Financial Policy


Business Downturn:
A condition in which the local economy either reduces the value of the dollar significantly, virtually nullifying a budget, or when conditions outside of Intergroup's control result in a significant reduction in funds available for the operation of the Intergroup office causing a major budget adjustment (i.e. recession, change in purchasing patterns of AA members, pandemic, etc.).

Exit Strategy:
A plan of action which focuses on how fixed costs will be paid within a specific timeframe in order to exit all existing contractual obligations.

Capital Projects:
Purchases or projects which require funds above and beyond the ordinary budgeting amounts.  These can be planned, or unplanned/unforeseen expenditures approved by the Board of Directors.

Funding Fluctuations:
This describes the changes that occur month-to-month to contribution levels due to a wide variety of factors.

Policy Update:
Refers to the conditions in which this policy may be updated, both with and without Board approval.  Typically, policy cost value numbers (fixed monthly expenses) may be updated annually without Board approval to stay current and transparent, while actual policy changes and the language used herein will require Board approval.

Lease Retirement:
The ability to provide payment of 1 year's lease cost in order to end the leaser agreement.


The Reserve Fund serves multiple purposes:

  1. It creates an exit strategy if economic conditions make it untenable for the St. Paul & Suburban Area Intergroup to continue to operate in accordance with its mandate from the groups.
  2. It provides an operational safety net in order to mitigate the funding fluctuations which often occur in the level of contributions and sales.
  3. It ensures that monies are available to carry out needed projects that require significant expenditure of funds (capital projects), should the need occur.


Current Budgetary Levels to Maintain:

  • Fulfilling our lease for one (1) year (lease retirement) — 12 x monthly cost = $22,020
  • Business downturn offset — 4 x budgeted monthly expenses = $33,915
  • Professional services related to contract termination = $5,000 (estimated)

Operating Account

  • Monthly expenses x 3 = $25,436
  • Funds to pay employee vacations (2 x weekly salary) = $1,540
  • Funds to maintain a viable inventory = $24,000 (current inventory value) Sufficient reserve to accommodate group receivables on credit purchases


Fund Replenishment

When funds are withdrawn, prior to any withdrawals occurring, the Board should agree upon a specific amount to be repaid and the tentative repayment schedule to replace withdrawn funds.

Reserve Fund Excess

Should the fund exceed the total of the lease retirement cost plus the business downturn amount, the Representatives Council must be consulted as to the dispersal of the excess funds.

Policy Update

Policy may be updated without Board approval to accurately reflect changes to expenses (such as rent increases or inventory values).  Changes outside of value amounts (such as the addition or removal of Reserve Fund or Operating Account uses, updates to the language used in the policy, etc.) will be subject to Board approval.

Approved by the Board of Directors. 20 Oct 2020