Committee Purpose

The HOA – Board of Directors (Board) is establishing a Finance Committee (Committee) to assist the Board in financial affairs. This Committee is a permanent “standing” committee whose purpose is to review, advise, and make finance-related recommendations as assigned by the Board’s Treasurer, or the Board. The Committee shall commit its business in the best interest of the HOA. The Committee will serve as an advisory committee to the Board

 

Committee Membership

The Committee shall consist of no more than five (5) community resident volunteers who have ownership voting rights. The Board’s Treasurer shall serve as Chairperson in a non-voting member capacity, and function as the liaison between the Committee and Board.

Committee volunteer positions are open to anyone willing to assist or has a working knowledge, background or education in finance, accounting, bookkeeping or business. The Chairperson will submit committee appointments to the Board for approval; and is responsible for reporting committee progress and recommendations to the Board for review and discussion. The Committee shall meet as often as it deems necessary to conduct the obligations imposed upon it, unless directed by the Board.

 

Committee Member Terms

Committee members will serve in either a (2) two-year term, or a (3) three-year term. Members may run for reappointment if they desire. No Committee member shall serve more than six consecutive years; however, a member may serve again after a break in committee service. The terms of each member will be determined by the committee at the first meeting following the fiscal year end.

 

Committee Responsibilities

The Committee’s potential responsibilities include, but are not limited to, the following:

• Review the proposed annual budget prior to approval by the Board and submitted to homeowners as prescribed in the By-Laws.
• Ensure that appropriate accountability and process controls are in place for fiscal management and are being adhered to by the HOA’s management company and Board members.
• Review the current Reserve Study Report and recommend a long-range financial plan for the HOA.
• Review the necessary legal changes, fiscal costs, and potential benefits of going to a “calendar” fiscal year for HOA’s budgets and year-end financial reporting.
• Monitor the financial statements on a quarterly basis and recommend action on any substantial variances.
• Recommend fiscal-related policies that maintain and improve the financial health of the HOA.
• Review the financial ramifications of proposed major operating fiscal transactions, new replacement programs or services, as well as proposals to discontinue programs or services and provide the Board with recommendations.
• Appoint a committee secretary who will take minutes of all meetings and create a file of these minutes that will be provided to the successor secretary.

 

Committee Compliance

The Committee is not authorized to obligate the HOA financially or legally in any manner (contract for service, hire contractors, borrow money, purchase equipment or supplies, or approve such a request on behalf of the Board. However, the Board may authorize this authorization if deemed appropriate.

The Board also has the right and authority to act and/or make decisions with or without involving any committees to act and/or make decisions which are consistent with and/or contrary, in whole or in part, to any committee or subcommittee recommendations, should they see need. The Board also has the right to amend this Finance Committee Charter should it be deemed appropriate and necessary.

 

Committee Authorities

All committee members shall serve at the will of the Board. The Board has the right and authority to disband and discontinue any previously approved committee or subcommittee; as well as appoint or dismiss any committee member or subcommittee member with or without cause. The Board may delegate any or all the authorities vested in the Board by the Governing Documents of the HOA, to the Finance Committee, and these authorities may change at any time in accordance with the desires of the Board.