Budget & Financial Reporting
WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board of Directors (“Board” or “Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or “Corporation”) to adopt Policies (“BP” or “Policies”) not in conflict with the Restated Articles of Incorporation (“Articles”) or the Corporate Bylaws (“Bylaws”).
WHEREAS to minimize inconsistencies, misunderstandings and misinterpretations inherent in verbal instructions, rules and regulations, the Board of Directors has established Board Policies in written form. Such Policies shall be titled, numbered and indexed for easy reference and use.
WHEREAS the Restated Articles of Incorporation and the Corporate Bylaws shall take precedence over Board Policies and that the following Board Policy on Board Meetings and Member Exchanges shall provide instruction, direction and guidelines regarding such and shall remain in effect until such time it is amended or removed by the Board.
NOW, THEREFORE BE IT RESOLVED the Corporation shall adhere to the following policy regarding Budget & Financial Reporting:
Section 1. Budget Preparation and Approval
Management shall prepare and present an annual, balanced operating and capital budget. The Finance & Budget Committee will review the proposed budget and make recommendations to the Board of Directors. The Board of Directors will adopt an annual budget for the coming year at its regularly scheduled December meeting.
Section 2. Financial Reporting
On or before the 25th of each month (excluding year end), financial statements shall be distributed. Financial statements shall compare actual monthly and year-to-date results with the annual budget and with the prior year results. Management will review monthly variances from budget, and report concerns to the Board.
Section 3. Quarterly Review
Management shall provide a year-to-date review after March 31st and September 30th of financial operations and capital expenditures to both the Budget & Finance Committee and the Board of Directors. Neither a year-end nor a June 30th financial review will be provided unless otherwise requested.
Section 4. Content
- ANNUAL BUDGET: Each division and department will have an operating budget. An overall corporate budget will consist of all income and expense items, capital expenditures and projected income from the Preservation & Improvement fees. The Board of Directors shall establish the budget for the Preservation & Improvement Fund expenditures.
2. MONTHLY FINANCIAL STATEMENT: This statement shall include at a minimum the following financial data:
- Balance sheet
- Income/expense summary to include investments
- Project/budget status reports:
Repairs & Maintenance Projects
Operating Capital Projects
Preservation & Improvement Fund Projects
BE IT FURTHER RESOLVED that a copy of this resolution shall be posted on the RCSC website for members and shall be made available to members upon request at no cost.
Adopted and signed this 27th day of October, 2016 at a duly called Board meeting by a majority (5) of the Recreation Centers of Sun City, Inc. Board of Directors.
