As with any committee, your Finance Committee’s work should be organized around goals and tasks.
The board might assign the Finance Committee with the goal to:
The Finance Committee then creates an action plan, with associated tasks and due dates to ensure that the board as a whole achieves this goal.
To ensure you meet this example goal, you might assign specific committee members the following tasks:
- CEO shares thoughts about areas to strengthen and recommended approach at the board retreat
- Faculty and staff complete survey
- List of non-financial benefits compiled and prioritized.
- Provisional plan created
- Plan shared with full board for feedback
Remember: The full board is responsible for achieving each goal. And, the full board is on the hook to provide sound financial oversight for your organization and ensure its long-term financial viability.
A Finance Committee is not a substitute for the full board understanding and carefully reviewing the organization’s financial statements and financial health.
Throughout the year, the Finance Committee will keep the board apprised of progress towards achieving this goal and bring critical financial decisions to the board that may put achieving this goal in jeopardy.
And, the Finance Committee is entrusted with educating the full board on the financial health of the organization and how to conduct proper oversight.
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