Page 185 - BOGManual_2023Orientation

An Audited Financial Statements Distribution Log, which contains the name of the
person to whom the statement was distributed, the date of distribution, the reason for
distribution, and the person who approved the distribution, shall be maintained.

D. Bank Reconciliations
It is the policy of the LSBA that bank statements be opened by the assistant bookkeeper,
who shall conduct the reconciliations or review the statements and forward to the Director
of Finance and Membership for reconciliation. Accounts shall be reconciled as quickly as
possible but always within 14 days of receipt. Voided checks must be documented and
accounted for properly. No individual who is a check signer or preparer shall open the
statements.

E. Capital Purchases & Capitalization Threshold Policy

Definition and Threshold
Capital purchases are comprised furniture, fixtures, equipment, software, leasehold
improvements, etc. that: have a useful life of more than one year; AND cost more than two
thousand and five hundred dollars ($2,500), which is the amount established by the LSBA
Board of Governors as the threshold amount for capitalization.

Competitive Bids
For purchases in excess of $10,000, a minimum of two competitive bids should be sought.

Approval
The LSBA’s budget shall include and specifically identify capital purchases that are
anticipated to take place during the year. Those purchases itemized within the approved budget
are considered approved.

The LSBA’s annual budget also includes discretionary funds for capital purchases of not more
than $25,000, that can be accessed by the executive director without prior approval, provided
resources are available, and with the stipulation that the board be informed of any use of the
funds at the next regular meeting.

Capital purchases not within the approved budget, or beyond the scope of the discretionary
fund, must be specifically approved by the Budget Committee and the Board of Governors. To
seek such approval the executive director must provide the price and rationale for the purchase
and assurance of availability of financial resources to support the purchase.

Recordkeeping
The LSBA shall maintain a list of fixed assets showing the date of the acquisition, its cost, and
a schedule for depreciation of the asset. The LSBA shall keep on file documentation for each
purchase.

Annual depreciation expense will be included in the annual operating budget as a non-cash
item.

16