3.3 Financial Planning and Reporting

Published

January 27, 2026

Policy and Procedure 3.3 – Financial Planning and Reporting

A. Budgeting Process

  1. Policy: The organization’s annual budget is prepared and approved annually for the organization. The budget is prepared by the Executive Director in conjunction with the Committees and Working Groups and the Board Finance Committee. The budget is to be approved by the Board of Directors prior to the start of each fiscal year. The budget is revised during the year only if approved by the Board of Directors.

  2. Procedures:

  3. The Executive Director will work together with the staff, and ESIP leadership to ensure that the annual budget is an accurate reflection of programmatic and infrastructure goals for the coming year.

  1. The Executive Director and the Board Treasurer will present a draft budget to the Finance Committee at least 30 days prior to the end of the fiscal year and at least 2 weeks prior to its submission to the full Board of Directors.

  2. The Finance Committee shall review and approve a recommended fiscal year budget and submit it for approval to the Board of Directors.

  3. The Board of Directors will review and approve the budget at its last meeting prior to the start of the fiscal year.

  4. Timeline

B. Internal Financial Reports

  1. Policy: The organization prepares regular financial reports on a monthly basis. All reports are finalized no later than 30 days after the close of the prior month. The organization’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The presentation of the Financial Statements shall follow the recommendation of the Financial Accounting Standards Board (FASB) No. 117, “Financial Statements of Not-For-Profit Organizations.” Under GAAP, revenues are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the net assets of the organization are classified as unrestricted, temporarily restricted and permanently restricted.

  2. Procedures:

  3. The outside accountant is responsible for producing the following year-to-date reports within 30 days of the end of each month: P&L, Balance Sheet, P&L by Job, and P&L by Class.

  1. The Executive Director and Treasurer review financial reports each month, monthly reports are available to Finance Committee and the Treasurer presents reports to the full Board of Directors on a quarterly basis.

  2. On a quarterly basis, the Executive Director prepares a narrative report that summarizes the organization’s current financial position and includes explanations for budget variance.

C. Audit

  1. Policy: An annual audit is required if federal expenditures are above $700,000. The audit should be completed by end of January following close of fiscal year.

  2. Procedure:

  3. The Finance Committee oversees the audit annually and hires the CPA firm every five years.

  1. The Executive Director oversees the external CPA firm and liaises between firm and staff.

  2. The audit report is presented in the first board meeting following the issuance of the final report. A special meeting may be called if the time between report issuance and the next meeting is greater than 30 days.

  3. A link is provided on ESIP website for current audit.

D. Tax Compliance

  1. Policy: The annual Federal Form 990 is prepared by external CPA. Federal Form 990 is filed by February 15, the year following the close of the fiscal year or an extension is filed.

  2. Procedure:

  3. The Executive Director is a staff liaison to the tax preparer.

  1. The Executive Director approves the tax returns.

  2. The 990 is made available to the Board electronically.

  3. The 990 is made available to public through GuideStar.

E. Quarterly Payroll Reports

  1. Policy: The Operations Director processes payroll through Quickbooks.

  2. Procedure:

  3. The Operations Director prepares employee W2s by January 15 and the Executive Director ensures accuracy, timeliness and delivery to employees.

F. Committee and Working Group Proposals and Budget Requests
  1. See the ESIP Policy on Committee and Working Group Proposals and Supporting Budget Requests

This Policy was approved by the Board of Directors of ESIP on October 17, 2017. Revisions to this policy were approved by the Board on September 15 2021.