Budget and Finance

Funding for LAMA Section, Committee and Discussion Group Activities and Projects (Other Than Conference Programs and Publications).

LLAMA can support questionnaires, surveys, special mailings to committees, conference calls, and other activities which will advance the work of LLAMA committees and benefit LLAMA members. Requests for funds for such activities, however, must be planned well in advance, as they are reviewed by the LLAMA Budget and Finance Committee and approved by the Section Executive Committee and the LLAMA Board of Directors.

Chairs should analyze their committee's goals and planned activities well in advance. Those anticipating a need for LLAMA funds should complete a request form with detailed and accurate information of how the funds are to be used. Assistance in completing budget requests may be obtained from the LLAMA office. Completed budget requests should be mailed to the LLAMA office by November 1 with a copy to the LLAMA President or Section Chair.

The LLAMA operating budget follows the ALA fiscal year, September 1 through August 31. In order to meet ALA deadlines, the LLAMA Board approves the budget at its final Midwinter Meeting, prior to the start of the fiscal year. Since budget requests must also be approved by the Section Executive Committee and reviewed by the LLAMA Budget and Finance Committee before going to the LLAMA Board, the budget requests have to be prepared and submitted early.

The funding requests submitted by November 1 will be included in the Preliminary Budget submitted to the Budget and Finance Committee by the LLAMA Executive Director. After careful review, the Budget and Finance Committee will present the budget to the Board of Directors for approval. The preliminary budget is then presented to the ALA BARC for review and endorsement. After a second review process, the budget is finally approved at the Annual Conference. It goes into effect September 1 at the beginning of the new fiscal year.

In order to support routine activities, the LLAMA Board of Directors' Executive Committee, in April 1980, authorized up to $100 to each Section to support postage, telephone and duplication expenses which cannot be absorbed by the individual committee member or his employer.

At its June 26, 1990 meeting, the LLAMA Board granted the LLAMA Executive Director the authority to approve requests for unallocated LLAMA funds up to $50.00 without the review of the Budget and Finance Committee. Requests for expenditures greater than $50.00 will be referred to the Budget and Finance Committee for review and to the LLAMA Board of Directors for approval.

Financial accountability for LLAMA funds rests with the LLAMA Executive Director. No contracts may be entered into for the American Library Association, the Library Administration and Management Association, or a section without the formal approval of the Section Executive Committee and the LLAMA Board of Directors and the approval and signature of the LLAMA Executive Director.

Thoughtful planning and careful budgeting will enable LLAMA to use limited resources effectively.

Presenting invoices for payment
ALA requires that budgeted expenses cannot be paid until a invoice or a signed statement of costs with original receipts is received by the LLAMA Executive Director, who will process it for payment through ALA Accounting.

The deadline for submitting expenditures for payment is August 1.

Endowment
At its meeting of June 29, 1993, the LLAMA Board of Directors approved the establishment of a LLAMA Endowment Fund to generate income to support the development and enhancement of the Association programs and activities.

Definition
For the purposes of this policy "endowment" is defined as that portion of the net surplus, or reserve, of the Library Administration and Management Association that has been invested together with similar funds of the American Library Association for the purpose of providing permanent income to the division.

In general, the principal of the LLAMA Endowment is not available for current operations and activities. The LLAMA Endowment will include only monies without restrictions. Separate restricted endowments will each require separate policy statements.

Operating Guidelines
The LLAMA Endowment Fund will be invested with the Endowment Fund of the American Library Association and subject to any policies governing the Endowment Fund in general.

It shall be the intention to retain the principal included in the LLAMA Endowment Fund of the ALA Endowment Fund using only a portion of the net earnings of the fund (defined as cash dividend and interest income) to support activities of the LLAMA as determined from time to time by the LLAMA Board of Directors.

The LLAMA Board of Directors will determine the use of the paid out annual net earnings. The paid out earnings will be used for LLAMA program enhancements and special initiatives.

The LLAMA Board of Directors has established the portion of net earnings to be paid from the Endowment Fund to the LLAMA portion of the Division Fund at 50%.

The LLAMA Board of Directors shall recommend withdrawals from the LLAMA Endowment Fund principal only when the need is so great that the purposes and programs of LLAMA would otherwise be seriously impaired.

Separate restricted endowments may be established, provided they meet the minimum level of funding for a separately designated Endowment within the ALA Endowment.

All funds in the LLAMA Endowment Fund, regardless of their source, are considered to be the funds of LLAMA.

The LLAMA Board of Directors may make a determination of the disposition of any unused paid out net earnings consistent with LLAMA policy for use of endowment funds. In the absence of specific Board action, any unused paid out net earnings will be added to endowment principal.

The LLAMA Board of Directors will authorize additions to the Endowment Fund as part of the budget approval process and in accordance with existing policies and the approved financial plan of the division.

All gifts and donations to the LLAMA Endowment will be acknowledged in writing by the President of LAMA.

Financial Reserve
At its June 27, 1992 meeting the Board affirmed that the operating reserve guideline should be 25% of the LLAMA budget and that excess reserve funds should be used for LLAMA strategic interests.