FINANCIAL POLICY
The Berthoud Community Library District (BCLD) establishes this financial policy to ensure
fiscal accountability, appropriate use of funds in support of BCLD’s mission and goals, and
compliance with appropriate laws and ordinances.
Budgeting and Reporting
1. The Library CEO, Board President, and additional staff members with responsibility for
budgetary elements will develop a calendar year budget for Board review and adoption to
meet legal requirements.
2. On a monthly basis, staff will present a list of all expenditures to the Board for review
and acceptance. The Board may ask to see receipts for any purchases at any time.
3. Staff also will, on a monthly basis, present a monthly financial report showing the status
of all accounts and funds. This report will clearly present the financial position of BCLD
and should indicate the current position of each budgetary line item including budgeted
amount, expenses by vendor, monthly and year-to-date expenditures, and remaining
budget.
4. All BCLD financial records will be submitted for audit by an independent firm on an
annual basis.
5. BCLD finances will be reported to the State of Colorado annually as required by laws
governing Colorado libraries.
Authority to Spend
1. The checking and savings accounts held by BCLD shall have the signatures of the
Library CEO and Board President on file. All investment accounts and a safe deposit box
(if needed) shall have the signatures of the Board President on file.
2. The Library CEO is authorized to sign all checks, including payroll, with the exception of
any checks written to the CEO. Such checks will require the signature of the Board
President.
3. The Library CEO is authorized to spend:
a. Up to $5,000 on any single budgeted item or invoice without prior Board
Approval.
b. Between $5,000.01 and $19,999.99 on any single item only with approval of the
full Board without a bid.
c. $20,000 or over only after completing the formal bid process as described in
Colorado law.
4. The Library CEO is authorized to make deposits in the appropriate BCLD accounts and
to transfer funds between library accounts for payment of monthly library bills. Any
such transfer will be reported to the Board at the next regular meeting of the Board of
Trustees.
5. In case of emergency (safety or security), the Library CEO may expend necessary funds
with the approval of any two Board members and such expenditures will be reported to
the Board at the next regular meeting of the Board of Trustees..
6. The Library CEO shall be authorized to maintain charge accounts at necessary suppliers,
and to open a debit and credit card in BCLD’s name for the purpose of purchasing needed
materials for BCLD, within the limits of the BCLD’s current budget.
Disposal of Property
1. Withdrawn library materials and materials donated but not added to the collection will be
offered to the Friends of the Library to raise funds for projects. Items deemed unfit for
sale may be discarded at the discretion of the CEO without Board approval.
2. All other BCLD property disposal for property with a value of $5,000.00 or more must be
approved by the Board. Items deemed unfit for sale may be discarded at the discretion of
the CEO without Board approval.
Grants and Donations
1. Funds donated to the BCLD may be allocated according to the wishes of the donor or
may be undesignated. The Board shall determine the disposition of undesignated
donations valued at over $5,000.00.
2. The Board may approve or deny utilization of grants on behalf of BCLD.
Investment Policies
1. BCLD’s monetary assets are accounted for in the various funds of BCLD and shall
include the General Fund, Building Fund, and any other fund or investment established
by the Board.
2. Investment of these funds shall be based upon the following criteria: maintenance of
sufficient liquidity to meet current obligations, return on investment, and simplicity of
management. BCLD funds will be invested in accordance with applicable Colorado law,
this policy and any other applicable BCLD policies.
3. The Library CEO shall be considered the investment manager. The manager shall
organize, control, and make decisions relating to cash flow needs and investment
opportunities.
4. The standard of prudence to be applied by the investment manager shall be the Prudent
Investor Rule, which states that investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudence, discretion, and intelligence
exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable
income to be derived. This rule shall be applied in the context of managing the overall
portfolio. The Manager, acting in accordance with this policy and exercising due
diligence, shall not be held personally responsible for specific investment transactions, a
security’s credit risk, or market price changes.
5. The Board shall review and approve new investment accounts.
Revised 6/8/16; 8/12/2020; 8/9/2023; 11/13/24; 8/13/25