is authorized to transfer funds from one District account to another District account for payment of monthly District bills and payroll subject to any Public Library District Act restrictions.
These monthly bills are approved for payment by the Board of Trustees.
The Executive Director or designee is not authorized to receive cash from District accounts except when the Board of Trustees authorizes such action.
RECEIPTS AND DISBURSEMENTS
Receipts: All moneys received by check or cash shall be deposited promptly. All receipts including checks, cash, ACH or direct deposit should be coded and recorded to the appropriate accounts.
Disbursements: All District disbursements shall be made by means of checks drawn upon the District accounts or by ACH transfers drawn upon District accounts. All such checks shall contain any two (2) of the authorized signatures listed below:
- Board President
- Board Treasurer
- Executive Director
- Finance Manager
All such ACH transfers shall be made by two (2) of the authorized staff listed below:
- Executive Director
- Deputy Director
- Finance Manager
- Finance Supervisor
RETURNED CHECKS
A charge shall be applied to a District patron’s account for a returned check equal to the charge assessed by local banks. This fee will be reviewed periodically by the Finance Manager. Borrower privileges shall be stopped pending cash payment of this charge.
OUTSTANDING CHECKS
When a check is outstanding for more than six (6) months the Fountaindale Public Library District’s Finance Manager, or their designee, shall notify the payee by first class mail that the check was issued and is still outstanding. The letter shall indicate the check number, check date, and the amount of the outstanding check. The payee will have 30 days to claim the outstanding check.
At least once each year, the Finance Manager, or their designee, shall prepare a listing of all checks that have been outstanding for more than six (6) months in which notification was sent to the payee and the check was not claimed. A journal entry will be done to deposit the funds into the District’s unclaimed liability account.
The Finance Manager will review the listing of all checks that have been outstanding and deposited into the unclaimed liability account to determine which outstanding checks will be sent (checks dated three (3) years or older) to the State of Illinois, Unclaimed Property Division, per State Statute.
PETTY CASH
Petty cash accounts in amounts of $500 per account shall be in the form of separate checking accounts for each fund. The following petty cash funds are permitted:
- Petty Cash Fund — Finance Department
- Petty Cash Fund — Collection Management
Checks drawn upon the petty cash fund accounts shall be signed by the fund custodian or alternate custodian. The Executive Director or designee shall assign the fund custodians and alternates.
INVOICE PAYMENT PROCESS
- All appropriate invoices received by the established cut-off date will be processed for payment and presented to the Board of Trustees for approval at the monthly board meeting.
- If approved, checks will be disbursed and mailed within seven days after the board meeting.
- The Board of Trustees authorizes the payment of certain invoices prior to the board meeting, subject to the Executive Director’s approval as deemed appropriate.
- Any bills paid prior to the board meeting shall be reported at the subsequent board meeting.
- Any bills paid after the board meeting shall be reported at the next scheduled board meeting.
PREVAILING WAGE ACT
As a public body, the District is required to follow the Illinois Prevailing Wage Act. Invoices that fall under this Act must follow appropriate State of Illinois requirements.
PROCUREMENT
Purchases of the District are governed by the State of Illinois statutes. It is the policy of the Board of Trustees to, in addition to any statutory requirements, use the most responsible business practices in its purchases.
Generally, when the cost is in excess of $25,000, contracts shall be let to the lowest responsible bidder. The Board is not required to accept a bid that does not meet the District’s established specifications, terms of delivery, quality, and serviceability requirements. Contracts which, by their nature, are not adapted to award by competitive bidding, are not subject to competitive bidding, including but not limited to:
- contracts for services involving a high degree of professional skill;
- contracts for the printing of department reports;
- contracts for the printing of tax warrants or other indebtedness;
- contracts for the maintenance and servicing of equipment where the maintenance or service can best be made by the manufacturer or authorized service agent of that equipment
- contracts for the purchase, delivery, movement or installation of data processing or telecommunications equipment, software or services;
- contracts for duplicating machines and supplies;
- contracts for utility services such as water, light, heat, or telephone;
- contracts for goods or services procured from another government agency;
- purchases of equipment previously owned by some entity other than the library itself;
- contracts for goods or services which are economically procurable from only one source
- contracts for emergency expenditures when approved by 3/4 of the members of the board
USE OF CHARGE CARDS BY LIBRARY REPRESENTATIVES
The use of the charge card for purchase of equipment, materials, and services, as payment of expenses intended for the benefit of the District, and as payments related to travel on official District business as determined and approved by the Executive Director, is restricted solely to District staff. Use of the charge card for the benefit of the District is for the convenience of District staff rather than paying personal funds and seeking reimbursement.
The convenience factor of using the charge card for District purposes carries the responsibility of utilizing the District’s charge card, strictly and solely for District purposes.
All staff members assigned a District credit card are required to sign a statement upon acceptance of the card stating that personal use of the card may result in sanctions including termination of employment.
MONETARY GIFTS TO THE DISTRICT
The District welcomes cash contributions, gifts of real property, stocks and bonds. The District reserves the right to refuse any gift that it deems to be not in the best interests of the District to accept. All gifts are final with no restrictions on the District’s ownership, possession, use, or disposition of the gift. Gifts to the District are to be accepted by the Executive Director on behalf of the Board of Trustees. Gifts valued at $500 or more shall be approved by the Board of Trustees.
CONTRIBUTIONS
The Executive Director is authorized to make contributions to local organizations which advance the mission of the District. No more than one contribution per organization in a calendar year is allowed without prior approval of the Board of Trustees. The value of the contribution may not exceed $950 per organization in a calendar year without prior approval of the Board of Trustees. Marketing expenses do not count towards this limit.
DISPOSAL OF SURPLUS LIBRARY PROPERTY
The Board may dispose of real or personal property that it deems no longer necessary or useful for District purposes under the terms that the board deems best. District personal property (i.e. equipment, supplies, etc.) which is no longer necessary or useful for District purposes, may be disposed of in the following manner:
- Any District personal property having an individual current value of less than $250 may, at the discretion of the Executive Director, be discarded, traded in on new equipment, or made available for sale or auction.
- Any District personal property having an individual current value of more than $250 but less than $1,000 may, at the discretion of the Executive Director, be traded in on new equipment or made available for sale or auction.
- Any District personal property having a unit value of more than $1,000 but less than $2,500 will be displayed at the District and a public notice of its availability, the date, and terms of the proposed sale shall be posted.
- In all other cases, the Board shall publish notice of the availability and location of the real or personal property and the date and terms of the proposed sale, giving such notice once each week for 2 successive weeks. Such notice shall be published in one or more newspapers published within the District, or, if there is no such newspaper, then at least once in a newspaper of general circulation in the District. On the day of a sale conducted pursuant to the provisions of this Section the Board shall proceed with the sale and may sell such property for a price determined by the Board, or, to the highest bidder. Where the Board deems the bids inadequate, it may reject such bids and re-advertise the sale.
- Personal property of any value may be donated or be sold to any other tax supported library or to any library system operating under the provisions of the Illinois Library System Act under such terms or conditions as the Board may determine.
- No favoritism shall be shown to staff, members of the Board or members of their immediate families who make bids on or purchase any District items declared surplus.
CONFLICT OF INTEREST
Trustees and employees shall use good judgment and exercise discretion in all matters to avoid a conflict of interest situation.
EXPENSES
- The District shall reimburse members of the Board for actual and necessary expenses incurred in conducting official business on behalf of the district as determined and approved by the Board.
- The District shall reimburse any staff member for actual and necessary expenses incurred while on official District business as determined and approved by the Executive Director.
- All expenses incurred by members of the Board of Trustees attending district related conferences, meetings and workshops will be paid for by District as the budget allows.
- Reimbursements in this section will be subject to the Local Government Travel Expense Control Act, 50 ILCS 150/1 et seq
BONDING AND LIABILITY
- The Executive Director and Board Treasurer have the delegated authority to take necessary steps to buy and sell investments on behalf of the District with Board approval. Because of this responsibility, they are to be properly bonded and/or insured.
- When investments are made in accordance with this policy, the Executive Director and Board Treasurer shall not be held liable for a loss resulting from default or insolvency of a depository of District funds.