Fiscal Accountability Policy

Purpose
The purpose of the Winnetka-Northfield Public Library District’s (District) Fiscal Accountability Policy is to provide a framework for the Board of Library Trustees (Board) and Staff for the fiscal operations of the library, to assure sound fiscal management and to outline responsibilities for management of the District’s public funds.

Scope
This policy applies to all funds maintained by the District.

General
1. District financial policies and procedures will be in accordance with Illinois law.
2. As per (75 ILCS 16/30-45), and as stated in District Bylaws, District Treasurer shall be bonded in an amount and with sureties approved by the Board.
3. The current and past seven years’ financial records of District shall be maintained and kept at the library. District will maintain records in accordance with the Local Records Act (50 ILCS 205).
4. District will secure and protect employee and vendor bank data in a locked file cabinet located in the administrative office.
5. Vendor information will be secured, stored, and retained in accordance with the Local Records Act (50 ILCS 205).
6. District will maintain an inventory of capital purchases.
7. Roll call action will be taken by the Board on all financial matters required pursuant to the conditions of sub-section 3 of the “Expenditures and Other Financial Transaction” section of this Fiscal Accountability Policy.
8. Trustees with conflicts of interest shall abstain from voting in accordance with the Public Officer Prohibited Activities Act (50 ILCS 105) and any other applicable statutes.
9. The total budget by fund will be approved by the Board on an annual basis.

Deposits
1. All revenue received by District will be deposited to appropriate accounts at least monthly or whenever receipts total more than $500, in accordance with internal control procedures.
2. Deposits in any one institution may not exceed the FDIC insured amount without a signed collateralization agreement (see Section VI. G).

Expenditures and Other Financial Transactions
1. Authorized signatories are the Board President, Vice-President, Treasurer, and Library Director (Director).
2. Financial transactions for expenses up to $15,000 require the Director’s signature and/or authorization. Financial transactions of $15,000 or more require both the Director’s signature/authorization and that of another authorized signatory.
3. The Director has the authority to approve operational contracts and spend the budget that has been established by the Board without additional approval with the following exceptions:
a. When it involves a capital project that must go out for competitive bid (i.e., projected cost exceeds $25,000) or
b. When the potential expenditure would exceed 100% of its budget category prior to any inter-category transfer by the Director to cover such amounts. Budget categories include, but are not limited to: Personnel, Administration, Utilities, Information Technology, Public Relations, Library Materials, Programs, and Capital.
4. Under no circumstances may a signatory sign a document for which that signatory is a payee.
5. All financial transactions will be reported to the Board at its regularly scheduled meetings.
6. The District will give all vendors the option to be paid by ACH credit. A list of vendors paid by ACH credit will be reported to the Board at its regularly scheduled meetings. The District will keep a record of all vendor relationships, indicating whether the vendor is paid by check, ACH credit, paid online via their website, or by auto-debit from the District’s operating checking account.
7. Personnel-related items will be paid semi-monthly. A payment cycle of no more than once a week will be used for all other financial transactions.
8. All Library Trustees, the Director, and all full-time staff with purchasing authority shall file statements of economic interest with the County Clerk or state authorities on an annual basis.

Purchasing/Sale of Goods and Services
1. All purchases for goods and services for the District shall be authorized by the Director though established procedures.
2. The District shall follow the guidelines set forth in (75 ILCS 16/40-45) for construction/improvement projects and equipment purchases that exceed $25,000.
3. The District shall seek a minimum of three competitive quotes for professional services contracts that exceed $15,000, whenever feasible.
4. District will dispose of any real or personal property in accordance with (75 ILCS 16/30-55.32).

Credit Cards/Accounts
1. The District may maintain a credit card account for use by the Director and members of the Management Team for the purpose of conducting District business. Such business must be documented with receipts to support all purchases. Credit card use is limited to purchases where a (house) credit account is not available, or the vendor is unable to invoice the library.
2. District may maintain credit accounts with suppliers to meet regular operating needs, with authorization of the Director.

Board of Library Trustees
As provided by statute, Trustees shall serve without compensation, but shall be reimbursed from Library funds for their actual and necessary expenses incurred in the performance of their duties (75 ILCS 16/30-30).

Library Staff
Employees shall be reimbursed for reasonable authorized expenses incurred by them in the performance of their duties. All such expenses must be approved in advance by the employee’s immediate supervisor or the Director. Purchases made without the appropriate advance approval will not be considered reimbursable.

Travel
1. Effective December 12, 2016, the Board of Library Trustees of the Winnetka-Northfield Public Library District adopted Ordinance 2016-201/5 (Ordinance Regulating Reimbursement of Travel, Meal and Lodging Expenses) responsive to the requirements of The Local Government Travel Expense Control Act (the Act), 50 ILCS 150/1.
2. All travel, meal and lodging expenses are subject to the Expense Reimbursement Policy; per diem allowances for lodging, meals, and incidentals can be found at gsa.gov. Travel for in District purposes is not reimbursable.

Budget
1. Pursuant to (75 ILCS 16/35-40), the District’s fiscal year shall be July 1 through June 30.
2. The draft budget shall be created by the Director and members of the Board’s Finance Committee, then presented to the entire Board for approval each May.
3. The District may maintain a Special Reserve Fund pursuant to (75 ILCS 16/4050). The Board will determine the fund transfer to the Special Reserve account on an annual basis and authorize the transfer prior to the end of the fiscal year.

Audit
1. An outside audit of all District accounts will be conducted annually and reviewed by the Board.
2. At least every 7 years, the District shall solicit proposals from at least three auditing firms qualified to conduct an audit of District accounts.

Approved 7/18/22