LBOA Budget & Expense Guidelines

LBOA is a voluntary membership trade organization whose main concern is for the benefit of its members. The best interest of the membership at large will be the governing consideration for all financial transactions.  Any and all expenses must be evaluated to ensure that the membership is likely to receive benefits proportional to the expense.General Administrative/Office Expenses

Supplies should be quality items in order that LBOA always looks uniform, professional, and present a favorable image.  The best price possible should be sought for the purchase of these items.

Durable & Property Items
Such items should not be expensive but sufficient to perform their functions for the normal or anticipated life of the item.  The best price possible should be sought for the purchase of these items.

Competitive Bids
Two or more independent and “arms length” price quotes must be obtained for any item or service costing more than that $500.00, delivered.Three or more independent and “arms length” price quotes must be obtained for any item or service costing more than that $1000.00, delivered.  Expenditures of more than $3000 require the approval of a majority of the Board of Directors and the Treasurer.

Entertainment
Expenditures for food should be kept within reason and only for purposes that have a direct bearing on LBOA activities or areas of interest.  Expenditures for non-members’ food (including member employees, significant others, etc.) may only be made if there is a direct benefit to LBOA, or if approved, in advance, by a majority of the Board of Directors.

Alcohol
Legal liability often attaches to the service of, or payment for, alcoholic beverages, therefore, LBOA will not pay for the purchase of any alcoholic beverages unless a an exception is approved by a majority of the Officers and Board of Directors.

Business Meetings

Officers and Board of Directors should limit any business meeting with other organization, prospect member or vendor to normal business hours and in traditional business environments. Luncheons and dinners must be kept to the minimum unless they are formal meetings called for and paid by the other party. LBOA must limit such functions that it pays for, and do so only upon approval of a majority of the Board of Directors.

Travel
Officers and Board of Directors are authorized travel expenses using the IRS published rules/guidelines current at the time of travel. Such expenses should be kept to the minimum required to accomplish the travel at economy or standard rates.  Premium rates are only to be incurred in the most extenuating circumstances and then only with the advance approval of a majority of the Board of Directors and the Treasurer.

Functions
When functions, membership or Board of Director meetings are conducted, the venue and costs must be carefully considered and reasonable rates and costs considered.  It is LBOA’s goal that each function be self sufficient as to costs and that LBOA control the number of invited (non-paying) guests. Each function should have sponsors and/or some fund raising operation dedicated to it.

Fund Raising
Fund raising programs must be developed and implemented during each fiscal year.  The goal of fund raising is to maximize the amount raised and the percentage of return to LBOA as allowed by law and Treasury Department regulations.

Joint Ventures
Whenever possible, LBOA will consider working with other organizations to minimize expenses such as professional fees.

Where joint interest or programs are possible LBOA will closely monitor expenses and take an active part in all management and financial decisions.

Membership
The Membership Committee will be responsible for developing membership programs and submit its budget needs for Board of Directors approval.
 
Other Committees
Those committees, that require funding, must submit an anticipated expense budget for approval by the Board of Directors.

Charitable Functions and Benefits
LBOA may select 1 or 2 organizations for charitable donations but only the money raised from specific charitable fund raising activities shall be used.  The general funds of LBOA shall not be used for charitable donations.

PAC – Political Action Committee
If LBOA develops political activities, it will adhere to all the appropriate Federal, State and Municipal guidelines. A separate PAC Treasurer, with a separate bank account and controls will be established as required by law.

Dinner Parties & Journals

It is important to attend other associations and political dinner parties but the number of events and participants must be considered. When plans or reservations are made, they will be restricted to two (2) tickets.  If it is felt that more than two (2) tickets are needed, the Officers and Board of Directors may increase the amount authorized.It is recognized that journal advertisements are often solicited.  The Board of Directors and Officers are to be consulted and must approve the cost/size and advertising copy submitted.