Associations depend on their finance committee to work with the treasurer to keep community funds in order. To do this, the committee should:
- Review and analyze the annual budget.
- Make recommendations regarding financial controls, budget procedures and accountability.
- Review and analyze monthly financial statements and bank reconciliations.
- Review insurance provisions and make recommendations on the adequacy of coverage.
- Review and make recommendations on the adequacy of reserves.
- Review budgeted and unbudgeted expenses and make recommendations regarding adequacy and priority.
A large part of the finance committee’s time is spent working on the budget. Though the format will vary between communities, association volunteers often appreciate easy-to-read financial information. This means presenting the budget in a line-by-line breakdown of expenses and revenues.
Finance committee members also may be asked to provide other committees with financial advice. For instance, the board may want a finance committee member to advise an ad hoc committee set up to research and make recommendations on a recycling program for the community. The financial representative may be asked to investigate funding options or to reallocate existing funds for the project. Effective finance committee members will always be looking for ways to get the most from the members’ assessments.