Although staff implement and work with the financial processes and systems, it is the board who has ultimate legal responsibility for fiscal management and financial stability. Seek advice and/or training for both staff and board members to learn and understand the financial policies and procedures.

Hire a summer student to prepare a handbook on understanding financial management practices, policies, forms and definitions.You can provide this to all staff and board members.

The first order of business is for the Finance Committee to determine its priorities from among the following responsibilities:

• To review all financial statements.
• To draft a budget for the upcoming year (at least 3 months prior to the current year-end), usually in collaboration with the Executive Director.
• To prepare, monitor and update the Financial Policy Manual.
• To review the financial statements each month, usually prior to each board meeting.
• To ensure that expenditures are within the budget.
• To ensure that financial materials are prepared for the annual financial report/audit.
• To educate all board members to ensure all are aware of their financial responsibilities
• To ensure that a sound investment program is implemented.

Your agency may want to consider policies and procedures under these topics:

• Accounting
• Assets
• Audit
• Banking
• Budget Preparation and Management
• Cash Management
• Control and Safeguards
• Credit
• Expenses
• Fund Development
• Governance and Responsibilities
• Investment
• Legal Requirements
• Payroll
• Other