"Not for Profit Trusteeship Agreement - PDF"
Trusteeship Package Drug Prevention Community Investment Program Trustee Agreements Trustee agreements are required by the Drug Prevention Community Investment Program (DPCIP) for unincorporated organizations, or for incorporated organizations where there are financial and/or program management needs beyond the current ability of the applying organization. They are often used in situations where incorporated organizations do not exhibit strong financial management capabilities, including the provision of an annual financial audit report. Trustee agreements must cover the management of the proposed project on behalf of the applying organization. The organizations that are developing the Trustee agreement may decide to include other funds or program areas in the agreement, depending on their needs and capabilities. The organization that acts on behalf of another organization (called the “Trustee”) and signs the “authorization” section under “Trustee” is considered to be legally responsible for all the requirements of the DPCIP funded project. The Trustee Agreement establishes the relationship between the Sponsored organization and the Trustee for the provision of the funded project. A: What organizations can be Trustees? Trustee organizations must meet the following eligibility requirements: 1. The Trustee organization must be an incorporated, non-profit community-based organization. 2. The Trustee organization must be governed by a Board of Directors that is democratically elected by the organization’s membership. 3. The Trustee organization must have an established track record in the areas of program delivery, operations, governance, financial accountability and access and equity. 4. Trustee organizations must be located in the City of Toronto. 5. The Trustee must deliver services in the City of Toronto to residents of the City of Toronto; and 6. The Trustee organization must have the majority of the organization’s Board of Directors residing in the City of Toronto. As well, suitable Trustees will understand and recognize the value of the services of the groups being sponsored and have a community service mandate. The Trustee must be willing to be responsible for the efficient disbursement of the funding to the group being sponsored. Trustee organizations are expected to set in place the agreement and procedures that enable responsible management of the funds. This includes areas of financial accountability and program management. The specific nature of the agreement will vary depending on the needs and abilities of the organizations and the funding requirements. B. What types of things should be included in a Trustee agreement? 1. Who is involved: Name the organizations involved. Staff/board roles may be clarified. (e.g. Trustee organization staff means the staff authorized by the Trustee to perform the duties outlined in this agreement.) 2. Term/time period covered: A useful time period may be the same as the Trustee’s fiscal year, or the same as the time-line for the funds. (e.g. July 1, 2004 to June 30, 2005) 3. Program activities: The agreement should identify how the project activities will be defined (i.e. you might attach a description) and who is responsible for changes in the project activities. (e.g. there may be a project management group that is identified as having the authority to monitor and modify project activities within the terms and conditions of the funding.) 4. Access to information: The agreement should identify what information will be shared between parties on a regular basis, and for what purpose. 5. Project reports: State who is responsible for maintaining service records, how the information is shared among the organization, monthly, annually, etc. 6. Financial management: The agreement should identify how funds shall be held, accessed and reported. Cheques for projects where there is a Trustee can be released to the Sponsored organization, but are made payable to the Trustee organization. Examples of items in this section include: • Trustee will maintain separate financial records and books of accounts respecting services covered in the agreement, and the funder (City of Toronto) may inspect and audit said books and records at all reasonable times both during the term of this agreement and subsequent to its expiration or termination. • Payments will be authorized by (who? or how?) according to the attached budget schedule for the (name of) program. • The Trustee will provide the Sponsored organization funding recipient (when) financial reports. • Trustee and Sponsored organization will retain the records and books of account for a period of seven years. 7. Amendments to the agreement: The agreement should identify how changes can be made to the agreement. (e.g. this agreement may be amended by substitution of the documents, duly signed by the parties to the agreement.) 8. Insurance: Identify any provisions for insurance that must be carried by either party. 9. Training, skill transfer, support: Identify any supports the Trustee will provide to the Sponsored organization to increase financial management or program management capacity. (e.g. to provide orientation and advice on setting up suitable accounting Trusteeship Package Page 2 procedures for the services covered by this agreement.) 10. Human resources management: Who is responsible for supervising project delivery staff or training and supporting volunteers? How will the Trustee communicate staffing issues to the Sponsored organization? 11. Communication: What regular routes are there for communicating between the organizations? Who is responsible for maintaining this communication? (e.g. The Trustee will ensure that a senior staff member is available to attend the AGM to provide information on the Trustee Agreement. OR The Sponsored organization will assign the (position) director to attend a management meeting with the Trustee on a (monthly, quarterly etc.) basis. C. Approval and filing of the Agreement 1. The Trustee’s board of directors and the Sponsored organization’s board or other governing body must approve agreements. Indicate approval by having people from each party sign the agreement. Include the date and printed name of people signing the Trustee agreement. 2. Keep a signed copy for each party’s files and send Two (2) signed copies with your application. If a Trustee agreement is required by the Community Review Panel as a condition, two signed copies are required before a cheque will be released. You may send a draft copy of your Trustee agreement to your Community Project Grants Officer for comment. 3. If you wish to revise the Trustee agreement during the year, please forward a signed copy of the revised Trustee agreement to your Community Project Grants Officer (the funder must approve revisions before being approved). Trusteeship Package Page 3