Finance Committee
Purpose and Role of the Committee
The presence of a fully engaged finance committee is a strong indication that the church is committed to good stewardship and is actively building and preserving the financial resources necessary to support the accomplishment of its mission, both for the short and the long term.
The role of the finance committee is primarily to provide financial oversight for the church. Typical task areas for small and midsized groups include budgeting and financial planning, financial reporting, and the creation and monitoring of internal controls and accountability policies. An outline of responsibilities appears below.
Committee Responsibilities
In addition to developing an annual budget, the committee should also set long-term financial goals. These goals might include, for example, the creation of a working capital or cash reserve fund and the creation of a fund for maintaining or replacing equipment.
Reporting
Internal Controls and Accountability Policies
Although the entire Vestry carries fiduciary responsibility for the organization, the finance committee serves a leadership role in this area.
Audits
Role of the Chair
The finance committee chair is the Vestry-appointed Treasurer, whose specific duties are described in the church’s bylaws. In practice these duties can vary considerably from a hands-on role, in the case of the “working board” model, to a more supervisory role where transactions are largely handled by staff.
The Treasurer is chair of the finance committee. Specific duties of the chair include:
The Committee will set a regular day and time to meet each month.
Purpose and Role of the Committee
The presence of a fully engaged finance committee is a strong indication that the church is committed to good stewardship and is actively building and preserving the financial resources necessary to support the accomplishment of its mission, both for the short and the long term.
The role of the finance committee is primarily to provide financial oversight for the church. Typical task areas for small and midsized groups include budgeting and financial planning, financial reporting, and the creation and monitoring of internal controls and accountability policies. An outline of responsibilities appears below.
Committee Responsibilities
- Develop an annual operating budget.
- Present a budget to the Vestry for approval.
- Monitor adherence to the budget.
- Set long-range financial goals along with funding strategies to achieve them.
- Present all financial goals and proposals to the Vestry for approval.
- Develop a policy for record retention
In addition to developing an annual budget, the committee should also set long-term financial goals. These goals might include, for example, the creation of a working capital or cash reserve fund and the creation of a fund for maintaining or replacing equipment.
Reporting
- Develop useful and readable report formats
- Work to ensure that the Vestry understands the implications of the reports.
- Present the financial reports to the Vestry.
Internal Controls and Accountability Policies
- Create, and update (as necessary) policies that help ensure the assets of the organization are protected. Present them to the Vestry for approval.
- Ensure policies and procedures for financial transactions are documented, reviewed annually, and updated as necessary, in compliance with diocesan and national church policies.
- Ensure approved financial policies and procedures are being followed.
Although the entire Vestry carries fiduciary responsibility for the organization, the finance committee serves a leadership role in this area.
Audits
- Recruit and select the auditor – to be approved by the Vestry.
- Review the draft audit as presented by the auditor.
- Present the audit report to the Vestry
- Review the management recommendation letter from the auditor and ensure follow up on any issues mentioned.
- Draft an investment policy detailing the objectives of the investment portfolio, guidelines on the asset allocation of the portfolio based on a predetermined level of risk tolerance, authorizations for executing transactions, disposition of earned income, etc.
- Review the policy at least annually and update if necessary.
- Recommend investment managers/advisors to the Vestry to ensure optimization of earned revenue.
Role of the Chair
The finance committee chair is the Vestry-appointed Treasurer, whose specific duties are described in the church’s bylaws. In practice these duties can vary considerably from a hands-on role, in the case of the “working board” model, to a more supervisory role where transactions are largely handled by staff.
The Treasurer is chair of the finance committee. Specific duties of the chair include:
- Serving as the principal liaison between the committee and the Vestry,
- Set an agenda for each committee meeting,
- Notifying members about the meeting,
- Ensuring handouts and reports are prepared for committee members.
The Committee will set a regular day and time to meet each month.