13. Policy – Financial Accountability – Executive Director

The Executive Director is responsible for effective financial management to ensure a stable and viable organization.

• With regard to all financial dealings and the assets of CLO, the Executive Director will not authorize any transactions that will result in any personal liability of the Board of Directors or that will adversely affect the capital and assets of our corporation.
• The Executive Director will ensure that payroll, payroll withholdings; employer contributions and other debts are settled in a timely manner.
• The Executive Director will ensure that assets are insured for not less than replacement value (subject to available coverage limit).
• The Executive Director will ensure that CLO’s general liability coverage does not lapse.
• The Executive Director will ensure that contributions or funds are used only for the purpose that was designated by the contributor or funder.
• The Executive Director will ensure that CLO does not accumulate a deficit.
• The Executive Director will initiate purchases of goods and services according to budget allocations. The Executive Director can exceed budget allocations without board permission up to the amount of $250.

14. Policy – Financial Controls – Internal Control

Community Literacy of Ontario will implement a well – designed system of internal controls.

Procedures

• The Board of Directors will ensure that appropriate safeguards are implemented to prevent fraud or theft of CLO's funds.
• Assets will be physically protected. Cheques will be kept in a secure location and will be deposited in the bank as soon after receipt as possible.
• No system of control can give full protection against loss. Insurance against a variety of hazards (i.e., fire, robbery, legal liability, and embezzlement) shall be carried to reimburse if major loss should occur. Insurance coverage shall be reviewed annually to ensure that it meets CLO's needs.
• Accurate and complete documentation of all meetings of the Board and Finance Committees are to be maintained in the form of minutes.

15. Policy – Financial Controls – Budget Review

Community Literacy of Ontario's budgets (annual operating and special projects) will be developed by the Executive Director, reviewed with the Treasurer and/or Finance Committee, and approved by the Board of Directors.

Procedures

• The Executive Director will prepare budgets based on the priorities and salaries established by the Board of Directors,
• The Executive Director will prepare budgets in consultation with the Treasurer and/or Finance Committee.
• The Board of Directors will approve all budgets (annual operating and special projects). Approval will be noted in the meeting minutes of the Board of Directors.
• The Board of Directors will regularly review budget information (at least six times per year), ensuring that budget allocations and spending limits are adhered to.
• The Board of Directors will monitor all budgets and make adjustments if required