Finance

German Village Society

Finance Committee Charter                

Overall Roles and Responsibilities

The committee is responsible for providing oversight of the budgets, financial policies, and actual financial activity; including the various funds that support the German Village Society mission, values, and strategic goals.  The committee reviews the GVS’s financial performance against its budget and historical activity and reviews major transactions and programs, making recommendations as necessary, for the protection of GVS assets.

Not withstanding the following, final and full responsibility for the financial well being and fiscal integrity of the GVS remains with the GVS Board and it’s Treasurer.

Responsibilities

The finance committee’s specific responsibilities include:

• Recommending policies that maintain and improve the financial health and integrity of the GVS.
• Reviewing and recommending a long-range financial plan for the organization.
• Reviewing and recommending an annual operating budget and annual capital budget consistent with the long-range financial plan and policies.
• Reviewing and recommending capital expenditures and unbudgeted operating expenditures that exceed management’s spending authority.
• Reviewing the financial aspects of major proposed transactions, new programs and services, as well as proposals to discontinue programs and services, and making recommendations to the board.
• Monitoring the financial performance of the GVS as a whole and its major revenue lines against approved budgets, long-term trends, and industry benchmarks.
• Requiring and monitoring corrective actions to bring the organization into compliance with its budget and other financial targets.
• Review and recommend to the board any changes in policies governing investments.
• Approve the selection of independent investment advisers and managers.
• Review reports from independent investment advisers and managers, and report at least annually to the GVS board.
• Shall perform such other duties as may, from time to time, be directed by the board.
• Ensure adequate internal controls.
• Review internal financial controls.
• Review budgets of special projects or committees as appropriate.
• For activities of committees receiving financial support from certain Finance Committee managed Society designated funds (Warner Maint, MH Bldg. Repl/Maint, Huntington Garden, and German Village Society’s operational savings account), receive, review, and approve annual budgets for the subsequent year as a part of the Society’s annual budgetary process, and monitor expenditure of funds consistent with the approved budget.
• Review, on an annual basis, the sources of funding for the organization.
• Arrange an annual audit for the financial operations, review the audit report with the auditor, and report the results to the board.
• Oversees the preparation of all tax forms and licenses as required by law and ensure compliance with federal, state, and other requirements related to the GVS finances.
• Reviews recommendations of the GVS Meeting Haus maintenance committee and reports to the board.
• Reviewing and reporting at least annually to the board on investment performance.
• Ensures that the organization is adequately insured, reviews and recommends changes in coverage to the board and performs risk management functions.

Meetings

The committee shall meet at least quarterly during the first month of the quarter and when necessary at the call of the committee chair.  Meeting dates, times, location, and agenda must be specified in advance.

Members

The committee must be composed of a maximum of nine members with experience in finance, accounting, auditing, general business, investment management, and/or corporate leadership.  The committee shall elect its members.

Reports

The committee will receive and review the following reports as they are available:

• Monthly and annual financial statements.
• Investment reports.
• Key financial ratios.
• Key operating benchmarks.
• Financial contributions and gift reports.
• Annual audit and management letter.
• Insurance and risk management reports.
• Meeting Haus maintenance reports.

Annual Committee Goals

The finance committee will establish goals each year specifying its principal work focus areas for the coming year.  Typical examples might include:

• Developing a long-range capital plan integrated with the GVS strategic plan
• Reviewing profitability of specific programs and activities of benefit to the GVS.
• Developing criteria for evaluating proposals for new revenue activities.
• Reviewing investment reports to evaluate each investment manager and each category of investments performed versus benchmarks.
• Evaluating asset allocation.
• Reviewing the financial plan in relation to strategic goals and making adjustments to the financial plan based on operating margins, investment performance, and whether performance is consistent with the GVS strategic planning horizon.
• Review the monthly reports for cash flow by activity and the totals against pre-established budgets.

 investment policy

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