Policy Statement:

Lakeway Christian Schools (LCS) recognizes the need for flexibility in managing budget allocations while maintaining fiscal responsibility. This policy establishes guidelines for line-item transfers within department budgets and outlines the approval process for transfers that cross departmental boundaries or involve specific budget categories.

Transfer Within Department:

• Budget owners are authorized to make line-item transfers within their department budget without requiring higher approval.
• Transfers should be limited to like items within the department budget. For example, transfers can occur between expense categories within a department's budget.
• Transfers between salary/benefit accounts and goods or services accounts within the same department should be minimized and require strong justification.

Cross-Department Transfers:

• Transfers that involve crossing departmental boundaries require approval by higher level, which may include the Chief Financial Officer (CFO) and the Board of Directors.
• Cross-department transfers should be subject to a thorough review process, considering the impact on overall budget goals and the school's mission.

Electronic Submission and Workflow:

• All transfer requests, whether within a department or cross-departmental, must be submitted electronically through our accounting software.
• An approval workflow will be implemented in our accounting software based on the specific circumstances of each transfer request.

Budget Amendments:

• Budget Amendment Procedures:
  
  • Budget amendments involve changes to the net budget overall, impacting revenue or expenditure categories.
  • Any proposed budget amendment must be submitted to the CFO and approved by the Board of Directors.
  • A detailed justification for the budget amendment must accompany the request, explaining the reasons for the change, its impact on the school's mission and goals, and any supporting data.
  • Budget amendments may be submitted electronically through our accounting software and follow a dynamic approval workflow.
• Reporting to the Board:
  • The CFO shall provide the Board of Directors with a list of all approved budget amendments on a regular basis, ensuring transparency and accountability in financial management.
  • The report shall include the nature of the amendments and their impact on the budget.

Record Keeping:

The CFO shall maintain a record of all approved line-item transfers and amendments, including documentation of the justification and approval process.