Loans & Debt

Governance Policies and Procedures

Policy Number: GO8.1.5 | Policy Type: Administrative | Approval Date: May 2026

Introduction

As a non-for-profit corporation, the Ontario Library Association (OLA) may have a need for credit services from time to time. Daily credit such as credit cards, purchase cards, or loans to bridge or expand the Association, are normal business practices.

Responsibility

Only the Board may approve an application for credit in the name of the Association. The Finance and Audit Committee will hear all requests for credit and make recommendations to the Board.

The Finance and Audit Committee is responsible for reviewing all operational or capital loans or credit, be it external or internal, and make a recommendation to the Board.

The Executive Director may approve the level of credit or purchase cards of individual staff members, providing the total loan is within the Board approved limits. Additionally, the Executive Director may authorize a bridge loan at the onset of the fiscal year in order to bring the Association through the period prior to Super Conference and membership revenues being realized.

Procedures

Operating Loans

The Board may borrow money on the credit of OLA [By-Law Clause 3.05].
The OLA Executive Director may propose establishing new credit to the Finance and Audit Committee who will review proposals and make recommendations to the Board.
A proposal will include the associated terms and conditions of the proposed loan, including but not limited to total amount, rate of interest, and repayment period.

Borrowing from Reserves

When borrowing is required, the preference is to borrow from operational reserves rather than a loan or external credit. Requests should include a plan to repay the reserve, including interest losses, within a reasonable timeframe. Borrowing must not adversely affect the intended purpose of the reserve.

The Executive Director is authorized to borrow from reserves at the start of a fiscal in the amount required to bring the Association to the point of Super Conference revenue. A bridge loan of this purpose should include notification of the Treasurer and meet the signing requirements outlined in Reserves, Funds and Charitable Gifts section on Investments.

a). If the funds borrowed for this purpose cannot be repaid in six months, the Executive Director will make a request to the Finance and Audit Committee. The Committee will make a recommendation to the Board.

2. In all other cases, a request will be made to the Finance and Audit Committee, who will make final recommendations to the Board.

P-Card Use

The Executive Director will authorize employees to obtain Purchase Cards (P-Card) with the Bank of Record.
Monthly statements shall be submitted, following itemization by account. The Finance Department shall review each submission and itemized receipt for audibility.
The Executive Director will set a standard limit for each card, based on the typical month’s purchasing needs. These limits may be adjusted as needed.
A virtual card should be used for all Pre-Authorized Deposits (PADs) in order to keep staff card limits as low as possible.
P-card cancellation will be part of the Human Resources off-boarding program.
Expenses must be within the pre-approved budget.
Cash advances are not permitted with any P-Card.
Reimbursement may include a tip up to 18%. Itemized bills should be included to show the addition of the tip (or include the visa as evidence of the tip).
Any misuse of P-cards will be handled by the Executive Director, unless the misuse is by the ED, in which case the Board President will handle the matter. Consequences may include loss of P-card or disciplinary action.
No P-Card user shall approve their own expenses

Related Documents

Operational By-Law #2

GO8.1.4 Reserves, Funds & Charitable Gifts

text text