Finance Committee

Membership:

The committee consists of five to seven certified members of the association, one of which shall always be the current President of FIRMA. The Executive Director reports on all financial matters of the association and is directly responsible for preparing the financial statements via standard spreadsheet software. The Executive Director position is thus a standing member of the Finance Committee. For segregation controls, neither the President nor the Executive Director shall serve as Chairperson of the Finance Committee. For purposes of voting on matters before the committee, it is suggested that the total size of the committee always be an odd number, and that each member receive an individual vote. There is a 7-year term limit for membership.

Functions

Treasury Functions:

The Board of Directors of FIRMA has delegated the day-to-day authority for financial transactions to the Executive Director. This individual, in turn, manages the activities of the agency relationship with Cannon Financial Institute (CFI) for administrative support through a written contract. The independent control for overseeing budgeting, investing, and disbursement done by the Executive Director, rests with the Finance Committee.

Independent Audit:

The Executive Director contracts with an independent certified public accountant to perform an annual review of the financial books and records of FIRMA and prepare the appropriate IRS forms to file the tax return. The Finance Committee shall be responsible for reviewing the work of the independent audit firm and shall approve the tax return and accounting each year.

Disbursement Authority:

  1. The Executive Director shall have the authority to pay recurring or specific expenses of the approved FIRMA calendar year budget up to the amount of $5,000. The periodic transactions to compensate himself for service are governed by a separate contract.
  2. The Executive Director shall obtain approval of the Chairperson of the Finance Committee for any budgeted expenditures over $5,000. Subsequently, this list shall be itemized for the Finance Committee’s attention with the next periodic package of financial reports.
  3. The majority approval of the full Finance Committee is required for ALL UNBUDGETED expenditures.

Investment Authority:

  1. The Executive Director shall recommend appropriate investment strategies, including transfers of balances between and among individual accounts, to the Finance Committee for majority approval.
  2. Other than maturities, no investment may be liquidated without the prior approval of a majority of the Finance Committee.

Committee Meetings:

The Finance Committee will meet (primarily via telephone conference call) no less frequently than quarterly to approve the financial statements submitted by the Executive Director, and will approve all investment transactions in advance of execution. The Executive Director issues monthly detailed financial statements and as available time warrants, the Committee may meet to discuss the volume of activity in a specified time frame. At least once each calendar quarter, the Board of Directors shall review and ratify the approved financial statements.

Supporting Documentation:

Due to the diverse geographical locations of the Finance Committee members, it is suggested the most efficient and economical method of communication is through the use of email and the Internet. The Executive Director shall initiate all correspondence and, due to date sensitivity in executing transactions, shall note that responses must be received by a specific date and time. The Executive Director shall retain a printed copy of the replies authorizing the transactions for the records of FIRMA.

In the event a majority of the committee does not respond by the specified date, the Chairperson of the Committee may authorize the execution of any transactions by e-mail or fax so that supporting documentation can be retained by the Executive Director.