Policies related to the library's finances

Discretionary Investment Fund Policy

The Discretionary Investment Fund, established by the Board of Trustees January 20, 2000, contains monies that have not been restricted by donors for the Endowment or Building Expansion Funds and are not included in the Gifts and Memorials account

. Any unrestricted donor gifts may be deposited in this account as designated by the Board.

The Discretionary Investment Fund is a “board designated unrestricted fund.” This means the Board has designated these funds to be an investment account, which can be utilized, as the Board sees fit. At this time, the principal of this fund shall remain intact until the Board decides how it is to be used. Earnings of the fund may be applied to the operating budget.

The Discretionary Investment Fund will be invested and managed according to the Investment Policy of the Scarborough Public Library Corporation.

The Treasurer will review this policy annually and recommend revisions as necessary.


Approved March 16, 2000
Revised July 18, 2002

Endowment Fund Policy

The Endowment Fund is a “permanently restricted” fund. The principal in this fund shall remain permanently intact in perpetuity or until the occurrence of a specified event, or for a specified time as described in the terms of the endowment gift.

Sub-accounts may be included in this fund with interest tracked on a prorated basis. Only funds that are designated by the donor as being contributed specifically to the “endowment” fund may be placed in this fund.

Earnings from the Centennial Endowment Account within this Fund will be reinvested until a $1 million goal is reached (per Long-range Plan). When the Fund principal is $1 million, the earnings from the Fund will be available to supplement first, asset purchases, and secondly, the Library operating budget as deemed appropriate by the Board of Trustees at that time and pursuant to donor restrictions.

The Endowment Fund will be invested and managed according to the Investment Policy of the Scarborough Public Library Corporation.

The Treasurer will review this policy annually and recommend revisions as necessary.


Approved March 16, 2000

Finance Committee Responsibilities

The Finance Committee shall oversee the financial operations of the Corporation.

The Finance Committee shall oversee the financial operations of the Corporation.

The Committee will:

  • Review financial procedures and policies annually and make recommendations to the board for change as needed;
  • Review with the Director the assumptions made in the annual budget and request information as appropriate;
  • Coordinate activities with other committees as needed when those activities may impact budget projections or planning, for example changes in benefits or personnel;
  • Prepare with staff assistance, the annual operating budget and present to the Board for consideration following the time frame in the “Perpetual Calendar” and by the Town of Scarborough;
  • Make recommendations to the board for adjustments to the budget as needed within a fiscal year;
  • Represent the Board at all workshops and meetings with the town as requested during budget deliberations or at other times when financial discussions may occur;
  • Arrange for the annual independent review of the corporation’s internal controls, financial records and reports;
  • Review the annual audit report and address any comments made by auditors;
  • Provide the Board with information and education regarding its fiduciary responsibilities;
  • Select a representative from the Committee to serve on the Investment Committee;
  • Review insurance coverage for adequacy.

Appropriate skills and characteristics for Finance Committee

  • ƒAt least three Trustees one of whom shall be the Treasurer.
  • Those with a background in accounting, banking or business.
  • The Library Director will be the staff liaison and will facilitate communication with the bookkeeper and auditor.

 

 

April 10, 2003