Policy 6.5.2 Budget Control & Adjustment Authority

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POLICY – 6.5.2 Budget Control and Adjustment Authority Page 1 
 
Policy: 6.5.2 
Approved By: Trust Council 
Approval Date: March 10, 1993 
Amendment Date(s):  June 10, 2004; March 13, 2008; 
September 16, 2010; September 11, 2013 
Policy Holder: Director of Administrative Services 
 
BUDGET CONTROL AND ADJUSTMENT AUTHORITY 
Purpose 
This policy provides the authority by which periodic adjustments can be made to the approved annual 
operating budget and the timing when Trust Council and the minister have to be notified of either changes to 
the budget or anticipated operating deficits. 
A. Definitions 
General Ledger Account - General Ledger (GL) accounts summarize the budgeted expenses for a 
certain activity for the entire organization. For example, GL Account 69000 (Office – rent & services) 
summarizes the office rent/services budget for all office locations within Islands Trust. 
Location Code – Location codes are used in the general ledger, in combination with the General Ledger 
Account to specify the finest level of detail in the budget. Location codes are used for physical 
locations and/or organizational units (see Appendix A). 
Operational Unit - Operational units are the four broad categories in the organization (Trust Council, 
Islands Trust Conservancy Board, Local Planning Services and Administrative Services) that perform 
specific activities for the Islands Trust. This organizational arrangement also supports the development 
and presentation of the budget as required in the Islands Trust Act, s.14.3 (c). In the general ledger, the 
Operational Units are defined by groupings of location codes, as illustrated in Appendix A.  
Political Entity - The Islands Trust Act grants corporate status to Islands Trust Council, Local Trust 
Committees and the Islands Trust Conservancy Board. 
Provided for in the Annual Budget - The Islands Trust Act uses the phrase “provided for in the annual 
budget” when defining a lawful expense. For the purposes of this policy an expenditure is provided for 
in the annual budget if the detailed budget documents approved by Trust Council have: 
 Identified a type of expenditure by general ledger account (eg. rent, salaries); and, 
 Approved a budget amount for the general ledger account. 
Also, a general ledger account may be provided with a budget to fund non-specified activities (eg. 
Special Projects – Local Planning) where the non-specified activities fall within the normal range of 
activities for one of the Operational Units. 
  

 
POLICY – 6.5.2 Budget Control and Adjustment Authority Page 2 
B. Background 
1.  The goal of this policy is to provide the authority matrix and procedures for budget 
adjustments. The policy also specifies when the minister responsible for the Islands Trust Act 
needs to be notified of changes to the budget. 
2. The Islands Trust expenditure budget is presented to Trust Council in Schedule A of the annual 
Financial Plan Bylaw, and subsequently to the minister responsibl

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