The ACRP Finance Committee holds responsibility to provide oversight and guidance to the Association Board of Trustees (ABoT) and to the ACRP Senior Management team (Executive Director and Senior Director, Operations) pertaining to the financial operations and financial health of ACRP.
Goals and Objectives
The Finance Committee is responsible to the Association for the following accountabilities:
- Review and analyze, on a regular basis, the financial results with management providing context and explanation as needed.
- Ensure management spends/manages the assets prudently.
- Provide the ABoT with adequate and timely financial information to support planning for and prioritizing the strategic initiatives.
- Present the annual business plan and budget to the ABoT at November meeting for approval by the ABoT by the end of the calendar year.
- Maintain the investment policy, review the investment portfolio’s performance and consider recommendations proposed by the Association’s investment advisor regarding the composition of the Association’s investment portfolio.
- Ensure the execution and completion of an annual audit and review the annual audit as prepared by the auditors.
- Ensure the execution and completion of the annual tax returns and review them prior to their submission.
- The committee’s work will be aligned with the Strategic Plan.
As a Board committee, the scope of the Finance Committee extends to all financial activities organized and delivered by ACRP.
It is critical that committee members devote sufficient time to participate in and contribute to committee activities.
Regular teleconferences are held as necessary as well as one – two face-to-face meetings, typically conducted the day prior to the face-to-face ABoT Meetings. All meetings will be supported financially by ACRP.
- Consists of a minimum of four and maximum of seven ABoT members who are appointed by the ABoT and include:
- The current ABoT Chair (ex-officio with vote).
- The current ABoT Vice Chair (ex-officio with vote).
- The current ABoT Treasurer (ex-officio with vote).
- A minimum of one and maximum of three current ABoT members.
- The ABoT Treasurer Will Chair, the Committee In the absence of the ABoT Treasurer, the ABoT Chair will serve as the Committee Chair.
- The Executive Director, non-voting, will participate in all meetings.
Role of Chair
The Committee Chair is responsible for leadership and facilitating the work of the committee.
Role of the Committee Staff Liaison
The Committee Staff Liaison will provide all necessary support to the Chair, and all the committee members to facilitate the work of the committee, including setting up meetings and helping to prepare the materials. The Committee Staff Liaison is also responsible for providing the orientation to all committee members.
Staff Liaison: ACRP Executive Director
- With the exception of ex-officio committee members, each member will serve a one-year term and, based upon performance, may serve sequential one-year terms subject to the approval of ABoT. Ex-officio members’ terms are subject to their term of service on the board.
- If an individual has served two terms, he or she may be appointed as Chair for an additional one-year term. Those who have not completed two terms may also be appointed as Chair at any time during their service on the committee.
Skills and Expertise:
- Core skills and expertise of committee members required to meet the committee’s goals and objectives will be assessed annually to determine how open committee positions are filled and should at a minimum include:
- Financial and business planning expertise.
Related Working Groups: None
- The Chair and Executive Director will meet via teleconference prior to each meeting to plan and review meeting materials to ensure an efficient and productive meeting.
- Review and analyze the Association’s financial statements.
- Review the quarterly investment report prepared by the investment advisor for the Association and consider recommendations brought forward to the Finance committee.
- Ensure that an annual audit or audit review of the financial statements for the Association is conducted by an independent Certified Public Accountant (CPA) firm.
- Ensure that the annual tax returns of the Association are prepared by an independent CPA firm and filed as required by law.
- Meet with the independent audit firm retained by ACRP prior to the start of the audit field work, without representatives from management present, to privately discuss any issues or concerns that the committee determines requires investigation by the audit firm.
- Meet with the independent audit firm retained by ACRP to review the audit report, management letter, and other pertinent findings. The Finance Committee will invite the Treasurer of the Academy to the annual audit review meeting.
- During a portion of this meeting, staff will be excused so that the Finance Committee members are provided an opportunity to privately discuss any issues or concerns with the audit firm.
- Meet with the independent CPA firm retained by ACRP to review the annual tax returns.
- Review the Association’s annual business plan and budget to confirm that it is in alignment with the Association’s strategic plan.
- Review and approve financial management policies for the Association (e.g., travel reimbursement policy and parameters for Executive Director, Executive Committee, and ABoT).
- Review and approve all requests for non-budgeted proposals that exceed the $75,000 threshold for contracts with the Association on behalf of the ABoT.
- Evaluate the performance of the independent audit firm every three years; review and approve recommendations from management for hiring a new independent audit firm where there are issues or concerns.
- Review ACRP’s financial results regularly and analyze with management providing context and explanation as needed.
- Review ACRP’s investment portfolio performance on a quarterly basis with ACRP’s investment advisor
- Ensure execution and completion of the annual audit or review.
- Ensure execution and completion of the annual tax returns.
- Provide the ABoT with adequate and timely financial information to support planning for and prioritizing the ACRP strategic initiatives.
- Review the Association’s annual business plan and budget with management during the November Face to Face meeting.
- Present the Association’s annual business plan and budget for approval to the ABoT at the November Face to Face meeting.
Approved by ABoT November 18, 2017
Revised by ABoT March 16, 2018