PRESENTER: Finance Committee
SUBJECT: Change the GPCA Fiscal Year from May 1 to April 30 to July 1 to June 30
BACKGROUND AND PURPOSE: The GPCA Fiscal Year formerly ran from April 1 to March 31. It was changed to run from May 1 to April 30 under the rationalization that more time was needed for the annual budget process. Even with this change, General Assemblies where the Draft Budget has been submitted and finalized have been held after the Fiscal Year has expired.
The current budget process provides that Coordinators from the Standing Committees, Working Groups and GPUS Delegation are to submit annual work plans and budget proposals to the Finance Committee by the end of the third quarter of the fiscal year (i.e., currently January 31). A Budget Committee consisting of Finance Committee and Coordinating Committee members is to review those work plans and budget proposals and create a Draft Budget proposal, which is to be reviewed by the Finance Committee, and further reviewed by the Coordinating Committee. The Draft Budget is submitted to the first General Assembly of Delegates of the calendar year for final modifications and approval (aka the Spring Plenary or the Budget Plenary). Under provisions of the Fiscal Policy adopted in December 2011, a Draft Budget is to be published at least 60 days before the Budget Plenary.
The GPCA, as a political party, is required to file semi-annual reports with the California Fair Political Practices Commission and additional reports with the Federal Elections Commission. FPPC reports for the period ending June 30 are due by July 31, and FPPC reports for the period ending December 30 are due by January 31. The GPCA Treasurer is personally responsible for submitting these reports and can be personally fined if they are not timely submitted.
This proposal, if adopted, would immediately move the current Fiscal Year from May 1 to April 30 to July 1 to June 30, provide for transition to the new fiscal year on adoption, and keep the schedule for the annual budget process as it currently is designed. The Finance Committee believes that adoption of this proposal would have the benefits of creating better scheduling flexibility for the Spring Plenary while continuing the goal to hold the Budget Plenary before the expiration of the Fiscal Year. Moving the Fiscal Year in this way will amount to making the budget process a midyear review in the Standing Committees and Working Groups and encourage longer term planning in the GPCA. Aligning the Fiscal Year with the GPCA’s financial reporting periods will make the GPCA Treasurer’s work load a little easier.
PROPOSAL: The General Assembly of Delegates designates the GPCA Fiscal Year as beginning on July 1 and ending on June 30. To the extent applicable, the period of May 1, 2012, to June 30, 2012, is designated as a transition period from the previously designated Fiscal Year (May 1 to April 30), and the GPCA Budget adopted for the first use of the new Fiscal Year (July 1, 2012 to June 30, 2013) shall include that transition period.
As part of implementation of this decision, the current schedule for the budget process shall be continued. Specifically, the Coordinators of the Standing Committees, Working Groups and the GPUS Delegation shall submit their respective annual work plans and budget proposals to the Finance Committee by January 31 of each year; the Budget Committee, Finance Committee and Coordinating Committee shall complete their review and modifications of the budget proposals in February and March, and a comprehensive Draft Budget shall be published not later than 60 days before the the next General Assembly of Delegates (Budget Plenary).
Upon adoption of this proposal, the Bylaws Committee is directed to review the current published version of the GPCA Bylaws and to submit technical amendments to the Bylaws necessary to conform them to this proposal and the Fiscal Policy adopted in December 2011 for review and approval by the next General Assembly of Delegates.
COMMITTEE PROCESS: General discussion of the subject of this proposal was held in the Finance Committee on January 17, 2012, at which time the proposal concepts were approved. A draft proposal was circulated on February 18, 2012. The full text of the proposal was approved on March 6, 2012.
TIMELINE: Adoption at the Spring 2012 General Assembly of Delegates in May 2012, and immediate effect and operation.
RESOURCES: Bylaws Committee will need to prepare Bylaws updates to conform the GPCA Bylaws with the provisions of this proposal and the Fiscal Policy adopted in December 2011. Unless the 2012-2013 Budget Proposal anticipates this change, Standing Committees and Working Groups may need to request small budget additions at the next Plenary if the Fiscal Year shift effects regular monthly expenses.