The Finance committee serves in an advisory capacity to the Association Board of Directors on Budget, Asset Replacement study expenditures and funding, and other financial issues.
This Committee works closely with the Board of Operations Director and the Grounds Superintendent, making Certain that funds are available for all maintenance and repairs of our common buildings, Golf Course, common area Gardens and Greenways.
The Finance Committee is composed of at least 5 and not more than 10 members who apply to the committee to be recognized and accepted as qualified members. The Committee attempts to maintain a membership of individuals who have a level of understanding or experience in areas appropriate to the Committee’s duties. There are currently 9 members on the Committee. Each member serves for a 3-year term and may serve for 2 consecutive terms if they choose to apply to the committee for that extension. Members rotate off in 2-year intervals. The Treasurer of the Board of Directors serves as an ex officio member and as the Board Liaison to the Committee.
The Committee elects its Chairman who is then approved by the Board and the group also selects a Secretary from its body at each meeting to record the minutes. The Committee meets monthly on Wed. afternoon (1:00) prior to the Board of Directors meeting on the 3rd Friday of every month. The committee meetings are open to the resident owners of Salemtowne and they may submit a request to address the Committee in regard to concerns they may have.
Minutes of the Finance Committee meetings are recorded and distributed to members, the Association Treasurer, and to the Salemtowne office. Minutes of the previous meeting are distributed to members promptly and approved by members at the next meeting of the Committee.
Responsibilities:
- The Committee shall approve a budget format and assist the Treasurer in the preparation and recommendation of an annual operating budget, keeping in mind the primary goal is to assure financial stability and to establish the annual assessment.
- The Committee monitors the Annual Replacement Fund (ARF) monthly with a regular review program each year to assure the funds for replacement are adequate in relation to inflation and cost of living considerations. When funds are requested for replacement or repair from the ARF, the Finance Committee reviews the request and makes the appropriate recommendation to the Board of Directors for approval.
- The Committee shall conduct a review of the Association’s business each year after receipt of the financial review or audit by an outside accounting firm. The Committee shall investigate and recommend correction to any exceptions appearing in the report expressed orally by a representative of the accounting firm. In this connection, members of the Finance Committee will attend the Board meeting or special meeting at which representatives of the accounting firm present the results of their annual examination to the Board.
- The Committee shall assist the Board in providing for the control of revenue and expenditures and for the promotion of efficiencies and economies in the expenditure of Salemtowne Association funds. The Committee shall recommend revenue opportunities if appropriate. The Chairperson can suggest Committee review or discussion on any financial matter relating to Association business.
