Commitment to policy process

Commitment to policy process

 

The board strives to ensure the accountability of the Town of Preeceville by:

1. Achieving appropriate results at an appropriate cost: and
2. Avoiding unacceptable activities, conditions and decisions.

In fulfillment of this charge, the board is committed to rigorous, continual improvement of its capability to define values and vision.

 

Board Limitations: Budgeting

Budgeting for any fiscal year shall not deviate from the Board yearly priorities, risk fiscal jeopardy, or fail to be derived from a multi-year plan.

Accordingly, the Board may not allow budgeting which:

1. Contains too little information to enable credible projection of revenues and expenses, separation of capital and operational items, cash flow, and disclosure of planning assumptions.
2. Plans the expenditure in any fiscal year of more funds than are conservatively projected to be received in that period. The same for any carry forward on net restricted assets or unearned revenue.
3. Endangers the fiscal soundness of future years or ignores the building of organizational capability sufficient to achieve goals in future years.
4. Is not completed 30 days prior to the start of each fiscal year.
5. Budgets for a surplus or plans to create reserves, which are not requested or approved by the Town.
6. Fails to provide for effective and efficient use of resources,

  

Why “limitations” 

It’s now the town articulates the things that cannot be done in an effort to achieve the wanted results. This is best done with negative language. These are the things you can’t do. It’s a description of the limits on staff or board acts, practices and circumstances. If the Board feels work or money should be spent outside the budget, the Board must first ask for approval from the town.

 

                   Yes               No                                              No            Yes

 

Tender Process

 

A minimum of three tenders must be obtained if materials and services are estimated to cost between $500.00 and $20,000.00.  It may not be possible to obtain three tenders because of the size of the communities.  A memo of explanation should then be attached to the tender documents when forwarded for payment.

 

Authorities

 

A – Approves

C – Consulted prior to approval

H – Handles the processes but cannot approve

N – Notifies

 

                                                       Chair                           Board              Staff                Town          

Capital                                           C                                 C                     H                     A

Lease                                              C                                 C                     H                     A

Equipment over $500                    C                                 A                     H                     A

Equipment under $500                  C                                 A                     N

Operating supplies budgeted        A                                 A                     N

 

Monitoring Performance

 

Monitoring our performance is synonymous with a well-run organization.

Any given policy may be monitored in one or more of three ways.

 

Internal report: board to town.

 

External report: by external auditor.

 

Direct inspection: By the town as a committee or as a whole.

 

This is a inspection of documents activities or circumstances directed by the town which allows a “prudent person” test of policy compliance.

 

Draft January 2, 2006 gh