Finance Committee Charter
The Finance Committee (“the Committee”) advises the board on investment policy, fund management, budget, financial management, and capital expenditures for PEAK Grantmaking.
Responsibilities
The Committee’s responsibilities include, but are not limited to, the following:
- Reviewing and recommending to the board the annual operating budget for monitoring the performance of key staff members, contracted agents, or those charged with the responsibility of managing PEAK’s finances
- Supporting the development of the longer-term capitalization strategy as well as the current financial plan
- Reviewing and recommending to the board the annual operating budget for PEAK Grantmaking
- Determining the key performance indicators that the board should use to monitor PEAK Grantmaking’s financial health
- Monitoring spending against the budget and monthly cash flow, maintaining a quarterly balance sheet with consolidated accounting of all assets and current liabilities, and maintaining monthly finance reports that show comparative figures against the prior year’s period so that the Committee is able to explain the overall financial health of the organization to the full board according to generally accepted accounting principles
- Leading in the development of policies with regard to investments, working capital, months of cash, and future budget projections, conferring with investment professionals to assess the investment strategy and adjust as appropriate;
- Working collaboratively with the Audit Committee and the treasurer to ensure PEAK Grantmaking meets all financial filing requirements, including reviewing Form 990 before it is submitted to the full board
- Working collaboratively with the Audit Committee to ensure the creation and updating of policies and procedures for key business practices on an as-needed basis
Structure
The Finance Committee is a standing committee of the PEAK Grantmaking Board. The Committee may form subcommittees to work on specific tasks (e.g., investment policy updates), but all decisions or recommendations by subcommittees shall be presented to the full Committee before being put before the board.
Composition
The PEAK Grantmaking treasurer chairs the Committee. Committee members are appointed by the Governance Committee and may be board and non-board members. Board members on the committee serve a three-year term, coinciding with their board term. Non-board members serve a one-year, renewable term. The Committee does not have a set number of members required, however it is desirable to have between three and five members.
Meetings
The Committee will meet when necessary, at the discretion of the chair.
Staff Liaison
The chief operating officer will serve as the staff liaison to this team to facilitate its work.