The Literacy Trust: Our Financial Stewardship
Cape Fear Literacy Council provides updates on our organization’s Revenues and Expenses to our donors and constituents to maintain accountability and transparency as a fiscally-responsible nonprofit organization. We wanted to share with our Literacy Trust members some of the other notable financial practices and outcomes of our ongoing financial stewardship:
- Staff oversight by an established Finance Committee. The Finance Committee meets quarterly with the Executive Director and Business Manager. The President, Treasurer, Assistant Treasurer, and additional Board members with relevant backgrounds sit on the committee.
- Chair of Committee: Josh Tucker
- Members: Chuck Rogalski, Bill Sewell, Sarah Stone, and Alexandra Umstead-Wrenn
- Notable: 100% of the Finance Committee Members are Literacy Trust members
- CFLC financial policy states that the organization maintains 3-6 months of operating expenses in Checking Accounts, Savings Accounts, and Certificates of Deposit (CDs) with maturities no greater than three months. Excess funds are invested in liquid, interest-bearing checking, savings, and CDs with maturities no greater than 12 months. CFLC’s current operating account exceeds the required amount.
- CFLC financial policy states that the organization maintains 12 months of Operating Reserve Accounts (ORAs) in a diversified portfolio with low to moderate risk to the aggregate principal invested. The portfolio’s makeup may vary based on market conditions, advice from our Investment Advisors, and the recommendation of members of the Finance Committee. CFLC’s current ORA well exceeds the required amount.
- All budgeted repair work, contracts, and equipment purchases over $2,500 require at least three Requests for Proposals (RFPs) to be sent out and at least two bids received. The appropriate board committee and the Executive Director review these bids. The Board of Directors approves any non-budgeted expenditure exceeding $5,000 before incursion. The Finance Committee is apprised of the expense before presentation to the Board of Directors.
- CFLC maintains annual financial audits and preparation of the 990 Form financial statement required by federal, state, and local governments. CFLC has had successful, clean audits for years, utilizing established local auditors. Our current auditor is Jason Keller, CPA.
- CFLC maintains, at a minimum, a Gold Standard of Transparency on the GuideStar Charity Check. GuideStar is the nation’s most comprehensive philanthropic research database and charity evaluator: https://www.guidestar.org/profile/58-1613254