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FISCAL AND LEGAL PROCEDURES

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					     Section D


 1                             FISCAL AND LEGAL PROCEDURES
 2
 3                                   FISCAL AND DUES YEAR
 4
 5
 6   The fiscal year and the dues year of NSBA shall be July 1 to June 30.
 7
 8    ____________
 9   Policy History:   Approved by the Board April 19, 1979
10                     Amended by the Board October 15, 1982
11                     Amended by the Board April 11, 1991
12                     Reviewed and Approved by the Board February 2, 1996
13                     Reviewed and Approved by the Board November 10, 1999
14




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     Section D


 1                              FISCAL AND LEGAL PROCEDURES
 2
 3                            PREPARATION OF PROGRAM BUDGET
 4
 5
 6   The program annual budget of NSBA shall be prepared by the Executive Director and
 7   presented to the Executive Committee at a meeting prior to the regular June meeting of the
 8   Board.    After the Executive Committee has studied the recommended budget, its
 9   recommendation regarding the proposed budget shall be made to the Board at its regular June
10   meeting. At that meeting the Board shall adopt a budget for the ensuing fiscal year.
11
12   The budgets prepared by the Executive Director shall be in a format approved by the Board
13   and shall contain at least the following:
14
15      1. The introduction and overview of the general financial situation and the needs of
16         NSBA.
17
18      2. A detailed line item budget document showing recommended amounts organized
19         according to the prevailing NSBA financial reporting format.
20
21      3. A budget detail describing in narrative form the major components of the budget
22         document. The budget detail shall contain:
23
24              Descriptions of expected sources of revenue;
25
26              Summary plans for obtaining revenue for the ensuing year; and
27
28              A brief description of the proposed and needed expenditures covering the NSBA
29               programs and their relationship with the mission and goals of NSBA.
30
31   Review and approval by the Executive Committee and the Board shall signify authorization
32   for the expenditures outlined in the budget document. The Executive Director shall have the
33   authority to transfer funds among accounts during the fiscal year as circumstances dictate as
34   long as the overall Board-approved expenditure levels and program objectives are adhered to.
35
36    ____________
37   Policy History:    Approved by the Board April 19, 1979
38                      Amended by the Board October 15, 1982
39                      Amended by the Board June 14, 1990
40                      Amended by the Board September 20, 1990
41                      Amended by the Board April 11, 1991
42                      Reviewed and Approved by the Board February 2, 1996
43                      Reviewed and Approved by the Board November 10, 1999




                                                  D-2
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     Section D


 1                             FISCAL AND LEGAL PROCEDURES
 2
 3                   TRAVEL EXPENSE REIMBURSEMENT PROCEDURES
 4
 5
 6   Reasonable, actual and necessary expenses for travel in connection with NSBA activities shall
 7   be reimbursed upon receipt of a signed and approved NSBA Travel Expense Report in
 8   accordance with the following procedures. Original receipts are required for all expenditures
 9   of $25.00 or more and requested, where possible, for all other expenditures. Reimbursement
10   must be reconciled within 30 days unless expressly authorized in writing by the Executive
11   Director for staff members or the Secretary/Treasurer for the Board of Directors. All Board of
12   Directors’ expense reports are due to be reviewed by the Deputy Executive Director or his/her
13   designee.
14
15   A. Travel or Mileage
16
17      1. Air Travel
18
19          a) Air travel shall be reserved at the lowest feasible fare available for a reasonable
20             travel itinerary, and all travelers on NSBA business are expected to make at least
21             14-day advance bookings. Except in cases of emergency or unexpected travel,
22             airfares booked within the 14-day timeframe will be reimbursed at no higher than
23             the 14-day rate as reported by NSBA’s travel agency.
24          b) The original airline ticket receipt shall be attached to the claim for substantiation
25             of amounts. For electronic tickets, e-mail confirmations shall be attached.
26          c) Any personal travel costs in connection with an NSBA-related trip shall be
27             excluded from the claim if paid for by the person traveling. If NSBA is billed for
28             the entire cost, appropriate deductions for the personal portion shall be made on
29             the claim.
30          d) In order to better manage NSBA’s travel expenses (including reissuing cancelled
31             reservations, managing free tickets, management reports, etc.), NSBA encourages
32             use of NSBA’s travel agency for reimbursable travel expenses. However, NSBA
33             recognizes that lower fares may be available on line and through other means. As
34             a result, NSBA will reimburse travelers directly for those fares if they are made at
35             least 14 days in advance.
36
37   2. Rail, Bus Travel
38
39          a) Rail or bus travel is authorized by the most direct route and reimbursed to the
40             extent the costs does not exceed the lowest available air fare.
41          b) The original ticket receipts shall be attached to the claim for substantiation of
42             amounts.




                                                  D-3
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     Section D


 1   3. Automobile Travel
 2
 3          Personal automobiles may be used for round trips and reimbursed to the extent the
 4          cost does not exceed the lowest available airfare. Mileage reimbursement shall be at
 5          the level approved by the U.S. Internal Revenue Service (IRS).
 6
 7   4. Rental Automobile Travel
 8
 9          a) Automobile rentals are authorized only in cases of business necessity or
10             exceptional circumstances, and the cost shall be reimbursed where the use of such
11             vehicle warrants.
12          b) An explanation of the reason for such use shall accompany the claim.
13
14   5. Taxis, Shuttles, and/or Local Public Transportation Travel
15
16          Taxis, shuttles, or other local transportation costs in the conduct of NSBA business in
17          a city are authorized. Receipts should be attached to the claim form for substantiation
18          of expense.
19
20   6. Miscellaneous Travel
21
22          a) Mileage for use of personal automobile in trips to and from transportation
23             terminals shall be reimbursed at the standard mileage rate approved by the IRS.
24          b) Toll charges and parking costs shall be reimbursed in full. Receipts where
25             available should be attached to the claim.
26          c) Round trip mileage shall be reimbursed at the standard mileage rate for costs of
27             being driven to and/or being picked up at the terminal by someone else.
28
29   Travel costs of spouse, family members or others in connection with authorized travel shall
30   not be reimbursed, except as outlined below.
31
32   NSBA shall defray spousal travel for the President for major meetings and events of NSBA,
33   as follows: NSBA Annual Conference and Exposition; AASA Convention; Executive
34   Directors’ Summer Institute; NSBA State Association Member Presidents’ Retreat; NSBA
35   Board of Directors’ Fall Planning Meeting; one regional meetings in each of the NSBA
36   regions; one Board of Directors’ Meeting and two State Association Member annual
37   meetings.
38
39   In addition, if the NSBA President-elect represents NSBA at international meetings on
40   education to advance NSBA’s interests or programs, expenses for the educational portion of
41   the trip will be reimbursed by NSBA for both the President-elect and spouse. Expense
42   reimbursement for spousal travel will be reported as taxable income (Form 1099) as required
43   by the (IRS).




                                                 D-4
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     Section D


 1   B. Hotel/Motel Charges
 2
 3      1. Room Charges
 4
 5         a) NSBA shall reimburse for hotel or motel room charges at the single room rate for
 6            all NSBA-related travel. Included are charges for any rooms utilized en route, if
 7            needed to the destination, if required.
 8         b) If room charges are billed to NSBA on a master account billing, the rates
 9            negotiated by NSBA will prevail.
10         c) Occupancy of double rooms or suites will normally be reimbursed at the prevailing
11            single room rate, and claims shall be so prepared. If room costs are billed to
12            NSBA, deduction for the difference in costs of the room(s) actually utilized and
13            the single room rate should be made.
14         d) Double rooms or suites may be utilized by the President or Executive Director if
15            he/she deems it in the interests of NSBA.
16         e) Hotels/motels are authorized one night before and/or one night after a meeting as
17            travel conditions require.
18         f) Copies of hotel/motel charges, must be attached to the claim for substantiation of
19            amounts, unless the charges are included in a master bill set up by NSBA.
20
21      2. Other Hotel/Motel Costs
22
23         a) Other expenses billed to hotel room bills will be reimbursed only if such expenses
24            are specifically NSBA-related.         This includes telephone costs, food and
25            refreshment and the like on behalf of NSBA. Notations as to the type(s) of
26            expense, the reason for such costs, and affiliation with NSBA of those involved
27            should be noted on either the NSBA expense reimbursement claim form or the
28            accompanying hotel bill.
29         b) Personal expenses charged to hotel room bills should, if possible, be paid at check-
30            out time. If not possible, or if billings go to NSBA’s master account, deductions
31            for these charges should be made on the expense claim form.
32
33   C. Expenses
34
35      1. Persons traveling on approved NSBA-related business are authorized to be reimbursed
36         for reasonable, actual and necessary living expenses.
37
38      2. Original receipts for reasonable, actual and necessary meal costs and incidental
39         expenses should be attached to NSBA’s expense reimbursement claim form.
40
41   D. Other Expenses
42
43      This category covers other expenses for which NSBA will reimburse.
44
45      1. Telephone/Internet costs. All NSBA business telephone calls are NSBA costs and
46         shall be reimbursed. Whenever possible, cell phones, telephone credit cards or other



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     Section D


 1          means to mitigate the high cost of hotel phone charges should be used. When making
 2          Internet connections, it is important to be sure that long distance charges are not being
 3          incurred. Normally, one telephone call to the traveling NSBA Board member or
 4          employee’s immediate household per day is reimbursable.
 5
 6      2. Laundry/valet services are reimbursed only on an emergency basis.
 7
 8      3. Reasonable hotel health club facilities are reimbursed.        In-room movies are not
 9         reimbursable.
10
11      4. Costs for alcoholic beverages are not reimbursable. Food, costs for activities that are
12         directly related to advancing the interests or programs of NSBA are reimbursable. A
13         listing of participants, reasons for such costs and connection with NSBA of those
14         entertained should be noted on expense claims.
15
16      5. Reasonable gratuities are reimbursable for services related to expenses that are
17         themselves specifically reimbursable under these policies. For example, gratuities for
18         skycaps, taxi drivers and bellmen at the time of check-in or check-out may be claimed.
19
20      6. Other expenses directly connected with travel as defined and approved by the
21         Executive Director are reimbursable.
22
23    ____________
24   Policy History:   Approved by the Board April 19, 1979
25                     Amended by the Board June 12, 1980
26                     Amended by the Board June 25, 1985
27                     Amended by the Board April 8, 1986
28                     Amended by the Board June 14, 1990
29                     Amended by the Board December 11-12, 1990
30                     Amended by the Board April 11, 1991
31                     Amended by the Board June 18-19, 1993
32                     Reviewed and Approved by the Board February 2, 1996
33                     Amended by the Board April 2, 1998
34                     Reviewed and Approved by the Board November 10, 1999
35                     Amended by the Board June 15-16, 2001
36                     Amended by the Board April 19, 2005
37                     Reviewed and Amended by the Board June 8-9, 2007
38                     Amended by the Board December 14-15, 2007
39                     Amended by the NSBA Delegate Assembly April 3, 2009
40                     Reviewed and Amended by the Board June 10-11, 2010




                                                  D-6
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     Section D


 1                             FISCAL AND LEGAL PROCEDURES
 2
 3      EXPENSES OF NSBA DIRECTORS AT NSBA MEETINGS AND CONFERENCES
 4
 5
 6   NSBA shall bear the cost of expenses for room, actual expenses, and travel for members of
 7   the Board at any properly called pre- and post-conference meeting of the Board, Executive
 8   Committee, or other special committee, as well as for the Annual Conference. Rates and
 9   method of reimbursement, as well as allowances for expenses, shall be in accordance with the
10   provisions of the Board-approved Travel Expense Reimbursement Procedures.
11
12   NSBA policy does not provide for reimbursement of conference expenses to Board members
13   elected to the board at the close of the conference, except that NSBA will reimburse new
14   members of the NSBA Board of Directors who need to stay an extra night in a hotel because
15   of the post-Conference Board meeting.
16
17   In addition, the Board shall be provided 1 guest ticket upon request at no cost for special
18   functions attended in conjunction with the NSBA Annual Conference and Exposition.
19
20   Expenses of NSBA Directors at Regional Meetings
21
22   NSBA shall bear the cost of authorized expenses incurred by members of the NSBA Board in
23   attending the regional meeting of the region in which each resides.
24
25   Expenses of NSBA Directors at Presidents’ Leadership Conference
26
27   NSBA shall bear the cost of authorized expenses incurred by members of the NSBA Board at
28   the annual Presidents’ Leadership Conference.
29
30   Waiver of Fees
31
32   Registration of fees shall be waived for members of the Board to attend NSBA programs.
33
34   Federal Relations Network Meeting
35
36   NSBA shall bear the cost of authorized expenses incurred by members of the NSBA Board of
37   Directors in attending the NSBA Federal Relations Network meeting.
38
39    ____________
40   Policy History:   Approved by the Board April 19, 1979
41                     Amended by the Board June 14, 1990
42                     Reviewed and Approved by the Board February 2, 1996
43                     Reviewed and Approved by the Board November 10, 1999
44                     Reviewed and Approved by the Board June 12, 2010
45




                                                 D-7
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     Section D


 1                             FISCAL AND LEGAL PROCEDURES
 2
 3               WAIVER OF ANNUAL CONFERENCE AND EXPOSITION FEES
 4
 5
 6   The conference registration fee shall be waived for the members of the NSBA Board of
 7   Directors, for state school boards association executive directors, and for state association
 8   full-time staff members who may be attending the conference as well as for those persons
 9   with a special relationship to NSBA, as determined by the Executive Director.
10
11    ____________
12   Policy History:   Approved by the Board April 19, 1979
13                     Reviewed and Approved by the Board February 2, 1996
14                     Reviewed and Approved by the Board November 10, 1999
15




                                                 D-8
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     Section D


 1                             FISCAL AND LEGAL PROCEDURES
 2
 3                              DEPOSITORY FOR NSBA FUNDS
 4
 5
 6   The current major depository for NSBA funds (as approved by the Board) is Sun Trust Bank.
 7   Additional temporary depositories for special purposes shall be approved by the Board as the
 8   need arises.
 9
10    ____________
11   Policy History:   Approved by the Board April 19, 1979
12                     Amended by the Board November 9, 1980
13                     Amended by the Board September 15, 1982
14                     Amended by the Board December 1, 1989
15                     Amended by the Board September 15, 1994
16                     Reviewed and Approved by the Board February 2, 1996
17                     Reviewed and Approved by the Board November 10, 1999
18                     Amended to reflect that the Bank changed its name in 2001 from
19                     Crestar Bank
20




                                                 D-9
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     Section D


 1                              FISCAL AND LEGAL PROCEDURES
 2
 3     USE OF MAILING LISTS, TELEMARKETING AND ON-LINE COMMUNICATIONS
 4
 5
 6   The Board authorizes the Executive Director to grant permission for the use of NSBA mailing
 7   lists to commercial firms or other educational organizations, provided:
 8
 9         the materials to be distributed are deemed suitable and of interest to local school board
10          members;
11
12         the actual mailing of the material is done and/or controlled by NSBA with satisfactory
13          reimbursement for this expense; and
14
15         a set fee, to be established by the Executive Director, is paid by the firm or
16          organization requesting the mailing.
17
18   The Executive Director shall have the authority to waive the charge for certain non-profit
19   organizations when, in the Executive Director’s opinion, it would be to the advantage of
20   NSBA to do so.
21
22   All uses of NSBA mailing lists, all telemarketing conducted on behalf of the association, and
23   all NSBA on-line listservs and e-mail newsletters must comply with the privacy standards
24   established by the Direct Marketing Association (DMA).
25
26    ____________
27   Policy History:   Approved by the Board April 19, 1979
28                     Reviewed and Approved by the Board February 2, 1996
29                     Reviewed, Amended, and Approved by the Board November 10, 1999
30




                                                  D-10
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     Section D


 1                            FISCAL AND LEGAL PROCEDURES
 2
 3                           INVESTMENT OF OPERATING FUNDS
 4
 5
 6   Objectives
 7
 8      1) To obtain the maximum possible return on surplus funds while ensuring protection of
 9         invested cash. NSBA investments must not be designed for speculation; however, it is
10         recognized that all investments carry with them some degree of risk.
11
12      2) To ensure that NSBA has adequate cash-on-hand to meet operating expenses.
13
14   Surplus NSBA funds may be invested in:
15
16         Federally insured certificates of deposit, savings accounts, and money market funds
17          that invest in government backed securities;
18
19         Bank repurchase agreements, banker acceptances, and commercial paper;
20
21         United States Treasury Bills and United States Government Securities that are backed
22          by the full faith of the United States Government;
23
24         AAA rated bonds; and
25
26         United States Government guaranteed mutual funds.
27
28   The Executive Director, upon approval of the Executive Committee, shall be permitted to
29   enlist an outside investment agency for the purpose of managing investment funds.
30
31    ____________
32   Policy History:   Approved by the Board April 19, 1979
33                     Amended by the Board November 9, 1980
34                     Amended by the Board June, 1985
35                     Amended by the Board May 14, 1987
36                     Reviewed and Approved by the Board February 2, 1996
37                     Reviewed and Approved by the Board November 10, 1999
38                     (Changed name of title from Surplus to Operating Funds)
39                     Reviewed and Approved by the NSBA Board January 30, 2004
40




                                               D-11
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     Section D


 1                             FISCAL AND LEGAL PROCEDURES
 2
 3                      INVESTMENT GUIDELINES FOR SURPLUS CASH
 4
 5
 6   Introduction
 7
 8          These general guidelines are intended to serve as a framework for the overall
 9          management of “SURPLUS CASH” (over and above NSBA’s operating funds) of the
10          National School Boards Association (NSBA), hereafter referred to as “the Funds”.
11
12   Fund Purpose, Philosophy and Goals
13
14          A. The purpose of the Funds is:
15
16                  1. To accumulate and manage surplus monies to generate future revenue; and,
17
18                  2. To provide the Funds with the highest growth and annual income
19                     commensurate with a level of risk associated with various types of assets.
20
21   Administration / Management
22
23          A. The NSBA Board of Directors will have responsibility for the affairs, property and
24             assets of the Funds and is authorized to employ or arrange for the services of such
25             agents, consultants, investment manager(s), assistants, custodians or other persons
26             as in its opinion are necessary or desirable for the proper administration and
27             management of the Funds and to pay reasonable compensation for their services
28             and expenses.
29
30          B. The NSBA Executive Director or designee will have responsibility for:
31
32                  1. The oversight of the Funds; and,
33
34                  2. Monitoring the investment procedures and objectives, and management
35                     fees, costs, and expenses.
36
37   Investment Objectives
38
39          A. Investment:
40
41          The NSBA Board of Directors has adopted the following asset allocation formula for
42          NSBA’s investment manager. The formula is consistent with the desired objectives
43          and risk tolerances of the Funds.




                                                D-12
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     Section D


 1                     1. Asset Category               Limits                    Target
 2
 3                            Equities                 Maximum 70%                 60%
 4
 5                            Fixed Income             Maximum 70%                 40%
 6
 7                            Cash/Equivalents         Manager’s                   Manager’s
 8                                                     Discretion                  Discretion
 9
10                     2. Exception
11
12                        The above formula may be altered to either reduce market risk or optimize
13                        opportunities to capitalize on expected market movement.
14
15   Diversification
16
17          The purpose of diversification is to insure that no single investment, security, class of
18          investments or industry group will have a dominant position in the portfolio of
19          investments.
20
21          A. In order to minimize the risk of large losses in individual security positions, the
22             portfolio will be constructed to attain extensive diversification in both equity and
23             fixed income investments with no material concentration of plan assets in any
24             single security or industry group with the exception of U.S. Government and
25             Agency obligations.
26
27          B. Economic Sectors: It is expected that the equity component of the portfolio will
28             reflect a broad economic sector diversification.
29
30   Portfolio Constraints
31
32          A. Permitted Transactions
33
34                     1. Federally insured certificates of deposit, savings accounts, and money
35                        market funds that invest in government backed securities.
36
37                     2. Bank repurchase agreements, banker acceptances, and commercial paper.
38
39                     3. United States Treasury Bills and United States Government Securities that
40                        are backed by the full faith of the United States Government.
41
42               4.       Investment grade (BBB) or better corporate bonds.




                                                   D-13
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     Section D


 1                 5. Equities of Corporations listed on the New York Stock Exchange (NYSE),
 2                    American Stock Exchange (AMEX), and large and medium capitalization
 3                    companies listed on National Association of Securities Dealers Exchange
 4                    (NASDAQ).
 5
 6          B. Fixed Income Securities
 7
 8                 1. Quality
 9                    In addition to government Treasuries and Agencies, all other marketable
10                    issues held should have a minimum quality rating of investment grade or
11                    better, at time of purchase as designated by a recognized rating service.
12                    For purposes of commercial paper holdings, issues held should have a
13                    minimum quality rating of “A1-P1”, as defined by a recognized rating
14                    service.
15
16                 2. Maturity
17                    The average maturity will not exceed 10 years.
18
19                 3. Limitation
20                    The maximum investment in any one fixed income security will be limited
21                    to 5% of the fixed income portfolio, at actual market value (Government
22                    and Agency obligations are excluded from this limitation).
23
24                 4. Commercial paper and repurchase agreements, as well as convertible
25                    securities and bonds, are considered acceptable assets.
26
27   Prohibited Transactions
28
29          A. No assets shall be invested in non-negotiable and non-marketable issues.
30
31          B. No assets shall be invested in commodity contract, derivatives, futures, junk
32             bonds, limited partnerships, REITs, Unit Investment Trusts or other forms of direct
33             real estate ownership.
34
35          C. No assets shall be committed to short sale contracts.
36
37          D. No assets shall be invested in equity option contracts, i.e., the purchase or sale of
38             “puts” or “calls” on equity securities.
39
40          E. There shall be no purchases or sales of assets between the Funds and the
41             Investment Manager(s) or any affiliate.
42
43          F. There shall be no purchases, sales, or other transactions in connection with which
44             the Investment Manager(s) or any affiliate receives any payment or its own
45             account, whether as underwriter, investment banker, or broker.
46



                                                 D-14
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     Section D


 1   Performance Measurement
 2
 3         The NSBA Board of Directors shall use the following standards for measurement of
 4         the rate of return.
 5
 6         A. Fixed Income
 7            The fixed income portion of the portfolio will be measured against the Lehman
 8            Brothers Intermediate Government Corporate Bond Index.
 9
10         B. Equities
11            The equity component of the portfolio will be measured against the S&P 500 w/
12            Income Index.
13
14         C. Cash
15            The cash positions will be measured against the 90-Day Treasury Bill return.
16
17         D. It is understood that Total Return performance of the Funds will be measured over
18            a market cycle, generally assured a period of three to five years.
19
20   Payout Guidelines
21
22         Withdrawal of income from the Funds shall be at the written discretion of the NSBA
23         Executive Director or designee.
24
25   Reporting
26
27         A. The Custodian will furnish the appropriate NSBA staff monthly status reports of
28            the Funds reflecting quantity of individual security purchased, security cost basis,
29            percentage of asset allocation by security, month ending value, and any other data
30            requested by the appropriate NSBA staff from time to time.
31
32         B. The Manger(s) will furnish the appropriate NSBA Staff quarterly statements
33            containing the same information enumerated in part A above and is expected to
34            review personally the progress of the Funds with the NSBA Board of Directors at
35            least annually or at such other times as requested.
36
37
38          ___________
39   Policy History: Reviewed and Approved by the NSBA Board January 27, 2000
40                   Reviewed and Approved by the NSBA Board January 30, 2004




                                                D-15
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     Section D


 1                              FISCAL AND LEGAL PROCEDURES
 2
 3                                            RESERVES
 4
 5
 6   The goal of the Board of Directors shall be to work toward a fund balance of fifty percent of
 7   NSBA’s annual operating expense budget. This fund balance shall be achieved by budgeting
 8   annually for net revenues of at least one percent per year of that year's operating revenues. In
 9   addition, any improvement to the budgeted net revenues at year end shall be applied toward
10   this reserve fund.
11
12   Such reserve shall be set aside in two funds by the Board of Directors as follows:
13
14      1. Operating Reserve Fund – to be used in the event that expenses exceed revenues in a
15         given year; and,
16
17      2. Capital Reserve Fund – to be used as seed money for major new programs or services
18         or toward the elimination of debt for the existing NSBA building or the acquisition of
19         new space as and when determined needed by the Board, or as needed in the event that
20         expenses exceed revenues in a given year.
21
22   In the event that revenues exceed expenses in any given year:
23
24      1. Twenty-five percent of any net revenue shall be formally designated for Fund 1 –
25         Operating Reserve Fund; and
26
27      2. Seventy-five percent to Fund 2 – Capital Reserve Fund.
28
29   In the event expenses exceed revenues in any given year, the applicable net expenses will be
30   deducted from the Operating Reserve Fund, unless there are insufficient funds in the Fund to
31   cover the net expenses, in which event any remaining net expenses shall be deducted from the
32   Capital Reserve Fund.
33
34   Notice shall be given to the NSBA President and Board of Directors at the earliest practicable
35   time of any such shortfall.
36
37    ____________
38   Policy History:    Approved by the Board December 1, 1989
39                      Reaffirmed by the Board December 20, 1990
40                      Reviewed and Approved by the Board February 2, 1996
41                      Reviewed, Amended, and Approved by the Board November 10, 1999




                                                  D-16
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     Section D


 1                              FISCAL AND LEGAL OPERATIONS
 2
 3                                        LINE OF CREDIT
 4
 5   The Board of Directors recognizes that NSBA’s resources are dependent on cyclical cash
 6   receipts that fluctuate during the year as various revenues are received. The executive
 7   director is authorized to negotiate a line of credit for short-term use when NSBA’s cash flow
 8   may have a lower balance than immediate cash expenditures may require.
 9
10   Limit and Terms of the Line of Credit
11
12   The available line of credit will not exceed $1,000,000. All other terms of the line of credit
13   (including interest rate, term length, collateral required, and repayment requirements) must be
14   approved by the NSBA Board of Directors in order for the line of credit to be established.
15
16   Accessing the line of Credit
17
18      In order for the line of credit to be accessed, the executive director (or designee) must
19       request and receive written authorization from the NSBA Secretary-Treasurer.
20      A request to access the line of credit will be made only when the Director of Finance
21       determines that NSBA’s projected cash on hand will be insufficient to meet cash
22       obligations within the next 30 days. The Director of Finance will review this projected
23       cash shortfall with the Executive Director, including the disbursements that will be made
24       with the cash from the credit line access and the projected revenues that will be used to
25       repay the funds borrowed from the line of credit.
26      The request will include a statement of “cash on hand” and a projected repayment
27       schedule within 90 days of the date that the line is accessed.
28      Funds may be expended only in accordance with the budget approved by the board. No
29       additional capital purchases will be made with line of credit funds.
30      A report will be made to the entire Board of Directors whenever the line of credit is
31       accessed, and the line of credit report will continue each month as part of the Financial
32       Report to the Board of Directors until the line of credit is fully paid off.
33
34   _____________
35   Policy History:       Adopted by the Board February 3, 2012




                                                 D-17
                                                                                                1 of 1
     Section D


 1                              FISCAL AND LEGAL PROCEDURES
 2
 3                                     AUDITOR OF RECORD
 4
 5
 6   The Board of Directors shall annually appoint an auditor of record.
 7
 8    ____________
 9   Policy History:   Approved by the Board April 19, 1979
10                     Amended by the Board September 18, 1986
11                     Amended by the Board December, 1989
12                     Reviewed and Approved by the Board February 2, 1996
13                     Reviewed and Approved by the Board November 10, 1999




                                                 D-18
                                                                              1 of 1
     Section D


 1                             FISCAL AND LEGAL PROCEDURES
 2
 3                                CHECK SIGNING AUTHORITY
 4
 5
 6   The Executive Director, the NSBA Secretary-Treasurer, the Deputy Executive Director, and
 7   the Director of Finance and Business may sign checks for NSBA.
 8
 9   NSBA shall provide a bond for full faith and fidelity for those persons who have fiduciary
10   responsibilities.
11
12    ____________
13   Policy History:   Approved by the Board April 19, 1979
14                     Amended by the Board November 9, 1980
15                     Amended by the Board January 25, 1986
16                     Amended by the Board September 23, 1989
17                     Reviewed and Approved by the Board February 2, 1996
18                     Reviewed and Approved by the Board November 10, 1999
19                     Reviewed and Approved by the Board June 12, 2010




                                                 D-19
                                                                                             1 of 1
     Section D


 1                            FISCAL AND LEGAL PROCEDURES
 2
 3                                    OFFICE OF RECORD
 4
 5
 6   The registered agent for the purpose of being served within the state of Illinois and the
 7   Commonwealth of Virginia shall be:
 8
 9          Corporation Service Company (CSC)
10          2711 Centerville Road – Suite 400
11          Wilmington, DE 19808
12          Telephone: 302-636-5450
13          Fax: 302-636-5454
14          Website: www.incspot.com
15
16    ____________
17   Policy History:   Approved by the Board April 19, 1979
18                     Reviewed, Amended, and Approved by the Board February 2, 1996
19                     Reviewed and Approved by the Board November 10, 1999
20                     Reviewed and Approved by the Board September 19, 2002




                                               D-20
                                                                                       1 of 1
     Section D


 1                              FISCAL AND LEGAL OPERATIONS
 2
 3                                    RECORDS RETENTION
 4
 5
 6   Delegate Assembly Records
 7
 8   The Executive Director shall be responsible for the preparation and permanent maintenance of
 9   transcripts and minutes of Delegate Assembly meetings so as to provide an accurate historical
10   record of the policymaking body of NSBA. Agendas, including support documents, for
11   Delegate Assembly meetings shall be retained for two years.
12
13   Board Records
14
15   The Executive Director shall keep records of official board actions. Approved board minutes
16   shall be maintained indefinitely. Any electronic records of Board meetings shall be made
17   only for the purpose of preparing the minutes and may be destroyed after the Board approves
18   the minutes for the meeting so recorded.
19
20   Executive Committee Records
21
22   NSBA shall retain Executive Committee records for the same duration as it retains those of
23   the full Board.
24
25   Administrative Records
26
27   Financial records of NSBA shall be maintained by the Executive Director for five years.
28   Other administrative records shall be retained for three years, as deemed appropriate by the
29   Executive Director.
30
31   The contents of this policy do not apply to confidential minutes of executive sessions. Those
32   confidential records are prepared and maintained by the NSBA Secretary-Treasurer.
33
34    ____________
35   Policy History:   Approved by the Board April 19, 1979
36                     Amended by the Board June14, 1990
37                     Reviewed and Approved by the Board February 2, 1996
38                     Reviewed and Approved by the Board November 10, 1999




                                                D-21
                                                                                            1 of 1

				
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