HomeMy WebLinkAbout16-5 Authorization of Unbudgeted Expenditures
POLICY
Section Policy No. Page
Financial 16-5 1 of 2
Policy Title Date: Motion No.
Authorization of Unbudgeted
Expenditures
June 9, 2026 176/26
Purpose:
To establish financial control procedures to ensure that municipal expenditures comply with Section 248 of the
Municipal Government Act and are made only with appropriate budgetary authority approved by Council or
otherwise authorized under the Act.
Policy Guidelines:
The Municipality shall not incur or make any expenditure unless the expenditure is:
a) Included in an approved operating budget.
b) Included in an approved interim operating budget.
c) Included in an approved capital budget.
d) Required to respond to an emergency.
e) Legally required to be paid by the Municipality; or
f) Otherwise authorized by resolution or bylaw of Council.
Policy Procedure:
1. Where the RFP or RFQ process results in capital asset project costs, including gravel acquisition
expenditures, exceeding the approved budget, prior Council approval is required before the project
may proceed.
2. Budget Managers are responsible for monitoring ongoing expenses, including encumbered amounts,
and considering forecasted expenses before authorizing expenditures. Budget Managers must
prioritize expenditures to ensure they do not exceed the approved line‑item budget and intended
purpose.
3. Budget Managers may adjust planned operating expenditure within a General Ledger account
provided:
• The total approved line‑item budget is not exceeded.
• The adjustment aligns with the original description, intent, and functional purpose of the line
item; and
• The adjustment is approved by the General Manager and/or the Chief Administrative Officer.
4. Funds shall not be reallocated between line items where the expenditure does not reasonably align
with the original line‑item description, service, or operational purpose. Reallocation to address
unrelated needs or programs is not permitted without prior Council approval.
5. All expenses must maintain General Ledger object code integrity.
POLICY
Section Policy No. Page
Financial 16-5 2 of 2
Policy Title Date: Motion No.
Authorization of Unbudgeted Expenditures June 9, 2026 176/26
6. Operating expenditures that exceed the budget at the line‑item level must be reviewed by the Chief
Administrative Officer, including a written explanation of the variance. The Chief Administrative Officer
will either:
• Determine whether the expenditure can be absorbed within the same functional service area
using under‑expended, purpose‑aligned line items; or
• Report the over‑expenditure to Council
7. Approved budgets are not intended to encourage unnecessary spending. Departments shall not incur
unnecessary or premature expenditures solely to utilize remaining budget allocations. Expenditures
must reflect legitimate operational need, value for money, and prudent financial management
regardless of year‑end budget status.
8. The Chief Administrative Officer may correct budget coding errors and adjust the funding source
between operating funds, grants, and reserves where appropriate, but may not increase total
approved expenditures.
9. Council will receive operating financial reports identifying variances on a consolidated object and
line‑item basis. Material variances exceeding 10% and $1,000 will be specifically highlighted.
10. No department may incur expenditures that would cause it to exceed its total approved budget
appropriation. Where an over‑expenditure is anticipated, Administration shall seek prior Council
approval supported by written justification, with funding to be provided from the Contingency
Reserve.
11. Emergency expenditures may be incurred where immediate action is required to protect life, property,
infrastructure, or essential municipal services. Emergency expenditures not previously approved must
be authorized by the Chief Administrative Officer or designate and reported to Council at the next
regular meeting.
12. Funds approved for a capital project shall not be transferred to another capital project without Council
approval unless specifically authorized through the annual budget.
13. All expenditures must comply with the Municipality’s Procurement Policy and applicable competitive
purchasing requirements.
14. The Contingency Reserve may only be accessed through Council approval unless authority has been
delegated through the approved budget.
Approved: March 20, 2002
Amended: May 12, 2015 220/15
Approved: June 9, 2026 176/26