A.6 Finances (Old Number 8)

 


 

A.6.1 Management of ALA Funds (Old Number 8.1)

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A.6.1.1 Purchasing Policy/Conflict of Interest (Old Number 8.1.1)

No purchase of goods and securities nor procurement of services, insurance, or other intangibles shall be made through firms, companies, or agencies with which officers, members of the Executive Board, or fund trustees are associated as partners, directors, or in a managerial capacity, except as such purchases relate to procurement of professional materials such as publications.

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A.6.1.2 Short-Term Investments (Old Number 8.1.2)

The Executive Director and the Controller of the American Library Association are authorized to make short-term investments of such funds as are available for this purpose.

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A.6.1.3 Property Transactions: Authorization to Sell Real Estate (Old Number 8.1.3)

The ALA Executive Board is authorized from time to time to sell, mortgage, or otherwise dispose of any and all real estate now or hereafter owned by the American Library Association or any part thereof or any interest therein. The officers of the Association, at the direction of the Executive Board, are authorized to make, execute, acknowledge, and deliver all appropriate instruments of conveyance, mortgages or otherwise so authorized concerning such real estate.

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A.6.1.4 Authorization to Overspend Budgeted Funds (Old Number 8.1.4)

The Executive Director is authorized to overspend line amounts in the General Funds Budget but not in excess of the total General Funds budgeted figure. The Executive Director may not incur any salary commitment in excess of the current year’s commitments.

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A.6.1.5 Authority to Borrow Money (Old Number 8.1.5)

The President and the Executive Director are authorized and directed, from time to time as in their judgment the needs of ALA require, to borrow from any bank or other lender chosen by them, for the use and benefit of ALA, a sum or sums not exceeding $1,000,000 in the aggregate remaining unpaid. The indebtedness shall be evidenced by a promissory note or notes which shall be corporate obligations only and shall mature and be payable not more than one (1) year after date. The Executive Board shall be informed of each transaction.

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A.6.1.6 Limitations on ALA Funding of Divisions (Old Number 8.1.6)

Divisions which impose additional fees under the ALA Bylaws, Article VI, Section 6(b) and (d) or otherwise raise additional funds for divisional programs and activities shall not obligate the Association to the continuation of the programs for which continuous funding is not or cannot be provided.

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A.6.1.7 Unrestricted Bequests (Old Number 8.1.7)

Unrestricted gifts and bequests that exceed $20,000 will be routinely added to the ALA Future Fund. The Executive Director may recommend for Executive Board approval an alternate disposition of unrestricted gifts and bequests in excess of $20,000.

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A.6.2 Support for Officers and Executive Board (Old Number 8.2)

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A.6.2.1 Expenses of the ALA President (Old Number 8.2.1)

The annual ALA budget shall include an item sufficient to cover all travel and other expenses incidental to the discharge of the official duties of the President, including attendance at regular meetings of the Association.

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A.6.2.2 Expenses of Members of the Executive Board (Old Number 8.2.2)

The American Library Association will pay expenses of members of the Executive Board to attend Midwinter Meetings, Annual Conferences, and interim meetings of the Executive Board when such expenses are not paid by the member’s institution.

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A.6.2.3 Released Time for the ALA President (Old Number 8.2.3)

ALA approves in principle the provision by the ALA President’s institution of up to one-quarter released time including the cost of fringe benefits for the President of ALA.

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A.6.3 Disaster Aid (Old Number 8.3)

When a disaster occurs that affects one or more libraries, the staff or friends of those libraries are encouraged to contact the ALA for assistance. Such assistance shall include, at a minimum: (1) the provision of information to the public about the disaster, its effect on the library, and where contributions can be made and (2) information to the library on dealing with disasters.

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A.6.4 Council Receipt of ALA Budgets (Old Number 8.4)

Councilors will be provided with summary sheets of the ALA annual budget, with the understanding that any Councilor will receive the full budget upon request.

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A.6.5 Long-Term Endowment Funds (Old Number 8.5)

Long-Term Investment Funds, colloquially known as endowments, may be restricted, temporarily restricted, or unrestricted. Such funds have been properly donated to the Association and set aside for future use of special purposes. The ALA Future Fund is the ALA Unrestricted Long-Term Investment Fund and is made up of gifts, bequests, life memberships and other sources received over the years; this Fund was formerly called the Board-Designated Endowment.

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A.6.5.1 Long-Term Investment Funds: Association’s Use/Withdrawal and Repayment (Old Number 8.5.1)

In the preparation of the ALA annual budget, the ALA Executive Director is authorized to include a payout rate of 3% - 5% of the five-year trailing calendar quarterly (20) rolling average of the net asset balance of the ATA Future Fund. Additionally, the Executive Directors of the Divisions and the liaisons for the Round Tables and others responsible for endowment funds are authorized to include in the preparation of their annual budgets, the anticipated payout value as provided by the Finance department. The payouts will be subject to any donor restrictions related to a particular fund and will be made from allowable temporarily restricted and unrestricted net assets. Additionally, the annual payout rate (3% - 5%) will be reviewed, determined and recommended by the ALA Endowment Trustees and the Finance and Audit committee of the ALA Executive Board, with final approval by the ALA Executive Board.

Use of Fund

Listed below are the primary instances whereby additional funds may be withdrawn from the Long-Term Investment Fund can be made.

A.   Program Support

The General Fund, Divisions and Round Tables can request funds from their respective long- term investment funds to support one-time programs.

B.  Emergencies

Emergencies will include financial disaster due to a major revenue shortfall, act of God, building catastrophe, major lawsuit, etc.

C.  New Initiatives

New Initiatives will include projects or programs that are multi-year in nature and deemed important to the future of the Association, Divisions, Round Tables or units.

Amounts requested to be withdrawn in excess of the determined payout rate will require repayment with interest.

D.  Scholarships & Awards

Allowable withdrawals from temporarily restricted and unrestricted Long-Term Investment funds designated for named scholarships and awards will be made to the extent necessary to support the award or scholarship according to its stipulations and requirements. If the funds available from the annually determined payout rate of 3%-5% of a named scholarship or award are not adequate, the amount in the temporary restricted and unrestricted investments designated for named scholarships may be used up to the limits of any permanent or donor restrictions.

E.    Life Membership Funds

Allowable withdrawals from temporarily restricted and unrestricted Long-Term Investment funds designated for Life Membership will be made from the Life Membership Fund to the extent necessary to support the annual membership fee for the participants.

F.    Transfer of Existing Funds

It is allowable to make a transfer from existing unrestricted funds for the establishment of a new and or in support of an existing scholarship fund, program or initiative fund within the Long-Term Investment Fund.

Withdrawal-Transfer-Repayment

Each withdrawal for any of the purposes referenced in A, B, C and the annually determined payout rate of 3%-5% of the five-year trailing calendar quarterly (20) rolling average net asset balance must be approved by the Executive Board.

Withdrawals from the Long-Term Investment Fund above and beyond the annually determined payout rate of 3% - 5% of the five-year trailing calendar quarterly (20) rolling average net asset
balance, for any of the following events:

  1. Program Support
  2. Emergencies
  3. New Initiatives

will require repayment at the prevailing ALA borrowing rate with the term to be recommended by management and approved by the Executive Board.

The annual withdrawal of interest and or dividends from the Long-Term Investment Fund will not require repayment.

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A.6.5.2 Endowment Funds: Combining (Old Number 8.5.2)

The Executive Director of ALA is empowered to combine endowment funds subject to advice from the Association’s legal counsel, and upon approval by the Executive Board.

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