Policy C24 - Approval of Expenditures

Purpose

The purpose of this policy is to define the spending authority that the Board grants to the President, Treasurer, Executive Committee and Budget and Finance Committee.

The Ski for Light Constitution and Bylaws charges the Board of Directors, in Article IV. Board OF Directors Section 3. Authority and Responsibility, with managing the funds and property of the organization and with disbursing them in fulfillment of the corporate purpose. The Board is authorized to delegate these tasks to groups or individuals as it deems necessary.

The Bylaws of SFL contain four specific mentions of financial management of the organization that by inference have been granted to the individual or group by the Board, as follows: Bylaw 3, Duties of the Officers, Section A. President, Bylaw 3, Duties of the Officers, Section D. Treasurer, Bylaw 4, Powers and Duties of the Executive Committee, and Bylaw 5 Standing Committees.

Policy

When the Annual Budget of SFL is approved by the Board, the President and Treasurer are authorized to commit the organization to each line item in the Budget, and to disburse the funds necessary, up to the level contained for that line item in the approved Budget.

If the anticipated cost of an item contained in the approved Budget will exceed the amount authorized in the Budget by 10% or less, that expenditure requires the advanced approval of the Executive Committee.

If the anticipated cost of an item contained in the approved Budget will exceed the amount authorized in the Budget by more than 10%, that expenditure requires the advanced approval of the Board.

If the actual cost of any item authorized in the Budget exceeds the budgeted amount for that item, The President or Treasurer shall first obtain the approval of the Executive Committee before paying the bill in question. If the magnitude of the overage is $1,000 or more, the Board shall also be notified. Care must be taken to not jeopardize the credit rating of SFL by delaying payment for services rendered beyond a reasonable amount of time.

If the President or Executive Committee wish to expend or authorize funds for any activity not authorized in the Budget, such activity and expenditure requires the advance approval of the Board.

The SFL President and Event Chair may each spend up to $100 on incidental non-budgeted items without prior approval. These expenditures may not exceed $500 for each per fiscal year for a total of $1,000.

Reimbursement of out-of-pocket expenses shall be governed by Policy C12, if the item for which reimbursement is being sought is contained in the approved Budget of the organization. If reimbursement is for an item not contained in the Budget, the above requirement for the approval of non-Budgeted expenses shall apply.

The role of the Executive Committee is to assist the President and Treasurer in pursuit of the authorized programs of SFL, as identified in the Budget. The Executive Committee may at any time recommend to the Board revisions to the authorized Budget to pursue new programs or initiatives. The Executive Committee has no authority to commit the funds of SFL, except as identified in this policy.

The role of the Budget and Finance Committee is to monitor and report to the Board on the financial affairs of SFL. The committee has no authority to approve SFL funds.

October 8, 2024