but not be limited to: a balance sheet, statement of operations, source and use of funds,
and the necessary supplementary schedules.
Upon completion of the audit, a full report shall be presented to a majority of the
board in an official directors’ meeting. The accountant’s reports must be approved or
rejected by official board action, and made a part of the board’s minutes.
Annual Operating Budget
The manager shall prepare or cause to be prepared an annual operating budget for
board consideration. The preliminary budget should be presented to the board not later
than 90 days prior to the beginning of the next fiscal year. The board of directors shall
approve the final budget by (number of days) days after completion of the past fiscal
year’s audit.
Management shall operate the cooperative as far as practical within the budget as
adopted. Any expenditures exceeding an approved budget line item by more than 10%
shall require a budget modification be approved by the board prior to expenditure
Management is responsible for developing long-range plans for review and
approval by the board, which will provide for orderly growth, maintain financial stability,
provide for orderly growth, maintain financial stability, and meet the needs of members
served by the cooperative.
Borrowing Policy
All major borrowing shall be obtained from the source of least cost but must be in
compliance with previous loan covenants, agreements, and commitments.
Borrowing may not exceed the loan limit of (number) set by board resolutions.
The board in conjunction with the manager shall review the loan resolution
annually. If needed, the manager may request board approval to increase the limit during
the year. To assure the availability of adequate funds and credit services at reasonable
cost, the cooperative will maintain alternative sources of capital, utilizing the Farm Credit
System, other lending institutions, and other sources, as appropriate.
The project manager shall maintain a log of all loans, including amounts, lending
agency, account numbers, current balance, interest rates etc. This log shall be provided to
the board as requested, but no less than an annual basis.
Director Per Diem, Mileage, and Travel Expense for Activities not Involving
Federal Funds
Directors shall be provided an honorarium $__ for attendance at all regularly
scheduled meetings. Directors serving on president-appointed committees shall also
receive $__ for each meeting attended.
A scheduled meeting is when a director is performing duties as a director.
A director may be authorized by the president to use his/her personal vehicle for
cooperative business when necessary and a cooperative vehicle is not available. When
such a personal vehicle is used, the director shall be paid the applicable IRS rate per mile
for the actual miles driven. The rate shall be reviewed yearly. Public transportation
expense will be reimbursed if in the opinion of the president, it is most advantageous to
the cooperative and the director. Transportation expense for a spouse (will/ will not) be