Budget Preparation and Management

The Executive Director and the Treasurer will work together to prepare the annual budget.The draft budget will be brought to the board for approval.

The Board of Directors will approve all budgets and expenditures. Expenditures should be compared with budgeted allocations.

Each budget item will be accurately represented and researched as carefully as possible based on the following: the funders’ guidelines, the board’s recommendations, historical information and expected expenditures.

Sample Statements
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This agency will use the funding guidelines of our major funder as the guidelines for budget preparation.

Budget reports will be prepared every month so that the board can monitor the expenditures.

If the budget needs to be amended in the course of the year, the Treasurer and the Executive Director will work together to develop a revised budget for the board’s approval. If necessary, the funder will be notified of the agency’s budget change.

Monthly income and expense reports will contain the actual and budgeted amounts in dollar figures as well as percentages. Last year’s figures for the same date will be provided for comparison.

The Executive Director is responsible for overseeing the payment of all approved budget expenses.

Expenditures over $500 which were not planned for in the budget must be approved by the board of directors.The Executive Director has discretion to authorize nonbudgeted expenditures under $500.

All major capital expenses (over $ ) will require a minimum of three written quotes for comparison.

All contractual agreements and capital expenses should be brought forward for board approval. If immediate action is required, the Executive Director may seek the Executive Committee’s approval.

Cash Management

Sample Statements

This agency endeavours to maintain a cash position of no less than $ in the bank.The board will receive a monthly statement of the cash position in order to revise figures, plan the timing of expenses or reallocate resources as necessary.

Our agency will establish and maintain a reserve fund equal to three to six months of operating costs.