The Finance Committee is a standing committee of the Board of Directors and is typically chaired by the Board Treasurer. The committee is accountable for reviewing and offering guidance for the organization’s monetary matters. Especially, the committee assures internal controls, independent audit, and economic analysis for the organization.
The Finance Committee critiques all economic statements and reports on financial activity to the full board. The full board might be far better in a position to respond to aggregated information with essential monetary trends and problems highlighted in an accompanying narrative report. While each and every board member need to have the chance to evaluation organization-wide revenue and cost reports to comprehend the impact on the organization, members who are inexperienced at reading economic statements might get lost in overly comprehensive statements. To aid the board fulfill its oversight function, it is important for the Executive Director and the Finance Committee to present the info in as clear and concise a manner as possible.
Right here are the Finance Committee’s standard responsibilities:
1. Provide course for the entire Board for fiscal responsibility.
2. Frequently evaluation the organization’s revenues and expenditures, balance sheet, investments and other matters associated to its continued solvency.
3. Approve the annual price range and submit it to the total Board for approval.
4. Guarantee the maintenance of an suitable capital structure.
5. Oversee the upkeep of organizational-wide assets, such as prudent management of organizational investments.
Here are some particular tasks the Finance Committee might undertake:
1. Assessment revenues and expenses at a monthly Committee meeting.
2. Make certain that organizational funds are spent appropriately (i.e., restricted funds).
3. Create an investment strategy.
4. Make certain the preparation of an annual audit, tax kind (990), and audited Economic Statements.
5. Provide help to employees as necessary.
A committee of about 5 or 6 knowledgeable people ought to be able to give invaluable economic leadership to your Board.