CLHOA FINANCE COMMITTEE CHARTER
Adopted 5-18-01
Revised & Accepted 4-22-03
Revised & Accepted 3-23-04
Revised & Accepted 2-28-06
Revised & Accepted 4-27-09
The Finance Committee is a standing committee established by the CLHOA
Board of Directors (BOD). The committee is charged with the
responsibility of assisting the BOD and coordinating with the CLHOA
Treasurer in ensuring that the financial resources of the homeowners’
association are prudently managed to maintain or expand the CLHOA owned
physical facilities and to provide the various amenities approved by the
BOD. The term of membership to this committee is three years.
To fulfill this responsibility the Finance Committee is tasked with the
following specifications:
Review the Budget Preparation and Execution Procedure with the Treasurer
and make recommendations for necessary revisions prior to the
commencement of the annual budget preparation process. Coordinate
with the Treasurer in development of new financial documents and the
annual review of existing financial policies and procedures. Recommend
appropriate changes to the documents and implement revisions approved by
the BOD.
Annually coordinate with the Treasurer in developing the
inventory/budget guidance for approval by the BOD. Assist the
standing committee chairs and the Community Association Manager (CAM)
during the budget development process. Review the proposed budgets
with the committee chairs and the CAM. Document questions and
recommendations to be presented to the BOD during their budget review
sessions.
Assist the Treasurer with oversight of committee chairs and Community
Manager in execution of operating and capital budgets. Review monthly
financial statements with the Treasurer prior to their submission to the
BOD.
Annually review the policies relating to, and the adequacy of, reserve
funds. Ensure that the methodologies for determining the size of
all reserves are correct.
As required, review CLHOA investments of operating and reserve funds.
Coordinate with the Treasurer and recommend changes in the investment
strategy and investment vehicles.
As required, work with the Treasurer and the CAM to maintain and
improve the management accounting reporting systems necessary for
effective financial management of the CLHOA.
As required, review the policy and the procedures for handling
delinquent payment of property-owner assessments. Monitor the
status of any Claims of Lien filed as a result of delinquent payments of
annual charges, dues, mowing fees or special assessments to determine:
a. If the amount of the delinquent account
has increased significantly enough to justify filing of a new Claim of
Lien or,
b. If a new Claim of Lien is required
because 30 months have lapsed since the original Claim of Lien was
filed.
Annually, review the adequacy of the CLHOA insurance program and
coordinate a report to the community explaining the program.
Annually, ensure that the inventories of capital assets, real property,
and other designated tangible assets are current and properly recorded
in the financial statements of the CLHOA. While the Treasurer is
the manager of the Master Asset List (MAL), the Finance Committee will
maintain the MAL and the Reserve Model. Ensure that the Reserve
Model generates the Depreciation Schedules when required.
Every five years, evaluate the need for a formal (contracted) Reserve
Study and make a recommendation to the BOD.
Coordinate with the Treasurer and arrange for the annual audit of the
CLHOA financial records and the filing of the required tax returns.
Assist the Treasurer in implementing changes to operating procedures and
financial controls recommended by the auditors and approved by the BOD.
Any proposed project other those specified herein shall be submitted to
the BOD for approval before proceeding.