LOPSA Policies/Finance Committee
Policy approved by the Board on 11 December 2006.
The Finance Committee is responsible for ensuring sound and proper financial management of the organization. General duties of the Finance Committee will include:
- Develop an appropriate financial strategy for the organization
- Prepare the annual financial budget
- Ensure that organizational initiatives are consistent with the financial strategy and budget
- Regularly review financial activity and ensure Board access to timely and accurate financial information
- Monitor the integrity of the organizations financial statements
The Finance Committee will be chaired by the Treasurer of the organization and will consist of the Chair, and at least two other Board Members (at least one of which must not be an Officer of the Board). The Committee Members should have sufficient financial background to understand common financial and accounting terms, standards, and statements.
To fulfill the Committee's purpose, it shall:
- Develop an appropriate financial strategy for the organization. The Committee, in conjunction with the Executive Director, shall evaluate various capital structures, plot the organization's long term financial objectives, and develop appropriate metrics and benchmarks. On a regular basis, the Committee will review the current strategy, metrics, and benchmarks, assess their impact, and make necessary adjustments to ensure the financial vitality of the organization.
- Prepare the annual financial budget. Annually, the Committee will meet with the Executive Director to evaluate the organization's annual objectives and prepare a comprehensive financial budget for review and approval by the Board. # Ensure that organization initiatives are consistent with the financial strategy and budget. The Committee will periodically review all organization initiatives and validate the assumptions and analyses to ensure the financial plans are reasonable and consistent with the financial strategy and budget. The Committee will make recommendations to the Board based on these reviews.
- Regularly review financial activity and ensure Board access to timely and accurate financial information. The Committee will receive and review on a monthly basis appropriate financial information. The Committee will advise the organization's management as to the form, frequency, and detail of the information. The Committee will report significant information to the Board to facilitate the Board's ability to make sound decisions.
- Monitor the integrity of the organization's financial statements. On a quarterly basis, the Committee will receive from the organization's management standard financial statements such as the Balance Sheet, Income Statement, and Statement of Cash Flows as well as other performance indicators and benchmarks as it may request. The Committee will review and report on the overall condition to the Board, highlighting financially significant information, and recommending appropriate actions.
- Other duties as may be assigned by the Board.