NLLS Policies

STATEMENT OF POLICY AND PROCEDURE

Section: Finance | Chapter: General | Page(s): 2

Subject: FINANCE FUNDS ACCOUNT | Sec 3, 1H 

Reviewed 2022/10/04 | Revised: 2022/10/14 | Effective: 2022/11/25

Restricted Funds – used only for a non-capital purpose. (Operational & Contingency)

Unrestricted Funds – funds which can be accessed for capital purposes.

1. Movement of restricted funds to or from fund accounts must be accompanied by a motion from the Executive Committee or according to policy.  The minimum levels of the fund accounts will be reviewed within the context of the budget.  Northern Lights fund accounts are secured through NLLS’s current bank accounts, guaranteed investment certificates (GICs), and other investments.
2. Movement of unrestricted funds must be accompanied by a motion from the General Board or according to policy,
3. The operating restricted funds may be used to offset operating expenses before taking out operating loans. 
4. NLLS is not required to fund beyond the recommended minimum level.
5. The recommended minimum levels are reviewed yearly.
6. Building Unrestricted Reserve Funds: 

Purpose: To provide for additions, replacements and repairs of a capital nature to the physical building and property of NLLS.

Recommended Minimum Level: $250,000

7. Contingent Liability and Consultation Restricted Reserve Funds:

Purpose: To provide funds for possible severance or litigation payout not specifically covered by insurance and to pay for unbudgeted legal or other consulting services.

Recommended Minimum Level: $50,000

8. IT Information Technology Unrestricted Reserve Funds:

Purpose: To acquire or replace storage devices, networking devices, computer hardware, software, network servers, client loaner equipment, NLLS and Library Fortigates, peripherals and other IT equipment of the sort required to maintain an automated organization.

Recommended Minimum Level: $300,000 up to a Maximum $750,000

Replacement Cost: A budgeted amount to cover current and future Computer Software, Hardware and Network Server costs shall be transferred to the Technology Reserve each year.

9. Vehicle Unrestricted Reserve Funds:

Purpose: To replace Northern Lights Library vehicles with the life of the vehicle being based on an estimation of resale value and reliability.

Recommended Minimum Level: $90,000

An amount to be designated each year per vehicle up to a three (3) or five (5) year rolling vehicle acquisition and disposal plan, based on reliability and or safety record of the vehicle.

Replacement Cost: A budgeted amount for future vehicle replacement shall be transferred to the Vehicle unrestricted fund each year.

10. Restricted Operating Reserve Funds:

NLLS auditors will make fiscal year-end adjustments for the net change invested in capital assets and all other adjustments as needed from the Unrestricted Operating Fund.  This fund can also be used to offset operational costs at the discretion of the Board and/or Executive Committee.

Recommended Minimum Level: $350,000 (based on the potential cost of the largest municipality leaving the system)