Policies & Procedures - 3.4 Adverse Financial Scenarios, and Mitigation Procedures

- approved 6/98, updated 8/08 -

An Adverse Financial Scenario can be:

1. Budget compiled with a significant deficit (greater than 3% of reserves)
2. A significant deficit in the current year forecast
3. A drop below the minimum reserve level

Mitigation Procedures could involve:

1. Increasing the budget surplus requirement of conferences
2. Increasing the prices offered for membership, subscriptions (in within the allowable timeframe), and registration fees
3. Suspension or postponement of volunteer travel and programs
4. Suspension or postponement of publication page counts and possibly entire issues
5. Suspension or postponement of other expenses
6. Reduction of staff
7. Postponement of conference expenses

The Treasurer and the President are authorized to activate, without approval of the BoG, any mitigation plan.

Adverse Scenarios exempt from mitigation:

1. 3% of Society’s reserves are greater than the deficit of the next year’s budget
2. 50% of the prior year’s surplus are greater than the deficit forecast for the current year
3. Special permission from TAB Finance