The finance committee is responsible for ensuring that the organization is in good fiscal health. This committee oversees expenditures and provides the board with information and recommendations related to the annual budget and its implementation, as well as projections for the future. The committee recommends policies to the full board to safeguard the organization’s assets, ensures the completeness and accuracy of its financial records, and oversees proper use of resources. The committee ensures that the organization has appropriate internal controls, conducts proper financial analysis, and reports any concerns to the full board.
The finance committee is responsible for working with an independent auditor who conducts an annual audit of the ministry to examine the organization’s books. The auditor is hired by the board of directors. The finance committee is also responsible for making sure the rest of the board understands the organization’s budget and fiscal issues. The committee should make sure that all board members get an annual audit report.
Financial oversight is different from budgeting. The budget preparation is the job of the staff. The finance committee’s job is to see that the board’s policies and strategic priorities are reflected in the budget. When reviewing financial reports, the finance committee asks the questions, “Are we on track? If not, why not?”
The full board has the ultimate responsibility and fiduciary obligation to the organization, but it can delegate various tasks to the finance committee. Committee members do not have individual liability, as they make recommendations rather than binding organizational decisions
Finance committee members collaborate closely with the vice-president of business and finance, and the president. The vice-president of business and finance oversees the staff activities that relate to financial issues, acts as the key person to move the annual budget into the committee’s hands, and ensures that accurate and timely financial statements reach the full board as scheduled.
The bottom line is—the finance committee must be able to report to the board the overall financial condition of the ministry, and what is needed financially to carry out the vision of Go To Nations