SECTION 300 - BUSINESS PROCEDURES

SECTION 300 - Index

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 Manager and Library Coordinator 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 Manager of Valleyview Municipal Library to set up and administer the fiscal resources of the Board in accordance with sound, accepted accounting procedures.  The Library Manager 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        Finances

The Library Board shall monitor the financial statements on a monthly basis to ensure that expenditures remain within the annual budget and are consistent with the mission and goals of the Library Board.

301           Library Budget

The Board believes that preparing the annual budget is an integral and continuous process enabling the Board to set priorities and accomplish its objectives while also defining the extent of the Board’s financial resources.

The Board believes that budgeting is a flexible activity subject to 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 to ensure sufficient funds are available to provide quality library programs.

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

The Board reserves the right to establish budgetary guidelines for the Library Manager 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 Manager shall prepare a preliminary budget for consideration by the Board of Trustees at the September meeting.

The Library Manager shall prepare the preliminary budget based on projected revenues and expenditures, and the current Plan of Service 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

a)    A copy of the approved budget along with a Request for Annual Appropriation of Funds shall be submitted to the Town of Valleyview and the Municipal District of Greenview Library Board as per the current Memorandum of Agreement between the Library Board, Town of Valleyview and MD of Greenview Library Board by November 1 of each year.

b)    A copy of the approved 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 Manager 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 Library Board through the current Memorandum of Agreement, or revenue from various other sources, are properly recorded and accounted for.

302.1        Provincial Grants

The Library Manager shall submit an annual application by required deadlines to Alberta Municipal Affairs for the Library Operating Grant and 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 Funding Appropriation                               

An Annual Municipal Funding Appropriation to operate the Library will be provided to the Library Board from the Town of Valleyview and the MD of Greenview Library Board as per the current Memorandum of Agreement between the Library Board, Town of Valleyview, and MD of Greenview Library Board.

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 Manager shall have responsibility for making financial decisions. These decisions shall be made within the guidelines and objectives of the Board and within the annual budget.

303.1        Payment Procedures: Goods and Services

Payment for goods and services for invoices under $20.00 may be paid from Petty Cash with receipts retained.

The Library Manager has discretionary approval to spend up to $500 without prior approval from the Board provided that these expenses are within the current budget

The Library Manager may make payments using cash, cheque, credit card or e-transfer/electronic funds transfer (EFT). Cheques will require two signatures by board-approved signors. E-Transfers/EFTs under $500 will not require Board approval, amounts over $500 will require a motion from the Board.

REF: Administrative Practice AP 303.3 Payment Procedures: Goods and Services

303.2        Payment Procedures - Payroll

The Library Manager will prepare payroll for all library staff on a bi-weekly basis via Ceridian Payroll Service. Funds to cover each pay period will be withdrawn from the Library Operating Account at Alberta Treasury Branch by Ceridian two working days prior to pay day as per the current payroll calendar. Ceridian will direct deposit the payroll to individual employee accounts and submit Canada Revenue Service remittances on behalf of the Library.

All employees shall complete bi-weekly time sheets which shall be reviewed and approved by the Library Manager. The Board Chair shall review the Library Manager’s time sheet.

303.3        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 Manager.

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. 

Receipts are not required for meal and travel claims at board-approved rates.  Receipts are required for all other expenses. An expense may not be claimed unless an expense was incurred.

•     The Library Manager 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 outlined in the Schedule 300A - Travel and

Expenses – Trustees and Employees.

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

CROSS REF:            Administrative Practice 303.5

303.4        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.

303.5        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 Manager shall provide monthly financial statements 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.

304.2           Annual Audit/Review/Auditor

After the end of the fiscal year on December 31, the Library Manager shall arrange for a financial review with a Statement of Receipts and Disbursements to be prepared by a person or firm authorized by municipal council. If a new firm is appointed, a copy of the council resolution shall be forwarded to Alberta Municipal Affairs Public Library Services Branch.

A copy of the review and the Statement of Receipts and Disbursements shall accompany the Annual Library Operating Grant application to Alberta Municipal Affairs Public Library Services Branch each year according to PLSB deadlines.

The Board may at any time, for its own purpose, request of the Library Manager, a compilation, review or audit to be conducted in-house or by an outside 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 Manager shall prepare, as soon as practical after fiscal year-end or by deadlines set by Alberta Municipal Affairs Public Library Services Branch, 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 Public Library Services Branch, Town of Valleyview Council, MD of Greenview Library Board and be made available to all interested parties including the general public.

305           RECORDS

The Valleyview Municipal Library (VVML) will keep records of operations in compliance with the Income Tax Act of Canada; the Freedom of Information and Protection of Privacy Act; and for the operational needs of the Library. The Library Manager is given authority by the Board for the destruction of records in accordance with the schedule in 305.1. The Library Manager has the discretion to retain records longer than the periods provided in this policy.

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 Library.
• 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

Records of the Valleyview Municipal Library shall be retained as follows:

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 Manager 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

306     INSURANCE                                               

306.1        Property Insurance

The Library Board shall ensure adequate property insurance coverage is maintained for the Valleyview Municipal Library. A current copy of the Property Insurance Policy will be kept on file.

306.2           Liability Insurance

The Library Board shall ensure adequate liability insurance coverage is maintained for the Valleyview Municipal Library. A current copy of the Liability Insurance Policy will be kept on file.

307     OTHER

307.1           Re-Direction of Budgeted Funds

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

307.2           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.

307.3           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

307.4           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 Manager.

Prior to each Board meeting, the Board shall be provided with a year-to-date copy of the Profit and Loss Statement and current Bank Statement.

Surplus funds shall be invested by the Library Manager 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)

307.5           Cash

a)    Petty Cash: The Board shall provide for a petty cash fund of $250 to be used at the discretion of the Library Manager.

b)    Cash Drawer: No disbursements shall be made from the Cash Drawer.

308             APPENDIX – CHART OF ACCOUNTS

Assets

101      Operating Account – ATB

102      Savings/Reserves – ATB

103      Term Deposit – ATB

104      Petty Cash

106      Furnishings & Small Equipment

150      Uncategorized Asset

Revenue

401      MD of Greenview Library Board – Annual Appropriation

402      Town of Valleyview – Annual Appropriation

403      Provincial Operating Grant

404      Other Income/Grants

405      Library Services Revenue

406      Fundraising & Donations Revenue

407      Patron Fees Revenue

408      Payments from Other Libraries

409      Program Revenue

410      E-Transfers from patrons for services/programs

453      Transfers from Reserves

Expenses

601      Library Salary & Wages

602      Library Remittances

603      Employee Pension Plan

604      Employee Benefits Plan

605      Ceridian Payroll Fees

606      WCB Fees

607      Janitorial Contract

608      Power

609      Utilities

610      Snow Removal

611      Telephone/Internet

612      Library/Office Supplies

613      Contracted Services

614      General Goods/Services

615      Equipment Lease & Maintenance

616      Building & Grounds Repairs

617      Insurance

618      Staff Courses and Conferences

619      Staff Travel & Meals

620      Board Courses & Conferences

621      Board Travel & Meals

622      Board Honorariums

623      Audit and/or Financial Review

624      Programs Expense

625      Bank & Moneris Fees

626      Association Memberships Expense

627      Postage, Freight & Staff Vehicle Use

628      Public Relations Expense

629      Advertising & Promotions

630      Collection Development

631      PLS Allotment Expense

632      Digital & Electronic Resources

633      GST paid for Goods & Services

634      Payments made to other libraries

635      Volunteer Honoraria

636      Periodicals/Magazine Subscriptions

637      Computers & Technology

650      Special Projects Expense

801      VCLC Salary & Wages

802      VCLC CRA Remittances

Schedule # 300A

Travel Expenses – Trustees and Employees

Travel/Vehicle Use

Travel expenses (or mileage) shall be reimbursed at a rate of $.68 per km.

Library staff doing mail run shall be reimbursed at $10 per trip.

Meals

Meals will be reimbursed at a rate of $95/day for breakfast, lunch and dinner; or breakfast $20; Lunch $30; and Dinner $45. If some or all meals are included in your conference fee, deduct these amounts from the daily total.

Accommodation

Expenses for accommodations must be pre-approved and receipts must be provided.

Other Expenses

All other expenses will require prior board approval and receipts are required for reimbursement.