Tag: finances

WOODSWORTH HOUSING CO-OPERATIVE

THE SPENDING BY-LAW (NO. 47)

Approved by the Membership, May 1979 and Approved by the Board of Directors, September 1979, as the Spending Policy. Amended at the General Members Meeting on May 8, 1997, as The Spending By-law # 47.  Consolidated up to April 2010 and adopted by the members on September 30, 2010.

Ultimate control of spending rests with the Membership who must approve the annual budget each year. At the same time, staff, committees and the Board of Directors must have sufficient flexibility to manage the Co-operative. This policy outlines how spending control is to be achieved.

1. OPERATING BUDGET

Prior to the beginning of each fiscal year, an operation budget for the year will be presented to a General Meeting. The Members have the right to question and, if necessary, alter the budget. Once approved by the General Meeting, the budget authorizes staff, committees and the Board of Directors to incur expenses according to the provisions of the following sections.

During the course of the fiscal year, the Board may revise the budget if necessary. These revisions must be reported to, or approved by a General Meeting as follows:

(a) Any revision in one budget category exceeding $500 must be reported to the next General Meeting;

(b) Any revision to the approved operating budget which results in an overall change of more than ½ of 1% of the total expenses must be reported to the next General Meeting;

(c) Any change in housing charges as a result of revisions to the operating budget must be approved by the Members in a General Meeting.

2. ROUTINE EXPENSES

Routine expenses are those that are incurred by the Co-op automatically and are not the result of a specific purchase or order. They include municipal taxes, utilities (cable TV, electricity, water and sewage), salaries (once the position has been approved), insurance (if the coverage is not being changed), mortgage payments, regular contract preventative maintenance service, etc.

Routine expenses may be approved by the Treasurer to staff designated by the Board of Directors. If a routine expense is over budget it must be reported to the next meeting of the Board of Directors.

3. NON ROUTINE EXPENSES

Non-routine expenses are those over which the Co-op has control as to when (or if) to incur them. They include equipment purchases, maintenance supplies, office supplies, professional or consulting services, education for staff, Director or Members, membership in other organizations, etc.

A non-routine expense up to $1,000 may be approved by the Treasurer or staff designated by the Board of Directors. If it is unbudgeted, it must be reported to the next meeting for the Board of Directors. Any non-routine expense over $1,000 must be approved by the Board, whether or not it is budgeted and reported to the membership.

4. EMERGENCY EXPENSES

Emergency expenses are those that would probably have to be incurred anyway an delay would costs the Co-op more money, risk property damage or endanger personal safety.

Notwithstanding section 1, 2, or 3, an emergency expenditure may be approved by designated staff or members without a maximum. The Board of Directors shall designate the people who can approve emergency expenditures as required. All emergency expenditures must be reported to the next meeting of the Board of Directors and the Membership.

5. SIGNING OFFICERS

All cheques drawn on a Co-op account must be signed by two of the President, Vice President, Secretary and Treasurer.

6. MISCELLANEOUS

No person may approve any purchase or payment that substantially benefits that person.

This policy shall come into effect on the date of the first General meeting that approves an operating budget or such earlier date as the Members may specify. Until that time, the Board of Directors shall continue to have responsibility for any operating expenses.

The Board of Directors shall continue to have responsibility for capital expense until the start of mortgage repayment, and thereafter until a policy on capital spending is adopted by the Members.

Consolidated up to April 2010 and adopted by the members on September 30, 2010.