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AFRINIC Budgeting Key Steps

The following text describes the key steps by which AFRINIC produces its annual budget and operations plan.

Steps

The budget process starts each year in September and ends in December, when the draft budget is submitted to the Board of Directors Finance Committee. After evaluation, the committee makes its recommendation to the Board no later than 20th December.

The Board approves the budget by the end of the year or during the first weeks of the January of the following year during a special meeting. A resolution is passed accordingly.

The internal budgeting exercise follows the following steps:

The CEO and Departmental Heads review the current Activity Plan and identify activities that are not completed and will likely be pushed into the following year.
Based on the corporate objectives, the Strategic Plan and community feedback (collected throughout the year), Departmental Heads and the CEO/COO define, with their teams, the Activity Plan for the following year.
Departmental Heads submit draft activity plans and requirements for the coming year for their departments to the Executive Management for validation.
The requirements are translated into a preliminary budget by the Finance Department.
The Preliminary budget is reviewed and discussed within the Management Committee in order to align with financial objectives..
The Proposed Budgets (CAPEX and OPEX) and the overall Draft Activity Plan are submitted to the Board Finance Committee for review.
The Board Finance Committee liaises with Executive Management for clarifications and any additional requirements that may be needed.
The Board Finance Committee submits the proposed budgets to the Executive Board for review and approval together with its comment and recommendations.
The Board discusses the Budget and, if required, makes further recommendations to the Board Finance Committee and Executive Management.
Once all the recommendations are taken into consideration and the budget is in line with the objectives set by the Board for the organisation, the budget is approved and communicated to Executive Management for execution.
The approved budget is posted on AFRINIC website within 14 days of approval.
The approved budget and the financial report are presented during the upcoming Annual General Members Meeting (AGMM).
In addition to the quarterly financial report, the Executive Management conducts an extensive mid term review of the budget execution and, if necessary, submits adjustment proposals to the Board Finance Committee.

Any major deviations from the approved budget or unforeseen expenses are brought to the Board’s attention and a formal approval of any major deviation or unforeseen expense is requested from the CEO.