OLA FINANCE POLICY AND PROCEDURES                                      1

FINANCE                                   THE AUDIT                               BUDGET
I. Aim                                    1. Corporation.                         1. Definition

This financial policy supports the        As a corporation, the Association is    The budget of the Association is
statements of purpose and objectives      subject to an audit of its financial    based on the program developed
of the Association, reflects the needs    activity each year.                     jointly by the Association, its divi-
of the program, assists in the orderly                                            sions, committees, affiliates and part-
conduct of the Association's business     2. Timing                               ners as appropriate.
and ensures fiscal responsibility.
                                          The audit takes place about two         The budget of the Association
II. The Financial Year                    months into the new year and takes      includes estimates for:
                                          approximately a month to complete.          OLA Board expenses
The fiscal year of the Association ter-   This is why statements are not avail-       Office operating expenses
minates on the 31st day of December       able for three months. Until we have        Division and related operations
until otherwise determined by the         approval from the auditor to close          Membership revenues
OLA’s Board of Directors.                 the previous year, the computer pro-        Super Conference operations
                                          gram will not calculate the current         Education Institute operations
III. Responsibility                       year properly. Trial balances showing       Reading Program operations
                                          specific transactions will be sent          Publication Program operations
The OLA Board of Directors is             monthly throughout the year.            and other projects as appropriate.
responsible for approving the annual
budget and for the setting of policy      3. Disposition of Expenditures.         The budget of the Association does
to guide the development, determi-                                                not include contract management
nation and fiscal success of the          All invoices from the year to be        activities of the central office.
Association.                              audited should be in the bookkeep-
                                          er’s hands no later than January 31.    2. Allocation of surpluses
The OLA Finance Committee is com-         All expenses that apply to the previ-
posed of all treasurers of the Assoc      ous year and that are paid in the new   All surplus funds created from the
iation and is responsible for monitor-    year will be reassigned by the audi-    underspending of budgets and aris-
ing the financial health of the           tor to the previous year.               ing from Association contract man-
Association, for developing a pro-                                                agement activities are to be directed
posed budget and for making recom-        4. Receipts                             to the development of a reserve
mendations to the OLA Board of                                                    equivalent to 75% of the annual oper-
Directors on policy, budget and fiscal    Photocopies of rec eipts are not per-   ating budget of the Association and
matters. Each treasurer is responsible    mitted. Originals are required.         to the fiscal support of Association
for keeping his or her immediate                                                  issues identified by the OLA Board of
President informed.                                                               Directors.

The OLA’s Annual General Meeting                                                  3. Limitations
receives the report of the auditors
and is responsible for approving any                                              All income and expense projections
membership fee changes.                                                           developed in budgets are subject to
                                                                                  the policies and by-laws of the
IV. Long Rnge Financial Planning                                                  Associations.

The OLA Treasurer and the Executive                                               The budget approved by the OLA
Director shall ensure that all funds                                              Finance Committee for presentation
raised by the Ontario Library                                                     to the OLA Board of Directors in a
Association are invested with the                                                 given year must be balanced or be
advice of the auditors approved by                                                showing a surplus.
the membership at the OLA AGM.
                                         OLA FINANCE POLICY AND PROCEDURES                                     2

4. Presentation to the Board             spending for the past year and to
                                         determine the budget recommenda-
The OLA Treasurer shall present the      tion to operate the program of the
budget, policies and other recom-        Association for the coming year.
mendations approved by the OLA
Finance Committee to the first meet-
                                         Related policy considerations are to
                                         be in the report being brought for-
ing of the OLA Board of Directors in     ward to the OLA Board of Directors
the new year.                            by the OLA Treasurer.                    Autumn
                                                                                  The OLA Board of Directors and
5. The Budget Procedure                  All financial policy change recom-       Association councils meet sepa-
                                         mendations from divisions, affiliates,   rately and/or jointly to update
Each unit is expected to have devel-     partners, task forces, committees and    their strategic plans and deter-
oped a three-year strategic plan that    individuals shall be considered by       mine budget needs for carrying
outlines the direction of programs       the OLA Finance Committee at this        out the activities and strategies
and activities for which the budget is   meeting since changes can change         designated for the coming fiscal
being developed.                         the balance in the projected budget.     year (Jan. to Dec.).
                                         Where the OLA Finance Committee
The program items applicable to the      is willing to support a change, a rec-   December 15
budget year under development are        ommendation should be sent for-          Budget proposals due in OLA
costed line-by-line and figures sum-     wrard to the OLA Board of Directors      office
marized both as a program budget         for consideration before the budget is
and as a line budget collecting          discussed. Those items which the         January 1
together the administrative costs        OLA Finance Committee is unwilling       Beginning of financial year. All
implicit in each program line.           to support may still be brought to the   claims from the previous twelve
                                         OLA Board through the body mak-          month period should be in the
Each executive of the Association        ing the original suggestion.             office by December 31 to be ready
shall annually submit to the OLA                                                  for the audit.
Treasurer through the appropriate        7. Budget Maintenance
unit treasurer:                                                                   January
    The unit’s strategic plan            Funds in excess of those approved by
    A report on the accomplishments      the OLA Board of Directors in the        Global budget developed, dis-
of the previous year’s budget            annual budget estimates require a        cussed with Association
    A fiscal summary of the budget       new application to the Board.            Treasurers and modified.
request for the coming year.                                                      Presented to the OLA Board of
                                         By-Law No. 1, clause 27 includes         Directors for approval at first
6   Budget Approval Process              legal requirements for signing of        meeting of Directors.
                                         cheques, arranging, settling, balanc-
The Strategic Plan, accompanying         ing and certifying books and accounts    Spring
Budget Projection and report on the      with the Association's bankers.          Auditor presents audited state-
disposition of the previous budget                                                ments to the OLA Board of
are to be submitted to the Executive     By-Law No. 1, clause 28 outlines the     Directors at the second meeting of
Director no later than 30 days prior     manner in which securities are to be     the Directors.
to the budget meeting or at a date       handled. By-Law No. 1, clause 30
mutually acceptable to all Treasurers.   outlines the basis for borrowing by      Time varies
                                         the Association.                         Audited statements presented by
The OLA Executive staff integrates                                                the OLA Treasurer at the OLA
all budgets into a grid to create a      The Balance Sheet and a Statement of     Annual General Meeting.
global budget statement.                 Operations are provided to the OLA
                                         Board of Directors as part of the        May, October
The OLA Finance committee meets a        Consent Agenda of each Board meet-       Finance Committee adjusts bud-
minimum of one month prior to the        ing. Detailed financial statements are   gets according to success level of
OLA Board meeting at which the           mailed to all treasurers on a monthly    revenue and expense projections.
annual budget is to be approved. At      basis, beginning three months into
this meeting, the treasurers are to      the fiscal year (see audit).             Cycle restarts.
determine the appropriateness of the
                                         OLA FINANCE POLICY AND PROCEDURES                                      3

OPERATING                                A meeting to be eligible for such
                                         compensation must be a minimum of
                                                                                   must inform the claimant of the
POLICIES                                 three hours in length or a half day.
                                                                                   E. Donation of expenses.
                                         Non-members invited as experts to
A. GST.                                  eligible meetings are not eligible for    Volunteers may donate their claims if
                                         expense compensation except in spe-       they prefer. A donation receipt will
GST is charged on all education          cial circumstances where special          be issued in lieu of payment if the
including Super Conference and on        approval has been received from the       appropriate box is ticked on the
all related business activity. The       Treasurer of the Association.             Expense Claim Form. Please include
Association receives a 100 % rebate                                                your receipts as donation does not
on GST spent by the Association in       E. Claim procedures.                      infer that the expense has not been
return for collecting this money for                                               incurred. Proof of expense is still
the federal government.                  All claims for personal expenses for      required for audit purposes.
                                         members and employees must be
No GST is charged on membership.         submitted on the appropriate OLA
As a not-for-profit association, OLA     Expense Report accompanied by the
is able to claim a 50% rebate on the     appropriate original receipts.
GST spent by the Association on its
general operations.                      Claims must be approved by the
                                         Treasurer of the unit holding the
B. Refunds                               meeting.
Membership fees are non-refundable,      F. Special considerations.
except as approved by the OLA
Treasurer or Board designate.            Per diems may be claimed for any
                                         expense incurred as a result of
Refunds are allowed on education         attending an eligible meeting.
programs provided that a request has     Receipts showing how the per diem
been received in writing (mail, FAX,     was spent are required.
e-mail, etc.) a minimum of three busi-
ness days prior to the event.            Car travel is reimbursed at a rate set
                                         from time- to-time by the OLA Board
Refunds are subject to an administra-    of Directors. Metrage charge will be
tive fee in every case.                  allowed provided it is no greater
                                         than the charge by the most economi-
C. Bad debts                             cal type of public conveyance.
Persons or companies with outstand-      Expenses of up to $20.00 per trip may
ing debts from earlier transactions      be claimed in lieu of accommodation
will not be processed until moneys       charges when a member stays with
owning are paid in full.                 friends or relatives.
Bank charges billed to the OLA for       OLA may pay the cost of supply
NSF cheques are billed back to the       teachers for Presidents who are
person having the difficulty.            Directors on the OLA Board of
                                         Directors only if they are required by
D. Meetings.                             virtue of their office to attend an
                                         OLA-sponsored meeting or event.
The Association provides compensa-
tion for travel, accommodation and       F. Ineligible claims.
other sundry expenses to bonafide
OLA members attending official           Where a claim is adjusted to conform
meetings of the Association or its       to OLA financial policies, the treasur-
units.                                   er to whom the claim has been sent
                                           OLA FINANCE POLICY AND PROCEDURES         4

1. Objective.                              6. Recognition.

The objective is to make special pro-      All recipients of funds must agree to
ject grants to members, associations,      recognize OLA’s contribution to their
or other organizations that apply for      projects. The OLA Board of Directors
financial support from the Ontario         will set the conditions for recognition
Library Association.                       of an OLA grant.

2. Limitations.                            7. The agreement.

Grants will only be considered that        A formal letter of agreement must be
promote the interests of the               signed by the receiving agent or
Association and the interests of           agency.
libraries in the Province of Ontario.
                                           All granted funds are conditional on
3. Responsibility.                         the funds being used in the manner
It shall be the duty of the OLA Board
of Directors to authorize grants           The grant is subject to the applicant
and/or to recommend other ways             accepting the conditions set out in
and means for applicants to consider.      the letter of agreement.

In special circumstances, the OLA          8. Funds.
Executive may grant up to $1,000
subject to Board ratification at a later   In extreme cases, support for more
date.                                      than one grant may be made to one
                                           application within a period of one
4. Funds.                                  fiscal year.

By November of each year, OLA staff                                    2003.09.21
shall determine the sum deemed rea-
sonable for special projects outside
the Association. Funds for these
requests shall be provided from the
reserve fund. Unused funds shall be
returned to the reserve find.

5. Applications.

Applications may be made to the
OLA through any part of the Associ-
ation but are subject to the direct
approval of the OLA Board .

The application must state the pur-
poses and amount required for any
special project. All requests must
include reasons why the funds are
needed, how the funds will be allo-
cated, and what the value to Ontario
libraries would be.
                                        OLA FINANCE POLICY AND PROCEDURES         5


Treasurers should indicate the          - 710   Management contracts
accounts to which each claim should     - 910   OLA issue: School libraries
be posted. If GST is recorded in the    - 920   OLA issue: Public libraries
column provided, 50% will not be        - 930   OLA issue: Ontario Digital
charged to the account.                                Library
                                        - 940   OLA issue: Library staff
The accounts indicated are the most     - 950   OLA research
commonly used:                          - 960   OLA marketing: Libraries
6060    Memberships, professional                      Advance Ontario
        materials                       - 970   OLA issue: First Nations
6130    Telephone, FAX                  - 980   OLA reading programs
6110    Space rental                    - 990   OLA partnerships
6210    Catering
6220    Travel, hotel, parking, meals   Ensure that all necessary receipts are
6240    Honoraria or awards             stapled to the back of claims. Initial
6310    Equipment rental                the appropriate spot in the Official
6410    Printing, copying               Use Box noting changes if any. The
6420    Supplies                        claimant’s signature and the treasur-
6510    Postage, delivery               er’s initials are required for process-
6610    Support, contracted services    ing.
6710    Insurance
                                        Cheques are signed every second
The second part of each account         Thursday. Expect a one-to- three
number is the cost centre to which      week turnaround depending where
the item applies. If you do not know    in the cycle claims are received by
where to post an item, request the      the office from treasurers.
office to make the decision.
                                        A trial balance for each account,
Record the appropriate suffix from      showing current charges, will be
the cost centres listed below:          mailed each month. Please verify
                                        that all charges on these statements
- 201    OLA Board of Directors and     are your charges. Send an e-mail to
         its committees                 indicate mistakes and they will be
- 211    OCULA Council                  corrected.
- 212    OLTA Council
- 213    OPLA Council                   If you see a charge that has come
- 214    OSLA Council                   through the office that you do not
- 215    OLITA Council                  recognize, please enquire.
- 220    Conseil d’ABFO
- 310    Membership services
- 320    Access
- 340    The Teaching Librarian
- 350    Electronic services
- 410    Super Conference program
- 412    Super Conference exhibit
- 510    Education Institute
- 610    OLA Store
- 700s   Scholarship funds

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