The Pierce County Library System (“Library”) Board of Trustees shall implement and maintain sound financial management of the entrusted resources provided by the taxpayers and other sources of funding, consistent with the Library’s mission.
In accordance with state law, RCW 27.12.070, the Pierce County Office of the Assessor-Treasurer serves duly as the Library’s fiscal agent, and the Library implements all accounting rules and processes required by the Assessor-Treasurer.
As authorized by the State Auditor, the Library implements the cash basis of accounting but can choose to implement modified accrual or full accrual basis of accounting. Cash basis of accounting does not conform to Generally Accepted Accounting Principles (GAAP) and the State Auditor notes this status in annual audit reports.
Budget: A statement of anticipated revenues to be used for planned expenditures.
Capital Improvement Fund: A fund that is set aside for major asset and system purchases, maintenance, and improvements.
Cash: The actual cash contained on hand or in a financial institution, to include any cash invested through the Pierce County Treasurer.
Cash reserves: A portion of cash that is set aside in any fund for short-term, mid-term, and long-term sustainability without needing to incur debt.
Current Year Revenue: A combination of new revenue, use of fund balance, and transfers from a Levy Sustainability Fund.
Expenditure management: A process to capture and report actual expenditures compared to the budget of planned projects and operations.
Fund Balance: The projected available cash after satisfying all recorded liabilities and accruals to be paid.
Funding Cycle: A multiyear fiscal strategy will likely have three phases that may or may not be sequential. Phase 1: The Library receives more money than is expended, and additional funds are deposited into the Levy Sustainability Fund. Phase 2: Revenue and expenditures are in balance and no funds are deposited into or withdrawn from the Levy Sustainability Fund. Phase 3: Expenditures exceed revenue and funds are withdrawn from the Levy Sustainability Fund to close the shortfall.
General Fund: A public sector accounting term for the primary fund to operate a governmental entity. It records all financial activities to conduct day-to-day business.
Levy Sustainability Fund: A Special Revenue Fund that is used to accumulate cash at the beginning of a Funding Cycle in order to balance subsequent budgets without incurring major reductions in services.
Special Revenue Fund: A fund that is designated by the governing body as having a restricted or committed use for specific purposes.
The Library Board of Trustees establishes the following fiscal management policy, which requires Board Action to enforce, make decisions, make exceptions, or otherwise implement to the extent law allows:
The Board expects the Library staff to carry out the following responsibilities:
The Board of Trustees shall review this fiscal management policy prior to or in conjunction with considerations of the annual fiscal year budget process, and amend it as deemed appropriate.
Board Policy 3.15
Adopted by the Pierce County Rural Library District Board of Trustees, August 3, 1995. Revised and approved on: June 13, 1996; July 23, 1998; June 9, 2004; August 8, 2007; October 14, 2009, November 18, 2015, September 13, 2017, July 10, 2019, December 11, 2019
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