Section 300 - Business Procedures

August 15, 2012

SECTION 300 - BUSINESS PROCEDURES

300     GUIDING PRINCIPLES FOR BUSINESS PROCEDURES
 
Definitions:
 
Board shall refer to the Town of Valleyview Library Board
 
Trustee shall refer to a member of the Town of Valleyview Library Board
 
Library Co-ordinator and Library Co-ordinator are synonymous terms, and refers to the individual hired to operate the Library on a day-to-day basis.
 
Library shall refer to Valleyview Municipal Library
 
PLS shall refer to Peace Library System
 
The Board believes the adequate provision of staff, equipment, facilities and resources are necessary in order to properly manage and maintain the business affairs of the Valleyview Municipal Library.
 
The Board believes that the operating costs of the Library should not exceed the available revenues.
 
The Board expects the Library Co-ordinator of Valleyview Municipal Library to set up and administer the fiscal resources of the Board in accordance with sound, accepted accounting procedures.  The Library Co-ordinator shall keep the Board informed of the financial status of the Library.
 
 
300.1        Fiscal Year
 
The Fiscal Year for the Board shall be January 1 to December 31.
 
 
300.2        Finance Committee
 
                  The Finance Committee will serve in an advisory capacity to the Board and a consultative capacity to the Library Co-ordinator. This is to ensure the development of fiscal policy and an annual budget consistent with the mission and the goals of the Library Board.
 
The Finance Committee shall monitor the financial statements on a monthly basis.
 
CROSS REF:     203.4.1           Committees of the Board
 
  


301           LIBRARY BUDGET
 
The Board of Trustees believes that the budget is an integral part of the Board’s financial plan and that this financial plan and the Board's library services plan are an integral part of the Board's Plan of Service.
 
The Board believes that budgeting is a continuous process that enables the Board to set priorities and accomplish its objectives and also defines the limit of financial resources.
 
The Board believes that budgeting is a flexible activity in need of frequent review with regard to resources, estimated and actual revenues and expenditures.
 
The Board believes that one of its prime responsibilities is to follow an effective budget procedure that ensures sufficient funds are available to provide a high-level library program.
 
The Board believes that the budget procedure is an important function of the Board’s operation and should serve as one of the means to improve communication between the library organization and its funding agencies and community residents.
 
 
301.1        Planning the Budget
 
Planning of the annual budget shall be an ongoing exercise leading up to the preparation process as spelled out in Section 301.2.
 
The Board reserves the right to establish budgetary guidelines for the Library Co-ordinator to work within.
 
The Board reserves the right to hold planning sessions to discuss budgetary guidelines and long-term strategic planning.
                                                                                            
                  The Board shall have in place an operational budget plan that is based on the library needs of the community.  This plan shall be updated yearly.
 
                  The budget shall be balanced and deficit free.


 
 
301.2        Preparation of the Budget Document
 
                  On an annual basis, the Library Co-ordinator shall be responsible for preparing the budget document for consideration by the Board of Trustees at the October meeting.
 
                  The Library Co-ordinator shall prepare the budget based on the mission statement, priorities and long-range plans of the Library and in concurrence with guidelines established by the Alberta Libraries Act.
 
                  LEGAL REF:       Libraries Act Section 8 (1)
 
 
301.3        Budget Adoption by the Board
 
                  The Board of Trustees shall adopt the budget for the coming fiscal year on or before October 31 of each year.
 
 
301.4        Submission of the Budget Document
 

  1. The proposed budget shall be submitted to the Town of Valleyview and the Municipal District of Greenview No. 16 for approval of the municipal grants, by November 1 of each year.
  2. Upon approval of the municipal grants application by the Town of Valleyview and the Municipal District of Greenview No. 16, the budget shall be submitted to the Minister as required and defined by the Alberta Municipal Affairs Public Libraries Branch.

                 
                  LEGAL REF:       Library Act Section 8(3)
 
 
301.5        Publication of the Budget
 
                  Copies of the approved Library Budget shall be available at the Library.
 


 
301.6        Borrowing Powers                                         
 
                  Subject to provisions under the Libraries Act, the Board may, as required, borrow from or offer security to a financial institution or corporation for expenses other than capital projects. 
 
For capital projects, the Town of Valleyview and the Municipal District of Greenview No. 16 Councils may, at the request of the Board, take the necessary steps to furnish the money by the means outlined in the Municipal Government Act.
 
LEGAL REF:       Libraries Act Section 10
 
 

302           REVENUE
 
                  The Library Co-ordinator is responsible for ensuring that all monies due the Library whether from Alberta Municipal Affairs, the Town of Valleyview and the Municipal District of Greenview No. 16 through grants, or from various other sources, are properly recorded and accounted for.  The Library Co-ordinator shall record revenue as it is earned necessitating the establishment and collection of accounts receivable.
 
302.1        Provincial Grants
 
Library revenue will be forthcoming from Alberta Municipal Affairs on a per capita formula. The Library Co-ordinator shall submit an application annually to Alberta Municipal Affairs for the Library Operating Grant and periodically prepare reports and projections as required and defined by the Alberta Municipal Affairs Public Libraries Branch.
 
Any extraordinary grants shall be utilized for the purpose for which they were sought and shall be disbursed following current Library protocols.
 
302.2        Municipal Grants                                      
 
                  An estimate of the funding required from the Town of Valleyview and Municipal District of Greenview No. 16 for the ensuing fiscal year to operate and manage the Valleyview Municipal Library, along with a proposed budget, shall be prepared and delivered to a joint council meeting of the Town of Valleyview and the Municipal District of Greenview No. 16 prior to November first each year.
 
                  LEGAL REF:       Libraries Act, Section 11
                                                By-law 9-97 Section 4.
 
 
302.3        Library Fees                                                     
 
                  The Board shall, in accordance with the by-law, ratify a fee schedule.  Subsequent changes to the fee schedule shall require approval of the Board. Current fee schedules shall be posted for public viewing.
 
                  LEGAL REF:       By-law 1-2004  Schedule A
REF:                     Admin Practice 302.4: Fee Schedule
 


 
302.4        Fundraising
 
Fundraising is an important function of the Library’s operation. The main fundraising arm of the Valleyview Municipal Library is the Friends of the Library Society, although the Library can directly hold a fundraising function if approved by the Board.
 
Resulting funds raised are considered revenue for the Library.
             
 


303           EXPENDITURES
 
                  The Library Co-ordinator shall have responsibility for making financial decisions. These decisions shall be made within the guidelines and objectives of the Board and limited by the financial resources provided by the annual budget.
 
 
303.1        Purchase Orders
           
                  All purchases with the exception of petty cash shall be by purchase orders or by corporate credit card, duly signed and authorized by the Library Co-ordinator or, in his/her absence and with permission of the Board Chairperson, by another designated staff member. 
 
The Library will not be obliged to pay for unauthorized purchases made by an individual employee.
 
                  REF: Administrative Practice AP 303.2 Purchase Orders
                 
 
303.2        Payment Procedures: Goods and Services
 
Invoices over $20.00 for goods and services purchased shall be submitted with a cheque requisition to the Town of Valleyview for payment by cheque. Payment for goods and services for invoices under $20.00 may be paid from Petty Cash.
 
REF: Administrative Practice AP 303.3 Payment Procedures: Goods and Services
 
 
303.3        Payment Procedures - Payroll
 
On behalf of the Board, the Town of Valleyview shall prepare the payroll, which shall be computed on a bi-monthly basis with remittances made to Canada Customs and Revenue Agency, Workers’ Compensation, Alberta Health Care, Employment Insurance, and to the Group Benefit Insurance Carrier as required by regulation.
 
All employees shall complete time sheets, which shall be reviewed and authorized by the Library Co-ordinator. The Board Chair shall review the Library Co-ordinator’s time sheet.
 
Salary cheques or direct deposits shall be issued to all Library employees on a regular basis.
           
                 
 
303.4        Travel and Expenses - Trustees and Employees
 
                    The Board believes that trustees and employees who incur expenses in carrying out duties authorized under policy or by the Board, shall be reimbursed upon submission of a properly completed and approved expense claim with such supporting receipts as required by the Library Co-ordinator.
 
•     The Library Co-ordinator will establish guidelines and procedures for the reimbursement of approved expenses in line with annual budgetary allocations.
•     The Board has determined that payments for such expenses shall be at rates determined by the Town of Valleyview.

  • Expense claims shall be submitted within two months of the expense.

                                   
                       
Expense claims are to be filed for the reimbursement of appropriate expenses incurred by the employee in the performance of his/her duties.  Claim amounts must be reasonable and within approved budgets.  An expense may not be claimed unless an expense was incurred.
 
No receipts are required for meal and travel claims at board approved rates.  Receipts are required for all other expenses.
 
CROSS REF:     Administrative Practice 303.5
 
 
303.5        Board Remuneration
 
Unless authorized at a general meeting and after notice has been given, no officer or member of the Board shall receive any remuneration for the administrative services to the Library Board.
 
 
303.6        Professional Development
 
Professional development of employees shall be an important part of the Board’s function, and the Board shall make professional development funds available annually.


304 REPORTS
 
 
304.1        Monthly Reports
 
                  The Library Co-ordinator shall provide monthly financial statements completed by the Town of Valleyview to the Board for approval. These statements shall correspond to the categories designated in the annual report. Other financial reports shall also be provided as requested by the Board.
 

  1. Annual Audit/Review/Auditor

 
The Library Co-ordinator shall, each January, arrange for a financial review to be prepared by a person or firm authorized by municipal council.  The review shall be presented to the Board at its February meeting.  Two copies of the review shall accompany the annual library operating grant application to Alberta Municipal Affairs Libraries Section by February 28 of each year.
 
                  The Board may select the person or firm to conduct the annual review or audit.  The municipal council shall, by council resolution, authorize the appointment of the person or firm.  For each new appointment, a copy of the council resolution shall be forwarded to Alberta Municipal Affairs, Libraries Section.
 
     The Board may at anytime, for its own purpose, request of the Co-ordinator, a compilation, review or audit to be conducted in-house or by an outside accounts review examiner or auditor.  The Board may also, at its discretion, determine the qualifications of the examiner or auditor.
 
Ref: Alberta Municipal Affairs Libraries Section: “Instructions for Completing Library Operating Grant Application – Municipal Library Boards”
 
304.3        Annual Report                                                  
 
The Library Co-ordinator shall prepare, as soon after the fiscal year-end as practical, a report of Library operations for the previous year, including a financial statement and budget along with goals and objectives for the current year.
 
This report shall be forwarded to Alberta Municipal Affairs Libraries Section, the municipal councils and made available to all interested parties including the general public.


 
305           RECORDS
 
                  Records shall be the property of the Board.  It is the policy of the Board to:
 

  • Manage all recorded information as a Board resource to support effective decision making, to meet operational requirements and to protect the legal, fiscal and historical needs of the Board.
  • Make the wisest possible use of information by ensuring that it is organized to facilitate the sharing of and access to information by those who require it, subject to legal and policy constraints.
  • Identify and conserve information that serves to reconstruct the evolution of policy and program decisions or have other enduring value and to ensure that such information is organized in such a manner as to be readily available.

 
 
305.1        Record Retention Guidelines
                 

  1. Retention Period Summary

In general terms, records of the Valleyview Municipal Library are retained as follows:

  1. Until superseded or obsolete
  2. 3 years – specific correspondence type of records
  3. 5 years – Complaint letters, incidence reports
  4. 6 years after termination – personnel records; archived until the employee reaches the age of 70 years
  5. 7 years – generally finance and program related records
  6. 10 years – generally records related to long term planning
  7. Retain – Board minutes, policy and administrative practices

 
                        Exceptions are as follows:

  1. Employment and staffing – applications (unsolicited applications) – 1 year

b)   Environmental issues – 25 years
 

  1. Disposal

 
After required retention period, records to be disposed of shall be destroyed by shredding, provided there is no litigation outstanding.
 


 
305.2        Personnel Records
 
                  Personnel files shall be maintained for each employee for the purpose of storing data pertinent to the employee’s period of service with the Library.
 
•     Access to individual records is restricted to those employees who require the data contained therein in order to perform their duties.  Under no conditions shall files be removed from the Library.
 
•     The Library Co-ordinator shall ensure that administrative practices are in place further delineating the contents and limitation to access of such records and that employees and trustees are aware of these regulations and practices.
 
LEGAL REF:       FOIP Regulations
CROSS REF:     Administrative Practice 305.2
                 
 
305.3        Other Records
 
Other records pertaining to active patrons:

  1. Library patron application forms
  2. Internet use permission forms
  3. Young adult permission forms

 
These records shall be retained for one year after the patron’s library card expires.
                       


306           INSURANCE                                                     
 
306.1        Property Insurance
 
The Library Board shall ensure adequate property insurance coverage is maintained for the Valleyview Municipal Library.
 
 

  1. Liability Insurance

 
The Library Board shall ensure adequate liability insurance coverage is maintained for the Valleyview Municipal Library.


307     OTHER
 

  1. Re-Direction of Budgeted Funds

 
Any re-direction of budgeted funds under $500.00 shall be at the discretion of the Library Co-ordinator.
 
 

  1. Extra-to-Budget Items

 
Any items not included in the budget in excess of $500.00 shall receive Board approval prior to purchase or disbursement.
 
 

  1. Chart of Accounts

 
The Chart of Accounts shall be developed in such a way as to provide the most efficient correlation to the annual budget and financial statements.
 
CROSS REF:     Appendix 307.3: Chart of Accounts
 
 

  1. General Accounting procedures

 
All accounts shall be kept according to generally accepted accounting procedures.
 
Accounting records shall be reconciled with the bank statement on a monthly basis, by the Library Co-ordinator or the Treasurer.
 
Prior to each Board meeting, the Finance Committee shall be provided with a year-to-date copy of the Profit and Loss Statement and the Bank Reconciliation.
 
Surplus funds shall be invested by the Library Co-ordinator to the best advantage of the Valleyview Municipal Library, always considering current and future cash requirements of the Library. Approved investments shall be limited to securities issued and guaranteed by the Crown or issued by banks or credit unions and guaranteed by the province or the Canada Deposit Insurance Corporation.
 
CROSS REF:     203.4.1(3)
   
 

  1. Cash

 

  1. Petty Cash: The Board shall provide for a petty cash fund of $250 to be used at the discretion of the Library Co-ordinator.
  2. Cash Drawer: No disbursements shall be made from the Cash Drawer. All items with the exception of minor fines ($10 or less) shall be receipted and accounted for.