Finance Committee Charter
I. Purpose of Committee
The Finance Committee (the “Committee”) is established to support the Society’s Board of Directors (the “Board”) in fulfilling its responsibility to oversee the Society’s financial strategy and performance.
II. Committee Membership
The chair of the Committee is the Society’s Secretary/Treasurer. In addition to the chair, the Committee is composed of four members, including the Audit Committee Chair. Other than the Committee Chair and Audit Committee Chair, there should not be overlapping membership between this Committee and the Audit Committee. The Committee may also include up to three non-voting resource members. The Chair of the Board is an ex-officio member of the Committee. Committee membership is appointed by the Chair of the Board. Committee members serve one-year terms beginning January 1st and ending December 31st of that same year or until the new Committee is appointed by the Chair of the Board.
III. Committee Authority and Responsibilities
The Committee will:
Review the Society’s: 1) quarterly financial statements; 2) annual resource allocation plan and submit to the Board for consideration; 3) resource allocation plan to actual results; 4) liquidity status; 5) Internal Revenue Service Form 990 and accompanying schedules, 6) status of significant operating/revenue investment plans; and 7) other appropriate financial information concerning the Society;
Review the Society’s external audit and tax reports (in addition to Form 990) in accordance with performance and strategic objectives including any relevant portions of the “management letter” and other communications from the auditor as referred by the Audit Committee. Review should include discussion with management of significant issues regarding accounting principles, practices and judgments, including any matters required to be communicated to the Committee by the independent public accountants under applicable professional standards;
Oversee enterprise risk management related to assigned risk areas and submit a report to the Audit Committee each year;
Review the Society’s financial policies and recommend appropriate revisions to the Board; periodically review the Society’s compliance with such Policies and report results to the Board;
Review on a quarterly basis the performance of invested funds, including funds in the employee retirement annuity plan (pension);
As necessary, ensure that Committee members receive an orientation to the Society’s financial statements, the application of generally accepted accounting principles to those statements, and other financial governance issues;
Accomplish additional tasks as charged by the Chair of the Board;
Operate under a charter and review annually for adequacy and recommend any necessary changes to the Governance Committee for approval by the Board; and
At least annually, report its activities and findings to the Board.
In carrying out its responsibilities, the Committee's policies and procedures should remain flexible in order to react to changing conditions and to ensure that the accounting and financial reporting practices of the Society are in accordance with all applicable requirements and are of the highest quality.
IV. Committee Meetings
The Committee will meet at least annually and as often as its chair or a majority of its members deems necessary or appropriate, either in person, telephonically or electronically, and at such times, places and manner as its chair and chair’s staff may determine. Deliverables, budget, and alternative meeting methods should be included in the decision making process. The chair and chair’s staff will develop an agenda in advance of each meeting and communicate meeting details to Committee members in a timely fashion.
As necessary, the Committee will meet in a joint session with other committees regarding items of concern to both committees.
V. Committee Reports
The Committee will produce a written report at the conclusion of each meeting, which will include an attendance record, a copy of the agenda and a full report of Committee discussions with documented recommendations and decisions. These reports will be completed no more than three weeks following the meeting and forwarded to the Committee membership and the Office of Enterprise Governance for proper filing. All Committee reports, to the extent not confidential, will be posted on the ACS, Inc. Board Portal so all Board members have access to the reports.
VI. Committee Evaluation
The Committee will conduct periodic performance evaluations to review the performance of the Committee in relation to the requirements of this Charter and such other matters as the Committee deems appropriate.