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7. The revised draft budget is sent to the FAC for a review
and discussion
8. The Executive Director prepared a Final Budget Proposal
and submits it to the Board of Directors to review
9. The Board of Directors meets to discuss the budget and vote
to approve the Final Budget
The Structure of AORE’s Finances
Much like the way a person maintains a checking account, a savings account, and an investment account such as a 401 k to meet different financial needs and goals, the AORE maintains three separate funds. Doing so ensures that the AORE is financially sound today and
will remain so in the future. AORE maintains and investment policy that defines investment objectives and guidelines. The Financial Advisory Committee review and monitors this polics and the Executive Director provides reporting to the Board of Directors.
Operating Fund
The Operating Fund provides sufficient cash to meet the
day-to-day financial obligations of the AORE in a timely
manner. This fund is similar to anyone’s checking account
Cash Reserves
The Cash Reserves are designed to meet the expenses occurring as a result of unanticipated activities and to improve the return on the funds held for expenditure for up to five years. In addition the Cash Reserve Fund will provide secure long-term funding for the mission of the AORE. Much like a savings account, these funds would help sustain AORE’s operations through an unanticipated impact on revenue or to seize an opportunity that would benefit the AORE’s mission.
Long Term Reserves
The purpose of the Long Term Reserve Fund is to provide permanent funding for the mission of the AORE. The assets of the Long Term Reserve Fund facilitate the organization’s goals and objectives as outlined by the Board of Directors. At the discretion of the Board of Directors,