LOPSA Policies/Financial

Financial

Policy approved by the Board on 11 December 2006.

Annual Fiscal Period

The annual fiscal period of the organization shall be the annual calendar year from January 1st to December 31st.

System of Accounting

The finances accounting system of the organization shall conform to Generally Accepted Accounting Principles (GAAP) and shall be accrual-based.

Annual Budget

The Finance Committee, along with the Executive Director, shall be responsible for developing an annual budget. The annual budget must be approved by the Board. The approved budget will serve as spending authority to the organization Executive Director and staff for all line item budgeted items.

Budget Amendments

The Finance Committee will be responsible for recommending to the Board amendments to the annual budget as may be appropriate based on changing situations. Line item adjustments of 10% or less of the initial line item's amount shall not require amendment.

Non-budgeted Initiatives

Any non-budgeted organizational activity with a projected cash-flow of $10,000 or greater must be reviewed and recommended by the Finance Committee before being presented to the Board for approval. Non-budgeted initiatives of less than $10,000 may be presented to the board for approval without review by the Finance Committee. A Board member may motion for a non-budgeted initiative to be brought before the entire board, over the objection of the Finance Committee.