Cyber Financial Lane Council

LANE COUNCIL OF GOVERNMENTS 

2012-2013 

Work 

Program 

and Fiscal 

Service 

CSO Online 

Roots of Progress/CSO 

Cybersecurity Latent Roots Indicator of Progressof Compromise 

Adopted by Rootstackk.co 

By: Hohl Fransis

Legacy Data and the limits of Microsoft’s Purview Compliance Suite 

7 

America’s Earth Future 

Keeping Purview eDiscovery Search Fast & 

Usable 

CSO Online 

The single biggest limit for using Microsoft Purview with a large volume of legacy journal 

data is the dramatic performance impact. This is because the email retention mechanism 

in Microsoft 365 / Exchange Online is fundamentally different from the way that Exchange 

Journaling works in conjunction with 3rd party archiving products. If the following subchapters 

are too technical, there is a simple bottom line: Historic journal data is nigh 

impossible to be put back into the users’ mailboxes. The only option with Microsoft 365 

& Purview is to use large numbers of Shared Mailboxes, and split legacy journal data 

between them. This gives a terrible experience for eDiscovery requests and can lead to 

days of indexing delays for every new case. Now let’s explore why this happens and how 

to work around this: 

How Does Compliance Archiving Work in Exchange 

Online? 

Email is still the most relevant type of electronic communication, not only between 

companies but also when interacting with customers. That’s because it the most open 

and the longest available platform for communication. 

With Exchange Online, Microsoft provides an internal mechanism to retain data, aptly 

named “Retention policies”. 

Retention policies in Microsoft 365 are rules that can be created to govern business 

information, comply with industry-related data retention requirements, and prevent data 

loss instances. They are part of an organization’s overall information governance strategy 

as they cover different types of data including mailboxes, Teams conversations, as well as 

SharePoint and OneDrive data. 

 

locations after deciding whether to retain content, delete content, or retain the content for 

a period and then delete it. 

Note: Microsoft uses the term ‘retention policies’ in various contexts. In this article, 

retention policies and labels refer to the new Microsoft 365 retention policy features 

available in the Purview Compliance Portal. 

Litigation hold helps you place user mailboxes on hold, i.e., retain all the contents of a 

 

general retention feature, rather it is an eDiscovery feature in Exchange Online. When a 

mailbox is placed on litigation hold, items in the user’s primary and the archive mailboxes 

(if enabled) are retained. Litigation holds must be manually applied to user mailboxes. 

The key take-away is that the data never leaves the user’s mailbox. It still lives there as a 

“hidden object” in the legal retention folder and for every recipient a unique object exists 

in that recipient’s mailbox. Simply speaking, a mail that was sent to a distribution list of 

1000 users, will create 1000 emails in each user’s mailbox. If half of the users delete that 

mail immediately, there will still be 1000 emails: 500 users have theirs in the Inbox folder 

and 500 have it invisible in their “Recovered Items Folder”. 

CLICK HERE TO LEARN MORE ABOUT LITIGATION HOLDS IN MICROSOFT 365.

Board of Directors - May 9, 2023 

201 

2 

Lane Council of Governments 

Name 

Jurisdiction 

_______________________________________________________________________________________________________________________________________ 

As a trial process in a treaded procurement often waivered and expatriated of details gives an operated 

service charge. 

Portions to each of our reasons to describe a new total probable telling percent of our trial rapture 

isn’t a driven performance but understood in sail and fostering of enforced templates. Each of our 

matters are a concern of our gleamed assurance of our details operational. I want to with hold 

remarks of a new adjunct in business performance between sharehold, better temporary process of 

unlimiting forms of injured freedom. In mailing a business entity of starting between persons 

holds to remember the described reason of timing understandings of call schedules for work is a 

temporary trustee. To have been contemplating a new free enhanced treatise often in thinking 

between parts of our jurisdiction... between this path of our services we recall some research and a 

final templates partition of each thread of code to rest assurance in a new sovereign inspection to 

meet each classification and describe a futured drift insured seasonal discipline to rest a temporary 

sanction.

EXECUTIVE DIRECTOR’S BUDGET MESSAGE 

Members of the LCOG Budget Committee and Board of Directors: 

I am pleased to present the proposed Work Program and Budget for the fiscal year that will 

begin July 1, 2012. The document, presented for policy-level consideration, represents 

management’s best current assessment of the obligations and financial capability of the Lane 

Council of Governments for the year that lies ahead. 

As is always the case at the beginning of a budget year, this proposal has been developed with 

the understanding that changes will be required as a result of presently unknown factors. 

Although we all want to believe that the direction of global, national and regional economies 

provides some cause for long-term optimism, the revenue elements of this proposed Budget 

have been based upon mod- erate to conservative estimates. This proposal describes a 

reduction (9.3 percent) from the Revised Budget for fiscal year 2011-12. The reduction from 

the budget of the year just ending can be attributed to lower “local revenue,” less overhead 

carry forward, reduced revenue from the State, and lower “designated reserves” to begin the 

year. In aggregate, a reduction of $3,330,349 is proposed. As recommended, the total budget 

authorization for fiscal year 2012-13 would be $31,965,186. This recommendation is 

approximately 6 percent down from the original adopted budget for the year just ending. This 

proposal is very much affected and constrained by the same economic uncertainties that are 

impacting other components of the public sector in Oregon. As in years past, the agency’s 

financial plan will continue to evolve well into the new fiscal year. Nevertheless, I believe that 

this proposed Work Program & Budget—service areas and corresponding resources allocated 

to cost centers-constitutes a responsible initial action plan for fiscal year 2012-2013. 

The pages that follow integrate narrative and numeric representations of the agency's fiscal and 

programmatic plan for the coming year. On page 9, the adopting resolution, to be acted upon by 

the LCOG Board of Directors on June 28, is displayed. Pages 12 to 14 show the overall budget, 

reflected as both a “Budget Summary” and disaggregated by Fund Type. Then, beginning on 

page 17, for each of LCOG's five major service areas, a narrative describing the work to be 

performed is followed by the budgetary detail for that service area. Staffing projections are 

shown, both at the service level and at the program level. 

The numeric comparisons with the previous year are based upon the fiscal year 2011-12 

Revised Budget, approved by the LCOG Board of Directors in April. That budget amendment 

captured the changes in both agency revenue and program obligations that occurred during 

the first nine months of the fiscal year. As can be seen most clearly on the Budget Summary on 

page 12, this proposal would result in a decrease from the Revised Budget of $3,330,349. 

Overall, balanced revenues and expenditures are projected at $31,988,862. Because LCOG's 

work is grant- and contract-based, its budgets are dynamic, and drawing conclusions from 

comparisons over time is always tricky. But, for perspective, ten budget years back, the fiscal 

year 2002-03 Revised Budget stood at $26,158,313- 18 percent lower than this proposal. 

While there have been budgetary “peaks and valleys” over the years, an averaged increase of

slightly less than two percent per year over that period is fairly consistent with the 

experience of LCOG’s member governments. 


2012-2013 Work Program and Budget 1

Budget data are reflected by Fund Type on pages 13-14. There are three types of funds used 

within LCOG's accounting system. The first is the General Fund, which is based primarily upon 

the agency’s member dues, interest earnings, and undesignated reserves. This fund might be 

thought of as the organization's flexible resource. A second fund type is the Special Revenue 

Fund-84 percent of the total proposed budget. Here, all of the grant- and contract-supported 

work that LCOG does is 

captured. In reality a series of special accounts, the Special Revenue Fund provides little 

operational flexibility. Under the commitments that we have made to granting agencies and 

clients, LCOG must utilize Special Revenue Fund resources only for the purposes specified in 

the supporting grants and contracts. Finally, on page 14, the Governmental and Proprietary 

Fund, the third fund type, is shown. The resources and requirements reflected here are 

associated with the operation of agency-owned real estate, LCOG’s Minutes Recording service 

and the business assistance loan program. These are referred to as enterprise activities. 

Beginning on page 17, the same information is portrayed in yet another way—by Service Area 

with work program narrative included. In order, the service areas categorized are: Board of 

Directors 

& Executive Management, Government Services, Senior & Disabled Services, Enterprise 

Funds and Administrative Services. For each of these Service Areas, and hence for the budget 

as a whole, the revenue streams that support LCOG’s activities and services are highly 

dependent upon factors beyond our control. Because this council of governments is 

financially dependent upon the funding priorities of the federal and state governments and 

upon expenditure decisions of our members, a true financial picture of the fiscal year 

requires time to come into focus. However, as in the past, LCOG will continue to adjust its 

administration of resources, as external decisions are made. 

On December 8, 2011, the LCOG Board of Directors adopted “Budget Assumptions” (see Budget 

Notes, page 45), which reinforce and augment standing objectives of the organization. Those 

assumptions have served as the philosophical basis for the development of this proposal. As 

with any “labor-intensive” organization, costs directly bearing upon personnel have a 

substantial impact upon the overall budget and, ultimately, upon the agency’s ability to carry 

out its mission. Health insurance and retirement plan costs are substantial for all employers, 

including LCOG. Our claims experience has yielded an expected premium cost increase for FY 

2012-13 of approximately 10 percent, lower than the industry standard. Each ten percent 

increase in premium costs results in a 1.25 percent rise in total compensation, and our goal this 

year has been to limit the compensation cost change to zero percent. The cost for LCOG’s 

employer contribution for our staff’s participation in the State Public Employees Retirement 

System (PERS) will remain unchanged in the coming year. This budget proposal anticipates a 

zero percent cost-of-living adjustment (COLA) to employee salaries, as set forth in the Board’s 

Budget Assumptions. It should be noted, however, that, as with other public sector employers, 

present-day economic circumstances may well result in a re-visitation of the COLA issue by 

LCOG's two employee bargaining units. LCOG has always adjusted the size of its professional 

staff to match the levels of work that it has been asked to accomplish. This proposed Work 

Program and Budget anticipates a decrease to LCOG’s staff of 6.91 FTE positions—3.8 percent.

As proposed, the estimated professional staff complement will be 174.38 FTE in fiscal year 

2012-13, as compared to 181.29 FTE authorized in the Revised FY 2011-12 Budget. 

This agency's work and fiscal capability are largely based on contracts and grants which 

emerge over time. As a result, there is always greater variability in LCOG’s budgeting process 

than may be present for local government units that rely upon a tax base for their support. 

Dependent of course 

2 Lane Council of Governments 

2012-2013 Work Program and Budget

on the national economy and the fiscal circumstances of our member governments, I believe 

that a good and productive year can be anticipated in FY 2012-13. At the same time, we must 

establish the budget for the year in a responsible and conservative fashion. For all of the 

agency’s work groups and divisions, resources will be limited to support important and 

demanding work. As in years past, however, the Lane Council of Governments will remain a 

well-managed, high-quality organization that is fiscally solvent. 

I believe that this Work Program and Budget sets a responsible course for the organization. 

When approved by the Budget Committee and the Board of Directors, it will direct and 

empower the staff to address important programs and services. With the help and support of 

the Board of Directors, the Executive Committee and our member agencies, LCOG’s 

management and staff will continue to accomplish the agency’s mission. I commend this 

document to you for review and consideration. 

George 

Respectfully Kloeppel submitted, 

Executive Director



Administrative 

Services 

Services 

Information 

5 | Your signature(s) 

Committees 

Citizens 

Advisory Committees 

Technical 

Advisory Committees 

Committee 

Executive Director 

George Kloeppel 

Medicaid & Food 

Other Grants/State Funds 

Eligibility Determination/ Aging and Disability 

Loan 

Transportation 

Program 

Technology 

Management 

Coordination 

Urban & Regional 

Telecommunications 

Planning 

Intergovernmental 

Metro Television 

Program 

Services 

Community Safety 

Analysis 

Quality Assurance 

Delivered Meals 

Licensing & Monitoring 

Coordination 

of Adult Foster Homes 

/Consultation 

Support 

Oregon Project 

Independence 

Contract Management 

Division Support 


2012-2013 Work Program and 

Budget 

5

Please have all account owners sign below. 

Individual or 

Custodial Accounts __________________________________ 

Signature of individual or custodian Date Signature of joint registrant, if any Date 

Corporations, 

Partnerships, Trusts, etc. _______________________________________ 

Signature of corporate officer, general partner, trustee, etc. Date 

Title of corporate officer, trustee, etc. 

In submitting a Letter of Intent, the investor agrees to be bound by the terms and conditions applicable to Letters of Intent appearing in 

the Prospectus and the Statement of Additional Information of the applicable fund and the Terms of Escrow below, as they may be 

amended from time to time by the fund. Such amendments will apply automatically to existing Letters of Intent. 

Terms of Escrow for Letters of Intent 

1. Out of the initial purchase (or subsequent purchases if necessary), 2% of the dollar amount specified in the Letter of Intent 

(Letter) shall be held in escrow in shares of the fund by the fund’s transfer agent. For example, if the minimum amount specified 

under the Letter is $50,000, the escrow shall be shares valued in the amount of $1,000 (computed at the public offering price 

adjusted for a $50,000 purchase). All dividends and any capital gains distributions on the escrowed shares will be credited to the 

investor’s account. 

2. If the total minimum investment specified under the Letter is completed within a 13-month period, the escrowed shares will be 

promptly released. However, shares redeemed prior to completion of the purchase requirement under the Letter will be 

deducted from the amount required to complete the investment commitment.

RESOLUTION 2012-4 

Adopting the FY 2012-2013 Budget 

WHEREAS, it is necessary for the Lane Council of Governments, hereinafter called LCOG, to 

adopt a revenue and expenditure Budget for fiscal year 2012-2013, and 

WHEREAS, the LCOG Budget Committee and Executive Director have determined that certain 

expenditures will be necessary in order to effectively address the obligations of the Work 

Program, and 

WHEREAS, it has also been determined by the Budget Committee and Executive Director that 

cer- 

tain revenues can be expected to accrue to LCOG in fiscal year 2012-2013, 

NOW, THEREFORE, BE IT RESOLVED: 

1. That the LCOG Board of Directors hereby adopts the attached Budget for fiscal year 2012- 

2013, 

and 

2. That the following amounts are hereby appropriated for the purposes specified for the fiscal 

year 

beginning July 1, 2012: 

Personal Services $14,876,644 

Materials and Services 9,004,044 

Services by Other Organizations 2,203,412 

Capital Outlay 173,000 

Reserves--Undesignated 97,314 

Reserves--Designated 4,451,918

Debt Service 1,158,854 

Total Appropriation $31,965,186 

PASSED AND APPROVED THIS 28th DAY OF JUNE, 2012, BY THE BOARD OF DIRECTORS OF THE 

LANE COUNCIL OF GOVERNMENTS. 


For Tenure and Promotion to Associate: Sample Solicitation Letter to External Reviewers----Modify 

as 

Appropriate 

Revised 7/10/14 

Dear X: 

Assistant Professor Y is being considered for tenure and promotion to associate professor in the 

Department of Z at 

Queens College. Please note that these are separate decisions under CUNY bylaws, although the 

consideration 

normally occurs simultaneously. University policy provides that teaching and scholarship are the 

two primary 

criteria on which tenure decisions are based, while service to the institution and service to the public 

may be 

supplementary considerations. To aid us in our deliberations, the Department solicits letters from 

outside referees 

who are selected on the basis of their ability to provide a qualitative assessment of the candidate's 

scholarship or 

creative activity, professional growth and standing in his/her field. We would be very appreciative if 

you can aid 

us in this assessment process.

Queens College is a comprehensive liberal arts college offering baccalaureate and Master's degrees. 

[In a number 

of disciplines, including ours, faculty may also be members of the doctoral faculty of the City 

University Graduate 

School.] The teaching load is generally three three-credit courses per semester but untenured faculty 

receive the 

equivalent of 8 three credit courses in release time during their first five years. You may wish to take 

these factors 

into account as you assess Professor Y's record. However, our primary purpose in asking for your 

help is to 

evaluate the quality of the candidate’s scholarly and creative work. 

It will be especially important for us to have an assessment of the character of his/her work and its 

relation to 

current scholarship in his/her discipline. In addition, we would appreciate your evaluation of 

his/her writings - 

how well they fulfill their intention, and how much they contribute to scholarship in his/her field. 

To achieve tenure, it is expected that the candidate will present evidence of continued scholarly 

achievement and 

effectiveness in teaching since his/her original appointment, and the establishment of a reputation 

for excellence 

in teaching and scholarship in his/her discipline. *[see note below] 

Enclosed please find for your review a curriculum vitae and copies of Professor Y's published work 

as well as work 

in progress. In your evaluation of the latter, it would helpful if you would comment on its potential 

for publication. 

You may also wish to comment upon the standing of the presses or journals in which Professor Y's 

work has been 

published. 

Please also include a statement as to whether you are personally acquainted with Professor Y, and if 

so, how and to 

what extent. The letter of evaluation you write is confidential and will not be shown to the candidate. 

It will be 

carefully considered by appropriate departmental and college committees. 

On behalf of the President of Queens College, I want to thank you for undertaking this assessment of 

Professor Y's 

scholarly credentials. You may be assured that your evaluation will be considered seriously as the 

College reviews 

the candidacy. 

Sincerely, 

Chairperson 

Department of Z

* In certain disciplines, practitioner scholarship is a key component of a candidate’s research profile. 

In these cases, 

chairs may wish to point this out to external reviewers by including the following paragraph: 

“Practitioner scholarship is the creation and translation of knowledge and expertise into 

professional practice. The 

dissemination of practitioner scholarship should include, but is not limited to, peer reviewed 

professional outlets 

(e.g., publications, presentations, and professional materials). Factors in evaluating a candidate for 

tenure or 

promotion must include demonstration of significant original work and the impact of the candidate’s 

scholarship 

on his or her professional field as supported by external review.” 

Board of Directors

2012-2013 

Budget 


Requirements by Type 

Debt Service 3.6% 

Reserves Designated 13.9% 

Personal Services 46.5% 

Reserves Undesignated 0.4% 

Capital Outlay 0.5% 

Services by Other 

Organizations 6.9% 

Materials and Services 28.1%

REQUIREMENTS BY SERVICE 

Board and Executive Management 

Enterprise Funds 

1.7% 

15.1% 

Administrative Services 

11.5% 

Government Services 

41.0% 

Senior & Disabled Services 

42.9% 

4 




2012-2013 

Budget 

Revenues by Source 

In-Kind Services 0.2% 

Reserves Designated 16.1% 

Federal 27.4% 

Reserves Undesignated 0% 

Member Dues 0.7% 

Local Revenue 24.1% 

State 31.5% 




Fiscal 

Work Program 

Year 2012- 

2013 

The Lane Council of Governments is dedicated to serving the public interest and enhancing the 

quality of life for the citizens of Lane County. lt provides and facilitates efficient and effective government 

services through cooperative planning, program development, analysis, and service 

delivery. Policy direction is provided to the work of the agency by a 29-member Board of 

Directors. 

I. BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT 

Total Division Budget: $519,584 ($838,960 in FY 12) 

Salary and Benefit Allocation: $44,880 ($58,038 in FY 

12) FTE: .25 (.4 in FY 12) 

(See Page 19 for Budget Detail) 

The Executive Management Team provides organizational support, professional counsel and 

policy recommendations to the Lane Council of Governments’ Board of Directors, Executive 

Commit- tee, Budget Committee, and related policy-level bodies. The Team prepares and 

presents periodic progress reports and a proposed annual Work Program and Budget for 

Committee and Board consideration, and provides agency-wide budgetary and personnel 

management and direction toward 

the completion of approved Work Program tasks. Financing for the tasks described in this 

section is provided through the agency’s General Fund, which is supported in part by the dues 

paid by member agencies. 

AGENCY ADMINISTRATION 

Program Budget: $519,584 

Salary and Benefit Allocation: $44,880 

FTE: .25

General Administration 

Executive support to the internal flow of agency projects and activities includes the 

maintenance of communications and the provision of appropriate facilities and equipment; the 

initiation and refine- ment of new services; and coordination with state-wide, multi-state, and 

national associations of similar organizations. In addition, the maintenance of General Fund 

reserves and the acquisition of some capital equipment are reflected in the budget for this 

program activity. 

Public Information 

Recognizing that much of LCOG's work is interactive with the broad community, staff members 

gather, analyze, and disburse information; facilitate the participation of interested persons in 

agency activities; and communicate policy positions and information to local, state, and federal 

decision makers. Examples of activities in this area include the development and maintenance 

of a communications plan, the issuance of news releases, the publication of reports and a 

newsletter; the provision of support to the conduct of public meetings, hearings, and forums; 

the maintenance of LCOG websites; and the delivery of public presentations related to the 

agency's services and programs. 



Board of Directors and Executive Committee Support 

Staff provides information, recommendations, and other support services to the Executive 

Commit- tee, Budget Committee, and the LCOG Board of Directors. 

Facilities Management 

Staff provides property management for LCOG-leased real estate. 

• Cottage Grove S&DS office 

• Florence S&DS office 

• Central Kitchen 

I B 

MEMBER SERVICES 

Program Budget: $20,000 

Salary and Benefit Allocation: $0 

FTE: 0.0 

Unfunded member services 

Under the agency’s Service Policy each member government is entitled to receive upon 

request and without charge a certain amount of professional service—usually in the areas of 

planning, program development, mapping/geographic information, or grant preparation 



CSO ONLINE ACCOUNTABLE FISCAL SERVICES 

BY SERVICE 

ADOPTED PROPOSED APPROVED ADOPTED 

II. GOVERNMENT SERVICES 

2011-12 2012-13 2012-13 2012-13 

DIFFERENCE 

RESOURCES 14,763,690 13,107,889 13,107,889 13,107,889 -1,655,801 

FEDERAL 6,883,879 6,387,884 6,387,884 6,387,884 -495,995 

STATE 228,292 240,000 240,000 240,000 11,708 

LOCAL REVENUE 5,347,572 4,309,653 4,309,653 4,309,653 -1,037,919 

IN-KIND SERVICES 0 0 0 0 0 

RESERVES-DESIGNATED 2,269,609 2,142,092 2,142,092 2,142,092 -127,517 

TRANSFERS 34,338 28,260 28,260 28,260 -6,078 

REQUIREMENTS 

14,763,690 

13,107,889 13,107,889 13,107,889 -1,655,801 

RANGE 

FTE 

FTE 

PERSONAL SERVICES 34.60 3,533,696 32.19 3,278,032 3,278,032 3,278,032 -255,664 

DIRECTOR--PS 37 0.75 118,504 0.55 79,366 79,366 79,366 -39,138 

PROGRAM MANAGER 31 5.20 694,899 5.00 660,804 660,804 660,804 -34,095 

PRINCIPAL 28 4.63 551,200 3.64 414,319 414,319 414,319 -136,881 

SENIOR/MANAGER 25 8.76 921,045 8.95 942,554 942,554 942,554 21,509 

ASSOCIATE 21 5.16 476,354 4.87 479,744 479,744 479,744 3,390 

ASSISTANT 17 4.60 379,114 3.87 323,170 323,170 323,170 -55,944 

PROGRAM ANALYST 14 3.44 285,869 3.30 276,994 276,994 276,994 -8,875 

ADMINISTRATIVE ASST 8 1.44 86,127 1.26 77,579 77,579 77,579 -8,548 

OTHER 0.62 20,584 0.75 23,502 23,502 23,502 2,918 

INDIRECT CHARGES 1,582,016 1,595,835 1,595,835 1,595,835 13,819 

MATERIALS & SERVICES 5,921,027 5,228,247 5,228,247 5,228,247 -692,780 

ADVERTISING 1,400 200 200 200 -1,200 

COMPUTER SUPPLIES 61,524 43,000 43,000 43,000 -18,524 

CONFERENCE EXPENSE 26,572 24,000 24,000 24,000 -2,572 

CONTRACT SERVICES 5,640,993 5,018,619 5,018,619 5,018,619 -622,374 

LEGAL 9,000 9,000 9,000 9,000 0 

MEMBERSHIPS 4,500 2,000 2,000 2,000 -2,500 

MISCELLANEOUS 31,909 19,979 19,979 19,979 -11,930 

POSTAGE 1,215 465 465 465 -750 


PRODUCTION 8,082 8,552 8,552 8,552 470 

2012-2013 RENT Work Program and Budget 9,560 9,560 9,560 9,560 25 0 

RIS USE 10,321 10,321 10,321 10,321 0

SOFTWARE SUPPORT 26,100 29,200 29,200 29,200 3,100 

TAPE SALES EXPENSE 0 0 0 0 0 

TELEPHONE 3,150 3,150 3,150 3,150 0 

TRAVEL 70,059 50,201 50,201 50,201 -19,858 

VIDEO EQUIPMENT 16,642 0 0 0 -16,642 

SERVICES BY OTHER ORGANIZATIONS 1,426,862 995,200 995,200 995,200 - 

431,662 

TELEPHONE OPERATIONS 1,426,862 995,200 995,200 995,200 - 

431,662 

CAPITAL OUTLAY 137,777 143,000 143,000 143,000 5,223 

RESERVES-DESIGNATED 2,162,312 1,867,57 

5 

1,867,575 1,867,575 - 

294,737 

TRANSFERS 0 0 0 0 0 

GENERAL FUND 0 0 0 0 0

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the 

prospectus before investing. The indicated rates of return are the historical annual compounded total including changes in unit value and 

reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any 

Amendment Objective Portfolio Performance Portfolio Allocations (as of 

June 30, 2014) 

Asset class (%) Foreign Corporate Bonds 31.9 Canadian Equity 18.8 

International Equity 13.2 Cash and Equivalents 10.8 US Equity 10.1 Income Trust Units 9.4 Canadian Corporate Bonds 

5.9 

Fixed Income 37.8 Financial Services 19.2 Energy 15.5 Cash and Cash Equivalent 

10.8 

Sector (%) 

Utilities 5.1 Industrial Services 5.1 

Technology 5.0 Consumer Services 0.6 Industrial Goods 0.6 Other 0.3 Basic Materials 0.1 Geographic (%) 

North America 80.8 Europe 9.6 Asia 8.1 Latin America 1.2 Other 0.4 1Mth 3Mth 6Mth 1Yr 3Yr 

5Yr 10Yr Inception 

Compound Returns(%) & Quartile Rankings Fund CIFSC Category Avg. Quartile Ranking 

This table shows historical 

annual compound total return 

and quartile rankings of the 

fund based on the Canadian 

2004 2005 2006 2007 2008 

2009 2010 2011 2012 2013 

YTD Calendar Return (%) 

Investment Funds Standards 

Committee’s categories listed 

at cifsc.org, and are subject to 

change monthly. 

19.8 16.6 6.7 0.1 -21.5 30.6 

15.3 4.8 11.6 8.6 7.4 Fund 

Performance versus the 

fund’s official benchmark can 

be found in the Management 

Report of Fund Performance 

available from the related 

document tab of this 

webpage.Quartile rankings, 

expressed in terms of rank (1, 

2, 3, or 4), 

are comparisons of the fund’s 

performance to other funds in 

its category, ranked out of the 

total number of eligible 

$22,850 Growth of $10,000 (Class A) 1 1 4 1 4 1 1 1 1 4 1 Quartile 

Ranking 

funds by time periods noted 

above. 

This fund's objective is to 

generate a high level of 

income and long-term capital 

growth. 

securityhol 

der that 

would 

have 

reduced 

returns. 

Mutual 

funds are 

not 

guaranteed 

, their 

values 

change 

frequently 

and past 

performan 

ce may not 

be 

repeated. 

Please refer 

to the Legal 

section of 

www.ci.co 

m for 

additional 

information. 

* 

Current and savings deposits do not have any contractual maturity and hence have been classified among all five maturities. Further, it has been assumed that on 

a going concern basis, these deposits are not expected to fall below the current year's level.

Budget Notes 

Indirect Cost Allocation: Indirect, or overhead, costs of the agency are met through an Indirect Cost Allocation 

Plan, developed in conformance with Federal Management Circular A-87. The Plan provides for direct 

programs and services to bear a fair share of those normal operating expenses which, in and of themselves, 

cannot easily be tied to specific grant- or contract-funded activity. Examples include office rent and supplies 

and support services staff, such as those working in areas of administration, fiscal, and human resources. The 

work activities that are supported in this way are specified under Section II of the work program; the 

budgetary allocation for Administrative Services is set forth on page 35. LCOG's Indirect Cost Allocation Plan 

for fiscal year 2012-13 calls for five separate charge rates, dependent upon the location of the direct service 

work performed. Programs operating out of the agency's Park Place Building location will bear a rate of 

57.4024 percent of direct personal services costs, Schaefers Building programs will incur an indirect charge of 

21.0351 percent, programs working in Other S&DS (outstationed) locations will be assessed at the rate of 

17.4211 percent, the indirect rate for programs in Other GS will be 15.9880 percent and the Senior Meals 

program rate will be 18.0368 percent. Copies of the agency's Indirect Cost Allocation Plan may be obtained at 

LCOG's main office. 

Member Dues Schedule: The 2012-13 Member Dues Schedule is shown on page 

41. The rates for the Schedule for this fiscal year were approved by the Board of Directors on December 8, 

2011. Due to the challenging economic times the Dues Schedule was not adjusted upward by an inflation 

factor for fiscal year 2012-13. They were still increased by population, students and customer counts. 

Budget Assumptions: As noted in the Executive Director's Budget Message (pages 1-4), the LCOG Board in 

December 2011, adopted a budget process and budget assumptions, which were used by management and 

the Budget Committee in the formulation of this document. 

1. The CPI for the prior year is 3.77% (August Annual Average 2011 CPI-U for U.S.). Due to the state of 

the economy the percentage used to compute the dues rate increase is 0.0%. 

2. Health insurance is expected to increase 10%. Each 10% increase in insurance costs results in a 

1.25% increase in total compensation. The goal 



this year is to limit the increase to 0.0% based on plan adjustments and/or 

employee participation in premiums. 

3. A cost of living adjustment to the salary schedule of 0.0% will be budgeted. 

a. The State SEIU will receive 1.5% in December, 2011 and 1.45% in January, 2013. 

b. The estimated City of Eugene increase is 0.0 to 4.0%. 

c. Lane County is estimated at ?% 

d. LCOG SEIU is ?% 

4. The current LCOG employer PERS rate is 12.52%, and the OPSRP rate is 11.24%. The rates will 

not change until July 1, 2013. 

5. Specific details of compensation and health insurance will be determined through negotiations 

with the LCOG bargaining units. 

6. Merit increases are expected to increase total compensation. Most employees are eligible for 3.5% 

annual merit increase. However, about 50% of employees are at the top step of their salary range, 

which means that they are not eligible for merit increases. 

7. LCOG compensation, including salaries and benefits, will be comparable to similar positions in the 

same job market. This is required to attract and retain diverse, quality employees. 

8. LCOG will provide adequate work space, equipment, and training to enable employees to be 

productive and effective. 

9. The agency will continue to build a General Fund reserve with the goal that the reserve exceeds two 

months of payroll cost. 

10. To the maximum extent possible, all programs or contracts will be self- supporting. LCOG General 

Fund dollars will only be used when required as match or to provide temporary support to a 

program or to support a strategic initiative. 

11. New programs or program reductions will be individually presented to the Board. 



12. S&DS, as a local transfer agency, has a significant funding equity issue compared to State-operated 

S&DS offices. In the past, additional resources have been required to maintain adequate staffing 

levels in the program. 

Personal Services—Salary and Benefits: Throughout the budget section of this Work Program and Budget, 

staffing costs are expressed under the line-item heading of Personal Services. The dollar amounts shown 

include both salary and fringe benefit expense. Where appropriations are expressed by organizational unit 

personal services costs are desegregated to the job classification level, and full- time-equivalent (FTE) 

authorizations are shown. The term FTE represents a commitment of 2,080 hours of work within the fiscal 

year—or the commitment of one employee working full-time (40 hours per week) for 12 months. However, 

because many employees of the organization are employed for less than full-time work, the number of 

employees at any given time within the year, and certainly the total number of staff employed during the year, 

will be greater that the FTE shown. 

While the ratio of fringe benefit cost to salary differs from one employee to another (and for an individual 

employee, it changes during the course of the fiscal year), the projected fringe benefit expense for fiscal year 

2012-13 is 58.6 percent of salary. The anticipated breakdown of fringe benefit costs as a percentage of salary 

is as follows: 

Type 

Total LCOG 

Monthly Average 

Percent 

Average Employee 

Monthly 

FICA $57,052 7.61 328 

Retirement (Employer) 90,645 12.07 520 

Retirement (Employee) 44,973 6.00 258 

Health Care 219,427 29.62 1,261 

Life Insurance 3,168 0.42 18 

FSA Administration 0.0 0.00 0 

Disability 4,055 0.54 23 

Worker's Comp 1,487 0.20 9 

Deferred Comp 18,922 2.52 109 

Total Fringe $439,628 58.61 2,527 

Total Monthly Salary $750,038 4,311 



Costs related to holiday, sick, and vacation leave are also noteworthy. Leave costs are charged to each 

program as they are accrued and credited to the specific leave fund. When an employee utilizes leave, the 

associated salary and benefit expense is charged to the leave fund from which the leave time was taken. 

Holiday and sick leave accrue based on expected use, while vacation leave is based on the amount earned by 

each employee. 



LANE COUNCIL OF 

GOVERNMENTS 2012- 

2013 BUDGET 

Budget Glossary 

General 

Service: An LCOG organizational unit that is also called a Division. The Services include: Board and 

Executive, Government Services (GS), Senior & Disabled Services (S&DS), Enterprise Funds and 

Administration. 

Fund: Separate accounting entities that are used to conform to Government Accounting Standards. LCOG has 

three funds: 

General Fund: The General Fund accounts for the operations that are not accounted for in any other fund. 

Special Revenue Fund: The Special Revenue Fund accounts for revenues from specific sources that 

include federal grants, state grants, and various contracts. These funds are restricted or designated 

to finance specific activities. 

Governmental and Proprietary Fund: This fund accounts for the agency enterprise funds, which 

includes the two agency-owned buildings and the business finance program. 

Resources 

Federal Revenue: Revenue from federal grants and contracts. Transportation, S&DS Long-Term Care 

and Financial Services, and Business Financing are major programs funded by federal resources. 

State Revenue: Revenue from state grants and contracts. 

Local Revenue: Revenue from local contracts, interest, donations, sales of products and all revenue that is 

not federal or state. 

In-Kind Service: Service by other governments that can be used as matching funds on LCOG contracts that 

require local matching dollars.

Member Dues: The total amount of dues anticipated from member agencies for fiscal year 2012-13. 

Member Dues Schedule is shown on page 47. 

Reserves-Undesignated: Resources that have been carried forward from the prior fiscal year that can be 

used for any purpose. 

Reserves-Designated: Resources that have been carried forward from the prior fiscal year that can only 

be used for a specific contract or purpose. 

Transfers: Transfers describe the process of internally moving resources from one LCOG Division or 

Program to another. Transfers are displayed as a resource for the Program receiving the resources and 

as a requirement for the Program providing the resources. 

Requirements 

Personal Services: Salary and benefit costs for staff are expressed under the line item heading of 

Personal Services. Additional information about salary and benefits costs can be found in the Budget 

Notes section. 

Indirect Charges: Indirect, or overhead, costs of the agency are met through an Indirect Cost Allocation 

Plan, which provides for direct programs and services to bear a fair share of those normal operating 

expenses that cannot be reasonably attributed to a specific program or contract. Indirect charges pay 

for Administrative Services expenses, which include personal services and materials and services. 

Additional information about Indirect Cost Allocation can be found in the Budget Notes section of this 

document. 

Materials and Services: Materials and Services include most expenses other than salaries, from rent to 

telephones to travel. 

Services By Other Organizations: Services by Other Organizations accounts for dollars that LCOG 

receives and then passes through to other organizations that provide a specified service. 

Capital Outlay: A capital purchase is the acquisition of a tangible item that has a value greater than 

$5,000. These items are placed on LCOG’s inventory and treated as assets on the balance sheet. 



Reserves-Undesignated: Resources that will be carried forward into the next fiscal year that can be used 

for any purpose. 

Reserves-Designated: Resources that will be carried forward into the next fiscal year that 

can only be used for a specific contract or purpose. 

Debt Service: Payments for principal and interest to amortize loans. Such loans are usually for real 

estate acquisition or improvement and the business finance program. 

Transfers: Transfers describe the process of internally moving resources from one LCOG Division or 

Program to another. Transfers are displayed as a resource for the Program receiving the resources and 

as a requirement for the Program providing the resources. 



Syful Shamsul Alam & Co. 

Chartered Accountants 

Hoda Vasi Chowdhury & Co. 


NOTES Sonali TO Bank THE Limited FINANCIAL 

STATEMENTS FOR THE YEAR 

ENDED 31 DECEMBER 2010 

1. THE BANK AND ITS 

ACTIVITIES STATUS OF 

THE BANK 

Sonali Bank Limited was incorporated in Bangladesh on 03 June 2007 as a Public Limited Company 

under Companies Act 1994. Formally this bank was incorporated as a nationalized commercial bank 

named as Sonali Bank established by The Bangladesh Bank Order 1972 (Presidential Order no. 26 of 

1972) and was fully owned by the Government of the People’s Republic of Bangladesh. Subsequently 

after incorporation dated 15 November 2007 Sonali Bank Limited has taken over the undertaking and 

business of Sonali Bank with all its assets, benefits, rights, powers, authorities, privileges, liabilities, 

borrowings, obligations etc. as a going concern under a Vendor’s Agreement signed between the 

Government of the People’s Republic of Bangladesh and the Sonali Bank Ltd with a retrospective effect 

from 1st July 2007. 

PRINCIPAL ACTIVITIES OF THE BANK 

The Bank has 1185 branches including two overseas branches at Kolkata and Siliguri in India as on 31 

December 2010. The principal activities of the bank are to provide a comprehensive range of financial 

services, personal and commercial banking, trade and services, cash management, treasury, securities 

and custody services and perform Government treasury functions as an agent of the Bangladesh Bank. 

ISLAMIC BANKING WINDOW 

The bank operates Islamic Banking window in five branches designated in compliance with the rules of 

Islamic Shariah. 

1.2. SUBSIDIARY 

Sonali Exchange Co. Inc. (SECI) 

A subsidiary company named Sonali Exchange Co. Inc. was incorporated on 4 April 1994 under the laws 

of the State of New York, Department of State, licensed on 17 October 1994 by the State of New York 

Banking Department and commenced operation as an International Money Remitter from 12 December 

1994. 

1.3. ASSOCIATE 

Sonali Bank UK. Ltd. (SB. UK. Ltd.) 

A money remitting company under the name and style of Sonali Trade and Finance (U.K) Limited was 

incorporated as an associate under the U.K. Companies Act 1985 on 30 June 1999. Subsequently the 

company was allowed to commence its function as a bank from 7 December 2001 (the operational 

activities started on 10 December 2001) by the Financial Services Authority of U.K. had changed its 

name as Sonali Bank (U.K) Ltd. and restructured the ownership of the Company having 51% share 

capital in favour of the Government of the People’s Republic of Bangladesh and remaining 49% by 

Sonali Bank Limited. 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF 

PREPARATION OF THE FINANCIAL STATEMENTS 

2.1 Basis of preparation of the Financial Statements

The financial statements of the Bank, comprising Balance Sheet, Profit and Loss Account, Cash Flow 

Statement, Statement of Changes in Equity, and relevant Notes and Disclosures have been prepared as 

at 31 December 2010 in accordance with First Schedule of the Bank Companies Act 1991, as amended, 

BRPD circular No. 14 of 25 June 2003, other Bangladesh Bank circulars, International Accounting 

Standards and International Financial Reporting Standards adopted in Bangladesh as Bangladesh 

Accounting Standards (BAS), and Bangladesh Financial Reporting Standards (BFRS), the Companies Act 

1994, the Securities and Exchange Rules 1987 and other rules and regulations applicable in Bangladesh 

on a going concern basis. All inter-branch account balances and transactions among the Head Office and 

the branches have been incorporated in financial statements. Investment in subsidiary companies, 

Sonali Exchange Co. Inc, USA and 

1

2.2 FUNCTIONAL AND PRESENTATION CURRENCY 

These financial statements are presented in Taka, which is the Bank's functional currency except 

as indicated figures have been rounded to the nearest taka. 

2.3 BASIS OF CONSOLIDATION 

A separate set of records for consolidation of the statement of affairs and income and expenditure of the 

branches are maintained at the Head Office of the Bank based on which these financial statements have 

been prepared. 

The consolidated financial statements comprise of the financial statements of Sonali Bank Ltd., 

including overseas branches Kolkata and Siliguri as at 31 December 2010. The financial statements of 

Sonali Exchange Co. Inc. (SECI), USA as at 31 December 2010 have not been consolidated. However, the 

financial statements of Sonali Exchange Co. Inc. (SECI) are presented separately. 

2.4 USE OF ESTIMATES AND JUDGMENTS 

The preparation of the financial statements requires management to make judgments, estimates and 

assumptions that affect the application of accounting policies and the reported amounts of assets, 

liabilities, income and expenses. Actual results may differ from these estimates. Estimates and 

underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are 

recognized in the period in which the estimate is revised and in any future periods affected. 

2.5 FOREIGN CURRENCY CONVERSION 

Transactions in foreign currencies are translated into Bangladeshi Taka and recorded at the ruling 

exchange rates applicable on the date of transaction. 

i) Assets and liabilities denominated in foreign currency are translated into Taka at the weighted 

average rates at the balance sheet date. 

ii) Transactions in foreign currencies are converted into Taka currency at the rate of exchange 

prevailing on the dates of such transactions and any gains or losses thereon are adjusted to revenue 

through foreign exchange trading account. 

2.6 COMPARATIVE INFORMATION 

Presentation of Financial Statements, comparative information in respect of the previous year have 

been presented in all numerical information in the financial statements and the narrative and 

descriptive information where, it is relevant for understanding of the current year's financial 

statements. 

2.7 REPORTING PERIOD 

These financial statements cover one calendar year form 1 January to 31 December 2010. 

2.8 CASH FLOW STATEMENT 

Presentation of financial statements requires that a cash flow statement is to be prepared as it provides 

information about cash flows of the enterprise which is useful in providing users of financial statements 

with a basis to asses the ability of the enterprise to generate cash and cash equivalents and the needs of 

the enterprise to utilize those cash flows. Cash flow statement has been prepared under the direct 

method for the period, classified by operating, investing and financing activities as prescribed in BAS 7 

“Cash Flow Statements”. 

2.9 STATEMENT OF CHANGES IN EQUITY

2.10 LIQUIDITY STATEMENT (ASSET & LIABILITIES MATURITY ANALYSIS) 

The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual 

maturity term as per the following basis: 

• Balances with other bank & financial institution, money at call & short notice etc are on the basis of 

their maturity term. 

• Investments are on the basis of their residual maturity term. 

• Loans & advances are on the basis of their repayment/maturity schedule. 

• Fixed assets are on the basis of their useful life. 

• Other assets are on the basis of their adjustment. 

• Borrowing from other banks, financial institutions and agents as per their maturity/repayment term. 

• Deposits & other accounts are on the basis of their maturity/repayment term 

• Provisions & other liabilities are on the basis of their settlement. 

2.11 ASSETS AND BASIS OF THEIR VALUATION 

2.11.1 Cash and cash equivalents 

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh 

Bank and highly liquid financial assets which are subject to insignificant risk of changes in their fair 

value, and are used by the bank management for its short term commitments. 

2.11.2 LOANS, ADVANCES/INVESTMENTS AND PROVISION 

a) Loans and advances of conventional Banking / Investments of Islamic Banking branches are stated 

in the Balance Sheet on gross value. 

b) Provision for loans and advances is made on the basis of periodical review by the management and 

instructions contained in Bangladesh Bank, BCD Circular no. 34 dated 16 November 1989, BCD Circular 

no. 20 dated 27 December 1994, BCD Circular no 12 dated 4 September 1995, BRPD Circular no, 16 

dated 6 

December 1998, BRPD circular no 9 dated 14 May 2001, BRPD circular no, 2 of February 2005, BRPD 

circular no, 09 of August 2005 and BRPD circular no 17 dated 06 December 2005. BRPD Circular No.-5 

dated June 05, 2006 Circular No.- 8 dated August 07, 2007 Circular No.-10 dated September 18, 2007. 

General provision on Loans & Advances Other than short term Agricultural credit & Micro Credit, 

provision rates are given below 

General Provision on unclassified loans and advances (other than loans 

under Small Enterprise, Consumer Financing and Special Mention Account). 

1% 

General Provision on unclassified Small Enterprise Financing 2% 

General Provision on unclassified Consumer Financing for: 

Housing – 2% 

Professionals – 2% 

Other than Housing and Professionals 5% 

General Provision on unclassified Special Mention Account 5% 

Provision on sub-standard loans and advances 20% 

Provision on doubtful loans and advances 50% 

Provision on bad/loss loans and advances 100% 

General Provision on Off Balance Sheet Exposures 1%





The provision rates for general provision on Short term Agricultural Credit & Micro Credit are given below: 

Unclassified (Regular & Irregular) 5% 

Substandard 5% 

Doubtful 5% 

Bad/Loss 100% 

Loans and advances are written off to the extent that 

i) there is no realistic prospect of recovery, and 

ii) against which legal cases are filed and classified as bad loss for more than five years as per 

guidelines of Bangladesh Bank. 

These write off however will not undermine/affect the claim amount against the borrower. Detailed 

memorandum records for all such write off accounts are maintained and followed up. 

2.11.3 BILLS PURCHASED AND DISCOUNTED 

a) Bills purchased and discounted do not include Government Treasury bills and have been classified 

into two sub-heads viz., 

(i) Payable in Bangladesh and 

(ii) Payable outside Bangladesh. 

b) The bills purchased and discounted have been analyzed in the form/terms as per the maturity 

grouping. 

2.11.4 INVESTMENTS 

All investment in securities is initially recognized at cost, being fair value of the consideration given, 

including acquisition charges associated with the investment. Premiums are amortized and discounts 

accredited, using the effective yield method and are taking to discount income. The valuation of 

investment has been enumerated as follows: 

HELD TO MATURITY (HTM) 

Investments which have fixed or determinable payments and are intended to be held to maturity, are 

classified as held to maturity. These investments are subsequently measured at amortized cost, less any 

provision for impairment in value. Amortized cost is calculated by taking into account any discount or 

premium on acquisition. Any gain or loss on such investments is recognized in the statement of income 

when the investment is derecognized or impaired as per IAS 39 ‘Financial Instruments: Recognition and 

Measurement’.

HELD FOR TRADING (HFT) 

The securities under this category are the securities acquired by the bank with the intention to trade by 

taking advantages of short term price/interest movement, and the securities those are classified as HFT 

by the Bank held in excess of SLR (net of CRR) at a minimum level. Investments classified in this 

category are principally for the purpose of selling or repurchasing on short trading or if designated as 

such by the management. In this category, investments are measured in fair value and any change in the 

fair value i.e. profit or loss on sale of securities in HFT category is recognized in the statement of income.

alue of investments is stated as per the following bases: 

Particulars 

Valuation 

Method 

Government Securities: 

Government Treasury Bills 

Prize Bonds 

Bangladesh Bank Bills 

Special Treasury Bonds 

Reverse Repo 

Debentures of Govt. Corporations 

Other Investments (Quoted Shares) 

Other Investments ( Other than Quoted Shares) 

Present Value 

Cost Price 

Cost Price 

Present Value 

Cost Price 

Cost Price 

Market Price 

Cost Price 

INVESTMENT IN LISTED SECURITIES (QUOTED) 

These securities are bought and held primarily for the purpose of selling them in future or held for 

dividend income. These are reported at market price. Unrealized gains or losses are not recognized in 

the profit and loss account. 

INVESTMENT IN UNLISTED SECURITIES (UN-QUOTED) 

Investment in unlisted securities is reported at cost under cost method. 

2.11.5 RECOGNITION OF FIXED ASSETS 

All Property and equipment are classified and grouped on the basis of their nature as required in BAS-1- 

“ Presentation of Financial Statements”. The major categories of Property and equipment held by the 

bank are property (Premises & Buildings), Library Book, Furniture and fixtures, electrical Installations, 

Typewriters and calculating machines, Computer/Software, Motor Car and other vehicles. As per Para 

31 of BAS 16 after recognition as an asset, an item of property, plant and equipment whose fair value 

can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the 

revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment 

losses.

ASSETS ACQUIRED UNDER OWN FINANCE 

All Fixed Assets are stated at cost less accumulated depreciation as per BAS-16.Property, Plant & 

Equipment. The Cost of acquisition of an asset comprises its purchase price and any directly 

attributable cost of bringing the assets to its working condition for its intended use inclusive of inward 

freight, duties and non-refundable taxes. 

The bank recognizes in the carrying amount of an item of property plant and equipments the cost of 

replacing part of such an item when that cost is incurred if it is probable that the future economic 

benefits embodied with the item will flow to the bank and the cost of the item can be measured reliably. 

Expenditure incurred after the assets have been put into operation, such as repairs and maintenance is 

normally charged off as revenue expenditure in the period in which it is incurred. 

As guided in paragraph 30 of BAS-16 Property Plant and equipment these are capitalized at cost of 

acquisition and subsequently stated at cost less accumulated depreciation. The cost of acquisition of an 

asset comprises its purchase price and directly attributable cost of bringing the assets to its working 

condition for its intended use inclusive of inward fright, duties and refundable taxes. The opening and 

closing carrying amounts of all property and equipment are presented including the amount of 

additions, disposals and depreciation charged during the year as required by paragraph 73(a-e) of BAS- 

16, Maintenance expenses that does not increase in the future economic benefit of assets is charged to 

profit & loss account. 

5





2.11.6 DEPRECIATION ON FIXED ASSETS 

As required in paragraph 43 of BAS-16 property Plant and equipment depreciation has been charged at 

the following rates on reducing balance method on all fixed assets other than motor vehicles and 

computer software which are depreciated on straight line basis and no depreciation on land is charged. 

Category of the assets 

Rate of depreciation 

Land 

Nil 

Building 2.50% 

Library Book 7% 

Furniture and fixtures 10% 

Electrical Installation 20% 

Typewriters and Calculating machines 20% 

Computer/ Software 20% 

Motor Car and other vehicles 20% 

Depreciation on newly acquired assets is charged in full if the assets are acquired within 20 December 

and no depreciation is charged on assets acquired after 20 December. In case of assets disposed of, 

depreciation is charged up to the date of disposal of such assets. During the year overseas branches 

shown BDT 5, 05,962 as depreciation on fixed assets and certified by the local independent auditors. 

2.11.7 OTHER ASSETS 

Other assets comprise investment in Sonali Exchange Ltd. Inc USA, Prepaid Expenses, Branch 

adjustment and others as per Bangladesh Bank Circulars. 

2.11.8 NON- BANKING ASSETS 

There are no assets acquired in exchange for loan during the period. 

2.12 LIABILITIES AND BASIS OF THEIR VALUATION 

2.12.1 Statutory reserve 

As per section 24 of the Bank Companies Act 1991, 20% of the net profit i.e, profit before tax require to 

transfer to statutory reserve until such reserve equals to its paid up capital. 

2.12.2 OTHER RESERVE 

Other Reserve comprises are Balance of reserve for unforeseen losses, investment, Revaluation reserve 

and fixed assets revaluation reserve as on 31 st December 2010 

2.12.3

2.12.4 EXCHANGE EQUALIZATION FUND 

This represents the amount arise from exchange gain due to devaluation of Bangladesh taka with 

foreign currencies and is accounted for as per instruction issued by the Bangladesh bank from time to 

time. 

2.12.5 RETIREMENT BENEFIT SCHEMES 

Accounting recognition & measurement, as well as the disclosures requirements for different benefit 

schemes for employees are the following: 

6





2.12.5.1 EMPLOYEES GENERAL PROVIDENT FUND 

Employees General Provident fund is operated from 13 September 1981 under which the concerned 

employees are required to contribute at least 10% and highest 30% (on declaration) of their basic 

salary with no matching contribution by the bank. This Fund relates to the employees who are availing 

Pension and Death-Cum-Retirement Benefit (PDCRB) Scheme. 

2.12.5.2 CONTRIBUTORY PROVIDENT FUND 

The bank operated a Provident Fund named as Contributory Provident Fund into which the bank 

contributed 10% of the basic salary of its eligible employees while the employees contributed an equal 

amount to the fund. 

2.12.5.3 PENSION AND DEATH-CUM-RETIREMENT BENEFIT (PDCRB) SCHEME: 

The bank operated a Pension Fund named as Pension and Death-Cum-Retirement Benefit (PDCRB) 

Scheme for the employees of General Provident Fund into which the bank contributes 50% of the 

basic salary of its eligible employees. Payments out of this fund are made to the employees on their 

separation from bank’s service. 

2.12.5.4 GRATUITY. 

The Bank introduced the Gratuity scheme for the member of the Employees of Contributory Provident 

Fund into which the Bank contributes 50% of the basic salary of its eligible employees. Payments out of 

this scheme are made to the members on their separation from bank’s service. 

2.12.5.5 INVESTMENT OF THE PENSION/GRATUITY FUNDS: 

The balance of Pension/Gratuity funds are partly invested in approved securities with a view to 

increasing the Fund and remaining balance being utilized by the bank towards payment of retirement 

benefits to the employees. 

2.12.5.6 ADMINISTRATION OF THE FUND: 

The Provident Fund, Pension Fund and Gratuity are being administered by two administrative 

committees each of which consists of 5 (five) members representing 3 (three) from Board of Directors, 

1 (one) from officers and another from members of the staff. 

2.12.5.7 BENEVOLENT FUND 

This fund is mainly created for sanctioning scholarship to the meritorious students among the children 

of the Bank employees. The distressed employees and family member of deceased employees are also 

helped from this Fund. 

2.12.6 DEPOSITS AND OTHER ACCOUNTS 

Deposits and other accounts include bills payable have been analyzed in terms of the maturity grouping 

showing separately other deposits and inter-bank deposits. Unclaimed deposits for 10 years or more 

held by the bank have been shown separately. 

2.12.7 TAXATION 

Income tax represents the sum of the current tax and deferred tax payable. 

2.12.7.1 CURRENT TAX 

Provision for current income tax has been made @ 42.5% as prescribed in the Finance Act 2010 on the 

accounting Profit made after considering some of the taxable add back income and disallowance of 

expenditure in compliance with BAS-12.



2.12.7.2 DEFERRED TAXATION 



The Bank has adopted deferred tax accounting policy as per Bangladesh Accounting Standard (BAS) 12. 

Deferred tax liabilities are the amounts of Income tax payable in future periods in respect of taxable 

temporary difference. 

Deferred tax assets are the amount of income tax recoverable in future periods in respect of 

• deductible temporary differences 

• the carry forward of unused tax losses and 

• Carry forward of unused tax credits 

Deferred tax is computed at the prevailing tax rate as per Finance Act 2010. 

2.12.8 PROVISIONS AND ACCRUED EXPENSES 

In compliance with BAS-37, Provisions and accrued expenses are recognized in the financial 

statements when the bank has a legal or constructive obligation as a result of past event, it is probable 

that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can 

be made of the amount of the obligation. 

2.12.9 PROVISION FOR OFF-BALANCE SHEET EXPOSURES 

In compliance with Bangladesh Bank guidelines Off-Balance Sheet items have been disclose under 

contingent liabilities. As per BRPD Circular No.10 dated September 18, 2007, Banks are required to 

maintain provision @ 1% against Off-Balance Sheet Exposures (L/C, Guarantee and Bills for Collection). 

2.12.10 PROVISION FOR NOSTRO ACCOUNTS 

According to guideline of Foreign Exchange Policy Department of Bangladesh Bank, Circular no. 

FEOD(FEMO)/01/2005-677 dated 13 September, 2005, Bank is not required to make provision 

regarding the un-reconciled debit balance as at Balance Sheet date since there was no debit entries 

more than three month. 

2.13 REVENUE RECOGNITION 

Moment of recognition, amount to be recognized and disclosure requirements of revenue has been 

made as per BAS-18 

2.13.1 INTEREST INCOME 

In terms of the provisions of the BAS-18 “Revenue”, the interest income is recognized on accrual 

basis. Interest on loans and advances ceases to be taken into income when such advances are classified. 

i) Interest on unclassified loans and advances is calculated on daily product basis but 

charged 

and accounted for quarterly and in some cases yearly on accrual basis. 

ii) No interest is recognized on loan classified as bad/loss. 

iii) Interest is charged on classified loans and advances as per BRPD Circular No.05 dated 05 June 2006. 

iv) Interest suspense and penal interest, if any, calculated on classified loans and advances is 

taken as income in the year of receipt of such interest from the defaulting borrowers. 

v) Commission and discount on Bills Purchased and Discounted are recognized at the time of 

realization.

NVESTMENT INCOME 

Interest income on investments is recognized on accrual basis. Capital gain on investments in shares 

is also included in investment income. Capital gain is recognized when it is realized. 

i) Income on investment in Treasury Bills, Bonds and Debenture etc. other than shares has 

been accounted for on accrual basis. 

ii) Income on investment in shares of subsidiary company-Sonali Exchange Co. Inc. USA is accounted 

for as and when it is received. 

iii) Govt. securities (HTM) are revalued on accrual basis and effect of such revaluation gain has 

been credited to Asset Revaluation Reserve account. 

iv) Dividend/Other Operating Income are recognized at the time when it is realized. 

v) et increase in securities held to maturity during the period due to the valuation at mark to market 

basis has been credited to profit and loss account. 

2.13.2 FEES AND COMMISSION INCOME 

• Commission charged to customers on letters of credit and letters of guarantee are credited to 

income at the time of effecting the transactions. 

• Fee and Commission on bills discounted, purchased & others are recognized at the time of 

realization. 

• And exchange gains or losses arising out of such transactions are recognized as income or 

expense for the year foreign currency transactions are converted into BDT at prevailing on the 

dates of such transactions and dealt with exchange account. 

2.13.3 INTEREST PAID ON DEPOSIT AND BORROWING 

Interest paid on deposits, borrowing and other expenses are recognized as accrual basis. 

2.13.4 DIVIDEND INCOME ON SHARES 

Dividend income from shares is recognized during the period in which they are declared and actually 

received. 

2.14 RECONCILIATION OF INTER-BANK AND INTER-BRANCH ACCOUNT 

Accounts with regard to inter bank (in Bangladesh and outside Bangladesh) are reconciled regularly and 

there are no material differences that may affect the financial statements significantly. 

2.15 PROFIT/LOSS OF OVERSEAS BRANCHES 

a) Profit/loss of the bank’s overseas branches has not been reflected in this profit and loss account. As 

a matter of policy, such operational results are shown in the profit and loss account only after 

receipt of remittance of profit pending which, the losses or profits are shown in the Balance Sheet 

under the head “Other Assets or Other Liabilities”. 

b) In consistent with the past practices the net balance of accumulated profit and loss of BDT. 

27,473,281 relating to Kolkata and Siliguri (India) branches respectively at 31 December 2010 are 

included under other liabilities in these accounts. 

2.16 RISK MANAGEMENT 

Bangladesh Bank has identified 6 (Six) core risks for management of the banks and has provided the 

necessary guidance for implementation of the six risks are: 

The prime objective of the risk management is that the Bank takes well calculative business risk to 

safeguard its capital, financial resources and growth of sustainable profitability. In this context, the 

Bank has formed a committee (MANCOM) to overview proper implementation and regular monitoring 

of these critical areas. The policies and procedures for managing these risks are outlined in the notes 

below. The Bank has designed and implemented a framework of controls to identify, monitor and 

manage these risks, which are as follows:



a) Credit Risk Management 



Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and 

cause the other party to incur a financial loss. Concentration of credit risk arises when a number of 

counter parties are engaged in similar business activities, or activities in the same geographical region, 

or have similar economic features that would cause their ability to meet contractual obligations to be 

similarly affected by changes in economic, political or other conditions. To manage credit risk, the Bank 

applies credit limits to its customers and obtains adequate collaterals. Credit risk in the Sonali Bank 

Ltd.’s portfolio is monitored, reviewed and analyzed by the Credit Risk Management (CRM). 

CRM determines the quality of the credit portfolio and assists in minimizing potential losses. To achieve 

this objective, CRM formulates appropriate credit policies and procedures for the Bank to ensure 

building and maintaining quality credits and an efficient credit process. 

Sonali Bank Ltd has established Asset-Liability Management Committee (ALCO) to screen out the 

banks/financial institutions and determine the maximum risk exposure on each of them. ALCO also 

assesses recommends and controls cross border/country risk. 

To manage the Non-Performing Loans (NPL), Sonali Bank Ltd has comprehensive remedial 

management policy, which includes a framework of controls to identify weak credits and monitoring of 

these accounts. 

B) FOREIGN EXCHANGE RISK MANAGEMENT 

Foreign Exchange Risk is defined as the possibility of losses due to change in exchange rates interest 

rate etc. according to market forces. The Foreign Exchange Risk of the Bank is minimal as all the 

transactions are carried out on behalf of the customers against underlying Foreign Exchange 

transactions. 

Treasury Division independently conducts the transactions and the Back Office of Treasury is 

responsible for verification of the deals and passing of their entries in the books of account. All foreign 

exchange transactions are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the 

month -end. All NOSTRO accounts are reconciled on daily basis and outstanding entries beyond 30 days 

are reviewed by the Management for their settlement. 

C) ASSET LIABILITY RISK MANAGEMENT 

Asset Liability Committee (ALCO) of the Bank monitors Balance Sheet Risk and liquidity Risks of the 

Bank. The Balance Sheet Risk is determined as potential change in earnings due to change in rate of 

interest foreign exchange rates and regulatory instructions, which are not of trading nature. Asset 

Liability Committee (ALCO) reviews Liquidity requirement of the Bank, the maturity of assets and 

liabilities, deposits and lending, pricing strategy and the Liquidity contingency plan. The primary 

objective of the Asset Liability Committee (ALCO) is to monitor and avert significant volatility in Net 

Interest Income (NII), investment value and exchange earnings for the purpose of taking future action 

plan for better interest of the organization. 

D) MONEY LAUNDERING RISK MANAGEMENT 

Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being 

negligent in prevention of money laundering. For mitigating the risk the Bank has designated Chief 

Compliance Officer at Head Office and Compliance Officer at Branches, who independently review the 

transactions of the accounts to verify suspicious transactions. Manuals for Prevention of Money 

Laundering, KYC and Transaction profile have been introduced. Training has been being imparted to 

Executives, Officers and staff for developing awareness and skill for identifying suspicious transactions 

and other Money Laundering related activities. 

E) INTERNAL CONTROL & COMPLIANCE RISK MANAGEMENT 

Operational loss may arise from errors and fraud due to lack of Internal Control and Compliance. 

Inspection and Audit Division controls operational procedure of the Bank and undertakes periodical

and special audit of the branches and departments at Head Office for review of the operation and 

compliance of the statutory requirement. The Audit Committee of the Board subsequently reviews the 

report of the Audit and Inspection Division as well as other related division, as and when required. 

10





F) GUIDELINE ON INFORMATION & COMMUNICATION TECHNOLOGY: 

This IT Guideline is a systematic approach to policies required to be formulated for IT and also to 

ensure security of information and information systems. This guideline covers all information that is 

electronically generated, received, stored, printed, scanned and typed. The provisions of this guideline 

apply to: 

1. Sonali Bank Limited for all of its IT system. 

2. All activities and operations required to ensure data security including facility design, physical 

security, network security, disaster recovery and business continuity planning, use of hardware and 

software, data disposal and protection of copy rights and other intellectual properly rights. 

The implementation of MIS will be linked from the branches to the central database. In the future the 

information will be easily accessible by senior management and is expected to be important source of 

information of strategic decision-making process based on a comprehensive database. It is to be 

declared that the Bank is fully compliant according to the guideline of Central Bank’s IT policy. 

2.17 CALL LOAN AND FIXED DEPOSIT WITH THE ICB ISLAMIC BANK LTD. 

The Bank has demanded payment of Call Loan and Fixed Deposit for BDT 18.00 crore and BDT 14.58 

crore respectively together with up-to-date interest accrued thereon. Attempt is made for recovery the 

Call Loan and Fixed Deposit. 

2.18 CREDIT RATING OF THE BANK 

As per the BRPD instruction circular No.6 dated July 5, 2006, the has done its credit rating by Credit 

Rating Information and Services Limited (CRISL) based on the financial statements dated 31 December 

2009. 

Particulars Date of Rating Long term Short term 

As 

Government 

24 November 

AAA (Highest Safety) ST-1 (Highest 

supported entity 

2010 

Grade) 

Stand Alone Rating A- (Adequate Safety) ST-2 (Good 

Grade) 

2.19 COMPLIANCE REPORT ON BANGLADESH ACCOUNTING STANDARDS 

(BAS) AND BANGLADESH FINANCIAL REPORTING STANDARDS 

(BFRS) 

The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption 

of 

International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). While 

preparing the financial statements, Sonali Bank Limited applied most of IAS and IFRS as adopted by 

ICAB. Details are given below:

Bangladesh Financial Reporting Standard (BFRSs) 

BFRS 

No. 

Status 

Shares Based Payment 2 Not 

Applicable 

Business Combination 3 Applied 

Insurance Contracts 4 Applied 

Non Current Assets Held for Sale and Discounted Operation 5 Applied 

Exploration for and Evaluation of Mineral Resources 6 Applied 

Financial Instruments: Disclosures 7 Applied 

Operating Segments 8 Applied 

11





Name of the BAS BAS no. Status 

Presentation of Financial Statements 1 Applied 

Inventories 2 Applied 

Statement of Cash Flows 7 Applied 

Accounting policies, Changes in accounting Estimates 

and 

8 Applied 

Errors 

Events after the Reporting Period 10 Applied 

Construction Contracts 11 Not Applied 

Income Taxes 12 Applied 

Property, Plant and Equipment 16 Applied 

Leases 17 Applied 

Revenue 18 Applied 

Employees Benefits 19 Not Applied 

Accounting for Government Grants and Disclosure 

of 

20 Not Applied 

Government Assistance 

The Effects of Changes in Foreign Exchange Rates 21 Applied 

Borrowing Costs 23 Applied 

Related Party Disclosures 24 Applied 

Accounting and Reporting by Retirement Benefit Plans 26 Applied 

Consolidated and Separate Financial Statements 27 Applied 

Investment in Associates 28 Applied 

Disclosures in the Financial Statements of Banks and 

similar Financial Institutions (supersedes by BFRS-7) 

30 Applied 

Interest in Joint Ventures 31 Not Applied 

Financial Instruments: Presentation (supersedes by BFRS-7) 32 Applied 

Earning Per Share 33 Applied 

Interim Financial Reporting 34 Applied 

Impairment of Assets 36 Applied 

Provision, Contingent Liabilities and Contingent Assets 37 Applied 

Intangible Assets 38 Applied

OFF-BALANCE SHEET ITEMS 

Under general banking transactions, liabilities against acceptance, endorsements, and other obligations 

and bills against which acceptance has been given and claims exists there against, have been shown as 

off balance sheet items. 

Off Balance Sheet items have been disclosed under contingent liabilities and other commitments as per 

Bangladesh Bank guidelines. 

As per BRPD circular #10, dt 18 Sep 2007, 1% provision should be maintained against off- balance sheet 

items. 

2.20 EARNING PER SHARE (EPS) 

The Company calculates Earning per Share (EPS) in accordance with BAS 33: Earning Per Share, which 

has been shown on the face of profit & loss account, and the computation of EPS is stated in Note 44. 

2.21 APPROVAL OF FINANCIAL STATEMENTS 

The financial statements were approved by the Board of Directors on 23 May, 2011 

12

2.22 INFORMATION ABOUT BUSINESS AND GEOGRAPHICAL SEGMENTS 

The Bank’s operations are divided under the following business segments: 

Retail and Corporate banking operations are under the umbrella of the commercial banking. The bank 

has Treasury Management Division (TMD) for Treasury Management. 

Inter segment transactions are operated on inter branch fund transfer measures as determined by the 

management. Income, expenses, assets and liabilities are specially identified with individual segments. 

Based on such allocation, segmental information has been prepared as on 31 December 2010 and 

information related to Profit and Loss Account for the period ended 31 December 2010: 

Particulars 

Total Taka 

Operating profit before Tax & Provision 5,625,989,744 

Provision against Investment - 

Other provision (1,004,184,181) 

Profit/(Loss) before Taxes 1,620,358,504 

Provision for Current Tax 1,070,000,000 

Deferred Tax Assets (2,187,251,898) 

Net Profit after Tax 2,737,610,402 

Segment Assets 649,267,923,086 

Segment Liabilities 649,267,923,086

In addition, the geographical segments of the Loan and Advances are shown separately under the Note 

no. 7.8. 

2.23 IMPLEMENTATION OF BASEL-II 

To comply with International best practices and to make the Bank’s capital more risk-sensitive as well 

as to build the Banking industry more shock absorbent and stable, Bangladesh Bank provides revised 

regulatory capital framework “Risk Based Capital Adequacy for Banks” which is effective from 1 st 

January 2009. According to the BRPD Circular no-09 dated 31 st December 2008, following specific 

approaches are suggested for implementing BASEL-II: 

a) Standardized Approach for calculating Risk Weighted Assets (RWA) against Credit Risk; 

b) Standardized (Rule Based) Approach for calculating RWA against Market Risk; and 

c) Basic Indicator Approach for calculating RWA against Operational Risk 

Under the Standardized Approach of the Risk Based Capital Adequacy Framework (Basel II), Credit 

Rating is to be determined on the basis of risk profile assessed by the External Credit Assessment 

Institutions (ECAIs) duly recognized by Bangladesh Bank. 

Along with the existing capital adequacy rules and reporting Bangladesh Bank (ref. BRPD Circular no.10 

dated 25.11.2002) Banks will start quarterly reporting as per the set of the reporting formats provided 

by Bangladesh Bank. For the purpose of statutory compliance during the period of parallel run i.e. 2010, 

the computation of capital adequacy requirement under existing rules will prevail. 

Bank Ltd. Management is aware about guideline of Bangladesh Bank and prepared for implementing 

new capital Accord BASEL-II. 

2.24 GENERAL 

a) These financial statements are presented in Taka. Figures appearing in these financial statements 

have been rounded off to the nearest Taka. 

b) Figures of previous period from 01 January 2009 to 31 st December 2009 have been rearranged 

wherever necessary to confirm current year’s presentation.

Cyber Financial Lane Council

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?