Policy: 2.1 Annual Budget
Section: Finance
1.Purpose
The purpose of this policy is to ensure responsible financial planning, transparency, and accountability in the budgeting process of the Northern Association of Community Councils Inc. (NACC). This policy establishes guidelines for drafting, reviewing, and approving the annual budget while ensuring compliance with Generally Accepted Accounting Principles (GAAP) for Not-for-Profit organizations.
2. Authority
Under NACC By-laws, directors may adopt, amend, or repeal policies relating to the governance, management, operation, and affairs of the Corporation that are not inconsistent with the NACC’s By-laws, as the directors may deem appropriate from time to time.
3. Policy
a) The annual budget shall be drafted prior to the first Executive Committee Meeting in February of each year; shall include all estimates and previous year’s actuals of revenues and expenditures; and shall be deliberated, modified and satisfied by resolution by the Board by the Executive Committee Meeting in March.
b) Funds provided to NACC will be expended for the specific purposes identified.
c) Any transfer within the operating budget will be subject to approval by the Board and will be so done by way of a motion with majority in favour.
d) The budget shall be prepared in keeping with Generally Accepted Accounting Principles (GAAP) for Not-for-Profit organizations.
4. Monitoring and Review
This policy will be reviewed every two (2) years by the Executive Committee or more frequently if required to ensure compliance with any changes in employment standards to ensure its continued relevance and alignment with the NACC’s operations. Changes to the policy will be documented and communicated to the Board for approval.
5. Board Acceptance
This policy will be approved by the Board of Directors. The President / Chair of the Board will sign and date the policy to indicate its approval and adoption.
Reviewed: June 23, 2025
Revisions Approved: June 23, 2025