Constitution and Bylaws Mandate
There shall be a Finance Committee of the Board of Directors chaired by the Secretary-Treasurer. The Finance committee provides oversight responsibilities with respect to the Society’s finances.
1. Budgeting and Financial Planning
- Develop an annual operating budget with CEO.
- Approve the budget within the finance committee.
- Monitor adherence to the budget.
- Set long-range financial goals along with funding strategies to achieve them.
- Develop multi-year operating budgets that integrate strategic plan objectives and initiatives.
- Present all financial goals and proposals to the board of directors for approval.
2. Financial Reporting
- Present the financial reports to the full board.
3. Internal Controls and Accountability Policies
- Create, approve, and update (as necessary) policies that help ensure the assets of the organization are protected.
- Ensure policies and procedures for financial transactions are documented in a manual, and the manual is reviewed annually, and updated as necessary.
- Ensure approved financial policies and procedures are being followed, including:
- Personnel policies
- Executive compensation packages
- Long-term contracts or leases
- Loans or lines of credit
- Internet use and computer security
- Capital purchases
- Insurance requirements and reviews
- Record retention
- Gift acceptance
- Recruit and select the auditor.
- Review the draft audit and 990 as presented by the auditor.
- Present the audit report to the full board of directors (if the auditor does not do this).
- Review the management recommendation letter (SAS112) from the auditor and ensure follow up on any issues mentioned.
- Draft 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.
- Ensure provisions of the policy are followed.
- Review the policy at least annually and update if necessary.
- Hire and evaluate the investment managers/advisors.