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
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- 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
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- 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.