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

Investment Funds Spending Policy

On an annual basis, the Finance Committee, in consultation with the Investment Committee, will recommend to the Board of Trustees how much income will be withdrawn from the investments to support the operating budget for the ensuing year.

The spending rate will not exceed 5% of the total discretionary funds measured each June 30, based on the three-year rolling average of the market value of the funds. Discretionary funds do not include the principal or earnings of the Endowment Fund or the Lucien Libby and Miriam Boothby Funds or any other funds received by the Library that are restricted for a specific purpose; however, unless otherwise stated, the Library may consider any earnings from such funds a s non-discretionary. 

From Investment Policy - Approved May 15, 2008, Amended June 17,2010, 
Spending policy amended January 19, 2012, Renewed June 21, 2018 

Operating Reserve Policy

At a minimum, the Operating Reserve balance of the Scarborough Public Library Corporation shall be one twelfth of the current Library budget. This will provide sufficient cushion to pay one month of Library operating expenses, in the event of an unforeseen emergency.

The Board shall review the adequacy of the amount of unrestricted fund balance at least annually.

Replaces Unrestricted Fund Balance Policy 2/15/96

Approved March 15, 2001, Amended 6/21/2018

Policy on Signatories for Bank Accounts

Signatories on the accounts in the name of the Scarborough Public Library Corporation shall include the Director of the Library, the Chairperson of the Scarborough Public Library Board of Trustees and the Treasurer of the Scarborough Public Library Board of Trustees. 


Approved by the Board, October 21,1999, Renewed 06/21/2018