CFA Society Toronto - Board


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1 The CFA Society Toronto Management Office is accountable for all financial transactions and information presented to the Finance Committee and to the Board. The Management Office is responsible to ensure all records are complete, accurate and reflective of the financial transactions that have taken place within the scope of the Society's operations. All transactions must be approved in accordance with the financial policies existing at the time of the transaction and must have an audit trail that can be readily accessed upon request. To fulfill this mandate the Management Office of the CFA Society Toronto is guided as follows: A) Operating budget approvals and control The main purpose of the budgeting process and associated controls is to provide the organization with the necessary tools and information to assess and manage the financial position of the organization and its employees. Based on priorities established by the Board, Executive Committee and the Management Office, the Management Office must: 1. Prepare a detailed budget of all revenue and expenses with a commitment to realistic and achievable goals. As CFA Society Toronto is registered as an incorporated not-for-profit in the province of Ontario [June 30, 1970], the overarching financial goal is to provide value added services to the membership with a break-even long term budget 2. Prepare detailed notes, including key assumptions, to accompany the annual budget 3. Advise the Finance Committee of any challenges or risks in the budget 4. Be available to support the Treasurer's presentation to the Board. 5. Prepare individual event budgets that must be approved by the Executive Director and report any significant variances to the Finance Committee in a timely manner. Upon review by the Finance Committee and the Board, the budget for the upcoming fiscal year is approved by Board resolution. The budget is submitted to the Board for the June Board meeting ahead of the new fiscal year, which begins July 1st. Once the budget is approved by the Board, the Executive Director is authorized to operate within the total budgeted expense parameters for that fiscal year subject to any other approvals required under the organization's financial policies (see Appendix 1 attached). The Executive Director shall not knowingly commit the Society to expenses that are in excess of the overall budget. Significant deviations from the revenue policies outlined in the budget (e.g. rates for membership dues or events) must also be approved by the Board. The Executive Director should inform the Finance Committee in a timely manner of any significant expected deviations from budget not highlighted in YTD results. This should be done via e-mail at the time of the occurrence and be tabled at the following Finance Committee meeting for explanation. An individual budget must be prepared by the Management Office in advance of each proposed event. Any events where the budgeted costs are > 10% of the Society's Contingency Fund must be presented in advance of the event to the Finance Committee with monthly reporting to the Finance Committee of actual spending against the budget until all accounting relating to that event has been finalized. All other events, where the actual surplus or deficit exceeds $5,000 must be reported to the Finance Committee with a full explanation for the surplus/deficit. The Treasurer will determine, on a case-by-case basis, if any events should be brought to the attention of the Executive Committee and/or Board. CFA Society Toronto Board Manual 2016 Page 74 of 194

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