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30 HB Fiscal Polices Et Procedures <br /> Sectionand Liabilities <br /> A. Overview <br /> This section refers to the approval of taking on long-term debt as well as the process for <br /> investments. HB should implement these procedures in accordance with the investment policy and <br /> the roles and responsibilities of the Board as they relate to long-term debt and investments. <br /> B. Policies <br /> 1. Properly approve, document, and record all long-term debt. <br /> 2. The Board of Directors sets the investment policy to determine how assets are purchased <br /> and sold. <br /> 3. Properly approve, document, and record the purchase and sale of investments. <br /> 4. Properly reconcile investment statements to the supporting books and records on a <br /> periodic basis. <br /> 5. Limit access to the organization's credit line to authorized users for appropriate uses. <br /> Monitor and reconcile the credit line monthly. <br /> C. Process Description <br /> Assets: Investment Purchase and Sale <br /> The Board approves the investment policy set by the Finance Committee to determine how assets <br /> are purchased and sold. <br /> Liabilities: Assumption of tong-term Debt <br /> Staff or Board members present proposals to issue debt to the Board, including bonds payable, <br /> notes payable, lease obligations, and pension plan obligations. In its approval, the Board should <br /> have a proper understanding of the obligations of the debt and the organization's ability to meet <br /> those obligations. The Board prepares a resolution to document the Board's approval of the <br /> issuance of the debt. If there are any assets coltateralizing the debt, HB keeps a register <br /> specifically identifying them, updating this register periodically with the current book value of the <br /> assets. <br /> HB records debt at the present value of future cash flows and accounts for a discount or premium <br /> using the effective interest method. <br /> D. Procedures <br /> Exec. Dir. of Staff Finance <br /> Dir. Finance Acct. Comm. <br /> 8.1 INVESTMENTS <br /> 1. Set investment policy; review on an annual basis. Provide Provide X <br /> input input <br /> 2. Enter investment income in the accounting software on a Forward X <br /> monthly basis. statement <br /> 3. Reconcile investment accounts to bank statements on a Review a X <br /> monthly basis. approve <br /> 4. Distribute reports detailing the earnings and activity in <br /> all investment accounts to the Finance Committee on a X <br /> bimonthly basis. <br />