Budgeting Policy

Purpose

The annual budget is a reflection of [enter-your-company-name-here]’s annual operational plan and as such should be presented in partnership with the plan showing the relationship between planned-for events and associated costs and revenues.

Policy

It is the responsibility of the CEO to research and develop [enter-your-company-name-here]’s overall annual operating budget.  The annual budget should be soundly prepared reflecting a mix of ongoing operational and capital requirements and [enter-your-company-name-here]’s critical strategic issues as identified in the strategic plan.  The budget should reflect both expenditure and revenue projections. 

Procedure

The annual budget shall:

• Contain sufficient detail to allow an accurate projection of revenues and expenditures.
• Comply with the Board’s stated objectives and priorities.
• Be presented in such a way as to make it easy to interpret and follow and comply with standard budget presentation formats.
• Give consideration to any need for change in [enter-your-company-name-here]’s reserves

CEO Responsibilities

The CEO is responsible for the annual presentation of draft budgets (capital and revenue) and for providing such additional information to enable the Board to properly consider it.

The CEO is responsible for ensuring that any application to the Board for expenditure which has not been specifically budgeted for is supported by adequate costing and a recommendation as to how the new expenditure can be funded.