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Finance Committee Charter
Office of Origin: Board of Trustees
Responsibility: Senior Executive Assistant to President/Secretary to Board of Trustees
Date Adopted: 1/23/18
Date Reviewed: 1/23/18, 2/24/21 (C)
Last Date Modified & Approved: 1/23/18
The purpose of the Finance Committee is to assist the Board of Trustees (Board) in fulfilling its oversight responsibilities for the College’s:
- financial, federal awards, and tax reporting,
- system of internal controls, and
- external audit processes.
The Finance Committee also provides an open avenue of communication between the Board and external auditors, the President, and the Chief Financial Officer.
The Finance Committee will consist of three members of the Board. The Board will appoint Finance Committee members annually, each of whom must be financially literate. The Chair of the Finance Committee will be the Board Treasurer.
The Finance Committee will meet at least two times a year, with additional meetings held as circumstances require. During at least one of these meetings, the Finance Committee will hold a private meeting with the external auditor partner to gain insight into matters under the Finance Committee’s purview.
The Finance Committee will invite members of management, auditors, and/or others to attend meetings and/or provide pertinent information, as necessary.
The Finance Committee will keep minutes of all of its meetings.
The responsibilities of the members of the Finance Committee include reviewing and understanding the following areas related to financial oversight and governance:
- The financial condition, capital plans, financing plans, investment holdings, borrowing and investment policies, operating and capital budgets, and financial reporting practices.
- The quality and integrity of accounting, financial reporting, and compliance practices related to financial matters.
- The annual financial statements and performance of external auditors.
- Results of investigation and evaluation of serious allegations of financial misconduct or conflict of interest.
The duties of the members of the Finance Committee include the following:
- Review of the audited financial statements with management and auditors.
- Review of the Federal Awards Supplemental Information with management and auditors.
- Review of Required Communications with Those Charged with Governance Letter issued by the auditors.
- Review of Report on Internal Controls & Compliance issued by the auditors, as well as other internal control recommendations.
- Discussion of risk with management and auditors, including steps taken, or recommended to be taken, to monitor, or mitigate the risks.
- Review of Internal Revenue Service Form 990T Exempt Organization Business Income Tax Return tax return before its filing.
- Reporting to the Board on Finance Committee activities, issues, and recommendations.
- Review of significant matters related to the integrity of senior management, including conflicts of interest and adherence to standards of business conduct as required by College policies.
References: Investigation policy