BIA financial management
Financial management is an important aspect of any BIA, and includes financial planning and budgeting.
Boards and their staff should create a financial plan after the strategic plan is complete. The financial plan becomes part of the business plan, and includes:
- a needs assessment
- a prioritization of needs
- program development, including events and projects
- a budget showing program, event and project costs
**Budgets brought forward to Council must be balanced. Board members are liable for any expenditure that is not included in a Council approved budget.**
The purpose of an annual budget is to outline proposed projects and related costs that the BIA will incur that year. Budget objectives should be clear and well-defined.
Every year, the board creates a proposed annual budget that must be balanced, as required by the Business Improvement Area Regulation.
Projects included in a budget may include:
- increasing safety and cleanliness,
- addressing parking concerns,
- events, and
- local development.
The budget is reviewed by the taxpayers/membership and only expenditures approved through the budget by Council may be incurred.
The City of Calgary provides each BIA with a budget template that must be completed annually and submitted to The City’s BIA Business Strategist. BIAs typically qualify for a Goods and Services Tax (GST) remittance.
Information on charging GST, registering for an account, filing returns and remitting GST can be found on the Government of Canada’s website.
Some funding organizations may require applicants to have society status for eligibility. Since BIAs in Alberta are not registered societies, this may have an impact.
BIAs may pursue a partnership with a registered society, such as a community association, which would act as the fiscal agent for grant applications when society status is required.
BIAs can also enter into a joint venture with another organization to organize fundraising campaigns.