Standard 6: Financial Oversight

“Land trusts are responsible for how they manage their finances and assets.”

 

Practices:

A. Fiscal Health
  1. Establish a financial plan for the long-term operations of the land trust by
    1. Developing an annual budget that reflects the land trust’s annual programs and activities.
    2. Developing and implementing a strategy to address any deficit-spending trends.
    3. Assessing the nature and variability of revenue and seeking to diversify funding sources.
  2. Build and maintain sufficient operating reserves to sustain operations.
  3. Adopt and implement a plan to build and maintain dedicated or restricted funds sufficient to cover the long-term costs of stewarding and defending the land trust’s land and agreements.

Resources:

Financial Management Policy – Sample 1 Ontario Land Trust Alliance 2018 237 KB pdf
Land Securement Reserve Fund Investment Policy – Template Ontario Land Trust Alliance —————— 69 KB pdf
Fund Investment Policy – Template Ontario Land Trust Alliance ———————— 83 KB pdf
Investment Principles and Management Organization Policy – Sample 1 Ontario Farmland Trust 2014 1,155 KB word
Financial Management Policy – Sample 2 Oak Ridges Moraine Land Trust 2015 272 KB pdf
Investment Principles and Management Organization Policy – Sample 2 Oak Ridges Moraine Land Trust 2014 233 KB pdf
File Name Organization Year Size Format
B. Financial Records
  1. Keep financial records in accordance with Generally Accepted Accounting Principles (GAAP) and, where applicable, Canada Revenue Agency requirements.

Resources:

Records Management & Safekeeping Policy Ontario Land Trust Alliance 2016 82 KB word
Record Keeping Policy  Couchiching Conservancy 2008 222 KB pdf
File Name Organization Year Size Format
C. Independent Financial Evaluation
  1. Obtain an annual financial audit, review or compilation by an independent certified public accountant or a qualified accounting professional, in a manner appropriate for the scale of the land trust.

Resources:

Audited Financial Statements Ontario Land Trust Alliance 2019 137 KB pdf
Financial Management Policy – Sample 1 Ontario Land Trust Alliance 2018 237 KB pdf
Financial Management Policy – Sample 2 Oak Ridges Moraine Land Trust 2015 272 KB pdf
File Name Organization Year Size Format
D. Written Internal Controls
  1. Establish written internal controls and accounting procedures, including segregation of duties, in a form appropriate for the scale of the land trust, to prevent the misuse or loss of funds.

Resources:

Financial Management Policy – Sample 1 Ontario Land Trust Alliance 2018 237 KB pdf
Records Management & Safekeeping Policy Ontario Land Trust Alliance 2016 82 KB word
Record Keeping Policy  Couchiching Conservancy 2008 222 KB pdf
Financial Management Policy – Sample 2 Oak Ridges Moraine Land Trust 2019 330 KB pdf
File Name Organization Year Size Format
E. Risk Management and Insurance
  1. Routinely assess and manage risks so that they do not jeopardize the land trust’s financial health and its ability to carry out its mission and legal responsibilities.
  2. Carry general liability, directors’ and officers’ liability, property and other insurance, all as appropriate to the land trust’s risk exposure or as required by law.

Resources:

Accountability & Risk Management Ontario Land Trust Alliance 2018 92 KB pdf
Risk Management Plan Ontario Land Trust Alliance 2018 109 KB pdf
Legal Risk Management Checklist Carters Professional Corporation 2018 358 KB pdf
Liability Insurance Nature Conservancy of Canada 2000 136 KB pdf
Commercial Insurance Policy  Ontario Land Trust Alliance 2016 623 KB pdf
Accountability & Risk Management Policy Oak Ridges Moraine Land Trust 2016 260 KB pdf
File Name Organization Year Size Format