22. Policy – Financial Controls – Capital Asset Inventory

Community Literacy of Ontario will maintain accurate capital asset inventory records for items over $300.

• Inventory records (of items over $3001 will provide an accurate description of the item, the date purchased, and the purchase price.
• A review of the inventory will be done annually to determine the condition of the capital assets.
• When an item is written off (due to its deteriorated condition) or sold, it will be recorded as such in the inventory records.
• Unwanted capital assets with an estimated residual value of less than $250 may be sold at a reasonable cost, without a formal selling process, with the written approval of the Treasurer and Executive Director. The sale will be recorded in the inventory record.
• Unwanted capital assets with an estimated residual value of more than $250 may be sold at a reasonable cost with the formal approval of the Board of Directors. The Board of Directors will determine the appropriate selling process. The sale will be recorded in the inventory record.

23. Policy – Financial Controls – CLO Investments

The Board of Directors will ensure that the investments held by CLO are secure investments and that they are monitored on a regular basis.

• All investments will be under the control of the Board of Directors.
• The Board of Directors will approve the purchase and sale of securities.
• Investment income earned will be subject to the same financial controls as all other CLO finds.
• CLO investments should be very secure investments, short-term (less than one year), liquid, and fully ensured by the Canada Deposit Insurance Corporation.
• Two signing officers are required to set-up or redeem CLO investments.
• The Executive Director must review the investment monthly and arrange for investments to be redeemed into general revenues as needed, so that CLO's operating costs may be met.
• CLO's reserve fund can be invested for a one-year term, once our annual core grant allocation is known.

24. Policy – Financial Controls – Purchase of Goods and Services

Purchases of goods and services will be approved by inclusion in the appropriate budget (annual operating or special project) or by approval of the Board of Directors.

Procedures

• All purchases made will be approved either by inclusion in the appropriate budget or by special motion approved in advance by the Board of Directors, thereby ensuring that all purchases of goods and services are authorized.
• Limits of approval authority for purchase requisitions will be as follows: For all single budgeted expenditures:
  • If less than $ 500, buy as required
  • If $500-$1000, three telephone quotes are required and information must be recorded in financial files.
  • If greater than $1000, three written quotes are required and information must be kept on file.
• The Board of Directors must approve non-budget items (over $250).