THE GEORGE HULL CENTRE FINANCIAL POLICIES

Contents

Overview of Financial Reporting Procedures

Internal Accounting and Control

Budget Process

Operating Budget

Donations and Fundraising

Security of Corporate, Personnel and Financial Records

Overview of Financial Reporting Procedures

Funding

The George Hull Centre relies on funding from various government levels (city, provincial and federal), donations and other offsetting revenue (such as rebates).

Every program is funded by one or more of these sources. Each funder has specific reporting requirements (described in Summary Reporting Structure below). Approximately 60% of the Centre’s funding is from the Ministry of Children & Youth Services (MCYS).

Program / Ministry of Children & Youth Services Funding Stream / Other Funding
TREATMENT PROGRAMS
Community Clinic /
  • Access Intake Service Planning
  • Brief Services
  • Counselling/Therapy Services
  • Intensive Treatment Services
  • Family/Caregiver Skills Building & Support
  • Targeted Prevention
  • Specialized Consultation and Assessment
  • Service Coordination Process

Residential /
  • Intensive Treatment Services
  • Specialized Consultation and Assessment

Clear Directions /
  • Intensive Treatment Services
  • Specialized Consultation and Assessment
  • Targeted Prevention

School Program /
  • Intensive Treatment Services

Research & Evaluation /
  • Service Coordination Process

PREVENTION & EARLY INTERVENTION PROGRAMS
Family Group Conferencing Toronto /
  • Alternative Dispute Resolution
  • Child & Family Intervention

Family Group Conferencing Provincial /
  • Child Welfare Secretariat

EarlyON Child and Family Centres / City of Toronto
Special Needs Resourcing / City of Toronto
Preschool Speech & Language (Early Abilities) / City of Toronto
Brighter Futures Coalition / Public Health Agency of Canada; United Way

Fundraising

The George Hull Centre Foundation generates fundraising dollars and then donates a calculated amount (the operational deficit of the Centre) to The George Hull Centre. The Foundation has a fee for service Director of Development who is responsible for developing and implementing a long-term fundraising program for the Foundation, under the supervision of the Centre’s Executive Director and in consultation with the Centre Board’s Fundraising Committee. The Foundation funds a part-time administrative assistant for the Director of Development.

The Centre recognizes that fundraising should be used to enhance programming and it is not ideal to have programs dependent upon fundraising to deliver services. Nevertheless, the fiscal reality is such that fundraising is necessary in order to deliver core services.

Because of its work as a coordinating body rather than a service delivery body, the Brighter Futures Coalition does not share in the fundraising revenue of the Centre. It is a coalition of services offered in Etobicoke for families with children from birth to age six. The George Hull Centre is the lead agency, employs the coordinator and manages the grant funding which is distributed among community partners who provide the actual service. Similarly, because the Family Group Conferencing Provincial Resource is a quality assurance and training body and does not provide direct service, it does not share in the fundraising revenue.

Financial planning

The goal is to manage the cash reserves in the Foundation, taking into account the ongoing and future requirements of the Centre, as well as ongoing and future fundraising efforts.

Summary Reporting Structure

The budget is produced at a departmental (program) level and then consolidated to produce the Centre level budget. The budget includes central administration costs which are allocated to each program based on the number of full time equivalent staff. Fund accounting is used to match expenditures to the funder and/or funding stream that supports the expenditure.All transactions are recorded in the Sage 300 (AccPac) accounting system. For a summary of financial internal controls, please see the attached policy.

An annual service contract is negotiated with each funder, including the budget, service targets and program descriptions. Quarterly financial and service target results are reviewed by management and submitted to the funder according to the contract schedule (see reporting deadlines below). At the end of the fiscal year, the audited financial statements are reconciled to each funder using Generally Accepted Accounting Principles.

Reporting deadlines:

Fiscal year: April 1st to March 31st , unless otherwise noted.

Funder / MCYS / MCYS
Programs / Treatment Programs / FGC Provincial
Budget / March 31 / March 31
Quarter 1 / July 30 / July 30
Quarter 2 / October 15 / October 31
Quarter 3 / January 15 / January 31
Quarter 4 / April 30 / May 15
Final settlement / July 31 / May 15
Funder / City of Toronto / City of Toronto* / Public Health Canada / United Way
Programs / Speech & Language / EarlyON Child & Family Centres
Special Needs Resourcing / Brighter Futures Coalition
Budget / February 15 / November 25 / March 31
Quarter 1 / July 15
Quarter 2 / October 15 / July 6
Quarter 3 / January 15 / January 30
Quarter 4 / April 21 / April 30
Final settlement / June 19 / January 25 / May 31

* Calendar Year

Date of Revision: December 5, 2017

Internal Accounting and Control

Policy

Internal controls is about getting things done (performance) but also about ensuring that they are done properly (integrity) and that this can be demonstrated and reviewed (transparency and accountability). Internal controls are divided into financial controls and non-financial controls. An example of a non-financial control is the hiring practice (as outlined in the Human Resources section). Financial controls encompass financial reporting controls and are described below. It is the policy that internal controls will be applied in order to guarantee the integrity of the financial operation of the Centre. All financial procedures are in accordance with Generally Accepted Accounting Principles (GAAP) as it relates to non-profit organizations, and MCYS financial guidelines.

Procedures

The Centre’s procedures of internal control can be described in three components:

Effectiveness and efficiency of operations

Includes objectives related to Centre’s goals addressing performance (comparisons to budget), efficient use of resources, and meeting social obligations (using the funds for which they were intended). This includes the safeguarding of the Centre’s resources from inappropriate use or loss and ensuing that liabilities are identified and managed.

Reliability in internal and external reporting

Includes objectives related to such matters as maintenance of proper accounting records, the reliability of information used within the organization and of information published for third parties. Examples are segregation of duties, dual signing officers, review and presentation of financial information compared to budget to management, the Board and various external users. Program Managers/Directors have direct input into the creation of the budget.

Compliance with applicable laws and regulations and internal policies

Includes objectives related to ensuring that the organization's affairs are conducted in accordance with legal and regulatory obligations and internal policies. This would include GAAP as well as Ministry related obligations. Another example would be adherence to all regulatory banking resolutions passed by the Board of Directors.

Date of Revision:November 21, 2014

Budget Process

Policy

Each Manager, under the direction of their Program Director and the Director of Finance and Operations, is responsible for the creation of their program’s budget. Final approval is with the Board of Directors for the agency and the various funding bodies that support the applicable program.

Procedure

1.Annually, each Program Manager, in conjunction with their Program Director, will prepare their program-specific budget for submission to the Director of Finance and Operations

2.The Director of Finance and Operations will coordinate all programs across the Centre and prepare the annual Centre budget. The Director of Finance and Operations will then present the consolidated budget to the management group for discussion and approval.

3.Once approved by the management group, the budget is submitted to the Finance Committee of the Board for approval. The Finance Committee presents the budget to the Board, which approves the budget and directs the Executive Director to prepare the service plan. The Director of Finance and Operations presents the service plan to the management group, and the same procedures are followed to final approval by the Board. The service plan is then sent to the Ministry of Children and Youth Services (MCYS) for amendment or authorization. All other programs that are either partially funded by MCYS or a separate funding body, such as the City of Toronto, follow the same procedures.

Date of Revision:November 21, 2014

Operating Budget

Policy

Each Program Manager, in conjunction with their Program Director, is responsible for the maintenance of their program’s budget.

Procedure

1.Once the operating budgets have been prepared and approved, each Program Manager will be responsible for expenditure control. Each Program Manager will approve in writing any charges to their program’s account.

2.On a monthly basis, actual expenditures are coded to the appropriate accounts by the Finance Department, with direction from the appropriate Program Manager. The Finance Department will prepare the general ledger entries, which will lead to a financial statement which will be produced under the direction of the Director of Finance and Operations.

3.The Director of Finance and Operations will review each department, and prepare a summary analysis of actual expenditures vs. budget, both by expenditure area and type. This consolidated summary, along with an analysis will be prepared and presented to the management group each quarter.

4.Each Program Manager will receive their applicable program statement and a copy of the consolidated report and analysis. On a regular basis, the Finance Manager will meet with each Program Manager to review their statements.

5.Upon this basis, the Director of Finance and Operations prepares his report on a quarterly basis to the Board’s Finance Committee.

Accountability

Program Managers are responsible for their budgets. The Program Manager is responsible to their Director for the line-by-line budget detail within the program. Any generation and/or utilization of program surplus will be discussed at the management group level.

Major Cost Centres

1.Salaries and wages will adhere to any applicable legislation including the Collective Agreement.

2.Benefits (including the pension) will be reviewed on an annual basis, or as required by legislation. This review is designed to ensure the Centre is achieving the best value for its money. Value should include staff requirements, marketplace conditions and budgetary constraints.

3.As with benefits, it will be ensured that there is an annual review of all Fee-for-Service agreements.

Date of Revision:February 21, 2014

Donations and Fundraising

Policy

As a non-profit organization and registered charity (number 10808 2918 RR0001), The George Hull Centre promotes and actively pursues donations and bequests that will further its Mission Statement. Donations are kept in The George Hull Centre Foundation (number 88864 7740 RR0001) with an annual donation back to the Centre to offset any operating deficit, as approved by the Board.

The George Hull Centre (‘the Centre’) and The George Hull Centre Foundation (‘the Foundation’) are committed to ethical fundraising and financial accountability in all of their fundraising practices and relationships with donors and the public. The Director of Fund Development is hired by the Foundation and works with the Executive Director of the Centre on a day to day basis. The Centre Board of Directors establishes a Fundraising Committee that oversees all fundraising initiatives.

Procedures

Donor Policies:

  1. The Centre prepares and issues official charitable donation receipts for funds donated through small staff-initiated fundraising activities, such as holiday hamper drives, and gifts in kind in compliance with regulatory requirements. All other donated funds are receipted by the Foundation. Receipts for donations can only be issued by authorized administration staff.
  1. All fundraising activities by or on behalf of the Centre disclose the Centre’s name and the purpose for which funds are requested. Printed and online solicitations include the Centre’s address and contact information.
  1. The Centre and Foundation provide the following information upon request:

•the most recent Annual Report;

•the most recent audited financial statements, approved by the Board of Directors or Trustees;

•the charity’s registration number as assigned by the Canada Revenue Agency;

•the names of the Directors or Trustees;

•information contained in the public portion of the most recent Charity Information Return as submitted to the Canada Revenue Agency. This information is available to the public online at and includes the amount of receipted and non-receipted donations and fundraising expenses.

  1. The Centre, Foundation, or those fundraising on their behalf, discloses, upon request, whether an individual or entity soliciting contributions is a volunteer, an employee or a contracted third party.
  1. The Centre and Foundation encourage donors to seek independent advice if the proposed gift is a planned gift and/or there is any reason to believe that the proposed gift might significantly affect the donor’s financial position, taxable income, or relationship with other family members.
  1. Donors’ requests to remain anonymous in respect to being publicly identified as supporters and/or having the amount of their contribution publicly disclosed are honoured.
  1. The privacy of donors is respected at all times. Any donor records that are maintained by the Centre or Foundation are kept confidential. Donors have the right to see their own donor record and to challenge its accuracy.
  1. The Centre and Foundation do not sell, rent or exchange their lists of donors.
  1. Solicitations by or on behalf of the Centre or Foundation treat donors and prospective donors with respect. Every effort is made to honour requests to:

•limit the frequency of solicitations;

•not be solicited by telephone, email or other technology;

•receive printed material concerning the Centre or Foundation;

•discontinue solicitations.

  1. Recognition mechanisms created due to a gift will not be arbitrarily changed or withdrawn. Unless otherwise negotiated at the time of the gift or changed through a joint agreement between the Centre or Foundation and the donor, the donor’s family or legal representative, the original form of the recognition mechanism will be maintained. If the mechanism cannot be physically retained, it will be changed to another consistent with the original agreement. If continuation of the recognition creates a reputational risk for the Centre or Foundation, it may be terminated or altered.
  1. Any complaint by a donor or prospective donor about any matter related to fundraising practices is responded to promptly.

Fundraising Practices:

  1. All fundraising activities and solicitations on behalf of the Centre must be approved by the Executive Director prior to commencement.
  1. Fundraising solicitations on behalf of the Centre must be truthful and accurately describe the intended use of donated funds. The Centre does not exploit its clients and is sensitive in describing those it serves, fairly representing their needs and how they will be addressed.
  1. If online solicitations are conducted, practices will be consistent with or exceed the provisions of the Canadian Code of Practice for Consumer Protection in Electronic Commerce.
  1. If the Centre or Foundation conducts face-to-face solicitations, for example door to door campaigns or street-side fundraising, it will:

•Provide verification of the affiliation of the person representing the Centre or Foundation;

•Secure and safeguard any confidential information, including credit card information, provided by donors.

  1. Volunteers, employees and third party consultants/solicitors who solicit or received funds on behalf of the Centre or Foundation will:

•Adhere to this policy

•Act with fairness, integrity and in accordance with all applicable laws;

•Cease solicitation of a prospective donor who states that he does not wish to be solicited;

•Disclose immediately to the Executive Director any actual or apparent conflict of interest;

•Not accept donations for purposes that are inconsistent with the Centre’s or Foundation’s objects or mission.

  1. The Centre and Foundation will provide, upon request, the best available information on the gross revenue, net proceeds and costs of any fundraising activity (including fundraising costs categorized as education or public awareness) undertaken.
  1. The Centre and Foundation do not directly or indirectly pay finder’s fees, commissions or percentage compensation based on contributions.
  1. If the Centre or Foundation undertakes cause-related marketing in collaboration with a third party, how it benefits from the sale of products or services and the minimum or maximum amounts payable under the arrangement will be disclosed. If no minimum amount is specified, this will be disclosed.
  1. The Centre’s Board of Directors and the Foundation’s Trustees are informed at least annually of complaints received from donors or prospective donors about matters addressed in this policy.

Financial Practice and Transparency:

  1. All donations are used to support the objects of the Centre, as registered with the Canada Revenue Agency.
  1. All restricted or designated donations will be used for the purposes for which they were given unless legal authorization is obtained to use them for other purposes.
  1. The cost-effectiveness of fundraising programs is reviewed regularly by the Board Fundraising Committee. Efforts are made to keep administrative costs as low as possible.
  1. The Centre will, upon request, disclose the revenue and expense assumptions for its fundraising activity as approved by the Board in the annual budget.
  1. If the Centre receives or anticipates receiving gifts-in-kind of $100,000 or more annually, it will establish a Gift Acceptance Policy (including valuation issues) for the receipt of gifts in kind.

Date of Revision: June 16, 2014

Security of Corporate, Personnel and Financial Records

Policy

The George Hull Centre is committed to ensuring the secure maintenance and storage of financial, personnel and corporate records.