Section 6.14

Budget Exceptions by Finance Committee

Budget Exceptions by Finance Committee

1.0. Scope and Purpose

  • 1.1. The Finance Committee considers a budget exception to be an unusual event. Emphasis is placed on fiscal responsibility, good fiscal management and sound financial planning.
  • 1.2. A budget exception will only be allowed once for the same line item/project.
  • 1.3. Budget exception funds must be spent within the same fiscal year.
  • 1.4. Budget exceptions are intended to address a reduction in an approved projected revenue or an increase in approved projected expense for existing programs.
  • 1.5. The total for all approved requests within the current fiscal year shall not exceed 0.5% total revenue budget for the current fiscal year.
  • 1.6 Budget Exceptions shall not be charged against income for the purposes of staff bonus calculation.

2.0. Request Process

  • 2.1. A member of the Board of Directors or management staff files a written Budget Exception Request with the Controller.
  • 2.2. The written request should include:
    • 2.2.1. Council or staff responsible
    • 2.2.2. Line Item/Project Description and Purpose
    • 2.2.3. Reason for requesting a budget exception (as opposed to waiting for next fiscal year)
    • 2.2.4. Amount of request and proforma including key assumptions/or impact of spending.
    • 2.2.5. Timeline to completion: funds shall be spent by end of current fiscal year.
  • 2.3. The Controller reviews the request for completeness and forwards it to the Vice President -- Finance.
  • 2.4. The Vice President -- Finance schedules a meeting or places the request on the next Finance Committee meeting agenda.
  • 2.5. The Finance Committee responds to each budget exception request and recommends a course of action to the Board of Directors, i.e., approval, disapproval, or request more information. Approval requires a majority vote.
  • 2.6. The Controller notifies the requestor of the committee's recommendation.
  • 2.7. Budget Exceptions will be forwarded to the Board of Directors for approval.  However, the Board authorizes the Executive Committee to approve Budget Exceptions of $25,000 or less, per request.  Subsequently, the approval of the budget exception requires majority vote of the Board of Directors or Executive Committee. 
  • 2.8. The Controller disburses funds in accordance with current Society financial policies.

3.0. Accountability

  • 3.1. The Controller provides the Finance Committee with a quarterly report and the Board of Directors a status report at each Board of Directors meeting on any outstanding budget exceptions until completion.

Approved By/Date: Board of Directors: 06/2017

Replaces Edition Dated: 06/2011

Next Revision Due: 06/2019

 
 

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