Fiscal Management Policy

Printable PDF

PURPOSE

Fort Vancouver Regional Library District (FVRL), as an intercounty rural library district as defined by the state of Washington in RCW 27.12.090, recognizes it has financial responsibility for the management and investment of taxpayers’ money. To set direction, monitor and review the FVRL’s financial health, and to fulfill the obligations of the public trust, the Board of Trustees (Board) of the FVRL establishes the following fiscal management policy:

POLICY

It shall be the goal of FVRL to achieve and maintain a strong financial position that provides the necessary resources to sustain library operations and pay for unanticipated emergencies, withstand downturns in the local, regional and global economies, ensure timely payment of all fiscal obligations, and meet all debt obligations. These goals will be achieved through the following practices. FVRL will manage both one-time and ongoing expenditures within current resources, establish and adequately fund reserve accounts, regularly monitor and report on budget performance, evaluate the fiscal impact of new services prior to implementation, operate as efficiently as possible, and constantly review library services for appropriateness and effectiveness.

Annual Budget: The Board will adopt and maintain a balanced annual operating budget. FVRL’s staff will prepare an annual budget based on anticipated revenues and expenses, and present it to the Board for approval. While FVRL budgets on a calendar year (January-December), tax revenue is received primarily in the second and fourth quarters. The process will follow an established calendar and include a public hearing for the final reading. The annual levy for tax collection purposes must be set and sent to the Clark County Assessor by November 30 of each year.

BARS: FVRL will follow the prescribed Budget, Accounting, and Reporting System (BARS) as outlined by the Washington State Auditor’s Office.

Capital project funding: Library facilities may be built using bond funds, Library Capital Facility Area (LCFA) bond funds, special levies, fundraising and/or operating funds when appropriate. FVRL will prioritize capital maintenance and replacement schedule over new construction when establishing the annual budget.

Cash reserves: A portion of the funds held by FVRL are set aside for short, mid and long-term sustainability and will be maintained at sufficient levels to protect FVRL’s financial position and responsibilities to the public. Reserve funds can be restricted or unrestricted, as determined by the Board. The Board will adopt a Reserve Plan and review it annually. Any year-end operating surpluses will be considered unappropriated and available for use in maintaining reserve levels set by policy or will be available for project specific and/or "one-time" only expenditures. FVRL’s reserves may include funds for budget stabilization, employee leave liabilities, ongoing long-range capital repairs and maintenance objectives, replacement of equipment and vehicles, and other objectives as deemed appropriate by the Board.

Financial Reporting: FVRL’s financial reporting will be on a cash basis. Financial reports shall be submitted to the Board at the regular monthly public meeting. The Board shall receive a copy of the annual report after it is filed with the Washington State Auditor’s Office. Forecasts will encompass five years and be updated annually. Balanced revenue and expenditure forecasts will be prepared to examine FVRL’s ability to absorb operating costs due to changes in the economy, service demands, contractual obligations, and capital improvements.

Fiscal Agent: In accordance with RCW 27.12.070 and 27.12.160, FVRL maintains an agreement with the Clark County Treasurer to serve as the District’s fiscal agent.

Fund Manager: FVRL designates the Finance Director or their designee as the Fund Manager.

Investments: FVRL adopts the Clark County Investment Policy as its investment policy and will participate in the Clark County Investment Pool. Staff will share quarterly Investment reports with the Board as they are received. Insurance: FVRL will maintain adequate insurance policies or self-insurance reserves to pay all claims against the District.

Insurance: FVRL will maintain adequate insurance policies or self-insurance reserves to pay all claims against the District.

Liabilities: FVRL is the custodian for employee accounts held under IRS plan 457 and has no liability for losses under such plans, but does have the duty of due care that would be required of a prudent investor. FVRL will not use these assets to satisfy the claims of general creditors.

Minimum Balance: FVRL’s fund balance represents the net cash after all revenues have been deposited and all expenses have been paid. The minimum balance for the fund should not be less than two months (17%) of annual operational expenditures to ensure adequate funding to maintain services between property tax collections. This amount excludes any pass-through revenue from one-time sources such as grants, donations or contract services.

Revenue Sources: Although library services are primarily funded through property taxes, FVRL will seek information about explore funding from multiple sources, e.g. grants, partnerships and fees. FVRL will monitor and take appropriate action concerning legislation affecting the funding of library districts.

FVRL will follow these general guidelines for expenses directly related to expenditures for staff or board-related activities.

  1. FVRL will pay membership fees and participation expenses for Board or staff members when doing so will provide a benefit to the library. Authority to cover these costs is vested in the Executive Director or their designee.
  2. The Board authorizes reimbursement for eligible expenses related to travel. The Executive Director shall establish and administer travel procedures that is are deemed beneficial to FVRL.
  3. FVRL may provide food in conjunction with day long training or meetings when such meals provide sustained periods of time for working together without undue interruption.
  4. FVRL may provide clothing such as shirts or other library branded items to staff as a provision of employment.
  5. All travel and training requests will be pre-approved by the Executive Director or their designee except for cases where unforeseen circumstances (weather or other delays) may incur additional expenses on the employees’ behalf.

ADMINISTRATION

The Executive Director is responsible for the administration of this policy, for establishing administrative procedures for its implementation and for making the policy available for the public at each branch and via the Library’s web site.

Severability: The Board of Trustees hereby declares its intention that the provisions of this policy are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, chapter, title or other portion of this policy, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of the policy, or the validity of its application to other persons or circumstances.

Continuance: The Board of Trustees hereby declares its intention that the provisions of this policy shall be construed and applied as a continuation of the provisions of the policy, as amended, insofar as applicable, and the repeal of any part of this policy shall not be construed as affecting such continuous application.


Applicable Law: R.C.W. 27.12.160, RCW 27.12.090, RCW 27.12.180

Relevant policies: Asset Management; Purchase Card; Purchasing and Procurement; Purchase, Lease, Exchange or Sale of Real Property; Trustee Ethics and Responsibilities.

Board approved:

Original Policy: September 26, 1988 (for Fiscal Years 1989, 1990, 1991)
Revised Policy: October 14, 1991
Revised Policy: December 13, 1993
Revised Policy: April 14, 1997 (for Fiscal Year 1997)
Revised Policy: May 14, 2001
Revised Policy: September 9, 2002
Revised Policy: June 9, 2003
Reaffirmed: September 13, 2004
Revised Policy: October 10, 2005
Revised Policy: April 11, 2006
Revised Policy: May 14, 2007
Revised Policy: Nov. 12, 2007
Revised Policy: April 21, 2008
Revised Policy: November 14, 2011
Revised Policy: November 12, 2012
Revised Policy: October 17, 2016
Revised Policy: December 16, 2019