FINANCE COMMITTEE CHARTER

 

I. MISSION:

The overall mission of Lake of the Woods Committees is to add value to the association by advising and assisting the Board of Directors and the General Manager in carrying out their responsibilities to the Association. The Finance Committee reports to the Board of Directors.  The primary focus of its mission is to formulate recommendations to the Board of Directors for the Association’s Annual Budget, to review and comment on the financial portion of the Five Year Plan, and to conduct other studies requested by the Board of Directors

II.        RESPONSIBLITIES:

  1.  The Committee will develop draft guidance for the annual budget to be submitted to the Board.
  2.  The Committee will support the operation centers in preparing the annual operating budget, when requested by the General Manager.
  3.  The Committee, in joint sessions with the Planning Committee, will hold hearings on the annual operating and capital budgets prepared and presented by the General Manager.
  4.  The Committee will prepare a written list of any and all recommended changes to the proposed annual operating and capital budget and will forward the list to the General Manager and the Board of Directors.
  5.  Working with the General Manager, the Committee will review and comment on the financial portion of the Five Year Plan.
  6.  In conjunction with the Planning Committee, receive from the General Manager, and then review and recommend to the Board the disposition of suggestions and requests for non-emergency  Capital Expenditures exceeding $3,500, and not provided for in the budget adopted by the Board or in the Five Year Plan for the fiscal year in which such expenditures may be sought.
  7.  Annually review the LOWA procurement policies and in conjunction with the General Manager recommend changes which take maximum advantage of competitive bidding, availability and cost of leasing, quantity purchasing, and seasonal purchasing.
  8.  The Committee should review and make annual recommendations to the Board and General Manager concerning a new or updated reserve study.
  9.  The Committee members may review the draft of the annual audit and make comments to the Board and General Manager during the public presentation of the audit report.
  10. Respond to formal requests of the Board for financial advice or evaluation.

III. SPECIAL CHARACTERISTICS OF FINANCE COMMITTEE

  1. The Finance Committee should report orally to the Board of Directors no fewer than three (3) times per year.
  2.  The Finance Committees should have seven (7) voting members.

THIS CHARTER IS EFFECTIVE UPON APPROVAL BY THE BOARD OF DIRECTORS.  IT SHALL BE REVIEWED FOR RE-ADOPTION AT LEAST EVERY FIVE YEARS FROM ITS MOST RECENT APPROVAL DATE.

Approved: August 5, 1995
Revised: May 19, 2010