Finance Policies | Douglas County Libraries

Assets Disposal Policy

Disposal of Douglas County Libraries ("Library") assets is done as follows:

The determination of whether obsolete, surplus, or retired property and equipment will be needed by the Library in the foreseeable future is the responsibility of the Executive Library Director.
Any disposal of an item that has an estimated resale value of $25,000 or more requires specific approval by the Board before the asset can be disposed of in any manner.
Disposal of discarded library materials, computer components, and furniture, art and equipment, when the estimated resale value is less than $25,000, may be handled in one of the following methods:

Sold to the public via the used book sale rooms at Library locations.
Sold through an online vendor service or some other establishment that sells used items to the public.
Donated to charities or other nonprofit organizations, but only with the approval of the Executive Library Director.
Given to other political subdivisions of the State of Colorado, but only with the approval of the Executive Library Director.
Items that are broken, destroyed, or otherwise have no value may be recycled when other methods of disposal have been exhausted.
Transferred to vendors for credit toward future purchases.

Adopted on December 6, 2023.

Audit Policy

As required by Colorado Audit Law, Section 29-1-601, et seq., C.R.S. and Colorado Library Law Section 24-90-109(1)(l), C.R.S., the Board shall ensure that an annual audit of the financial affairs and transactions of all funds and activities of Douglas County Libraries (the "Library") be conducted for each fiscal year.

The contract for audit services shall be put out to bid every three years, with final selection of an audit firm to be made by the Board. The contract for services may be renewed for two additional years following approval of the Board.

The audit report shall be distributed as follows:

State Auditor, by July 31, in accordance with Colorado Library Law, Section 29-1-606(3), C.R.S.
Board of County Commissioners, at the close of each calendar year, in accordance with Colorado Library Law, Section 24-90-109(2), C.R.S.
County Treasurer, yearly, in accordance with Colorado Library Law, 24-90-112(2c), C.R.S.

Adopted on December 6, 2023.

Authorization of Expenditure Policy

It is the policy of Douglas County Libraries (the "Library") to monitor expenditure of public funds judiciously, ensuring compliance with annual budgetary appropriations, adherence to purchasing policies, and accuracy of reporting in the financial statements. Expenditures are authorized by the Board through the annual budget process, and spending is monitored via quarterly financial statements that compare actual spending to budgeted amounts. The Executive Library Director will provide quarterly financial statements to the Board for the first three quarters of each year, and the audit for the final quarter of the year.

The Executive Library Director has spending authority for all budgeted, normal, recurring operating expenditures. Budgeted, normal, recurring operating expenditures include, but are not limited to:

Library content;
Programming fees;
Materials and supplies;
Costs incurred in connection with the operation and maintenance of Library facilities;
Costs incurred with the operation and maintenance of Library software, telephone, internet, data storage, and other information technology platforms;
Professional service fees and fees paid to contractors for upgrades to existing facility and technology platforms;
Consulting and advisory services;
Those items of furniture, computers, and equipment not requiring specific Board approval as noted below;
Library-wide merit increase rates and salary range adjustments;
Employee benefit plans; and
General liability, property, and workers' compensation insurance coverage.

The following require specific approval by the Board, and are not considered budgeted, normal, or recurring:

Non-budgeted items in excess of $50,000;
Intergovernmental agreements;
Capital expenditures of $75,000 or more;
Facility leases and real estate transactions; and
Financing transactions.

Authorizing signatures for the expenditure of funds and contractual obligations are designated as follows:

Library Directors are the authorized signatories for all budgeted normal, recurring operating expenditures as defined above.
The President of the Board or designee is the authorized signatory for intergovernmental agreements and real estate documents, including facility leases, major capital expenditures, refinancing documents, bond documents, and other documents as required by regulation or statute, which have been reviewed and approved by motion or resolution of the Board.

Adopted on December 6, 2023.

Budget Policy

Douglas County Libraries (the "Library") will develop an annual budget in accordance with the statutory requirements of Colorado Local Government Budget Law, Section 29-1-101 et seq., C.R.S. The budget will also be compiled in compliance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) standards for budget preparation and presentation or other relevant regulations. The budget shall reflect the plans and strategies of the Library as adopted by the Board.

Key annual budget deadlines include:

August 25

Assessors certify to all taxing entities and to the Division of Local Government the total new assessed and actual values (for real and personal property) used to compute the statutory and TABOR property tax revenue limits. (§ 39-5-121 (2)(b) and § 39-5-128, C.R.S.)

October 15

Budget officer must submit proposed budget to the governing body. (§ 29-1-105, C.R.S.) Governing body must publish “Notice of Budget” upon receiving proposed budget. (§ 29-1-106(1), C.R.S.)

November 1

Deadline for submitting applications to the Division for an increased levy pursuant to § 29-1-302, C.R.S.

December 15

Deadline for certification of mill levy to county commissioners. (§ 39-5-128(1), C.R.S.) Local governments levying property tax must adopt their budgets before certifying the levy to the county. If the budget is not adopted by certification deadline, then 90 percent of the amounts appropriated in the current year for operations and maintenance expenses shall be deemed reappropriated for the purposes specified in such last appropriation. (§ 29-1-108(2) and (3), C.R.S.)

December 22

Deadline for county commissioners to levy taxes and to certify the levies to the assessor. (§ 39-1-111(1), C.R.S.)

January 31

A certified copy of the adopted budget must be filed with the Division. (§ 29-1-113(1), C.R.S.)

Adopted on December 6, 2023.

Capital Assets Policy

Capital assets represent land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period owned by Douglas County Libraries (the "Library") and acquired by purchase or donation.

In accordance with Colorado law, Section 29-1-506, C.R.S., an inventory of capital assets will be performed annually unless otherwise excepted by law.

Adopted on December 6, 2023.

Debt Management Policy

The objective of Douglas County Libraries' (the "Library’s") debt management policy is to ensure that the Library obtains financing only when necessary, in accordance with the provisions of Colorado law, and that the most favorable interest rates and other costs be obtained.

The Library shall not finance improvements with a probable useful life less than four years. Borrowings by the Library cannot mature over a term that exceeds the economic life of the improvements that they finance.

Board approval is required in order for the Library to issue debt or enter into capital lease arrangements as a means of financing long-term capital projects.

The Board will receive an accounting of any financed debt and potential payoff as part of the annual budget process.

Adopted on December 6, 2023.

Expense Reimbursement Policy

Douglas County Libraries ("Library") employees and members of the Board shall be reimbursed, with proper documentation, for reasonable travel and other Library-related expenses incurred in connection with Library business activities.

Adopted on December 6, 2023.

Investment and Cash Management Policy

It is the policy of Douglas County Libraries (the "Library") to safeguard the public funds by ensuring compliance with the depository and investment restrictions detailed in the following Colorado law:

Public Deposit Protection Act, Section 11-10.5-101, et seq., C.R.S.
Standard for Investment, Section 15-1-304, C.R.S.
Funds - Legal Investments, Section 24-75-601, et seq., C.R.S.
Investment Funds - Local Government Pooling, Section 24-75-701, et seq., C.R.S.
Protection of Deposits of Public Monies, Section 11-47-101, et seq., C.R.S.

The Board delegates management responsibility of the Library’s investment program to the Executive Library Director who shall ensure that all investment transactions are undertaken in accordance with this policy and that an effective system of internal controls is maintained for all investment transactions. Internal controls relating to investment transactions will be described and discussed during the audit presentation. The Board shall select a registered investment advisory firm that specializes in the management of fixed-income public funds.

Consistent with Colorado law set forth above, Library funds may be invested in the following securities, subject to certain specific maturity, credit rating, and portfolio diversification limitations, as detailed in the authorizing law.

Local Government Investment Pool
Obligations of the United States Government
Government Sponsored Enterprises
Obligations of State & Local Governments
Repurchase Agreements
Reverse Repurchase Agreements
Money Market Mutual Funds
Corporate Debt
Certificates of Participation
Investment Contracts
Bonds of Housing Authority

No Library funds shall be invested in any of the above-mentioned securities on which the coupon rate is not fixed, or a schedule of specific fixed coupon rate is not established, from the time the security is settled until its maturity date, unless the coupon rate is tied to specific securities or indexes as detailed in the authorizing statutes referred to above. Shares in qualified money market mutual funds or local government investment pools are excluded from this fixed coupon rate requirement. Annually, the Board will review internal controls as part of the audit.

Any revisions or extensions of these sections of Colorado law shall be considered to be part of this policy immediately upon the effective date following enactment.

On a quarterly basis, the Board shall review an investment report detailing the current status of the investment portfolio.

Library funds may only be deposited in financial institutions that have been designated by the Division of Banking or the Division of Financial Services under the Colorado Department of Regulatory Agencies as an eligible public depository to the extent that the deposit is (i) insured by the Federal Deposit Insurance Corporation (FIDC) or (ii) secured by a pledge of eligible collateral as required by the Public Deposit Protection Act. Operating funds deposited in non-interest-bearing accounts must be held with financial institutions participating in the FDIC Temporary Liquidity Guarantee Program that provide full deposit coverage regardless of amount.

A Board resolution is required to open or close any new Library account at a financial institution. The signatures of the Executive Library Director and Director of Finance are required in setting up new Library financial accounts. Authorization to transfer funds between Library bank and investment accounts is limited to the Executive Library Director and the Director of Finance, as considered necessary to meet daily operating cash requirements and investment objectives.

In the event of financial emergency, the Executive Library Director is designated to take immediate action to ensure the safety of Library assets. Such action can supersede requirements of the Cash Management Policies, and will be immediately reported to the Board, with ratification of action occurring at the next Board meeting.

Adopted on December 6, 2023.

Nondisclosure Policy

Douglas County Libraries (the "Library") shall not execute any agreements containing nondisclosure clauses. This applies to contracts for purchasing of goods and services, consultants, or other vendors.

Adopted on December 6, 2023.

Purchasing Policy

The Board assures the most efficient use of taxpayer dollars through the use of fair and consistent purchasing procedures, maximum market competition, and compliance with Colorado statutes. The Executive Library Director is responsible for maintaining the proper procedures.

Such procedures shall provide for:

Purchases under cooperative purchasing ventures with other library organizations or government agencies.
Purchases from sole source suppliers, when only one vendor can meet specifications.
Solicitation of multiple quotes to ensure competitive pricing, when possible.

In addition, Douglas County Libraries ("Library") purchasing policies and procedures with respect to contracts shall provide for:

Use of standard Library or industry templates, where considered appropriate.
Inclusion of language requiring annual appropriation.

Specific to major capital projects requiring a general contractor (estimated costs in excess of 75k), the Library will perform due diligence when selecting a general contractor, via a formal competitive selection process, at least every 5 years. The Board is responsible for approving the project’s scope and resource allocation. For all expenditures requiring Board approval, the award of formal bids shall be made by the Board at a public meeting. The Board shall not be bound to select the supplier submitting the lowest dollar bid and reserves the right to accept the bid deemed to be in the best interest of the Library. Further, the Board may reject any and all bids and may waive, at its discretion, any informalities, irregularities, omissions, or deficiencies contained in said bid.

Adopted on December 6, 2023 and updated April 24, 2024.

Reserve Fund Policy

The Executive Library Director is responsible for maintaining reserves for the following purposes:

Working capital reserves sufficient to fund expenditures for the first quarter of the fiscal year, or until property taxes remitted by the county treasurer are sufficient to fund monthly operations.
Emergency reserves as required by Article X, Section 20 of the Colorado Constitution in and subject to the use limitations therein.
Reserves sufficient to fund deductibles payable in the event of a claim or loss under Douglas County Libraries' (the "Library’s") insurance program.
The Board may designate other reserves of fund balance as considered necessary in support of Library objectives.

Adopted on December 6, 2023.