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.
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
PROCEDURES FOR TREASURERS
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
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.
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