ILA Fiscal Policy and Procedures

6010 Fiscal Policy Review

This fiscal policy should be reviewed biannually by the treasurer and the Finance Committee.

The fiscal year of the Illinois Library Association is July 1 to June 30. (Bylaws: Article IV, Section 1) 

6011 Executive Board

The governing body of the association shall be an elected Executive Board comprised of the ALA Councilor who shall serve a four-year term and fifteen directors, each of whom shall serve a three-year term or until successors are qualified. The association's executive director and the director of the Illinois State Library shall be nonvoting members of the Executive Board. (Excerpted from Bylaws: Article V, Sections 1 & 2)

The Executive Board shall adopt, implement, and enforce all plans, policies, and budgets for the association and coordinate all activities of the association. (Bylaws: Article V, Section 3)

The Executive Board, through its allocation of funding in the annual budgeting process, shall determine the resources to be available to various individuals and groups involved in the management of the association. (Bylaws: Article XII, Section 3)

The officers of the association shall be the president, the vice-president, immediate past president and the treasurer. (Bylaws: Article VI, Section 1)

The president shall preside at all meetings of the Executive Board, and shall chair all meetings of the association membership. The president shall serve as the principal spokesperson for the association. (Bylaws: Article VI, Section 3.1) 

The vice-president shall assist the president as called upon and shall assume the duties of the president in the president's absence. (Bylaws: Article VI, Section 3.2) 

The treasurer shall oversee all the financial activities of the association. (Bylaws: Article VI, Section 3.3)

The Executive Committee will consist of the officers and the executive director. The immediate past president will chair the Executive Committee. (Bylaws: Article VII, Section 1)

The Executive Committee shall oversee the implementation of association plans and conduct of association activities during the intervals between meetings of the Executive Board. (Bylaws: Article VII, Section 2)

The Executive Committee shall assign duties and responsibilities to the executive director and to association members consistent with adopted plans and budgets. (Bylaws: Article VII, Section 3)

The Executive Committee shall not assume the planning, budgeting, or policy-making responsibilities of the Executive Board, and shall in all cases be bound by the decisions and policies of the Executive Board. (Bylaws: Article VII, Section 5)

6012 Treasurer -- Responsibilities

The treasurer serves as the chair of the Finance Committee. 

The treasurer shall submit an annual report on the financial condition of the association to the membership at the annual meeting, and this report shall be placed in the association archives. (Bylaws: Article VI, Section 3.4)

The treasurer proposes fiscal policy and presents financial reports generated by the ILA Office. The following documents should be included in these reports on a monthly basis: the current budget status, a balance sheet showing all cash assets and liabilities, and a summary statement of income and expenses for the time period covered by the report.

In addition to these reports, accounting and special reports shall be presented concerning the financial status of projects, fund balances and other activities that produce cash receipts and expenditures. Detailed records of income and expenses shall be available in the Executive Office.

The treasurer, in consultation with the Finance Committee, shall prepare a written report within thirty days of the close of the fiscal year. The executive director will make this annual report available to the membership through an ILA publication.

The treasurer, in consultation with the Finance Committee and the executive director, shall oversee the association's investments in savings certificates, treasury bills, or other federally-insured, income-producing investments when cash assets allow such investments without jeopardizing the association's ability to conduct current business.

6015 Finance Committee

The Finance Committee is an administrative committee which consists of the treasurer and a minimum of four other members drawn from the Executive Board. Committee members are appointed to two-year, staggered terms. The president and the executive director serve as ex officio members.

The Finance Committee reviews all fiscal policies and procedures, responding to direction from the Executive Board. The Finance Committee serves as the consulting body for the treasurer, the Executive Board, and the executive director in such areas as association investments, the budget, and other financial concerns of the association.

6016 Executive Director -- Fiscal Responsibilities

The executive director shall administer the activities and business affairs of the association under the direction of the Executive Board and Executive Committee. (Bylaws: Article VIII, Section 2)

The Executive Office under the direction of the executive director shall have custody of the ledgers, account books, check books, deposit records, vouchers, pass books, and other documents pertinent to the association's fiscal matters. Such records shall be regularly updated and available to any member of the association upon reasonable notice and during office hours.

The executive director shall administer all cash receipts and disbursements in accordance with policies established by the Executive Board.

The executive director shall collect data for consideration in the budget process; arrange meetings, hearings, etc.; draft a recommended budget; disseminate budget information; and in other ways work with the Finance Committee and the Executive Board to facilitate the function of budget review and control.

The executive director shall, in consultation with the treasurer and the Finance Committee, administer the association's investments in savings certificates, treasury bills, or other federally-insured, income-producing investments when cash assets allow such investments without jeopardizing the association's ability to conduct current business. 

The Executive Office financial staff shall assist the treasurer in presenting monthly reports to the Executive Board at regularly scheduled board meetings. Generally, the following documents shall be included: a current budget comparison, a balance sheet showing all cash assets and liabilities, and a summary of income and expenses.

Special reports and accounting shall be made as required on the financial status of projects, fund balances, and other nonbudget activities that produce cash receipts and expenditures. 

The executive director shall provide the forum managers and committee chairs with quarterly financial reports outlining the operational expenses.

Authorization for payment of expenses from approved office budget shall be the responsibility of the executive director.

The executive director shall be responsible for meeting deposit and filing requirements of state, local, and federal agencies. These include: 

Comprehensive insurance is to be maintained for the Executive Office, including liability, theft, fire, worker's compensation, employee and officer dishonesty, and other types of insurance as deemed necessary by the Executive Board.

Directors and officers insurance shall be maintained by the association.

The executive director is authorized to contract for policies after board approval. All insurance programs should be reviewed annually by the executive director.

6017 Suspected Misconduct and Dishonesty

Introduction

Like all organizations, the Illinois Library Association (ILA) is faced with the risks that come from wrongdoing, misconduct, dishonesty, and fraud. As with all business exposures, we must be prepared to manage these risks and their potential impact in a professional manner.

The impact of misconduct and dishonesty may include:

• The actual financial loss incurred

• Damage to the reputation of our organization and to our employees

• Negative publicity

• Cost of investigation

• Loss of employees

• Loss of customers

• Damage to our relationship with our suppliers or contractors

• Litigation

• Decrease in employee morale

ILA’s goal is to establish and maintain an environment of fairness, ethics, and honesty for our employees, officers, customers, suppliers, and anyone else with whom we have a relationship. To maintain such an environment requires the active assistance of every employee and officer every day.

ILA is committed to the deterrence, detection, and correction of misconduct and dishonesty. The discovery, reporting, and documentation of such acts provides a sound foundation for the protection of innocent parties, the taking of disciplinary action against offenders up to and including dismissal where appropriate, the referral to law enforcement agencies when warranted by the facts, and the recovery of assets.

Purpose

The purpose of this document is to communicate association policy regarding the deterrence and investigation of suspected misconduct and dishonesty by employees, officers, and others, and to provide specific instructions regarding appropriate action in case of suspected violations.

Definition of Misconduct and Dishonesty

Misconduct and dishonesty include but are not limited to:

• Theft or other misappropriation of assets, including assets of the organization, our customers, suppliers, or others with whom we have a business relationship.

• Misstatements and other fraud in our organization’s records, including intentional misstatement of the financial position or results of operations.

• Forgery or other alteration of documents

• Fraud, including misappropriation of assets, and other unlawful acts

• Other wrongdoing

The association specifically prohibits these and any other illegal activities in the actions of its employees, officers, and others responsible for carrying out the association’s activities 

Policy and Responsibilities

Reporting

It is the responsibility of every employee or officer to immediately report suspected misconduct or dishonesty to the ILA Executive Director (or directly to the ILA President, if more appropriate). The ILA Executive Director, when made aware of such potential acts by subordinates, must immediately report such acts to the ILA President. Any reprisal against any employee or other reporting individual because that individual, in good faith, reported a violation, is strictly forbidden.

Due to the important yet sensitive nature of suspected violations, effective professional follow-up is critical. Employees or officers, while appropriately concerned about “getting to the bottom” of such issues, should not in any circumstances perform any investigative or other follow-up steps on their own. Concerned, but uninformed, employees or officers represent one of the greatest threats to proper incident handling. All relevant matters, including suspected but unproved matters should be referred immediately to the Executive Director (or directly to the ILA President, if more appropriate) for follow-up.

Additional responsibilities of the Executive Director

The Executive Director has three additional responsibilities. 

First, be aware of what can go wrong in your area of responsibility.

Second, establish and maintain monitoring, review, and control procedures that will prevent acts of wrongdoing.

Third, establish and maintain monitoring, review, and control procedures that detect acts of wrongdoing promptly should prevention efforts fail.

Assistance in effectively carrying out these responsibilities is available through ILA’s accountant and the treasurer. 

Responsibility and authority for follow-up and investigation

The Finance Committee has the primary responsibility for all investigations involving fiscal misconduct and dishonesty. The committee may request the assistance of the external auditors, including review of the external auditor’s annual examinations and evaluations of internal controls.

The Finance Committee will have:

• Free and unrestricted access to all records and premises, whether owned or rented.

• The authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities (whether in electronic or other form) without the prior knowledge or consent of any individual who might use or have custody of any such items or facilities when it is within the scope of investigative or related follow-up procedures.

All investigations of alleged wrongdoing will be conducted in accordance with applicable laws and ILA’s Fiscal Policy and Procedures.

Reported incident follow-up procedure

Care must be taken in the follow-up of suspected misconduct and dishonesty to avoid acting on incorrect or unsupported accusations, to avoid alerting suspected individuals that follow-up and investigation is underway, and to avoid making statements that could adversely affect the association, an employee, officer, or other parties.

Accordingly, the general procedures for follow-up and investigation of reported incidents are as follows:

Investigative or other follow-up activity will be carried out without regard to the suspected individual’s position, level, or relationship with the association.

Questions or clarifications related to this policy

All questions or other clarifications of this policy and its related responsibilities should be addressed to the association’s legal counsel, who shall be responsible for the administration, revision, interpretation, and application of this policy.

 

6018 External Auditors

The accounts of the association shall be audited annually by an auditor selected by the Executive Board. (Bylaws: Article XVIII, Section 1)

The annual audit report should be presented to the treasurer, the president, and the executive director by an audit firm. It will be the responsibility of the Treasurer and the Executive Director to present the audit report to the Finance Committee and the Executive Board.

The audit will be reviewed by the Finance Committee and any recommendations made to the Executive Board by the auditor will be addressed and appropriate action taken within the fiscal year. The audit report shall include a review of the treasurer's quarterly reports, shall check compliance with regulatory agency requirements, shall attest to the reliability of the system's internal control, and shall attest to the efficiency of the Executive Office in administering the affairs of the association. 

The day-to-day records of the association shall use the accrual method of accounting.

6020 Account Series for Financial Records

Account series numbers vary from year to year and are determined by ILA accountants.

6021 Books And Records To Be Maintained

The following books and records will be maintained by the association as required by the Internal Revenue Service and other government agencies:

Cash Receipts

Cash Disbursements

General Ledger

General Journal

Accounts Receivable

Accounts Payable

Payroll Records

Membership Roster

Office Equipment Records

Investment Records

Inventory Records

Permanent Records

Annual Reports

Articles of Incorporation

Audited Financial Statements

Check Registers

Constitution and Bylaws

Correspondence--legal/important matters only

Depreciation Schedules

General Journals

Tax Returns/Payment Checks

Illinois Annual Reports

Insurance Records

Inventory Records--claims/policies/accidents

Office Equipment

Membership Rosters

Minutes and Resolutions

Newsletters (one copy)

Board & Annual Membership Policies & Procedures

Publication Samples--current version

Ten Years

Budgets

Purchase Invoices

General Ledgers

Three Years

Correspondence--general

Insurance Policies--after expiration

Investment Records

Payroll Records

One Year

Correspondence--routine

6022 Internal Financial Reports

Designated financial reports outlining operational expenses shall be provided quarterly to the forum managers and committee chairs.

6030 Budget Development, Review, and Approval

The Finance Committee submits the budget for the Executive Board's approval at the last Executive Board meeting of the fiscal year. In preparing the budget, the Finance Committee reviews the financial needs of the organization, taking into consideration the priorities of the association's strategic plan and the budget proposals submitted by forum managers, committee chairs, and the executive director.

The Finance Committee shall meet in sufficient time prior to the last Executive Board meeting of the fiscal year in order to incorporate program and operational expenses into the framework of the preliminary budget.

All activities and events sponsored by the Illinois Library Association or groups within the association must be planned as cost-recoverable. Activities that do not comply with this guideline must be approved by the Executive Board. Regarding the association's activity priorities, the Finance Committee must also formulate recommendations on the amount of nonrecoverable funds available to the forum managers and committee chairs each year.

Budget revisions must be approved by the Executive Board.

6040 Dues

The categories of and dues for the association personal and nonvoting members shall be determined by the Executive Board subject to approval of two-thirds of the personal members present and voting at the annual meeting, provided that written notice of proposed changes has been given to all members at least three weeks, but not more than sixty days, in advance of the meeting. (Bylaws: Article XI, Section 1)

The current dues schedule shall accompany all applications for membership in the association.

Membership in the association is based on anniversary dates.

6050 Bank Accounts

The association shall maintain at least two months operational expenses in a readily accessible account from which withdrawal may be made without penalty.

The remainder of all association assets shall be invested in government-insured, high interest-bearing accounts or certificates as determined by the Treasurer in consultation with the executive director.

All cash receipts shall be deposited in an association interest-bearing account and credited to the appropriate ledger account, which is reviewed by the executive director.

Withdrawal or transfer of funds from the association savings/investment account will require the signature of the executive director.

Checks drawn on the association checking account require the signature of the executive director or any officer of the association. Checks in excess of $7,500 or made payable to the executive director require two signatures. (Payroll related checks excepted.)

Wire transfers from the association checking account in excess of $5,000 shall be initiated by the executive director and confirmed by the bank with a phone call to any officer of the association.

6051 Unrestricted Net Assets

It shall be the goal of the association to build and maintain unrestricted net assets which, at the end of a given year, are equal to a minimum of fifty percent (50%) of the association’s total budgeted expenses for the following year. These monies shall constitute ILA’s operating reserve and shall be used to provide for temporary cash flows exigencies as well as to meet unexpected or emergency needs that severely impair the association’s ability to operate. Ten percent (10%) of the net proceeds from workshops/projects, conferences, and IREAD shall be dedicated to the building and maintaining the operating reserve and shall be transferred into the association’s pool of long-term investments. 

The following categories of funds shall neither be counted as part of the association’s operating reserve nor in any way affect the annual determination of how large the reserve should be: cash awards conferred or bestowed on the basis of merit, such as the World Book/ALA Goal Award; cash contributions given for a special or extraordinary purpose; grants which fund special projects; and the ILA Endowment Fund principal.

Unrestricted gifts, which have not been designated for use by the Executive Board within twelve months of receipt will be transferred into the association’s pool of long-term investments.

6060 Short-term Investment Policy

The primary consideration for the investment of the association's funds is security; the second most important is liquidity; the third most important is maximizing the yield.

The treasurer, in consultation with the executive director, shall administer the association investments when cash assets allow such investments without jeopardizing the association's ability to conduct business.

The investments shall include, but not be limited to the following: mutual funds invested in U.S. government-backed securities or GNMA funds; obligations of the U.S. government and its agencies; Federal Money Market Fund; and certificates of deposit issued by U.S. government-insured financial institutions. The Board should appoint an Investment Broker to work with the association staff and treasurer in developing an investment portfolio to meet the association’s needs.

A complete record of all investments, including bank or other holding agency, amount of investment, account number or other identification, interest rate, maturity date, conditions for withdrawal and other pertinent information shall be on file in the Executive Office.

Income from all association investments shall be deposited to the general fund.

6061 Long-term Investment Policy

Founded in 1896, the Illinois Library Association (ILA) is a 501(c) (3) charitable and educational organization. The association represents all types of libraries -- public, school, academic, and special libraries serving government, commerce, the armed services, hospitals, prisons and other institutions. Its members are primarily librarians and library staff, but also trustees, publishers, and other supporters.

The Illinois Library Association is the voice for Illinois libraries and the millions who depend on them. It provides leadership for the development, promotion, and improvement of library services in Illinois and for the profession of librarianship, in order to enhance learning and ensure access to information for all.

The association is governed by a fifteen-member Executive Board, made up of elected officers. The main sources of income are: membership dues, continuing education fees, and the sales of published materials.

The Invested Funds of the Illinois Library Association, hereinafter referred to as the “Fund,” is an investment portfolio generated from the net surpluses of the association in prior years.

The Fund is held as an asset of the association under the authority of the Executive Board, hereinafter referred to as the “Board,” for the express purposes of providing investment income to support the programs and services of the association, to serve as a reserve source of funds in the unforeseen event of a financial catastrophe or deficit, and to build the assets of the association through reinvestment and capital appreciation.

The Fund shall not contain any assets that may be restricted as regards their investment or disposition. The Board is responsible for the implementation of and adherence to the policies and objectives of the Fund as set forth in this document.

The Board may retain professional investment management to manage the investments of the Fund and to provide advice and counsel in such matters.

  1. Rate of Return Objectives: The Fund is expected to achieve, over the measured period as defined in Paragraph B 4, a Total Rate of Return which exceeds the blended benchmark return for the asset allocation of the fund gross of investment advisory fees net of investment management fees. The Total Rate of Return is defined as all dividends and interest and all realized and unrealized gains and losses net of all investment manager.

  2. Cash Income Requirements: Since there are no immediate liquidity demands on the Fund, the source of investment return is not important. There is no preference for cash income as opposed to capital appreciation.
  3. Relative Performance: In addition to the Real Rate of Return objective stated above, total investment return for each fund over a market cycle is expected to be in the top half of the peer group and appropriate benchmark for each investment.
  4. Measured Period: For purposes of measuring a rate of return over a market cycle, the measured period shall be no less than three nor more than five calendar years.
  5. Fiduciary Standards: The assets of the Fund are to be invested and managed in a fashion that is consistent with generally accepted standards of fiduciary responsibility. The safeguards that would guide a prudent investment manager are to be strictly observed. All transactions utilizing assets of the Fund are to be undertaken for the sole benefit of the Fund and the association. All regulations specific to the State of Illinois will be observed.
  6. Permissible Investments: Assets of the Fund may be invested only in publicly-traded common and preferred stocks, exchange traded funds, convertible bonds, and fixed income securities, whether interest bearing or purchased at discount, including money-market instruments, subject to any restrictions hereinafter specified. In addition, mutual funds may be utilized for investment of fund assets. No other securities or instruments shall be presumed to be permissible investments without prior written approval of the Board.
  7. Asset Allocation: The long-term financial requirements of the association and preference of the Board imply a portfolio of investments, placing heavy emphasis on equity securities because of their superior total return characteristics over full market cycles. The Board recognizes, however, that there may be times when fixed income investments may also be an appropriate asset class for the Fund because of their superior current income and safety of principal characteristics. Therefore, the asset allocation policy for the Fund shall be as follows:

Asset AllocationMaximum %Minimum %

Equities (including90%50%

short-term buying

reserves)

Fixed Income 50%10%

Under normal circumstances it is the Board’s intention to have the Fund substantially invested in equity securities

a. Equity Investments: The Board has a strong preference for “no-load” mutual funds. The Board believes that the use of equity mutual funds and exchange traded funds will provide professional management, broad diversification, and relative cost efficiency considering the modest size of the Fund. The mutual funds selected, weighted by the proportion each investment bears to the total equity investment mix, shall reflect an overall risk and return profile similar to that of the S&P 500 Index.

b. Fixed Income Investments: The fixed income assets of the Fund shall be invested with Money Markets, CD’s, U.S. Government Bills, Notes and Bonds, Corporate Bonds rated A or better, Exchange Traded funds, and Bond Mutual funds. 

D. Investment Management:

1. Investment Management: The Board, at its discretion, may retain the services of one or more professional, licensed, investment consultants to assist in the implementation of the Board’s stated investment policy. A copy of this policy shall be provided to the investment consultant(s). Any fees shall be set forth in a letter of agreement between the association and the consultant(s).

2. Operating Procedures: The executive director is hereby authorized to carry out and implement the directions of the Board with respect to the investment of Fund assets.

E. Review and Amendments

1. Review and Amendments: The Board, or its appointed Committee, shall review this policy annually to determine if amendments or modifications are appropriate. Amendments, when approved, shall be communicated promptly to all interested parties.

2. Management Reporting: Any consultant(s) retained by the Board shall be present for one regular or special meeting of the Board each year. They will review the performance of the Fund within the context of the Investment Policy and Objectives and will make recommendations as to any desirable changes in the overall investment strategy. The consultant(s) will also make recommendations regarding any changes in investment policy deemed appropriate.

6063 Temporarily Restricted Net Assets

The Association reports gifts of cash and other assets as temporarily restricted if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets. When the assets are depleted, the fund is eliminated. The Association, as of June 2014, has the following temporarily restricted funds: Hugh C. Atkinson Memorial/Demco Award; de Lafayette Reid Fund for Continuing Education; Robert R. McClarren Legislative Development Award; the Deborah Dowley Prieser Marketing Award; Legal Defense Fund; and the Sylvia Murphy Williams Fund.

6065 Endowment Fund

  1. Establishment: The Executive Board (hereinafter “the Board”) of the Illinois Library Association (hereinafter “ILA”) has resolved to establish and maintain an Endowment Fund for Illinois libraries.
  2. Purpose: The purpose of the Endowment Fund is to support Illinois libraries and specifically, to be used to account for the receipt, investment, and the disposition of resources donated to ILA when such gifts are made with the stipulation that only the income earned from the investment of the donated assets may be spent.
  3. Use of Proceeds:The interest earned by the Endowment Fund (herein “proceeds”) will be used by ILA to:

• provide resources to develop, promote and improve library services in Illinois;

• enhance learning and ensure access to information for and through Illinois libraries;

• shape the future of libraries by advocating for the development of public policy and legislation, and promoting intellectual freedom; and

• support educational programs designed to develop library leaders.

     4. Donor Agreements: Although ILA will adopt and utilize a standard form for Donor Agreements incorporating the general terms of this policy, the Executive Committee is authorized to negotiate the specific terms of any modified agreement with a donor when advisable and when the donor wishes to make a restricted gift or a gift of appreciated property, or limit the use of the respective proceeds. Such modified Donor Agreements must be in writing and are subject to the approval of the Board. Once such agreements are approved by the Board, the ILA executive director may execute the agreement on behalf of ILA.

     5. General Terms:All information about donors or prospective donors, including names, beneficiaries, gift amounts, estate sizes, and so forth shall be kept strictly confidential by ILA and its authorized personnel unless permission is obtained from the donor to release such information. In order that proper and appropriate recognition and appreciation can be devoted to donors, ILA personnel may encourage donors to give such permission, but any donor limitations shall be honored.

Donors should be advised to seek legal counsel for all aspects of proposed gifts whether by devise, trust agreement, contract, or other legal document. The donor should consult with an attorney on matters relating to both estate planning and the tax liability of a gift.

The principal amount of the perpetual endowment gifts must remain intact in the Endowment Fund in perpetuity. Income from such gifts, the proceeds therefrom will be available for expenditure or reinvestment. The gifts in the Endowment Fund bear legal restrictions that the Board ordinarily cannot alter except as permitted by the donor, the Donor Agreement or applicable state or federal law.

If ILA receives appreciated property as a gift for the Endowment Fund, the Board will sell the property as soon as prudently possible, with the advice of the investment manager. The proceeds from the sale shall then be invested through the Endowment Fund. 

Endowment gifts may be restricted or unrestricted as to the ultimate disposition of income earned. In order to restrict the use of funds earned from a gift, the donor must donate a minimum of $100,000. Each restricted gift of $100,000 and above will have a separate accounting entry. The principal amounts of each restricted fund will be readily identifiable, the income earned during each accounting period will be readily identified with the fund that produced it and the ultimate expenditure of such restricted income must be traceable.

     6. Fund Management: The Endowment Fund is used in a legal and accounting sense to account for resources obtained from outside donors or grantors who have placed restrictions on the use of either the principal amounts of their gifts and grants or the proceeds or income earned on those principal amounts. Other ILA designated funds are not generally included within this group of funds for accounting purposes.

For financial management purposes, the Endowment Fund may be invested with other ILA funds, such as reserve funds, to facilitate the integration of operational and investment cash flows with long term asset planning. If the Endowment Fund is integrated with other ILA funds, the Endowment Fund must be separately identifiable through generally accepted accounting practices and procedures.

The ILA Board shall select an investment manager who will recommend an investment strategy for the Endowment Fund. This professional will guide the Board, so that the endowment portfolio is invested under the guidelines set up in ILA’s Investment Policy.

     7. Spending Policy: All endowment earnings should be appropriated for expenditure.

     8. Termination:If ILA joins in a federation with other state associations, the Endowment Fund shall be transferred with other ILA assets and liabilities to the new federation, but the Endowment Fund shall be restricted in its use and operation to be used for the same purpose or purposes as set forth in this policy and the applicable Donor Agreements. If ILA is disbanded or dissolved, the Endowment Fund shall be transferred to the 501(c)3 foundation of the American Library Association for perpetuation of the purposes for its establishment. 

6070 Workshops

Budget formulation is the responsibility of the appropriate manager (or individual designated by a manager) planning or chairing the event. All workshops must be planned on a cost recovery basis. Nonmembers shall be charged a higher registration fee than members. The association will assess a $15 registration/administrative fee per registrant for all events handled by the ILA office.

All bills must be submitted to the ILA office within sixty days of the event to receive payment.

6076 Outside Funding

A forum manager, committee chair, or any group within the association must obtain executive director approval prior to applying for or seeking any special funding or grant from a federal, state, or other outside agency.

The Executive Board shall be notified of all requests for special funding or grants from any federal, state, or outside agency.

Evaluating Project Feasibility

1) Is the proposed project conceptually appropriate?

___ Does it fit within the parameters of ILA’s mission and strategic plan?

___ Does it provide necessary resources to ILA in the form of any or all of the following:

___  Does it constructively promote ILA and Illinois libraries?

___  Does it provide needed services to ILA and/or Illinois libraries?

____ Does it provide needed revenue to ILA and/or Illinois libraries?

____ Do the pros of pursuing the grant/project outweigh the cons?

 

2) Is the proposed project realistic?

___ Are deadlines for submitting the proposal realistic?

___ Has the feasibility of the proposal been determined through direct contact with the granting organization and/or through other means of evaluation?

___ Are the grant writing, management, and reporting requirements manageable?

___ Are staffing levels sufficient to successfully write, conduct, and report on the grant project?

___ Are staff hours considered a match or in kind contribution?

___ Have the following responsibilities been appropriately delegated to an ILA representative and/or partnering agency?

                                                                        Person/Agency assigned to task:

Writing the grant proposal                                    _________________________

Carrying out all project activities                         _________________________

Fiscal administration                                             _________________________

Fulfilling reporting requirements                         _________________________

Coordinating overall grant administration         _________________________

 

Requirements Checklist:

If ILA determines that a proposed grant or project is both conceptually appropriate and realistic, prospective project partners or projects must meet the following requirements before submitting a proposal involving ILA:

___ If ILA is to administer a grant and/or bear responsibility for its execution, a minimum of 10-30 percent of project funds (or other reasonable amount determined by the ILA Executive Director or designee) should be allocated for associated administrative tasks, included but not limited to time allocated to grant writing, reporting, budgeting, record-keeping, etc.

___ Any in-kind costs potentially incurred by ILA must be revealed to and agreed upon by the ILA Executive Director or designee before any grant proposal involving ILA is submitted to potential funder(s).  

___ Exempting any in-kind costs agreed to by the ILA Executive Director, project funds should cover all costs incurred by ILA for project expenses such as, but not limited to: accounting; human resources; information technology; telecommunications services; equipment; promotional materials; supplies; travel.

___ Either the grant funding must fund appropriate staffing levels to complete the project, or partners must provide appropriate staffing to carry out the funded activities without putting an undue burden on ILA staff.

___ The roles of each partnering entity must be agreed upon and clearly spelled out in the grant itself, and/or in a memorandum of understanding.

6078

Membership Benefit Programs

The Illinois Library Association may sponsor certain member benefit programs designed to provide a savings or other such benefit to association members. Through these programs certain products or services may be offered to members at a discount. The sponsoring of member benefit programs implies no Association endorsement of these products or services or similar products or services offered by others.

  1. Program guidelines

A member benefit program is defined as one which extends to ILA members, as a direct result of membership in the association, a savings or other benefit on a product or service made available to the members by an outside entity. This provision does not apply to member benefit programs of six months or less duration. General criteria to be applied to all member benefit programs sponsored by ILA include the following:

(1)  Such programs must represent a clearly defined benefit for members of the Association.

(2)  The benefit to be provided must be of significant interest to a wide spectrum of the membership of the Association.

(3)  The savings or other such benefit to be made available through a specific program should represent the best benefit available for the particular program, at that point in time.

(4)  The product or service to be offered must be of a high quality and the company or organization whose product or service is being utilized must maintain a reputation for reliability and fine service.

(5)  The benefit program must not conflict with the general purposes of the Illinois Library Association or any of its established policies.

(6)  The benefit program must be reviewed by the Finance Committee of the Illinois Library Association, to determine compliance with ILA policies. The ILA Executive Board has the authority to determine if a proposed program is appropriate for the Illinois Library Association to undertake and to approve such programs.

(7)  Such programs shall not be limited to a specific number.

(8)  The negotiated benefit for a particular program shall be of the greatest monetary or service value to the entire membership of the association. The direct and indirect costs related to developing and administering a particular benefit program shall be borne by the supplier to the extent possible. Revenues derived from ILA-wide member benefit programs shall be allocated by the Board as a part of the annual budget process.

(9)  It shall be understood that the Illinois Library Association’s membership benefit programs are offered to provide a special savings or other benefit on selected products or services offered by others. The ILA logo or any identifying symbol or words shall not be used in such a manner to imply or state an endorsement by the association of a product, publication or service.

(10)        The list of members of the association may be provided in exchange for or in connection with the member benefit program as negotiated in the agreement.

  1. Procedural guidelines

The following guidelines shall govern the process of review, approval and oversight of member benefit programs:

(1)  The Finance Committee shall have the responsibility for the investigation and review of all new benefit programs proposed.

(2)  The ILA Executive Board shall similarly have responsibility for monitoring existing benefit programs and for review of specific benefits or services being offered when such programs are up for renegotiation or renewal, so as to determine whether they continue to be acceptable and appropriate in view of the guidelines.

(3)  All benefit programs shall be fully communicated to the Association members for whom they are available, both when new programs or benefits are being announced and on a continuing basis, so that the membership can take full advantage of them.

(4)  The terms of any agreement pertaining to a member benefit program shall be detailed in a contract with the company or organization providing the product or service.

Adopted by ILA Executive Board

Friday, 8 February 2013.

 

6080 General Reimbursement & Billing Policies

The association will reimburse only expenses that have been officially approved by the Executive Board through its annual budget. Members cannot incur a program expense without the prior approval of the appropriate person.

No member may enter into a contractual agreement or incur vendor expense over $200 without the approval of the ILA office. Approval is given in the form of a purchase order.

All expenses over $200 must be billed to the association and are handled as accounts payable.

The following expenses incurred on approved association business, including participation as an Executive Board member, committee member, or forum member may be reimbursed upon receipt of the approved voucher. 

Actual costs will be reimbursed when required by a two-day association activity (including travel time). Baggage handling tips are reimbursable. Members are expected to use the least expensive accommodations whenever possible.

First priority for hotel complimentary rooms at the ILA Annual Conference will be given to the ILA president and conference co-chairs. The executive director may assign additional complimentary rooms at his or her discretion.

Food expenses are not reimbursable by the association unless the meal price is included in the cost of the activity. An exception is the expense of meal tickets for each association award winner and a guest at an association-wide function.

The cost of certain miscellaneous expenses may be allowed. For example, costs for a room rented for official business and telephone calls and wires on official business are reimbursable.

Bills are paid within ninety days of receipt. Checks in payment of vouchers and bills are issued semimonthly.

Forums are annually budgeted for basic operations. This amount is determined by the Finance Committee as part of the annual budget process.

All expenses related to association activities, such as workshops, publications, or surveys, must be pre-approved.

6082 Expenses for Meetings Held in Conjunction with Another Conference

The association will support the attendance of the ILA Councilor to the ALA Midwinter Meeting and Annual Conference and of the ILA President to Library Legislation Day and the ALA Annual Conference. The Finance Committee will annually budget appropriate amounts for covering the expenses when the budget is prepared. Reimbursement for transportation, lodging, and food will be based on the ILA fiscal policy.

6083 Repayment of Advances

When the association advances monies for members for food, transportation, and/or lodging to facilitate scheduling or to obtain a discount, all monies must be repaid to the association within thirty days after the event.

6090 Honoraria and Fees

Association members are not paid honoraria or fees for work performed for the association. Speaking engagements or workshop presentations are examples of service to the association in the same manner as assuming a leadership role within the Illinois Library Association or committee work.

Exceptions may be made in advance with the approval of the Executive Board. An exception may be granted if a member's contribution is clearly and specifically related to recognized professional expertise outside the field of libraries and librarianship and for which a fee is normally charged. If an association member's library is recognized on a national level and the expectation of a fee or honorarium is customary, an exception may also be approved by the Executive Board.

6091 Cash Awards

A monetary award of $600 or more to an association member requires the Executive Office to submit a 1099-MISC tax form in the name of the award recipient.

Friday, 8 February 2013

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