The Society’s overall financial objective is to establish and maintain a financial platform that will assure the financial health of the Society and support growth and other initiatives deemed important to the Society’s mission and goals.
The Society operates on a fiscal year beginning on 1 January. The annual budgeting process begins 6 months before the beginning of the fiscal year so that a budget will be approved before the fiscal year begins.
Annual Budget development begins with an Executive Board review of the strategic objectives. The Executive Director engages the staff in the development of a budget and operating plan based on achieving the strategy and key results. Society groups may be asked to work with staff liaisons for specific programs and projects. The Executive Director presents the draft budget to the Finance and Investment Committee and Executive Board. The Finance and Investment Committee reviews the Society strategy along with the financial assumptions of the draft budget to ensure resourcing is adequate to achieve results. If the Executive Board determines that the budget does not meet its financial targets, it may adjust the strategy and request that the staff executive modify the budget accordingly. This continues until the Board approves a budget.
The Executive Board may modify the approved budget as required. The Executive Board may ask the Finance and Investment Committee to comment on the financial impact before approving modifications.
ISA volunteers, members, and member entities do not have signing authority and may not initiate any agreement or contract on behalf of the Society.
The Society will conduct an independent audit annually. The Finance and Investment Committee selects the financial services firm and oversees the reviews and audits.
To maintain a strong financial future, ISA maintains and invests funds. The reserve fund must maintain at least two times the average actual expenditures for the previous two years. These funds are managed per the investment principles. The investment principles are maintained by the Finance and Investment Committee and approved by the Executive Board at least every three years.
Approved December 2022.