1.    PURPOSE 

1.01     The purpose of this Statement of Policy and Procedure is to set out the requirements for the annual MakeWay operating and capital budget and related forecasts.

2.    SCOPE

2.01     This policy applies to the Board of Directors, the Senior Management Team and all department managers.

3.    POLICY

3.01     An annual budget shall be prepared before the start of each fiscal year and presented to the Board of Directors for approval.

3.02     The annual budget shall be prepared in accordance to the strategic plan and business plan of the organization for the related fiscal year.

4.    RESPONSIBILITY

4.01    It is the responsibility of Manager, Financial Planning & Analysis to coordinate the operating and capital budget and forecast processes (in conjunction with the Finance Department)

4.02    It is the responsibility of all Directors department managers to complete their segment of both budgets and forecasts.

4.03    It is the responsibility of the Senior Management Team to ensure that the budget presented to the Board of Directors for approval represents a responsible implementation of the direction provided by the board and to recommend the budget for approval.

4.04   It is the responsibility of the Board of Directors, on behalf of the members, to assure themselves that the budget represents a responsible implementation of its direction and reflects prudent stewardship of funds, and to approve the budget.

4.05   It is the responsibility of each Director and department manager to ensure expenses are within budget and to seek approval from the CFO in the event that total expenses exceed 5 % of approved budget.

4.06   It is the responsibility of Finance to monitor budget vs. actuals, to provide reporting to all department managers on a regular basis, and to ensure expenses are properly charged to applicable departments.

5.    DEFINITIONS 

5.01    “Budget” means an estimate of revenues and expenses and the resultant surplus or deficit for a particular period. It may also include separate estimates of capital expenditures.

5.02    “Forecast” is an estimate of the most likely financial results based upon the most-likely assumptions.

5.03    “Budget vs. actuals” is a comparison of the approved budget against actual spending. 

6.    REFERENCES and RELATED STATEMENTS of POLICY and PROCEDURE