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Finance and Investments Policy
A policy on finance and investments related to the Society.
Financial Management and Oversight
The Board of Trustees and ASLA management work together to ensure effective use of ASLA resources in support of the Society’s mission and vision. In accordance with Section 801 of the ASLA Bylaws, the Board of Trustees is charged with financial oversight of the Society: establishing and prioritizing strategic goals and objectives; adopting annual operating plans and budgets; allocating funds to reserves and approving disbursements of reserves funds; and reviewing and accepting the annual audit of the accounts of the Society. ASLA management is responsible for ongoing financial management and administrative oversight.
Budget Development and Approval
The annual program and budget of the Society is developed by ASLA management based on Board-identified strategic objectives and priorities, and a strategic planning process that emphasizes: clear identification of goals and objectives; regular performance monitoring and evaluation of results; and internal and external environmental scans. To maintain flexibility and the ability to respond to opportunities and changing conditions, development of the annual program and budget is done on a one- to two-year horizon. At the fall meeting, the Board adopts the Annual Operating Plan (AOP) and the corresponding operating and capital budgets for the upcoming fiscal year. A draft budget for the following year is also presented for Board approval at that time.
Budget Adjustments
The ASLA Executive Committee may adjust the adopted budget. Budget adjustments adopted by the Executive Committee shall not exceed seven (7) percent of the total annual budget of the Society and the actual adjustments adopted by the Executive Committee shall be reported to the Board of Trustees.
Deferred Expenses
Expenses may be deferred only if they adhere to generally accepted accounting principles. In no case shall deferrals extend beyond the real life of a member benefit or the useful life of a product.
Funds of the Society
In addition to the funds/accounts that finance the day-to-day operations of the Society in accordance with the Board-adopted AOP and budgets, the Society shall maintain a long-term reserve.
The long-term reserve shall be cash and investments designated as reserves. The purposes of the long-term reserve shall be:
• To sustain operations and member services during a period of economic downturn.
• To manage the cash flow requirements of proven fee-for-service activities, e.g., the annual meeting or Landscape Architecture Magazine.
• To fund capital expenditures beyond anticipated annual capital expenses.
• To meet financial obligations under emergency circumstances, i.e., one-time, episodic, unanticipated situations.
• To fund development of new, or enhancement of existing programs, products, or services.
Interest earned on the long-term reserve shall be retained in the long-term reserve. Disbursements shall be restricted to the purposes outlined above and shall require advance approval by an affirmative vote by two-thirds (2/3) of the voting membership of the Board of Trustees present at a meeting. The prescribed size and purposes of the fund shall be reviewed at least every three (3) years by the Finance and Investments Committee and changes shall be recommended to the Board of Trustees by the committee as necessary and appropriate.
The Society’s objective shall be to achieve a reserve of fifty (50) percent of annual operating expenses by the year 2020. Annual contributions to the long-term reserve shall be three (3) percent of budgeted annual operating expenses. (For this purpose, the term “annual operating expenses” does not include estimated tax payments and planned annual reserve contributions.) The Society’s progress toward this objective shall be assessed annually by the Chief Financial Officer and the Finance and Investments Committee and reported to the Board of Trustees as part of the budget approval process.
Financial Reporting
Program and budget information shall be available to the ASLA Executive Committee, Board of Trustees, Audit Committee, and Finance and Investments Committee and other committees and members as appropriate. Such information shall be confidential and not for public distribution or dissemination unless specifically approved by the Executive Committee.
• The Board of Trustees shall receive quarterly reports on income and expense as compared to the approved budget. The Board of Trustees shall also receive the annual independent auditor’s report and written opinion, and recommendation on acceptance from the Audit Committee.
• The Executive Committee shall receive monthly reports on income and expense as compared to the approved budget.
• The finance vice president and chairs of the Finance and Investments Committee and Audit Committee shall receive monthly reports on income and expense as compared to the approved budget and any additional financial reports as requested and as deemed necessary.
General program and budget information, showing allocation of funds by major program area and relating expenditures to board-identified priorities, shall be made available to ASLA members and included in the executive vice president’s annual report to the members. This information shall be suitable for dissemination to the media and others outside ASLA on request.
The goals of this policy are to ensure that: the Board of Trustees and Executive Committee have the financial and programmatic information needed to provide appropriate oversight and direction; ASLA fulfills its responsibility to report to its members on the financial condition of the Society and how Society funds are spent; and, as defined in the paragraph above, only the appropriate summary information is provided to the media and others outside ASLA.
Biannual Review of Membership Dues
The Finance and Investments Committee in conjunction with the Member Services Committee shall review ASLA membership dues and make a recommendation to the Board of Trustees based on: the most recent CPI (Consumer Price Index); cost of programs and services as determined by the Board of Trustees; and dues as a percentage of total revenues. This review shall be performed, with the recommendation presented to the Board of Trustees at its midyear meeting, every even numbered year for implementation in the next odd numbered year.
Chapter Loan Policy
The ASLA Executive Committee may consider granting loans to ASLA chapters on a case-by-case basis. Such loans shall be subject to the following conditions:
• Loans may be made for the purpose of (a) supporting chapter initiatives to obtain or defend licensure laws; or (b) in the event of an emergency situation.
• Loans shall be repaid within one (1) year of the time they are made at a rate of interest one (1) percent above the prime lending rate as reported by The Wall Street Journal at the time the loan is made. Loan repayment extensions shall be requested by the chapter and approved by the Executive Committee.
• An ASLA chapter shall qualify for a loan as described above no more than once every three (3) years.
• Total loans extended by ASLA in any one (1) year shall not exceed twenty-five thousand ($25,000) dollars.
Chapter Dues Rebates
Chapter dues shall be collected by national headquarters and rebated to the chapter in accordance with Article 6, Section 604, of the ASLA Bylaws. Rebates will be provided monthly and will include all dues received in the prior month.