Assist the Russett Community Association (RCA) Board of Directors (BoD) by reviewing and making recommendations about the budgetary and financial affairs and policies of the association.
1. Make recommendations to the BoD regarding:
- Proper recording of financial and non-financial transactions in the official books of record
- Protection and safeguard of financial assets (cash and investments)
- Procedures to insure expenditures are paid in accordance with payment policy
- Procedures to insure revenues are properly recorded and collected
- Proper disclosure of financial information of importance to members (such as the cost of future required outlays for replacement of infrastructure)
2. Assist in the preparation of the annual budget
3. Assist in the engagement of a Certified Public Accountant to prepare financial statements as required by Maryland Statutes and Association By-Laws.
Subject to the provisions of the Russett Covenants, Conditions, and Restrictions, and By-Laws, the responsibilities and functions of the Finance Committee include:
1. Review and provide recommendations to the BoD about:
- Common expense budget, reserve budget, and capital contribution;
- Operating reserves, repair and replacement reserves, and reserve studies;
- Cash flow, cash management, and investments;
- Financial and contracting strategies;
- Managing interest rate and investment risk;
- Financial aspects of insurance and risk management;
- Tax planning and compliance;
- Other matters or issues the BoD desires to have reviewed
2. Report monthly to the BoD.
3. Annually review and make recommendations about changes to the charter of the Committee.
Membership shall include the Treasurer of the BoD and any association members who may wish to participate.
Committee members shall be appointed by the BoD annually. The Committee may form ad hoc subcommittees to research and address specific issues. Subcommittees will report the findings to the Finance Committee.
The membership shall elect committee officers, to include but not limited to, Chair, Vice-Chair, and Secretary. Committee officers shall be confirmed by the BoD.
Meetings will be held on periodic and ad hoc bases and at the call of the Chair. When engaged in the budget process, the Committee shall announce a schedule of meetings to be held with the BoDchartered committees, neighborhood committees and community members to receive input to the proposed budget. All committee meetings shall be open to all RCA members.
Notes will be taken at all meetings, coordinated with all members, approved by the Chair, posted online, and provided to all BoD members. The Secretary shall ensure the notes are created and shall maintain custody of the notes. When the Secretary is succeeded, the record of notes shall be transferred to the new Secretary for continuing the chain of custody.
Standard Operating Procedures
The Committee will document its standard operating procedures for effective and efficient conduct of business. Documenting procedures ensures that all current and future members have a basis for understanding how the committee operates and that all procedures are repeatable. Procedures will be reviewed and updated, as needed.
Quorum shall consist of a majority of membership. All recommendations, changes to this Charter or Standard Operating Procedures made by the Committee shall be voted on with a majority of the quorum.
Obligations of RCA Members
All RCA members shall agree not to publish or disclose sensitive and/or proprietary information obtained through the Finance Committee.
Obligations of Committee Members
Committee members shall hold sensitive and/or proprietary information in confidence. Committee members shall not publish or otherwise disclose information the committee is obligated to maintain in confidence.