Finance Committee

Purpose

The Finance Committee coordinates the board’s financial oversight responsibilities.

Membership

  • The treasurer shall chair the committee.
  • The operations director shall serve as staff to the committee.
  • The president shall appoint one director as the board liaison. The board liaison is a non-voting member of the committee.
  • The board shall appoint other committee members. The committee chair will follow the volunteer recruitment process and recommend members to the board of directors for appointment.
  • The committee may include non-director and non-member persons whose experience in accounting, finance or business may assist the committee and the board in the performance of their financial oversight responsibilities.

Current members

  • Waylon Baumgardner, Chair
  • Sara Clark, Operations Director

Authority

The committee has no expressed or implied power or authority.

Responsibilities

  • Maintains internal controls and accountability
      • Creates, approves, and updates (as necessary) policies that help ensure the assets of the organization are protected. Presents policies to the board of directors for approval.
      • Ensures policies and procedures for financial transactions are documented in a manual, and the manual is reviewed annually, and updated as necessary.
      • Ensures approved financial policies and procedures are being followed.
      • Reconciles financial reports with bank and credit card statements
  • Provides reporting
    • Develops useful and readable report formats with staff.
    • Works with staff to develop a list of desired reports noting the level of detail, frequency, deadlines, and recipients of these reports.
    • Works with staff to understand the implications of the reports.
    • Presents the financial reports to the full board.
  • Provides budget and financial planning
    • Develops an annual operating budget with staff.
    • Approves the budget within the Finance Committee.
    • Monitors adherence to the budget.
    • Sets long-range financial goals along with funding strategies to achieve them.
    • Develops multi-year operating budgets that integrate strategic plan objectives and initiatives.
    • Presents all financial goals and proposals to the board of directors for approval.
  • Oversees audits
    • Recruits and recommends the auditor to the board of directors.
    • Reviews the draft audit and 990 as presented by the auditor.
    • Presents the audit report to the full board of directors (if the auditor does not do this).
    • Reviews the management recommendation letter (SAS112) from the auditor and ensure follow up on any issues mentioned.
  • Guides investments
    • Drafts and maintains an investment policy detailing the objectives of the investment portfolio, guidelines on the asset allocation of the portfolio based on a predetermined level of risk tolerance, authorizations for executing transactions, disposition of earned income, etc. Presents policy to the board of directors for approval.
    • Ensures provisions of the policy are followed.
    • Reviews the policy at least annually and recommends updates if necessary.
    • Hires (with board approval) and evaluates the investment managers/advisors.

Operations

  • Meets no fewer than six times per year, at the call of the chair of the committee or the operations director.
  • Maintains minutes of all meetings.
  • Reviews this charter annually and recommends changes to the board of directors.
  • Follows association policies and procedures.
  • Establishes and maintains documentation about committee roles and procedures, including how this committee collaborates with others.
  • Communicates and collaborates with other committees and board of directors to accomplish association goals.
  • Provides quarterly updates to the board of directors.