policies
FINANCES

The Downers Grove Public Library submits an annual application for the Illinois Public Library Per Capita Grant administered by the Illinois State Library and complies with the administrative requirements for its eligibility and expenditure. The library may also be eligible and apply for other State of Illinois grant programs.

 6.5.1     Fees and Other Charges

The library may impose such fees and other charges as may be necessary to replace lost or damaged materials or support special services or activities.

6.5.2      Credit and Debit Cards

The library accepts generally recognized credit and debit cards for payment of fees and other charges. The library absorbs the charges from banks and card processors as a convenience to its patrons and a cost of operation. The library may set minimum and maximum amounts for credit and debit card payments.

6.5.3      Debt Collection

The library makes a reasonable effort to collect all amounts of money owed to it. For fees and other charges, the library sends notices, blocks further borrowing of library materials, withholds other services, and/or undertakes other appropriate measures to encourage both the return of library materials and the payment of amounts owed. The library may employ the services of a collection agency when the value of unreturned library materials or accumulated fees exceeds established minimum levels. See Library Services Policy, Section 5.8 Fines and Fees.

The library maintains an Operating Reserve in its Library Fund and a Library Capital Replacement Fund to ensure the stability and continuity of the library’s operations. The Library Capital Replacement Fund is a special reserve fund established under 75 ILCS 5/5-8. Short-term cash flow shortages caused by the difference between the normal expenditure cycle and the normal income cycle are covered by the Village of Downers Grove, as provided for by intergovernmental agreement.

6.6.1      Purposes

Funds in the Operating Reserve are accumulated and may be expended to cover uninsured property and casualty losses and other unbudgeted expenses, such as unanticipated failure of major equipment or elements of the library building. Funds in the Library Capital Replacement Fund are accumulated and may be expended for emergency purposes and capital repair and replacement of building, systems, equipment, fixtures, and furnishings, as provided for in the library’s Board-approved planning documents.

6.6.2      Funding Sources

The Operating Reserve and the Library Capital Replacement Fund are funded by surplus unrestricted operating funds. The Board of Library Trustees may designate that a specific source of revenue be set aside for the Operating Reserve and the Library Capital Replacement Fund.

6.6.3      Accounting

The Operating Reserve is accounted for as a portion of the Library Fund balance. As part of the library’s annual budget process, the portion of the Library Fund balance constituting the Operating Reserve will be computed in accordance with the provisions of this policy and reported appropriately. The Library Capital Replacement Fund is accounted for as a separate fund.

6.6.4      Funding Levels

For uninsured losses and other equipment failure expenditures, the Operating Reserve amount will be set at 35% of the total amount needed to replace one boiler, one rooftop air conditioning unit, and the entire flat portion of the roof.

For planned capital expenses, the Library Capital Replacement Fund will be funded according to an annual budget allocation, as provided for in the library’s Board- approved planning documents.

6.6.5      Use of Financial Reserves

When using Operating Reserves for the purposes of uninsured losses and other equipment failure expenditures, the Library Director will submit a request, including analysis of needs, determination of costs, and plans for completion of needed work, for the Board of Library Trustees’ approval. Upon approval, the Library Director will coordinate any needed adjustments involving the payment and accounting practices of the Village of Downers Grove.

When using the Library Capital Replacement Fund for planned capital expenses, the revenue and expenditures will be included in the library’s annual budget process.

6.6.6      Replenishment of Financial Reserves

Replenishment of the Operating Reserve available for uninsured losses and other equipment failure expenses will be made by annual allocation of operating surpluses. Replenishment of the Library Capital Replacement Fund will be made by annual allocation of an amount provided for in the library’s Board-approved planning documents.

Property that is no longer used or needed by the library to perform its service to the public will be disposed of by staff in the following manner:

• Library Materials - Surplus books and other library materials may be sold directly to the public, turned over to the Downers Grove Public Library Foundation or other agents for sale to the public, or, especially in cases of damaged materials that have no further use, recycled or otherwise disposed.
• Computers and Electronic Equipment - Surplus computers and other equipment may be offered for sale or recycled through a recognized electronics recycling program.
• Furniture, Fixtures, and Other Equipment - Surplus items that may have scrap value, such as steel shelving or other metal items, may be sold to an appropriate materials Other items will be offered for sale to the public, turned over to an agent for sale to the public, or removed as refuse.
• Items with a Unit Value Exceeding $1,000 - Surplus items that may have a unit value exceeding $1,000 will be offered for sale to the public via an advertised public auction. If such an auction is unsuccessful in disposing of the items, they may be handled in the same fashion as items of lesser value.
• Proceeds - All proceeds from the sale of surplus property will be treated as miscellaneous revenue and deposited in the library’s Operating Fund.

Purchases of the library are governed by State of Illinois statutes. In addition to any statutory requirements, the library uses the most responsible business practices in its purchases.

6.8.1      Board Responsibility

The Board of Library Trustees’ approval of the annual budget serves as the authorization, subject to the other provisions set forth in the policy, for spending within the boundaries of the operational plan supported by the budget. After formal adoption, the budget may be modified only with Board approval. In addition, Board approval will be required for:

• all purchases and/or awarding of contracts conducted through formal competitive bidding; and
• any other purchase or contract award exceeding $25,000.

6.8.2      Major Capital Expenditures

All purchases or contracts for capital expenditures (buildings, construction work on buildings, major equipment) in excess of $25,000 shall be awarded through a formal, advertised, public bidding process to the lowest responsible bidder. A public bidding process may be waived if the Board of Library Trustees deems the cost of a Request for Proposal process is in excess of the potential savings for non-construction projects.

6.8.3      Staff Responsibilities

The Library Director will approve or oversee all purchases or contracts between $10,000 and $25,000. These purchases or contracts may be made without competitive bid requirements but will, whenever possible, be based on at least three documented price quotes. Purchases up to $10,000 may be made by designated staff with attention to lowest possible cost and highest possible quality, performance, and service capability.

6.8.4      Professional Services

Contracts for professional services, such as architecture, construction management, consulting, or legal services, will be awarded based on a qualifications-based selection and interview process unless the library has a satisfactory relationship for services with one or more firms, as provided for by State of Illinois statutes.

6.8.5      Sole Source Purchases

The Library Director, without conducting a competitive process, may award purchases and contracts up to $25,000, where the Library Director has determined that there is only one feasible source for the goods or services in question. These include utilities, library materials, proprietary software systems such as mechanical controls and fire alarm systems, or the unique expertise of a vendor. Sole source purchases exceeding $25,000 require Board approval.

6.8.6      Emergencies

In a bona fide emergency, such as a condition that threatens the safety of the public, staff, or the integrity of the library’s building or other major property, the Library Director may make purchases over $25,000 per vendor to restore stability to the situation. Whenever possible, the Library Director will confer with the Board President when making such a purchase of goods or services. The Library Director will document the circumstances surrounding the emergency and the response.

6.8.7      Credit Cards

Staff may use library credit cards when making online purchases with a vendor who only accepts credit cards for payment, when invoicing and payment by check is not feasible, or where out-of-pocket expenses such as those associated with attendance at a professional conference are involved. Staff will submit detailed documentation of all credit card expenditures. All credit card expenditures are audited monthly and reported to the Board of Library Trustees.

6.8.8      Enforcement

The Library Director, under the policy oversight of the Board, is responsible for enforcement of this policy.

The library complies with the Local Government Travel Expense Control Act [Public Act 99-0604]. As required by the Act, the library regulates the reimbursement of all Trustee and employee travel expenses. The Board of Library Trustees will reimburse employees’ and Trustees’ pre-approved travel, meal, and lodging expenses incurred on behalf of the library. Employees and Trustees are expected to exercise the same care in incurring expenses for official business as a prudent person would in spending personal funds.

6.9.1      Definitions

"Entertainment" includes, but is not limited to, shows, amusements, theaters, circuses, sporting events, or any other place of public or private entertainment or amusement, unless ancillary to the purpose of the program or event. "Travel" means any expenditure directly incident to official travel by employees and Trustees of the library involving reimbursement to travelers or direct payment to private agencies providing transportation or related services.

6.9.2      Authorized Types of Official Business

Travel, meal, and lodging expenses will be reimbursed for employees and Trustees of the library only for purposes of official business conducted on behalf of the library.

These include attendance at selected community events, off-site or out-of-town meetings related to official business, and pre-approved seminars, conferences, and other educational events related to the employee’s or Trustee’s official duties. Reimbursement will be made for reasonable expenses related to these activities.

Employees are eligible for reimbursement for attendance at training programs required as a condition of employment; meetings and programs sponsored by state or local professional organizations; conferences and programs of national professional organizations; and meetings that are related to a particular job skill.

6.9.3      Categories of Expenses

Airfare

The traveler is expected to obtain the lowest available airfare that reasonably meets business travel needs. The traveler will pay for the difference between higher priced tickets and coach or economy tickets with their personal funds.

Personal Automobiles

Mileage reimbursement will be based on mileage from the library to the off-site location of the official business, not from the employee’s or Trustee’s residence. When attending a training event or other off-site official business directly from an employee’s residence, no reimbursement will be made if the distance is less than the mileage of a normal commute to the library. If the distance is higher than the employee’s normal commute, reimbursement will be paid based on the differential of the commute less the mileage of a normal commute to the library. An employee or Trustee will be reimbursed at the prevailing IRS mileage rate. The traveler will only be reimbursed up to the price of a coach airfare ticket if they drive to a location for which airfare would have been less expensive. Tolls will be reimbursed.

Automobile Rentals

The traveler will be reimbursed for the cost of renting an automobile, including gasoline expense, only as provided in this section. A traveler using a rental car to conduct official business is required to purchase insurance through the rental agency. Car rental insurance will cover the vehicle during personal use, e.g., using the vehicle after the conference has ended. Compact or mid-size cars are required for two or fewer employees or Trustees traveling together and a full-size vehicle may be used for three or more travelers. The traveler must refuel the vehicle before returning it to the rental company.

Public Transportation

In the case of local training or official business where an employee or Trustee chooses to use public transportation, reimbursement for use of public transportation is based on distance from the library to the training site (not from the traveler’s residence), regardless of the transportation method chosen. However, when attending training or business directly from an employee’s residence, no reimbursement will be made if the distance is less than the mileage of a normal commute to the library. If the distance is higher than the traveler’s normal commute, reimbursement will be paid at the differential of the commute less the mileage of a normal commute to the library.

Other Transportation

The traveler should utilize hotel shuttle service or other shuttle services, if available. If none are offered, the use of the most economical transportation is encouraged. The traveler is authorized to utilize ground transportation options based on efficiency and cost-effectiveness.

Hotel/Motel Accommodations

The traveler will be reimbursed for a standard single room at locations convenient to the business activity. Employees are encouraged to minimize lodging costs, including sharing accommodations. In the event of a change in plans or a cancellation, the traveler must cancel the hotel/motel reservation so as not to incur cancellation charges. Cancellation charges will not be reimbursed by the library unless approved by a vote of the Board of Library Trustees. Hotel and motel room reimbursement is generally limited to the current U.S. General Services Administration (GSA) regulations in place at the time the expense is incurred, unless preapproved by the Library Director, if the cost of staying at an official conference hotel would be justified by the savings of other costs of travel such as transportation costs.

Meals

Meal reimbursement, excluding expenses for alcoholic beverages, is limited to the current U.S. General Services Administration (GSA) regulations in place at the time the expense is incurred. Meals during in-state travel that is not an overnight stay will be reimbursed for actual cost not to exceed the GSA regulations.

Vacation in Conjunction with Business Travel

In cases where vacation time is added to a business trip, any cost variance in airfare, car rental, lodging and/or any other expenses must be clearly identified on the receipt or Payment Request Form and paid by the traveler.

Accompanied Travel

When a traveler is accompanied by others not on official business, any lodging, transportation, meals, or other expenses above those incurred for the authorized traveler will not be reimbursed by the library.

Parking

Parking fees at a hotel/motel, conference center, or other site will be reimbursed only with a receipt.

Entertainment Expenses

No employee or Trustee of the library shall be reimbursed for any entertainment expense, unless ancillary to the purpose of the program, event, or other official business.

6.9.4      Approval of Expenses

Travel, meal, and lodging expenses incurred by any employee or Trustee in excess of the approved rates set forth in this policy must be approved in advance in an open meeting by a majority roll call vote of the Board of Library Trustees. Travel, meal, and lodging expenses incurred by any employee within the approved rates set forth in this policy are subject to prior approval by the Library Director.

6.9.5      Documentation of Expenses

A detailed Payment Request Form (available from the Business Office) must be submitted within 90 days of incurring the expense. All documents and information submitted in connection with reimbursements are public records subject to disclosure under the Freedom of Information Act.

The library complies with the amended Illinois Wage Payment and Collections Act [820 ILCS 115/9.5], requiring employers to reimburse all "necessary expenditures … incurred by the employee within the employee's scope of employment and directly related to services performed by the employer."

6.10.1      Types of Reimbursable Expenses

Necessary expenses include, but are not limited to, travel time, mileage beyond the employee’s normal commute, and supplies for programs. The library provides employees the necessary electronic devices and internet access to complete all work required by the scope of employment. The library will not reimburse staff for personal or telecommuting expenses that are incurred as a result of work performed for the library. These expenses include, but are not limited to, personal cell phones, home internet use, office space, etc.

6.10.2      Approval of Reimbursable Expenses

Travel time is recorded on the employee’s timesheet and approved by the employee’s supervisor as incurred. Mileage is reimbursed according to Section 6.9.3 Personal Automobiles. All other reimbursable expenses must be approved in advance by the employee’s supervisor or the Library Director.

6.10.3      Documentation of Reimbursable Expenses

A Payment Request Form (available from the Business Office) must be submitted within 90 days of incurring the expense. All documents and information submitted in connection with reimbursements are public records subject to disclosure under the Freedom of Information Act.