CAPITAL EXPENDITURE POLICY
Purpose
To provide the guidelines for planning, approving and managing capital expenditures at the church and to assure accountability of funds used for major building and equipment acquisitions, upgrades, or replacement.
Definition
The guideline for “capital expenditure” is any expense over $3,000 in cost that adds to or enhances the longevity of our present buildings or equipment for at least 5 years. The expenditure can be either for a single item or a group of items that comprise a single purpose such as furniture replacement or new purchase. Examples of capital expenditure include a/c or heating system replacement, carpet replacement, parking lot resurfacing, roof replacement, furniture replacement, or major sound system repair/upgrade.
Responsibility
The Budget & Finance committee, as a subcommittee of the sessional Communication & Resources team (C & R), has the responsibility for managing capital expenditures in accordance with this policy. This committee will provide the oversight and approval of capital expenditures. The church treasurer will serve on the committee along with other members recruited/assigned by C & R.
Capital Funds
The funds designated for capital expenditures and managed by the Budget & Finance committee include the following:
Capital Saving Account – proceeds remaining from the 2007 refinancing, $25,000 from the 2006 Enhancement Campaign, and any other capital designated funds.
Line of Credit - $120,000 from the 2007 refinancing.
Operating Budget Maintenance Reserve Account - $15,000 (initially accumulating at $1,250 per month and replenished each year).
The Budget & Finance team will manage the funds to insure high interest earnings, balanced with the liquidity that is necessary for expenditures.
Disbursements will be made in accordance with the established controls for operating budget expenditures; i.e., same C & R purchase order approval and check signing controls.
Any expenditure for capital additions or enhancements exceeding $10,000 will be subject to Session approval through the C & R Team.
Reporting
The Budget & Finance committee will provide a quarterly report of capital expenditures and fund balance to the C & R Team, the Session, and the congregation.
Planning and Prioritization
As part of the operating budget process, the Building Maintenance and Grounds committees will compile and prioritize the anticipated capital needs/desires for the budget year and submit to the Building & Finance committee. The Budget & Finance committee will review the projected capital expenditures and provide a recommendation to C&R for the timing and funding of expenditures.
C & R will submit the budgeted capital expenditures as part of the annual operating budget package for Session education and approval.
Any unplanned or unanticipated capital expense; e.g. emergency replacement, will be submitted by the Building Maintenance or Grounds committees to the Budget & Finance committee for handling.
Approved by Session March 18, 2007
To provide the guidelines for planning, approving and managing capital expenditures at the church and to assure accountability of funds used for major building and equipment acquisitions, upgrades, or replacement.
Definition
The guideline for “capital expenditure” is any expense over $3,000 in cost that adds to or enhances the longevity of our present buildings or equipment for at least 5 years. The expenditure can be either for a single item or a group of items that comprise a single purpose such as furniture replacement or new purchase. Examples of capital expenditure include a/c or heating system replacement, carpet replacement, parking lot resurfacing, roof replacement, furniture replacement, or major sound system repair/upgrade.
Responsibility
The Budget & Finance committee, as a subcommittee of the sessional Communication & Resources team (C & R), has the responsibility for managing capital expenditures in accordance with this policy. This committee will provide the oversight and approval of capital expenditures. The church treasurer will serve on the committee along with other members recruited/assigned by C & R.
Capital Funds
The funds designated for capital expenditures and managed by the Budget & Finance committee include the following:
Capital Saving Account – proceeds remaining from the 2007 refinancing, $25,000 from the 2006 Enhancement Campaign, and any other capital designated funds.
Line of Credit - $120,000 from the 2007 refinancing.
Operating Budget Maintenance Reserve Account - $15,000 (initially accumulating at $1,250 per month and replenished each year).
The Budget & Finance team will manage the funds to insure high interest earnings, balanced with the liquidity that is necessary for expenditures.
Disbursements will be made in accordance with the established controls for operating budget expenditures; i.e., same C & R purchase order approval and check signing controls.
Any expenditure for capital additions or enhancements exceeding $10,000 will be subject to Session approval through the C & R Team.
Reporting
The Budget & Finance committee will provide a quarterly report of capital expenditures and fund balance to the C & R Team, the Session, and the congregation.
Planning and Prioritization
As part of the operating budget process, the Building Maintenance and Grounds committees will compile and prioritize the anticipated capital needs/desires for the budget year and submit to the Building & Finance committee. The Budget & Finance committee will review the projected capital expenditures and provide a recommendation to C&R for the timing and funding of expenditures.
C & R will submit the budgeted capital expenditures as part of the annual operating budget package for Session education and approval.
Any unplanned or unanticipated capital expense; e.g. emergency replacement, will be submitted by the Building Maintenance or Grounds committees to the Budget & Finance committee for handling.
Approved by Session March 18, 2007
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