Colleges of Applied Arts and Technology Policy Framework - 2.0 Finance & Administration Banking, Investments and Borrowing Operating Procedure - Purpose and Application

Sep 12, 2026

Defines banking, investment, and borrowing requirements for Ontario colleges of applied arts and technology under the Minister’s Binding Policy Directive issued pursuant to the Ontario Colleges of Applied Arts and Technology Act, 2002. Establishes restrictions, conditions, and approval processes for requesting Section 28 approvals under the Financial Administration Act and long-term financing from the Ontario Financing Authority (OFA). Includes scope for college subsidiaries and controlled entities, and notes that some managed funds may be subject to the Trustee Act.

LanguageEnglish

CategoryLetters

FormatPDF

Pages13

Reading Time5 min

AccessFree to download

Purpose and Application

Glossary

Background

Annual Borrowing Plan

Requirements for Requesting Section 28 Approval and Requesting Financing from the OFA

Requesting Section 28 Approval for Non-OFA Financing

Requesting Section 28 Approval and Financing from the OFA

Capital Leases

Guarantees

Other Financing

OFA Approval Process

Appendix A: Annual Borrowing Plan Template

Appendix B: Total Project Cost Template

Appendix C: Cash Flow Templates

Appendix D: Source of Financing Template

Appendix E: Outstanding Debt Template

Ministry of Training, Colleges and Universities Colleges of Applied Arts and Technology Policy Framework 2.0 Finance & Administration Banking, Investments and Borrowing Operating Procedure Banking, Investments and Borrowing Ministry of Training, Colleges and Universities Colleges of Applied Arts and Technology Policy Framework 2.0 Finance & Administration Banking, Investments and Borrowing Operating Procedure TABLE OF CONTENTS Purpose and Application ................................................................................................. 2 Glossary .......................................................................................................................... 2 Background ..................................................................................................................... 2 Annual Borrowing Plan .................................................................................................... 3 Requirements for Requesting Section 28 Approval and Requesting Financing from the OFA ................................................................................................................................. 3 Requesting Section 28 Approval for Non-OFA Financing ............................................... 3 Requesting Section 28 Approval and Financing from the OFA ....................................... 4 Capital Leases ................................................................................................................ 6 Guarantees ..................................................................................................................... 6 Other Financing ............................................................................................................... 7 OFA Approval Process .................................................................................................... 7 Appendix A: Annual Borrowing Plan Template................................................................ 8 Appendix B: Total Project Cost Template........................................................................ 9 Appendix C: Cash Flow Templates ............................................................................... 10 Appendix D: Source of Financing Template .................................................................. 11 Appendix E: Outstanding Debt Template ...................................................................... 12 Ministry of Training, Colleges and Universities Colleges of Applied Arts and Technology Policy Framework 2.0 Finance & Administration Banking, Investments and Borrowing Operating Procedure Purpose and Application The Minister’s Binding Policy Directive on Banking, Investments and Borrowing, which is issued under the authority of the Ontario Colleges of Applied Arts and Technology Act, 2002, establishes banking, investment and borrowing requirements for all colleges. This Operating Procedure, which applies to all colleges of applied arts and technology, sets out more specific details on the restrictions and conditions on college banking, investments and borrowing requirements, including the process for colleges requesting approvals under Section 28 of the Financial Administration Act and for requesting longterm financing from the Ontario Financing Authority (the OFA) . College subsidiaries and other college controlled entities are also subject to this Operating Procedure unless excluded from some or all of the provisions of the procedure by written permission of the Minister of Training, Colleges and Universities. Some of the funds the college manages may also be subject to the Trustee Act. Glossary The terms used in this document that are defined in the Binding Policy Directive, have the same meaning as set out in the Binding Policy Directive, unless otherwise specified. Background On June 21, 2007, Treasury Board approved a framework for financing public bodies that ar

FAQs

What is the purpose of this operating procedure?

It sets out specific restrictions, conditions, and process details for college banking, investments, and borrowing requirements, including how colleges request approvals under Section 28 and request long-term financing from the OFA.

How is long-term financing from the OFA approved for colleges?

The Ministry notifies the OFA in advance, shares pertinent supporting information, and helps confirm that the request is authorized by the college board of governors and that the loan agreement or financing arrangement is signed by an authorized officer or employee.

What financial framework governs the OFA’s lending to colleges?

OFA long-term financing is provided under the Treasury Board-approved framework (June 21, 2007) and is subject to an intercept mechanism tied to the Minister of Finance’s entitlement to deduct unpaid amounts from legislative appropriations.

Sep 12, 2026

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