THE ROLE OF THE FINANCE COMMITTEE AND CHAIR
The roles and responsibilities of an organisation’s finance committee vary depending on the organisation or company. However, some common roles and responsibilities of a finance committee may include:
Works on behalf of the main board: The finance committee will monitor, evaluate and recommend to the main board on financial matters. It will not normally make decisions independently but will make recommendations for ratification by a main board.
Budgeting: The finance committee helps to develop, review, and approve the organisation’s budget.
Financial Reporting: The committee is responsible for reviewing and analysing financial reports and statements to ensure that they accurately reflect the financial position of the organisation.
Risk Management: The finance committee identifies and manages financial risks facing the organisation and recommends or takes steps to mitigate these risks.
Investment Oversight: The committee oversees the organisation’s investment strategy and ensures that investments are managed prudently.
Fundraising: The committee may assist in fundraising efforts, such as developing a fundraising strategy, identifying potential donors, and soliciting donations.
Audit: The finance committee works with auditors to ensure that the organisation’s financial statements are accurate and comply with relevant accounting standards.
Compliance: The committee ensures that the organisation complies with financial regulations and laws.
Financial Planning: The committee develops and implements financial plans and strategies to achieve the organisation’s goals.
Overall, the finance committee plays a critical role in managing the financial health of an organisation and ensuring its long-term sustainability by working on behalf of a main board and providing valuable advice and recommendations.
THE ROLE OF THE CHAIRMAN OF THE FINANCE COMMITTEE IS:
Some common roles and responsibilities of the Chairman of the finance committee may include:
Leading the committee: The Chairman of the finance committee leads and manages the committee, ensuring that it operates effectively and efficiently.
Setting the agenda: The Chairman sets the agenda for committee meetings and ensures that the agenda items are relevant and important to the organisation’s financial well-being.
Chairing meetings: The Chairman presides over committee meetings, facilitating discussions, and ensuring that all members have an opportunity to speak and share their views.
Providing guidance: The Chairman provides guidance and direction to the committee on financial matters, including financial reporting, risk management, investment oversight, and compliance.
Liaising with management: The Chairman serves as a liaison between the committee and the organisation’s management team, ensuring that the committee’s concerns and recommendations are heard and acted upon.
Representing the committee: The Chairman represents the finance committee to the board of directors or other stakeholders, communicating the committee’s recommendations and decisions.
Overall, the Chairman of the finance committee plays a critical role in ensuring the effective operation of the committee on behalf of the company’s main board.