Role of the Finance Committee







RSU13 Finance Committee

 

Role

The Finance Committee's role is to oversee the financial affairs of RSU13, and review and make recommendations to the Board about the financial affairs and policies of the RSU.

Membership

The membership of the Committee consists of board members, all of whom are to be free of any relationship that would interfere with his or her exercise of independent judgment. Other participants at regular Committee meetings are the Superintendent, Business Manager(s) and others who may need to present information sought by the Committee.

 

Operations

The Committee meets monthly, typically on the 2nd Thursday at 6:00 PM at McLain. This time may change if it becomes inconvenient for members. Additional meetings may occur as the Committee or its chair deems advisable. 

 

Authority

The Committee may form and delegate authority to subcommittees and may delegate authority to one or more designated members of the Committee.

 

Responsibilities

The principal responsibilities and functions of the Finance Committee are as follows:

1.

Establish such budget tracking and reporting standards as are appropriate to the needs of the committee.

2.

Monitor Expenditures and Income and report significant variances to the board.

·         Review and Monitor the approved budget expenditures monthly

·         Sign payroll and expense warrants

·         Review all major expenses not included in the currently approved budget.

·         Review quarterly projections provided by Superintendent and recommend corrections if needed

  • Act upon requests of the board as needed

3.

Review and provide guidance to the full Board and management about:

·         Policies or recommendations having potential financial implications

·         Financial strategies for major projects

·         Working capital and cash flow management

·         Recommend transfers from contingencies and other accounts

  • Other transactions or financial issues that management desires to have reviewed by the Finance Committee

4.

Annual Proposed Budget

·         The committee assumes that the board as a whole has the responsibility to review and approve the overall budget

·         The committee expects to have input into certain budget assumptions that are presented to the board. Examples would include projected rates of increase in electrical, oil usage and rates

  • It is the responsibility of the committee to dig deeper in areas where we can add value and where other board members don’t wish, nor have the desire or time to delve. Once done, this committee will make specific recommendations to the Board on its adoption, including where desirable, comments on expense levels and adequacy of provision for reserves.

5.

Other

·         Develop and Recommend long range financial objectives for the RSU

·         Select the Auditor, Review annual Audit results and report same to the board

·         Establish criteria for insurance (board, property, fleet) carriers, review and approve specifications for bids, participate in interviews of carriers

  • Examine / Review matters of interest to the Committee

Tracking and Reporting Standards

At each standing meeting, the committee will be provided with:

1) A high-level summary of the “bold type” categories within each Article showing the budget and current charges against the category with added columns showing percent expected versus actual percentage expended

2) The standard detailed Monthly budget listing showing each line item, budget, and current charges against the line items,

3) An explanation/analysis for any category that is above or below plan by a certain percentage. At the present time this threshold has been established at 5% for all summary-level budgets, and

4) A “Heads-up” briefing of up-coming known issues that will skew the financials in some significant manner.

 

Major Reviews

The Committee would not generally expect to be involved in financial matters that are within the parameters of an established budget, other than as a monitor function. Certainly, establishment of policies that impact finances, anything that would suggest the need to expend contingency or move funds between Articles, are within the realm of Committee purview. It would be our desire to review planned changes before taking them to the board. For example. where changes from the budget are proposed (even if the overall budget for the line will remain unaffected), e.g creating a new position not initially funded, deciding to add/eliminate a capital project, the Committee would expect to review and comment on the change to the board.