Board Meeting on December 6-7, 2014

Board Resolutions

Resolution Nr. 1
The ALA Board resolves to investigate which ALA scholarships (that are financed by Temporarily Restricted Funds and that were formulated before 2014) no longer have a viable scholarship recipient, and to perform necessary actions to legally release these funds for the purposes of other more suitable scholarships. 

Resolution Nr. 2
The ALA Board accepts the Statement of Financial Position and the asset overviews as presented.  

Resolution Nr. 3
The ALA Board has reviewed the existing, written Investment and the Conflict of Interest Policies and agrees that they represent the current position of the Board and ALA. The Board has reviewed the draft Document Retention and Destruction policy and adopts it as official ALA policy (copy attached).  

Resolution Nr. 4
The ALA Board resolves to engage CLA to conduct the financial audit of ALA for FY 2014. 

Resolution Nr. 5
The ALA Board resolves that dividends and other income from the Vanguard PRF/Endowment account be reinvested and that processes be put in place to accurately allocate earnings to applicable Temporarily Restricted Fund accounts.

Resolution Nr. 6
The ALA Board supports the plan to create a new Vanguard Investment account with an initial investment of $750,000. The funding for the account would be temporarily restricted net assets currently deposited in the SunTrust – Money Market Bequest account. The specific investment is to purchase equal amounts of three Vanguard mutual funds; the mutual funds are the following: Dividend Growth (VDIGX), Total Bond Market Index Admiral Shares (VBTLX), Intermediate Term Investment Grade Bond (VFIDX).

Resolution Nr. 7
The ALA Board has reviewed the financial data regarding unrestricted bequests to the organization and approves a deposit of $100,000 to the Century Bequest Vanguard investment portfolio by the end of the current fiscal year. The deposit would involve transfer of 10.5% from each existing Vanguard Main Account fund, and purchase of the Dividend Growth mutual fund. The new configuration of the Century Bequest portfolio would be as follows:

29.43% Total Bond Index
29.43% Intermediate Term Investment Grade Bond
17.75% Dividend Appreciation Index
12.70% Growth Index
6.48% Extended Market Index
4.20% Dividend Growth

Resolution Nr. 8
Assets from the Freiberg bequest will be used according to the following guidelines:

Freiberg TRF/TRNA assets may be used to pay for costs incurred by ALA Offices for programs and services, provided directly by ALA, or through partner organizations, that clearly meet the criteria defined in the bequest – the furtherance of knowledge of the Latvian language and culture for Latvian youth in the United States. Documentation of such expenses would be part of the ALA budget development and subsequent Board budget approval processes.

Resolution Nr. 9
The ALA Board adopts the ALA FY 2015 budget proposal. The budget will be formally adopted by the 64th ALA Congress delegates in Indianapolis in May 2015. 

Resolution Nr. 10
The ALA Board resolves to establish and clarify policies related to its Administrative Fee policy. This resolution supercedes board resolutions from December 2013 and March 2014 regarding this policy.

1 – The ALA Board will withhold from each new, restricted bequest a one-time Administrative Fee according to the following formula. 

(a) less than $20,000 – 6%

(b) between $20,000 and $50,000 – 3%

(c) more than $50,000 – 2%

2 – This policy will be applied to the entire bequest amount should initial distribution occur over time (that is more than one transaction, even if received in different fiscal years).

3 – Should additional donations be made to the resultant Temporarily Restricted Fund assets, the Administrative fee shall not be withheld.

4 – The fee does not apply to donations to an existing Temporarily Restricted Fund (whether they be cash, securities or other monetary means).

5 – The ALA Board will assure that this policy is made available and known to potential donors through its advertising and media publications.

Resolution Nr. 11
At the request of the Embassy of Latvia, the ALA Board resolves to sponsor the Latvian choir “Latvija” in their performance visa application. The group plans to tour the US in April 2015 to promote Latvia’s EU presidency, with key stops at the Lincoln Center and Baryshnikov Center. 

Resolution Nr. 12
The ALA Board resolves to support the JBANC conference, to be held April 17-18, 2015, with a $3000 subsidy as well as with registration fees, with the understanding that ALA will be named as a sponsor.