Society Operating Guidelines

Section 6.1: Finance Committee Operating Procedures

I. Purpose and Scope

The Finance Committee is a standing committee per the ASSP bylaws. This document provides guidelines for the Finance Committee to carry out its fiduciary responsibility to the membership in support of ASSP's strategic plan.

Responsibilities of the Finance Committee include:

1. Oversees the Development of the Society’s annual budget:
   • Establishes budget guidelines;
   • Consolidates and reviews the annual operating and capital budgets;
   • Proposes operating and capital budgets to the Board of Directors for approval.
2. Evaluates the Society’s financial position, proposed budget exceptions and Board Designated / Development Fund Spending and makes recommendations to the Board of Directors on these matters;
   • Reviews quarterly and annual financial reports on performance versus budget;
   • Analyzes Society's financial strengths and weaknesses;
   • Monitors Society assets including but not limited to its investment portfolio and reserve position;
3. Engages an independent auditor to review the Society’s financial statements and internal controls.
   • Receives / reviews auditor’s report in conjunction with the Board of Directors.
   • Assures appropriate accounting policies are followed and internal controls are in place.
4. The Committee reviews the financial impacts of new proposals and initiatives as requested by the Board of Directors.

II. Committee Membership

The Finance Committee consists of five members capable of providing financial oversight of a complex organization acting as a subset of the Board of Directors and acting in the best overall interests of the Society. The composition includes:

• Vice President, Finance (Chair)
• President Elect
• Two at Large Board Members
• The Public Director
• In addition to the five members.
  • The President, CEO, and Senior VP would be invited as ex-officio to the meetings

The two at Large Board Members will be appointed by the President elect when the terms become vacant for the upcoming governance year.

Terms of Appointment

• The Vice President, Finance serves as Finance Committee chair for one, 3-year term, current with term of the position.
• All other members will serve on the Finance Committee based on the terms of their Board position.
• Should a member not complete their Board term, a replacement will serve out the remainder of the term in order to maintain the integrity of the rotation.

The Finance Committee may establish sub-committees as it deems necessary. The Vice President, Finance appoints members to these sub-committees and the Finance committee oversees these sub-committees.

• Risk Management sub-committee is a standing sub-committee (see SOG 6.6).

III. Meeting Schedule

The Finance Committee meets as required, but at minimum semiannually, via teleconference or face-to-face meetings, as appropriate.

Finance Committee members shall receive an agenda and supporting materials in advance of any meeting.

IV. ORGANIZATION ACCOUNTABILITY

The Finance Committee is accountable to the Board of Directors through the Vice President, Finance.

Any sub-committees, if active, are accountable to the Finance Committee.

V. OPERATING PROCEDURES

Three or more members of the Finance Committee constitute a quorum.

The staff liaison implements directions and guidelines approved by the Finance Committee, manages daily accounting activities, and reports monthly to the Vice President, Finance and quarterly to the Finance Committee.

The Finance Committee budgets for its own operations, consistent with other Society standing committees.

All issues which require review and approval of the Finance Committee are to be submitted to the Vice President, Finance as soon as practicable prior to each Board of Directors meeting. (At least 21 days in advance of board meeting is preferred)

• The Finance Committee reviews and responds to such requests as soon as possible after receipt.

The Society’s Fiscal Year is April 1 through March 31 as defined in the By-Laws.

VI. FINANCIAL REPORTS AND AUDITS

The Chief Financial Officer provides the Vice President, Finance with monthly reports on financial results and any action items. The Vice President, Finance as the Society’s Treasurer reports on the financial condition of the Society to the Board of Directors annually or as needed. This includes year-to-date performance as compared to budget and the prior year's performance. (See Bylaws VI Sec. 7 (H).)

The Vice President, Finance, presents the recommended Society budget to the Board of Directors annually.

Financial Audits

• The Society retains an independent Certified Public Accounting firm annually to audit the Society’s financial statements, including the balance sheet and statement of revenue and expense, in accordance with generally accepted accounting principles.
• The Auditor prepares the Auditor's Report, a final written financial statement, and the Management Letter which identifies any issues or deficiencies to be corrected.
• The Chief Executive Office, Chief Financial Officer, and Vice President, Finance, review all auditor proposals and directs appropriate responses. The Finance Committee in conjunction with the Board,  reviews with a representative of the audit firm, the Auditor’s report, Management Representation Letter, and any applicable response and assures agreed corrective actions are implemented.
• The Board of Directors receives a copy of the Auditor's Report. The report is open for discussion at the Board meeting.
• The audited financial statements are included in the Society’s Annual Report.

VII. RECORD MAINTENANCE AND RETENTION

The Chief Financial Officer maintains records as required by law and generally accepted accounting principles, and in compliance with the Society’s record retention policy.

Approved By/Date: Board of Directors: 03/2025
Replaces Edition Dated: 05/2022
Next Revision Due: 05/2028