FISCAL MANAGEMENT POLICY

Adopted by Spokane Public Library Board of Trustees on August 21, 2018.

This policy is divided into the following sections:

• Section 1 – GENERAL
• Section 2 – OPERATING CASH
• Section 3 – INVESTED CASH
• Section 4 – RESERVE FOR CAPITAL REPLACEMENT

1. GENERAL

1.1 It will be the policy of the Spokane Public Library to maintain sound financial management of the entrusted resources provided by the taxpayers and other sources of funding, consistent with the Library’s mission.

2. OPERATING CASH

2.1 General operating cash is used to carry out Spokane Public Library’s normal business operations.

2.2 Current expenditures will be funded by current revenues. If current revenues are insufficient to balance the annual operating budget, it is to be fully disclosed and approved by the Board.

3. INVESTED CASH

3.1 Cash balances in excess of immediate need will be invested in the City of Spokane Investment Pool which earns and distributes interest on a monthly basis.

4. RESERVE FOR CAPITAL REPLACEMENT

4.1 The Reserve for Capital Replacement is established to provide a source of cash for capital assets, capital projects, and other significant non-recurring expenditures.

4.2 Purchases from the reserve must be approved by the Board.

4.3 Available one-time money, such as undesignated gifts and the sale of assets will be transferred to the Reserve for Capital Replacement.

4.4 Interest earnings from invested cash will be transferred to the Reserve for Capital Replacement.

4.5 The Library will strive to build the Reserve for Capital Replacement to at least 5% of the annual operating expenditure budget.