Purpose
The Finance Committee is a standing committee of the Board of Directors. The Committee has oversight responsibility with respect to the RMCOA’s financial matters and will provide recommendations to the Board and liaison with management on matters including policy, budgets, investments, receipts, expenses, insurance, accounting, tax reporting and records management.
Organization
- Periodically review this charter and propose any needed changes to the Board.
- The members will be appointed by the Board and the Committee will consist of at least three members a minimum of two of which will be members of the Board. This includes the Secretary/Treasury who will be one of the representatives from the Board. The Manager, a non-Board member will also serve on the Committee. The Board will designate a Committee Chairperson.
- The Committee will each year establish a schedule of meetings at least quarterly.
- Agenda, Minutes and Reports. The Chairperson will establish the agendas for meetings of the Committee. An agenda will be sent to members of the Committee prior to each meeting.The Committee will make regular reports to the Board.
Responsibilities
- Financial Policies. The Committee will establish and periodically review/revise policies related to matters such as contracting, audit/review, reserve studies, accounting and insurance.
- The Committee will annually review expenditure needs for each of the coming three years and recommend a Three Year Budget for Board approval.
- Owner Assessments. The Committee will annually review and recommend to the Board the monthly and special assessments (as needed) to support the Three Year Budget.
- Banking/Investment Arrangements. The Committee has oversight responsibility for treasury activities. The Committee will annually review banking and investment relationships.
- The Committee will annually review the insurance program including carriers and the scope and limitation of coverage.
- Financial Performance Evaluation. The Committee will evaluate the financial performance at least quarterly and provide recommendations to the Board and liaison with management.
- Financial reports will be prepared and distributed to Owners on a monthly basis.
- Signature Authority. The Committee will designate officers and agents to execute documents and act on behalf of RMC in the ordinary course of business.
Revision 1: April 13, 2009