Expenditure Management

Policy Adopted April 19th, 2012
Revised May 9th, 2017

Expense Approval Quick Reference

This table provides a quick reference for staff and directors to understand who is authorized to approve either budgeted or unbudgeted expenditures inclusive of HST. This table is a digest of items 14 through to 19 of this policy.

Purpose

1. The goal of this policy is to ensure the accountability of Directors and of the Board of Directors to the membership of SMSC for expenditures on behalf of St Margaret Sailing Club (SMSC).

Scope

2. The policy applies to the Board of Directors, and to those Directors, members or employees who commit to or make expenditures on behalf of SMSC.

Policy Statement

3. Neither the approval of a budget nor the approval of signing authorities by the SMSC Board of Directors implies approval to expend funds against a budget. Specific approval for expenditure is required.

4. The procedures of this policy provide expenditure approvals for certain situations; otherwise, case-by-case approval of the Executive Committee or of the Board of Directors is required.

Definitions

Expenditure: the act of expending something, especially funds.

Ongoing operational expenditures: Utilities, property taxes, insurance, garbage collection, salaries, statutory payments and consumables. Consumables explicitly include bar inventory, housekeeping supplies, and food inventory for programmed social activities. Expenditures not identified here are excluded.

Responsible Director: A member of the SMSC Board of Directors with authority for a portfolio which includes a budget.

Authority, Accountability, Responsibility

4. The Treasurer is the authority for this policy and associated procedures and is accountable to the Board of Directors for maintenance of the policy and procedures.

5. Individual Directors are responsible for application of the policy and procedures within the context of their particular portfolios, and are accountable to the full Board of Directors for that application.

6. The Executive Committee (should the Board appoint one) is responsible for application of the policy and procedures within the context of its Terms of Reference, and is accountable to the full Board of Directors for that application.

7. The Board of Directors is collectively accountable to the SMSC membership for the development, maintenance, application, and monitoring of this policy and procedures.

8. SMSC employees are accountable to their applicable Director (or supervisor if there is one) for performance within the context of this policy and procedures. Failure of employees to comply with this policy and procedures could result in disciplinary measures up to and including termination of employment.

9. Members are responsible for following this policy and procedures when involved in expenditure-related processes. Failure of members to comply with this policy could result in their being liable for the expenditure.

Questions

10. Questions about this policy should be directed to the Treasurer, or in his/her absence, the Commodore.

Procedures

11. The following procedures define required process for expenditure management of various classes of expenditures.

Ongoing Operational Expenditures

12. There is a requirement for SMSC to make recurring operational expenditures in support of utilities, property taxes, insurance, garbage collection, salaries, statutory payments and consumables (such as bar inventory and house supplies), in some cases even prior to approval of budgets.

13. A Responsible Director is authorised to expend and the Treasurer be authorised to make payment for utilities, property taxes, insurance, salaries and statutory payments, and operational consumables without further reference to the Executive Committee, should there be one, or the Board of Directors, subject to any constraints of the SMSC Policy on Payment of Accounts Payable.

Non-recurring Budgeted Expenditures

14. Non-recurring budgeted expenditures of a value of $1,000 or less (HST included) may be made on the authority of the responsible director.

15. Non-recurring budgeted expenditures of a value exceeding $1,000 but not exceeding $5,000 (HST included) require the approval of the Executive Committee, should there be one, or the approval of the Board in absence of an Executive Committee.

16. Non-recurring budgeted expenditures of a value exceeding $5,000 (HST included) require the approval of the Board of Directors.

Un-budgeted Expenditures

17. Un-budgeted expendituresof a value of $200 or less (HST included) may be made on the authority of the responsible director but must be reported to the Executive Committee, or to the Board in absence of an Executive Committee.

18. Un-budgeted expenditures of a value exceeding $200 but not exceeding $1,000 (HST included) require the approval of the Executive Committee, or of the Board in absence of an Executive Committee.

19. Un-budgeted expenditures of a value exceeding $1,000 (HST included) require the approval of the Board of Directors.

Order-splitting

20. As for payments (see paragraph 13 of the Payment of Accounts Payable Policy, Reference B) expenditures may not be ‘split’ by dividing any expenditure into components to avoid a higher level of approval.

Retroactive Approval

21. Occasionally, circumstances arise (such as emergency maintenance requirements, but not capital acquisition) where it is not possible to obtain prior approval as required by this policy and its procedures. In such circumstances, as soon as practical the Responsible Director shall refer the expenditure to the Executive Committee or the Board of Directors as appropriate, for retroactive approval. Such approval shall not be refused as long as the expenditure is in the interests of SMSC.