MANAGEMENT COMMITTEES - WHAT IS THE PURPOSE OF THE BUDGET COMMITTEE?
5/17/08
Purpose
To establish a financial framework by which the fiscal affairs of XYZ Ltd. are guided by developing and maintaining a budget process and balances the allocation of resources to meet those needs based on the priorities set by the Board of Directors through the annual planning process and to develop such policies as necessary to guide the fiscal affairs of the Company.
Membership
The Committee shall consist of at least (number agreed on by management and ratified by board), but no more than ((number agreed on by management and ratified by board) members appointed by the President. The Manager of Finance, Accounting and Administration or the CEO shall serve as Chairman and shall direct the activities of the committee in meeting its purposes.
Scope of Work/Ongoing Goals
- Develop an annual budget that makes best use of the resources available to meet the needs of the members and the company as reflected in the periodic strategic plan adopted by the Board of Directors.
- Monitor budget performance and recommend changes or revisions as may be necessary to assure continued focus on priority activities.
- Develop recommended policies to guide fiscal affairs to assure the safe, prudent and appropriate use of company resources.
- The Budget Committee may make budget decisions and approve over-expenditures.
Guidelines and Policies
- The Chairman shall submit written status reports for all meetings of the Board of Directors.
- The Committee shall meet as required live or by conference call not less than quarterly.
