Policy: Financial Matters
Policy: Financial Matters
STATEMENT OF POLICY AND PROCEDURE
Section: Finance | Chapter: General | Page(s): 1 Subject: Financial Matters Sec 3, 1B
Reviewed: 2023-01-13 | Revised: 2023/02/03 | Effective: 2023/02/24
The Northern Lights Library System (NLLS) follows these accounting principles:
- All financial accounts shall be kept in accordance with Generally Accepted Accounting Principles (GAAP) and follow Canadian Accounting Standards for Not-for-Profit Organizations (ASNFPO).
- Distinct and regular accounts of its receipts, payments, credits, assets, and liabilities shall be kept and audited by an independent public accountant at the end of each fiscal year.
- All Managers and the Executive Director are responsible for the detection and prevention of fraud, misappropriations, and other irregularities. Fraud is defined as the intentional, false representation, or concealment of a material fact for the purpose of inducing another to act upon it to their injury. Measures to limit opportunities for fraud will include, but are not limited to:
- Keeping all assets and liabilities of NLLS recorded in the regular books of account. No undisclosed or unrecorded fund or asset shall be established or maintained for any purpose.
- Ensuring that no false or artificial entry or entry that obscures the purposes of an underlying financial transaction be made in the books and records for any reason.
- Ensuring that no payment of any nature using NLLS funds or assets that is in violation of any applicable law or regulation is made.
- NLLS’s fiscal year is January 1 – December 31, inclusive.
- All accounts and records shall be retained for a minimum of seven (7) years.
- The financial records of NLLS shall be audited no later than February 1 of the year following the year under audit. The audited financial statement appears with the Annual Report of the Northern Lights Library System.
- Upon acceptance of the annual audited financial statement by the Board, the recommendations of the auditor will be reviewed and implemented where appropriate.
- The Executive Committee may, from time to time, ask for bids on the Northern Lights Library System audit and may appoint a new auditor for NLLS.
- The Board shall appoint the auditor annually at the Annual General Meeting.
- The Executive Committee shall review the banking services every three (3) years, or more frequently at its discretion.
- A change in banking services shall be made by a motion of the Executive Committee.
- The Board may approve a loan, a line of credit, or overdraft protection to cover an operating shortfall, in accordance with the Libraries Act.
- Investment activities pursued by NLLS seek to balance maximizing potential earnings while minimizing exposure and risk.
- The Northern Lights Library Board recognizes the need for sound and prudent investment practices.
- The Board authorizes the Executive Director and the Finance Officer to invest capital and operating funds not required for immediate disbursement according to the options outlined
- In debentures or securities issued and/or guaranteed by the Government of Canada or of any province of Canada,
- In debentures or securities issued or guaranteed by any Schedule 1 chartered bank operating in Canada, treasury branch, and/or credit union.
- In banker's acceptances of a corporation incorporated in Canada, with background bank support of a Schedule 1 chartered bank.
- All investments shall be with issuers that are “A” rated or better, as rated by the Dominion Bond Rating Service/Canadian Bond Rating Service.
- Investments shall be awarded to the financial institution with the most competitive offering after taking into consideration the administrative costs involved and all the financial needs of the System.