policy6a-g financial asset management

8/6/2019 Policy6A-G Financial Asset Management

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Standard 6: Financial and Asset Management / Page 1 of 3 / Adopted by Board November 27, 2007

LTA Standard 6:

Financial and Asset Management 6A: Annual Budget6B: Financial Records6C: Financial Reports and Statements

6D: Financial Review or Audit6E: Internal System for Handling Money6F: Investment Management of Financial Assets

and Dedicated Funds6G: Funds for Stewardship and Enforcement

Policy: The Land Trust shall manage its finances and assets in a responsible andaccountable way and to this end shall follow a set of policies and practices. Such policiesand practices shall be generally in accordance with LTA Standards and Practices, whichthe Land Trust has adopted.

The Board of the Land Trust has established a Finance Committee to undertake and carryout its Financial and Asset Management responsibilities. The Finance Committeesactions shall be reported to and be subject to the approval of the Executive Committeeand the Board.

Practice 6A: Annual Budget

The Finance Committee, working in conjunction with the Staff, shall prepare an annualexpense budget for the following fiscal year. The budget shall cover all operations ongoing program expenses, fundraising costs and administrative expenses plus any new

planned program and project expenses. In addition, an operations contingency reserveshall be established at 2% - 5% of the operations budget.

It is the policy of the Land Trust that the annual operations budget shall not exceedprojected unrestricted donations and unrestricted income.

The Executive Committee and the Fundraising Committee, with the approval of theBoard, may establish any planned Open Space acquisition campaigns and StewardshipFund campaigns.

Prior to submittal to the Executive Committee and the Board for their approval, the

Fundraising Committee shall review the general scope and amount of the proposedoperations budget.

The annual budgeting process shall begin sufficiently prior to the Land Trusts fiscal yearend (two months), so that a final recommended budget can be presented to the Board notlater than its February meeting.


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At the end of each fiscal year the Finance Committee shall identify any surplus ofunrestricted donations and income in excess of operation expenses (i.e., net unrestrictedincome) from the previous year. The Board, upon the Executive Committeesrecommendation, shall designate any such surplus to an operating expense reserve, thento the Stewardship Fund, Open Space, and/or Legacy Fund. Current policy is tocommence each fiscal year with six months of projected operating expenses in reserve.

Practice 6B: Financial Records

The Land Trust keeps accurate financial records in a form appropriate to its scale ofoperations and in accordance with Generally Accepted Accounting Principles (GAAP).Our Financial Records policy is contained within Standard 2, Practice 2D.3.

Practice 6C: Financial Reports and Statements

Prior to each Board meeting, the Board shall be provided financial statements, includingan income and expense report, balance sheet and such other reports it may request from

time to time.

Practice 6D: Financial Review or Audit

The Finance Committee, subject to the approval of the Executive Committee, shall selecta qualified financial advisor to perform an annual audit of the Land Trusts financialoperations and to prepare annual financial statements in accordance with recognizedaccounting standards for non-profits.

Further, the Finance Committee, subject to the approval of the Executive Committee,shall select another qualified financial advisor, independent of the audit firm, to prepare

the Land Trusts annual tax return, Form 990.

Practice 6E: Internal System for Handling Money and Expenditure Policy

The Executive Director and/or designated signatories may issue single signature checksin amounts under $250 for budgeted expenses. Amounts over $250 require twosignatures.

Out-of-pocket expenditures by staff or Board members on Land Trust businessthat havenot been authorized by the Executive Director are to be submitted to the appropriatecommittee chair, the Executive Committee, or the Board for approval prior to any

reimbursement.

The intent is that expenses be anticipated. Staff and Board members risk not beingreimbursed for non-approved expenditures.


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Non-budgeted expenses must be approved by the Executive Committee or the Board ofDirectors. Expenses that exceed a budgeted category by the greater of 20% or $500 mustalso be approved by the Executive Committee or the Board of Directors.

Practice 6F: Investment Management of Financial Assets and Dedicated Funds

The Land Trust has a system for the responsible and prudent investment and managementof its financial assets and has established an Investment Policy. (See Appendix 6F.1,Investment Policy for the Wood River Land Trust.)

Practice 6G: Funds for Stewardship and Enforcement

The Land Trust has adopted Stewardship Fund Policies and Procedures covering theoperation of the fund, allowable uses, determination of the amount of deposits to the fundand considerations relevant to donor or seller contributions. (See Appendix 11A,Stewardship Fund Policies and Procedures.)

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