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 budget development. Society departments and committees then work with staff liaisons to develop a draft budget that addresses the strategic objectives, income and expenses associated with existing Society programs, and capital expenditures. The Executive Director presents the draft budget to the Finance Committee and Executive Board. The Finance Committee reviews the draft budget with staff and makes recommendations for modifications. The Treasurer presents the recommended budget from the Finance Committee to the Executive Board for approval.
The Executive Board may modify the approved budget as required. The Executive Board may ask the Finance 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 financial review annually and an audit, at a minimum, every two years. The Finance 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 Investment Committee and approved by the Executive Board at least every three years.