Internal Controls and Accountability, Transparency, and Risk Management

Finance Committee responsibities with regard to Internal Controls and Accountability, Transparency, and Risk Management include:

1. Create, approve, and update (as necessary) policies that help ensure the assets of the organization are protected.
2. Ensure policies and procedures for financial transactions are documented in a manual, and that the manual is reviewed annually, and updated as necessary.
3. Ensure approved financial policies and procedures are being followed.
4. Ensure that regulatory and governmental filing deadlines are met.
5. Ensure that adequate insurance coverage is in place.
6. Ensure that bank account signatories are up to date.
7. Ensure that staff has adequate skills and training in financial processes and analysis.

Although the entire board carries fiduciary responsibility for the organization, the finance committee serves a leadership role in this area, making sure appropriate internal control procedures for all financial transactions are documented in a manual and are followed by all those involved with the organization’s finances. The committee will also play a role in determining and updating bank account signatories as well as ensuring that adequate insurance coverage is in place, that all legal and governmental filing deadlines are met, and that tax deposits are made on time. A good strategy is to create a checklist with deadlines and responsibility assignments.