Finance Committee Members of the Advisory Board Position Description

Responsibilities and Expectations

Budgeting and Financial Planning

  1. Review the annual budget proposed by the ED, staff and leadership, detailed allocations to grants, the percent that is funded versus additional funding to raise and tracking of temporarily restricted grants & release plan.
  2. Approve the annual budget within the finance committee and present the budget to the full board of directors for review, deliberation, and approval.
  3. Work with ED and internal leadership to set long-range financial goals and collaborate with development to support funding strategies to achieve them.
  4. Review multi-year budgets that integrate strategic plan objectives and initiatives.
  5. Present financial goals, with supporting detail that outlines the financial components of projects and programs for board of director approval.
  6. Monitor financial results against budget and adjust the financial projection based on project and program changes as they occur. Review the tracking and conditions of restricted grants, ensure proper release, report ongoing financial updates to the board of directors.

Internal Controls and Accountability, Transparency, and Risk Management

  1. Create, approve, and update (as necessary) financial policies that help ensure the assets of the organization are protected.
  2. Ensure policies and procedures for financial transactions are documented in a manual, and that the manual is reviewed annually, and updated as necessary.
  3. Ensure approved financial policies and procedures are being followed.
  4. Ensure that regulatory and governmental filings (related to accounting & finance) deadlines are met.
  5. Ensure that adequate insurance coverage is in place.
  6. Ensure that bank account signatories are up to date.
  7. Ensure that bookkeeping and accounting staff have adequate skills and training in financial processes and analysis.
  8. Ensure adequate procedures in place to support separation of duty

Audit

  1. Finance committee to recruit, retain audit proposals, and provide a recommendation to the board of directors for an annual accounting firm to complete the annual audit, 990 informational return and process the bureau of charitable organization report
  2. Schedule annual meeting with the audit firm to present the draft audit, 990 and bureau of charitable organization reports for approval.
  3. Treasurer or audit chair to present the audit report and 990 informational return to the full board of directors.
  4. If in any given year there is a management letter presented, management and the finance committee will review the findings, collaborate to remedy issues, and respond in writing accordingly.

Investment

  1. Draft an investment policy that: a. details the objectives of the investment portfolio, b. provides guidelines on the asset allocation of the portfolio based on a predetermined level of risk tolerance, c. determines whether/how the organization handles donation of stocks, d. specifies authorizations required for executing transactions, e. confirms disposition of earned investment income, etc.
  2. Ensure provisions of the policy are followed.
  3. Review the policy at least annually and update if necessary.
  4. Hire and evaluate the investment managers/advisors (if assets are considerable enough to warrant outside assistance).

Meetings and Time Commitment:

The committee meets five times a year before board meetings and more often if circumstances dictate a need to meet.

From: https://www.nonprofitaccountingbasics.org/reporting-operations/finance-committee-committee-chair-responsibilities