Financial Policies

8A Purchasing and Bidding Regulations

The following sets forth the procedures for the procurement of goods and services by the library:

  1. Definitions
    Purchase Contract: a contract involving the acquisition of commodities, materials, supplies or equipment
    Public Work Contract: a contract involving services, labor or construction

 

  1. General Municipal Law
    The General Municipal Law requires that purchase contracts for materials, equipment and supplies involving an estimated annual expenditure exceeding $20,000 and public work contracts involving an expenditure of more than $35,000 will be awarded only after responsible bids have been received in response to a public advertisement soliciting formal bids.
    1. Method of Determining Whether Procurement is Subject to Competitive Bidding
      1. The library will first determine if the proposed procurement is a purchase contract or a contract for public work.
      2. If the procurement is either a purchase contract or a contract for public work, the library will then determine whether the amount of the annual procurement is above the applicable monetary threshold as set forth above.
      3. The library will also determine whether any exceptions to the competitive bidding requirements (as set forth below) exist.
    2. Contract Combining Professional Services and Purchase
      In the event that a contract combines the provision of professional services and a purchase, the library, in determining the appropriate monetary threshold criteria to apply to the contract, will determine whether the professional service or the purchase is the predominant part of the transaction.
    3. Opening and Recording Bids; Awarding Contracts
      The Library Director will be authorized to open and record bids. Contracts will be awarded by the Board of Trustees to the lowest responsible bidder (as recommended by the Director), who has furnished the required security after responding to an advertisement for sealed bids.
    4. Documentation of Competitive Bids
      The library will maintain proper written documentation which will set forth the method in which it determines whether the procurement is a purchase or a public work contract.
      Proper written documentation will also be required when a contract is not awarded to the vendor submitting the lowest quote, setting forth the reasons therefore. That vendor may be given an opportunity to defend his product and/or reputation before the Board of Trustees.

 

  1. Exceptions to Competitive Bidding Requirements
    The library will not be subject to competitive bidding requirements when the Board of Trustees, in its discretion, determines that one of the following situations exists:
    1. Emergency situations where:
      However, when the Board passes a resolution that an emergency situation exists, the library will make purchases at the lowest possible costs, seeking competition by informal solicitation of quotes or otherwise, to the extent practicable under the circumstances.
      Documentation: The library will maintain records of verbal (or written) quotes;
      1. The situation arises out of an accident or unforeseen occurrence or condition;
      2. A building, property, or the life, health, or safety of an individual on library property is affected; or
      3. The situation requires immediate action which cannot await competitive bidding.
    2. When there is only one possible source from which to procure goods or services required in the public interest.
      Documentation: The library will maintain written documentation of the unique benefits of the item or service purchased as compared to other items or services available in the marketplace; that no other item or service provides substantially equivalent or similar benefits; and that, considering the benefits received, the cost of the item or service is reasonable, when compared to conventional methods. In addition, the documentation will provide that there is no possibility of competition for the procurement of the goods.

 

  1. Quotes When Competitive Bidding Not Required
    Goods and services which are not required by law to be procured by the library through competitive bidding will be procured in a manner so as to ensure the prudent and economical use of public monies in the best interests of the taxpayers. Alternative proposals or quotations will be secured by requests for proposals, written or verbal quotations or any other appropriate method of procurement, as set forth below

 

  1. Methods of Documentation
    1. Verbal Quotations: the telephone log or other record will set forth, at a minimum, the date, item or service desired, price quoted, name of vendor, name of vendor's representative;
    2. Written Quotations: vendors will provide, at a minimum, the date, description of the item or details of service to be provided, price quoted, name of contact. The library will maintain documentation consistent with Exhibit E.1 that will include advertisements, specifications and the awarding resolution. Alternatively, written or verbal quotation forms will serve as documentation, if formal bidding is not required;
    3. Requests for Proposals: the library will contact a number of professionals (e.g., architects, engineers, accountants, lawyers, underwriters, fiscal consultants, etc.) and request that they submit written proposals. The RFPs may include negotiations on a fair and equal basis. The RFPs and evaluation of such proposals will consider price plus other factors such as: The library will then prepare a well-planned RFP which will contain critical details of the engagement, including the methods which it will use in selecting the service.
       
      1. the special knowledge or expertise of the professional or consultant service;
      2. the quality of the service to be provided;
      3. the staffing of the service; and
      4. the suitability for the library’s needs.
        The library will first locate prospective qualified firms by:
      5. asking inquiries of other libraries or other appropriate sources advertising in trade journals;
      6. checking listings of professionals.
  2. Purchases/Public Work: Methods of Competition to be Used for Non-Bid Procurements; Documentation to be Maintained
    The library will require the following methods of competition be used and sources of documentation maintained when soliciting non-bid procurements in the most cost-effective manner possible:
    1. Purchase Contracts up to $20,000
      1. Under $2,000: Three verbal quotes - selection of vendors is at the discretion of the Library Director.
      2. Contracts from $2,000 to $20,000: Three written quotes. Documentation will include notations of verbal quotes.
    2. Public Work Contracts up to $35,000 as:
      1. Under $2,000: Three verbal quotes - selection of vendor is at the discretion of Library Director
      2. Contracts from $2,000 to $34,999 - Three written quotes. Documentation will include notations of verbal quotes.
    3. Reasonable attempts should be made to obtain the required number of quotes. In cases where less than the required number of quotes are received because of the lack of interest on the part of vendors, or the number of vendors dealing in the product is limited, the Library Director and Board of Trustees shall have the discretion to award the order based on the best quote from those that have been received.
    4. Emergencies: Verbal quotes - Documentation will include notations of verbal quotes.
    5. Professional Services: RFP - Documentation will include written proposals.
    6. Sole Source: Written or verbal quotes Documentation will include, among other things, the unique benefits of the patented item as compared to other items available in the marketplace; that no other item provides substantially equivalent or similar benefits; and that considering the benefits received, the cost of the item is reasonable, when compared to conventional methods.
      Notations of verbal quotes will be maintained by the library. In addition, the library will document that there is no possibility of competition for the procurement of the goods.

 

  1. Quotes Not Required When Competitive Bidding Not Required
    The library will not be required to secure alternative proposals or quotations for those procurements:
    1. Under a state contract;
    2. Under a county contract;
    3. From sources other than county or state contract provided that such product(s) are substantially similar in function and are lower in price or available under terms which are more economically efficient;
    4. Of articles manufactured in state correctional institutions; or
    5. From agencies for the blind and severely disabled.
      In addition, the library will not be required to secure such alternative proposals or quotations for:
    6. Emergencies where time is a crucial factor;
    7. Procurements for which there is no possibility of competition (sole source items);
    8. Procurements of professional services, which, because of the confidential nature of the services, do not lend themselves to procurement through solicitation; or
    9. Very small procurements when solicitations of competition would not be cost-effective.

 

  1. Procurements from Other than the "Lowest Responsible Dollar Offer"
    The library will provide justification and documentation of any contract awarded to an offer or other than the lowest responsible dollar offer or, setting forth the reasons why such award is in the best interests of the library and otherwise furthers the purposes of Section 104-b of the General Municipal Law.


8B Investment Policy

  1. Scope
    This investment policy applies to all monies and other financial resources available to the Chappaqua CSD Public Library for investment on its own behalf or on behalf of any other entity or individual.
  2. Objectives
    The primary objective of the Chappaqua CSD Public Library’s investment activities are, in order of priority: in order of priority:
    1. To conform with all applicable federal, state, and other legal requirements (legal);
    2. To adequately safeguard principal (safety);
    3. To provide sufficient liquidity to meet all operating requirements (liquidity); and
    4. To obtain a reasonable rate of return (yield).
  3. Delegation of Authority
    The Board of Trustees delegates responsibility for oversight of the policy to the Finance Officer, or other officer so designated. Administration of the program shall be designated to the Library Director who shall establish written procedures for the operation of the investment program consistent with these investment guidelines. Such procedures shall include an adequate internal control structure to provide a satisfactory level of accountability based on records incorporating description and amounts of investments, transaction dates, and other relevant information, and regulate the activities of subordinate employees.
  4. Prudence
    All participants in the investment process shall seek to act responsibly as custodians of the public trust. 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 speculations, but for investment, considering the safety of the principal as well as the probable income to be derived.
    All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. 
  5. Diversification
    It is the policy of the Chappaqua CSD Public Library to diversify its deposits and investments by financial institution, by investment instrument, and by maturity scheduling.
  6. Internal Controls
    It is the policy of the Chappaqua CSD Public Library for all public monies collected by any officer or employee of the Library to transfer those funds to the Director within the time period specified by law.
    The Director is responsible for establishing and maintaining an internal control structure to insure that the assets of the Library are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met and that transactions are executed in accordance with management’s authorization and recorded properly, and managed in compliance with applicable laws and regulations.
  7. Designation of Depositaries
    The banks and trust companies authorized for the deposit monies are reviewed and approved by the Board at its July meeting.
  8. Collateralizing of Deposits
    In accordance with the provisions of General Municipal Law §10, all deposits of the Chappaqua CSD Public Library, including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured by a pledge of “eligible securities” with an aggregate “market value” of 102% of the aggregate amount of deposits from the following categories:
    1. Obligations issued, or fully insured or guaranteed as to the payment of principal and interest, by the United States of America, an agency thereof or a United States government sponsored corporation.
    2. Obligations partially insured or guaranteed by any agency of the United States of America, at a proportion of the market value of the obligation that represents the amount of the insurance or guarantee.
    3. Obligations issued or fully insured or guaranteed by the State of New York, obligations issued by a municipal corporation, school district or district corporation of such state or obligations of any public benefit corporation which under a specific state statute may be accepted as security for deposit of public monies
    4. Such other instruments of securities may, from time to time, be legally permissible collateral for deposit of municipal corporation monies.
  9. Safekeeping and Collateralization
    In accordance with General Municipal Law §10, all library deposits in excess of those insured by the Federal Deposit Insurance Act shall be secured:
    1. By eligible securities used for collateralizing deposits shall be held by a third party bank or trust company subject to security and custodial agreements.The security agreement shall provide that eligible securities are being pledged to secure Library deposits together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon default. It shall also provide the conditions under which the securities may be sold, presented for payment, substituted or released and the events which will enable the Library to exercise its rights against the pledged securities. In the event that the securities are not registered or inscribed in the name of the Library, such securities shall be delivered in a form suitable for transfer or with an assignment in blank to the Chappaqua CSD Public Library or its custodial bank.
      The custodial agreement shall provide that securities held by the bank or trust company, or agent of and custodian for, the Library, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities. The agreement should also describe that the custodian shall confirm the receipt, substitution or release of securities. The agreement shall provide for the frequency of revaluation of eligible securities and for the substitutions of securities when a change in the rating of a security may cause ineligibility. Such agreement shall include all provisions necessary to provide the Library a perfected interest in the securities; or
    2. By a bond executed by an insurance company authorized to do business in New York, the claims-paying ability of which is rated in the highest rating category by at least two nationally recognized statistical rating organizations; or
    3. By an irrevocable letter of credit issued in favor of the local government for a term not to exceed ninety days by a bank (other than the bank with which the money is being deposited or invested) whose commercial paper and other unsecured short-term debt obligations (or, in the case of a bank which is the principal subsidiary of a holding company, whose holding company’s commercial paper and other unsecured short-term debt obligations ) are rated in one of the three highest rating categories (based on the credit bank or holding company) by at least one nationally recognized statistical rating organization or by a bank (other than the bank with which the money is being deposited or invested) that is in compliance with applicable federal minimum risk-based capital requirements.
  10.  Permitted Investments
    As authorized by General Municipal Law § 11, the Chappaqua CSD Public Library authorizes the Finance Officer and one other Board member to invest moneys not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments:
    1. Special time deposit accounts authorized to do business in New York State;
    2. Certificates of deposit;
    3. Obligations backed by the full faith and credit of the United States of America;
    4. Obligations guaranteed by agencies of the United States of America where payment or principal and interest are guaranteed by the United States of America;
    5. Obligations backed by the full faith and credit of the State of New York;
    6. Obligations issued pursuant to LFL §24.00 or 25.00 (with approval of the State Comptroller) by any municipality, school district or district corporation other than the Chappaqua CSD Public Library.
    7. Obligations of public authorities, public housing authorities, urban renewal agencies and industrial development agencies where the general State statutes governing such entities or whose specific enabling legislations authorizes such investments,
  11. All investment obligations shall be payable or redeemable at the option of the Chappaqua CSD Public Library within such times as the proceeds will be needed to meet expenditures for purposes for which the monies were provided.
  12.  Authorized Financial Institutions
    The Chappaqua CSD Public Library shall maintain a list of financial institutions approved for investment purposes and establish appropriate limits to the amount of investments which can be made with each financial institution. This listing will be evaluated annually. All financial institutions with which the Library conducts business must be creditworthy. Banks shall provide their most recent Consolidated Report of Condition (Call Report) at the request of the Chappaqua CSD Public Library. The Treasurer and one Board member are responsible for evaluating the financial position and maintaining a listing of proposed depositories and custodians.
  13.  Purchase of Investments
    The Director, or other designee, is authorized to contract for the purchase of investments: categories:
    1. Directly, including through a repurchase agreement, from an authorized trading partner.
    2. By participation in cooperative investment program with another authorized governmental entity pursuant to Article 5G of the General Municipal Law where such program meets all the requirement set forth in the Office of the State Comptroller Opinion No. 88-46, and the specific program has been authorized by the governing board.
    3. By utilizing an ongoing investment program with an authorized trading partner pursuant to a contract authorized by the Chappaqua CSD Public Library Board of Trustees.
  14.  All purchased obligations, unless registered or inscribed in the name of the Chappaqua CSD Public Library, shall be purchased through, delivered to and held in the custody of a bank or trust company. Such obligations shall be purchased, sold or presented for redemption or payment by such bank, or trust company only in accordance with prior written authorization from the persons authorized to make the investment. All such transactions shall be confirmed in writing to the Chappaqua CSD Public Library by the bank or trust company. Any obligation held in the custody of a bank or trusts company shall be held pursuant to a written custodial agreement as described in General Municipal Law §10.
    The custodial agreement shall provide that securities held by the bank or trust company, as agent of and custodian for, the Chappaqua CSD Public Library, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposits or other liabilities. The agreement shall describe how the custodian shall confirm the receipt and release of securities. Such agreement shall include all provisions necessary to provide the Chappaqua CSD Public Library a perfected interest in the securities.
  15.  Review of Adopted Policy
    In accordance with General Municipal Law §39, this policy shall be reviewed at least annually. It should be reviewed more frequently as circumstances and/or laws change, and amended as appropriate by resolution of the Board of Trustees.

8C Fund Balance Policy 

Purpose:

The Board recognizes that the maintenance of a fund balance is essential to the preservation of the financial integrity of the Library and is fiscally advantageous for both the Library and the taxpayer.  Fund balance provides a degree of stability and the resources to weather fluctuations in revenues and expenditures without severely impacting real property tax rates.  Fund balance also serves as a cushion to enable the operation of the Library without interruption in the event of an emergency.

Definitions:

Fund balance is a measurement of available financial resources and is the difference between total assets and total liabilities in each fund.

The Governmental Accounting Standards Board (GASB) issued GASB Statement Number 54, Fund Balance Reporting and Governmental Fund Type Definitions. Statement 54 abandons the reserved and unreserved classifications of fund balance and replaces them with five new classifications for Governmental Funds based on the strength of the constraints that control the purposes for which specified amounts can be spent.  Beginning with the most restrictive constraints, fund balance amounts will be reported in the following categories:

  • Nonspendable fund balance – amounts that are not in a spendable form (e.g. inventory) or are legally or contractually required to be maintained intact (e.g. principal of a permanent fund);
  • Restricted fund balance– amounts that can be spent only for a specific purpose stipulated by external parties or legislation (e.g.. grants or donations);
  • Committed fund balance– amounts that can be used only for the specific purposes determined by a formal action of the Library Board of Trustees.  Commitments may be changed or lifted only by referring to the formal action that imposed the constraint originally (e.g., parking expansion and children’s room construction).
  • Assigned fund balance– amounts intended for a particular purpose (e.g. health, pension) expressed by the Library Board of Trustees or by a designee to whom the governing board delegates the authority;
  • Unassigned fund balance – includes all funds not contained in other classifications or not restricted in any manner.  Unassigned amounts are available for any legal purpose.

The Library Director is in charge of the policy at the discretion of the Library Board of Trustees.  The responsibility for designating funds to a specific classification shall be as follows:

  • Committed fund balance – The Library Board of Trustees must take formal action in the form of a resolution approved by the Board to establish, modify, or rescind a fund balance commitment.
  • Assigned fund balance – The Library Board of Trustees authorizes the Director to assign a fund balance to a specific purpose as approved by this fund balance policy.

Established by the Library Board of Trustees under advice of the Library’s auditor to comply with GASB Statement 54 – February 26, 2019.

 

8D Credit Card Policy

The Board of Trustees establishes the following policy:

A Bank Credit Card is established in the name of the Chappaqua CSD Public Library and the specific name of the Library Director.

All monthly bank statements and correspondence will be sent to the Chappaqua CSD Public Library.

The Bank Credit Card is only to be used for work related travel expenses, for time sensitive utility bills, anti-virus software, and pre-payment of materials when required by a vendor.

The Bank Credit Card will be kept in a locked and secure location.

Credit card expenditures will be paid by check after approval by the Board.

Expenses may be incurred under the following conditions:

  1. Prior approval of the expenditure has been given by the Library Director or Assistant Director in their absence.
  2. Expenditures must be within the guidelines of the particular activity of the approved budget.
  3. The card is not to be used for personal expenses.
  4. Proper documentation to support the expenditure must be submitted prior to the receipt of the monthly statement.

The library credit card is considered a method of payment for convenience purposes; expenditures paid for on the library credit card under the Credit Card Policy are considered separate claims for purposes of determining required approval.

 

8E Gifts Policy

The Chappaqua Library welcomes gifts of new and used books, audio recordings, and DVDs, and similar materials. Items will be added to the collection in accordance with the selection policy of the library. Once donated, items become the property of the Chappaqua Library, and may be discarded if they are not added to the collection. The donor may place no conditions on the donation. Donated items will not be returned to the donor, and the library will not accept any item that is not an outright gift.

The library will acknowledge receipt of donated items, but is unable to set fair- market or appraisal values. Itis recommended that the donor make a list of items donated. If items are being donated to obtain a tax benefit, it is the donor’s responsibility to establish fair-market value or obtain expert assistance in establishing any value. Once a donated item has been added to the library collection, it is subject to all other library policies and may be discarded according to the policy on withdrawal and disposition of library materials.

Monetary gifts, bequests, and memorial or honorary contributions are particularly welcome. Funds donated will be used to purchase items in accordance with the selection policy of the library.

Books and other materials purchased with bequests and memorial or honorary contributions will be identified with special donor plates whenever possible. If requested at the time the donation is made, notification of memorial or honorary contributions will be sent to the family of the person being recognized. Suggestions for subject areas or other areas of interest are welcome and will be followed to the extent that such items meet the library’s selection policy and collection needs.

Acceptance of donations of equipment, real estate, stock, artifacts, works of art, collections, etc., will be determined by the library board based on their suitability to the purposes and needs of the library, laws and regulations that govern the ownership of the gift, and the library’s ability to cover insurance and maintenance costs associated with the donation.

 

8F Treasurer

The Library Board of Trustees shall appoint a Treasurer.

The Treasurer may be a volunteer or paid position and shall not be either an employee of the Library or a member of the Board of Trustees. The Treasurer shall not be an employee of the accounting firm hired to maintain the financial records of the Library.

Responsibilities of the Treasurer include maintaining bank accounts, advising on investments, reviewing checks prior to release for accuracy and requisite documentation and approvals, signing checks, and reviewing bank statements.

All investments shall be made in accordance with the GML or as otherwise approved by the State Comptroller. Investment types include time deposit accounts or certificates of deposit in commercial banks and trust companies located and authorized to do business in New York State; obligations made by the United States of America or guaranteed by the United States of America; and in limited circumstances, obligations of municipalities and other municipal corporations.

If the Treasurer deems it advisable to partner with regional community foundations to allow the foundation to accept donations on behalf of the Library and to invest them in a diversified manner, such proposed relationship must be approved by the Board of Trustees and is subject to review and comment by the Library’s legal and financial advisors.

The Treasurer shall provide a monthly financial report to the Board of Trustees showing receipts, expenditures and a comparison with the budget.

 

8G Payroll Approval Policy

Individuals shall not be added to payroll except for pages and part time available substitutes unless a vacant civil service position exists. New positions shall be created at the recommendation of the Library Director and only after the approval by majority vote of the Board of Trustees for the creation of the position at a scheduled Board of Trustees meeting. All positions shall be approved by the Board of Trustees establishing the title and salary. The Board of Trustees shall appoint the individual to the position upon the recommendation of the Library Director.

 

8H Petty Cash Policy

There is no petty cash now at the library. If a small or unexpected purchase must be made the library credit card will be used. The Library Director or Staff Assistant holds onto the Library's credit card.

A petty cash fund shall be established for the Chappaqua CSD Public Library for the purchase of materials, supplies and services under conditions requiring imminent payment. The amount of such funds shall not exceed $150 unless otherwise approved by the Board of Trustees.

The Library Director is responsible for providing appropriate procedures to ensure the safekeeping and accounting of petty cash. Such procedures shall be reviewed and approved by the Board of Trustees.

The Petty Cash Fund shall be replenished following the approval of the monthly disbursements at each regular meeting of the Board of Trustees. A check for the replenish amount will be made out to “[Director’s Name]/Petty Cash” and then cashed by the Library Director in order to replenish the fund.]


Petty cash shall be always secured in a locked location.

Petty cash payments shall be supported by associated receipts or evidence documentation.
A record shall be maintained of all petty cash, including date used, purpose used for, and beginning and ending balances on a monthly basis.

 

8I Cash Management Policy

The director or designee will count the proceeds from the cash drawer of fines, donations, copy changes and miscellaneous on a regular basis. It will be compared to the cash expected as calculated by the cash drawer report. Any discrepancies over $5.00 will be investigated.

Adopted: March 16, 2021

Updated: February 26, 2024