HOME & COMMUNITYPolicy No.: BRD-3-80

SUPPORT SERVICESDraft: Dec. 2016

--OF GREY-BRUCE--

Page: 1 of 3

SECTION: BOARD

TOPIC: COMMITTEES

POLICY TITLE: AUDIT FINANCE COMMITTEE - TERMS OF REFERENCE

AUDIT FINANCE COMMITTEE

TERMS OF REFERENCE

Purpose:

In addition to overseeing the development of the annual budget, the Committee will review long-term financial goals of HCSS. These goals would include, for example, the creation of working capital; and the creation of other funds such as equipment replacement. The finance committee would work with the staff of HCSS to determine the financial implications of the Strategic Plan to support the implementation of such strategies.

Composition:

The Finance and Audit Committee will be composed of a minimum of two members of the Board of HCSS. The two members ideally will be individuals with a financial background and/or have business experience. The Director of Financial Services and/or the Executive Director will be available for committee meetings.

The Audit Function of the Committee

On behalf of the Board, the Committee will provide oversight of the accounting function and independent audit. The Committeewill ensure that revisions or recommendations made by the auditor, such as recommendations about the organization’s internal controls, are implemented. The Committee will also serve as the “ombudsperson” for HCSS and will be specifically charged with the responsibility to address complaints from staff or third-parties regarding such complaints.

Internal Controls and Accountability Policies

  1. Create, approve and update policies that help ensure the assets of the organization are protected.
  2. Ensure policies and procedures for financial transactions are properly documented and updated as necessary.
  3. Ensure approved financial policies and procedures are being followed.
  4. Recruit and select the external Auditor and approve annual fee.
  5. Review the draft financial statements and any government annual returns with the CRA.
  6. Review the annual management recommendation letter from the Auditor and follow up with management to ensure issues are addressed in a timely manner.

Finance/Audit Committee and Other Policies

Task areas for the committee will include:

  1. Oversee the development of the annual operating budget by staff.
  2. Approve the annual budget, before presentation to the Board
  3. Monitor adherence to the budget.
  4. Integrate strategic planning and financial objectives within multi-year operating budgets and funding strategies.
  5. Present all financial goals and proposals to the Board of Directors for approval.
  6. Ensure the external audit process demonstrates financial integrity.

The finance committee will have responsibility in developing policy and ensuring compliance to protect the organization and manage the organization’s exposure to risk. The policies include:

  1. Long term leases and contracts.
  2. Investments.
  3. Donations.
  4. Internet and computer security.
  5. Loans and lines of credit.
  6. Purchasing and Capital additions.
  7. Insurance requirements and reviews.
  8. Financial record retention.
  9. Gift Acceptance.
  10. Cash and Banking.
  11. Protection of employees who report potential financial wrongdoing.

Role of the Treasurer

The treasurer is to serve as Chair of the Finance/Audit Committee and is the principal liaison between the Board and the Committee. Roles include:

  1. Working with the Director of Finance and other committee member to create an agenda for committee meetings.
  2. Notification of meetings to the Committee and the Board.
  3. Ensuring reports and information is prepared and ready in advance of the meeting.
  4. Presenting Committee updates to the full Board including year to date financial statements and Budget.

The presence of the Finance/Audit Committee is the Board’s commitment to good stewardship and is active in the building and preserving financial resources necessary to support the Board’s mission in both the short and long term.

Analyze the short and long-term (1-3 years and 3-5 years) needs of Home and Community Support Services (HCSS), its clientele and its volunteer base and develop plans to meet these needs.

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