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FINANCIAL POLICY

The Berthoud Community Library District establishes this financial policy to ensure fiscal
accountability, appropriate use of funds in support of the BCLD’s mission and goals, and
compliance with appropriate laws and ordinances.

Budgeting and Reporting

  1. 1. The Library CEO, Board President, and additional staff members with responsibility for budgetary elements will develop a calendar year budget for Board review and adoption to meet legal requirements.

  2. On a monthly basis, staff will present a list of all expenditures to the Board for review
    and acceptance. The Board may ask to see receipts for any purchases at any time.

  3. Staff will also, on a monthly basis, present a monthly financial report showing the status of all accounts and funds. This report will clearly present the financial position of BCLD and should indicate the current position of each budgetary line item including budgeted amount, expenses by vendor, monthly and year to date expenditures, and remaining budget.

  4. All BCLD financial records will be submitted to audit by an independent firm on an
    annual basis.

  5. BCLD finances will be annually reported to the State of Colorado as required by laws
    governing Colorado libraries.

Revised 6/8/16; 8/12/2020; 8/9/2023; 11/13/24

Budgeting and Reporting

  1. The checking and savings accounts held by BCLD shall have the signatures of the
    Library CEO and Board President on file. All investment accounts and a safe deposit box (if needed) shall have the signatures of the Board President on file.

  2. The Library CEO is authorized to sign all checks, including payroll, with the exception of
    any checks written to the CEO. Such checks will require the signature of the Board
    President.

  3. The Library CEO is authorized to spend:

    • a. Up to $1500 on any single budgeted item or invoice without prior Board

      Approval.

    • b. Between $1500.01 and $9,999.99 on any single item only with approval of the

      full Board without a bid.

    • c. $10,000 or over only after completing the formal bid process as described in

      Colorado law.

  4. The Library CEO is authorized to make deposits in the appropriate BCLD accounts and

    to transfer funds between library accounts for payment of monthly library bills. Any
    such transfer will be reported to the Board at the next regular meeting of the Board of
    Trustees.

  5. In case of emergency (safety or security), the Library CEO may expend necessary funds
    with the approval of any two Board members and will be reported to the Board at the
    next regular meeting of the Board of Trustees..

  6. The Library CEO shall be authorized to maintain charge accounts at necessary suppliers, and to open a debit and credit card in BCLD’s name for the purpose of purchasing needed materials for BCLD.

Disposal of Property

  1.  Withdrawn library materials and materials donated but not added to the collection will be offered to the Friends of the Library to raise funds for projects. Items deemed unfit for
    sale may be discarded at the discretion of the CEO without Board approval.

  2. All other BCLD property disposal valued above a sale value of $5,000 must be approved by the Board. Items deemed unfit for sale may be discarded at the discretion of the CEO without Board approval.

Grants and Donations

  1.  Withdrawn library materials and materials donated but not added to the collection will be offered to the Friends of the Library to raise funds for projects. Items deemed unfit for
    sale may be discarded at the discretion of the CEO without Board approval.

  2. All other BCLD property disposal valued above a sale value of $5,000 must be approved by the Board. Items deemed unfit for sale may be discarded at the discretion of the CEO without Board approval.

Investment Policies

  1. The BCLD’s monetary assets are accounted for in the various funds of BCLD and shall include the General Fund, Building Fund, and any other fund or investment established by the Board.

  2. Investment of these funds shall be based on the following objectives: safety,
    maintenance of sufficient liquidity to meet current obligations, return on investment, and simplicity of management. BCLD funds will be invested in accordance applicable
    Colorado law, this policy and any other applicable BCLD policies.

  3. The Library CEO shall be considered the investment manager. The manager shall
    organize, control, and make decisions relating to cash flow needs and investments
    opportunities.

  4. The standard of prudence to be applied by the investment manager shall be the Prudent Investor Rule, which states that investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable
    income to be derived. This rule shall be applied in the context of managing the overall
    portfolio. The Manager, acting in accordance with this policy and exercising due diligence, shall not be held personally responsible for specific investment transactions, a security’s credit risk, or market price changes.

  5. The Board shall have the right to approve or deny new investment accounts.

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