Our Board.
We are proud to introduce the dedicated and experienced board of directors of Learning From Play Educational Foundation. Our board members bring diverse expertise in education, neurodiversity advocacy, child development, and community engagement, ensuring that we uphold the highest standards of care and education for our children.
Financial and Governance Policy for Learning From Play ECS
Introduction
This Financial and Governance Policy outlines the standards, procedures, and responsibilities related to the management of financial resources and the governance structure of Learning From Play, a non-profit Early Childhood Service (ECS) provider governed by a Board of Directors. The purpose of this policy is to ensure financial integrity, operational transparency, accountability, and the effective management of organizational resources.
1. Internal Controls Policy
1.1 Segregation of Duties
To maintain financial integrity and prevent fraud or error, Learning From Play establishes a clear segregation of duties across key financial processes. The responsibilities for authorizing transactions, recording financial data, and handling cash or other assets will be separated among different staff and board members.
● Authorization of Transactions: Senior managers or designated board members approve all financial transactions, including invoices, payroll, payments, and grants. The person authorizing the transaction is not involved in recording or reconciling the transaction.
● Recording of Transactions: The finance department or designated financial officer records all financial transactions, ensuring timely, accurate, and complete entries into the accounting system. They do not have authorization powers for financial transactions.
● Cash Handling: Cash, cheques, and other payments are handled by staff members separate from those authorizing or recording financial transactions. All cash receipts are deposited promptly into the ECS’s bank accounts, with records maintained and reconciled.
Additional Safeguards:
● Reconciliation: Monthly bank reconciliations are performed by an individual not involved in cash handling or transaction recording. Reconciliations will be reviewed by the Board or Audit Committee for accuracy.
● Audits: An annual independent audit will review internal controls, including segregation of duties, ensuring compliance with best practices.
1.2 Capital Assets
Learning From Play will maintain a capital asset register that details the acquisition, depreciation, and disposal of assets. Regular physical inventories and reconciliations will be performed to ensure the asset register’s accuracy.
● All capital assets will be appropriately insured and managed in line with the organization’s financial position and operational needs.
1.3 Reimbursement of Expenses
Learning From Play will reimburse staff, board members, and volunteers for approved out-of-pocket expenses incurred in the course of their roles. Reimbursement requests must be pre-approved, supported by documentation, and processed within 30 days of submission.
● Pre-authorization: All expenses must receive prior approval by a senior manager or board member, with the Executive Director’s expenses requiring Board Chair approval.
● Eligible Expenses: Reimbursable expenses include travel, meals, supplies, and other reasonable, necessary costs directly related to ECS activities.
● Submission: Reimbursement requests must be submitted electronically with receipts and a brief explanation of the expense’s relevance to ECS activities.
● Authorization: Requests for employee reimbursements are reviewed and authorized by the Executive Director or a senior manager. The Board Chair or a designated board member authorizes the Executive Director's expenses.
● Processing and Payment: Reimbursement payments will be made within 30 days via the ECS’s standard payment methods (e.g., direct deposit, cheque).
1.4 Investments
The ECS may invest its funds to ensure short-term liquidity and long-term sustainability. Investments will be conservative, focusing on safeguarding principal and maintaining operational liquidity.
● Investments will only be made in low-risk vehicles, such as government bonds or secure instruments.
● The Finance Committee will review investment performance annually and make recommendations to the Board.
2. Governance Policy
2.1 Roles and Responsibilities of the Governing Body
The Board of Directors is responsible for the overall stewardship of Learning From Play. Its primary duties include:
● Setting the strategic direction and vision of the ECS.
● Approving the annual budget and major financial decisions.
● Ensuring compliance with laws, regulations, and policies.
● Hiring, evaluating, and supporting the senior management team.
● Overseeing risk management practices, ensuring adequate internal controls.
The Board meets quarterly and oversees committees, including Finance, Risk, and Governance Committees, to support governance and operational effectiveness.
2.2 Roles and Responsibilities of Senior Managers
Senior managers, led by the Executive Director, are responsible for the day-to-day operation of the ECS. Their key duties include:
● Implementing the strategic plan approved by the Board.
● Managing finances in accordance with approved budgets and policies.
● Ensuring compliance with legal and regulatory obligations.
● Reporting regularly to the Board on operational and financial performance.
● Hiring, managing, and developing staff to meet the organization’s needs.
The senior management team meets weekly to assess operations and monitor progress.
3. Conflict of Interest Policy
Policy Statement
All employees, board members, and volunteers of Learning From Play are expected to act with integrity, avoid conflicts of interest, and disclose any potential or actual conflicts that may undermine the organization’s credibility.
Key Principles
● Definition of Conflict of Interest: A conflict arises when personal, professional, or financial interests interfere with the ability to make impartial decisions. Examples include financial interests in companies doing business with the ECS, familial relationships with vendors, and outside employment that conflicts with ECS duties.
● Avoidance and Disclosure: Employees and board members must avoid conflicts of interest and immediately disclose any situations that could present one. An annual Conflict of Interest Disclosure Form must be submitted by all employees and board members, with updates as circumstances change.
● Review and Resolution: The Board or Governance Committee will review disclosed conflicts and determine necessary actions, which may include recusal from decision-making or, in severe cases, removal from the Board or staff.
● Conflicts in Financial Matters: Board members and staff involved in financial processes (e.g., bank reconciliations, financial reporting, reimbursements) must disclose any potential conflicts. Those involved in reviewing financial transactions must not have financial interests that could be affected by the outcome.
Gifts and Gratuities
Employees and board members are prohibited from accepting gifts or benefits that could be seen as influencing their decisions. Any gifts of significant value must be disclosed to the Executive Director or Board Chair.
Bank Reconciliations and Financial Integrity
● Segregation of Duties: To ensure transparency and prevent conflicts, individuals involved in financial transactions (such as payroll, reimbursements, or bank reconciliations) must not have a financial interest in the transactions they oversee.
● Review: Bank reconciliations will be reviewed by senior management or external auditors to ensure accuracy and integrity. Any conflict of interest in the financial oversight process will be disclosed and addressed by the Board or Audit Committee.
Consequences of Non-Compliance
Failure to disclose conflicts or adhere to this policy may result in disciplinary action, including removal from the Board or termination of employment.
4. Compensation Policy for Senior Managers
Learning From Play is committed to ensuring that compensation for senior managers is fair, reasonable, and aligned with the organization’s financial position and sector standards.
● Fair and Reasonable: Compensation will be set at a level appropriate for the size and scope of the ECS, ensuring it is competitive but sustainable. ● Transparent: Compensation levels will be disclosed to the Board and based on market benchmarks for similar positions in the early childhood education sector.
● Annual Review: Senior manager compensation will be reviewed annually by the Board or a designated compensation committee to ensure it remains aligned with the financial capacity of the ECS.
● Performance-Based Adjustments: Compensation adjustments will be linked to individual performance, as assessed through annual reviews, and the overall financial health of the ECS.
Conclusion
This Financial and Governance Policy ensures that Learning From Play operates with transparency, accountability, and fiscal responsibility. It provides clear guidelines for the management of financial resources, sets expectations for the roles and responsibilities of staff and board members, and ensures that all conflicts of interest are disclosed and resolved in the best interest of the organization. By adhering to these policies, we will continue to maintain the trust of our community and stakeholders while fulfilling our mission to provide high-quality early childhood education.
