Audit
Governance Policies and Procedures
Policy Number: GO8.1.3 | Policy Type: Administrative | Approval Date: May 2026
INTRODUCTION:
As a non-for-profit corporation, the Ontario Library Association (OLA) will have an annual audit of its financial activity which will then be presented to members at the Annual General Meeting (AGM).
Responsibility
The Members are responsible for approving the audited statements annually at the AGM. The members are also responsible for approving the appointment of any auditing firms as the vendor of record for OLA.
The Board is responsible for approving the audited statements for release to members.
The Finance & Audit Committee is responsible for an interview with the auditing firm at the time of draft audit presentation. This Committee is also responsible for making auditing firm selection recommendations according to policy on competitive process. The Committee will monitor ongoing financial controls and ensure risk mitigation is in place.
The Executive Director is responsible for ensuring an audit of financials occurs in time to be presented to the Finance & Audit Committee, Board and then members at the AGM.
PROCEDURES:
Timing
- To meet CRA requirements, the audit must be filed no later than six (6) months following the close of the fiscal (August 31st).
- Members must receive a copy of the audited statement no less than 10 days in advance of the OLA AGM.
- The Finance & Audit Committee will receive a presentation by the auditor, including the draft audited statements and recommendations by the firm. Once the Committee is satisfied with the final documents, the audited financial statements will be released to the Board with a recommendation to release to members in advance of the AGM.
Disposition of Expenditures
- All invoices for the fiscal year will be recorded no later than October 1.
- The Finance Department, as part of year-end preparation, will accrue all expenses that apply to the previous year, and prepay expenses for the following year.
Auditing Firm Selection
- The Finance and Audit Committee will review the draft Request for Proposal (RFP) prior to release.
- The RFP should be posted on the OLA website for no less than 6 weeks and may additionally be provided as an invitation to firms.
- The length of term will be included in the RFP and be no less than 3 years and no longer than 5 years.
- A clear criterion will be included in the RFP and be used by the Committee when evaluating all submissions.
- The lowest bidder need not be selected.
- The recommendation will be provided to the Board for inclusion in the AGM Agenda and member ratification.
Outcomes of Audit
An audit of the OLA records should include:
- A statement of independence between the firm and OLA staff.
- An audit opinion.
- A management letter which will be shared with the Committee and responded to by staff, in order to demonstrate where and how improvements will be made.
- An evaluation of OLA internal controls and how differentiation of roles and protections against error, fraud, and safeguarding of assets occurs.
- An expectation of retained records including working papers for no less than seven (7) years and the final audited statements retained in perpetuity.
- Identification of Risk and Issues, specifically if there are findings of deficiencies, fraud, or other concerns.
Internal Control and Risk Monitoring
According to the Grant Thornton Not-for-profit Audit Committee Guidebook, “The work of the audit committee does not conclude with the issuance of the financial statements and management letter. Rather, the audit committee is expected to:
- Understand the organization’s internal control environment and overall risk profile;
- Conclude whether effective internal controls are in place;
- Monitor the progress of corrective action until the organization’s internal controls are working properly and mitigation risks effectively;
- Assess whether risk that might prevent the organization from achieving its objectives or maintaining its reputation have been identified; and
- Know how the organization mitigates these key risks.”
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