Finance & Audit Committee
Purpose
The Finance Committee of the Big Canoe Property Owners Association is appointed by the Board of Directors of the Association. The primary functions of the Committee are to:
Assist the Board and General Manager in fulfilling their responsibilities by providing review and recommendations on:
- Financial policies including investment and debt structure policies
- Financing strategies
- Long range financial plans
- Financial results from operations and the comparison of actual to budget
- Actual capital expenditures vs. capital budget
- Annual operating and capital budgets
The Committee may perform special tasks as requested by the Board, General Manager or Director of Finance.
Membership
1. The Committee shall consist of five to seven members, including the Chair, each as confirmed by the Board of Directors.
2. The Chair of the Committee will be nominated at the beginning of each calendar year by majority vote of a quorum of sitting members. The nominee for Chair is subject to confirmation by the Board of Directors at its next meeting. Committee Members will be recommended by the Chair of the Committee and confirmed by the Board of Directors at the start of the calendar year and at other times when necessary to fill vacancies.
3. The Finance Committee Members, including the Chair, shall serve for a period of up to three full calendar years, subject to the following:
4. The Committee may appoint ad hoc subcommittees as needed to accomplish special projects. All members and the Chairpersons of any subcommittees are subject to approval by the Board.5. Members may be removed in the event of repeated absences from regularly scheduled meetings.
| Bill Thurber | Chair - 2023 |
| Terry Stewart | Board Liaison - 2023 |
| Jim Conneely | 2023 |
| Jerry Wercholuk | 2022 |
| Christi Cohen | 2024 |
| Gene Morgia | 2024 |
| Doug Levi | 2024 |
| Jeff Weigl | 2024 |
| Roger Hackler | 2025 |
Charter
Each member of the Committee shall be independent in their relationship to the day-to-day operations of the Association. Each member shall be financially astute, which includes the ability to understand the Association’s financial statements and cash flow position and the fiscal operations of the organization, as determined during the member recruitment process. All members of the Committee shall have current or past employment experience in finance, accounting, banking and investments, or general business management positions.
The Committee will perform the following responsibilities and duties:
- Responsibilities with Respect to the Financial Operations of the POA
- Establish capital expenditure, budget, investment, and debt structure policies for recommendation to the GM and Board.
- Review and make recommendations regarding the annual operating and capital budgets.
- Review and make recommendations to the GM and Board regarding long term financing and the sale or purchase of any significant Association assets.
- Review the operating performance, budgets, and operating forecasts as they are presented.
- Review the financial impact on the long-range cash projections of any capital expenditure or group of newly proposed capital expenditures in excess of $300,000 and recommend for approval.
- Provide review and analysis of the financial impact of other Capital Projects as directed by the GM and Board.
- Provide review as specified in the investment policy over cash and other investments of operating and reserve funds of the Association
- Perform other duties as requested by the GM and Board.
- Meetings will be scheduled monthly by the Director of Finance or GM to review the results of operations.
- Special meetings of the Committee may be called by the Committee Chair such as during the time of budget preparation. A majority of the Committee members will constitute a quorum. The Director of Finance and the GM will be apprised of the time, place, and topic for the meeting.
- Minutes of each regular meeting will be prepared and sent to the Communications Coordinator to be retained in the permanent records of the Association.
- A verbal report of each meeting of the Committee and actions taken will be provided to the Board by the Chairman of the Committee or his/her designee at the next regularly scheduled meeting of the Board.
Risk Management Sub Committee
Purpose
The Risk Management Subcommittee is a Subcommittee functioning under and reporting to the Finance Committee of the Big Canoe Property Owners Association. The primary function of the Risk Management Subcommittee is to assist the Board and Management in ascertaining that the overall risk management of the Association is appropriate.
Specific responsibilities would include:
- Assisting Management in identifying and evaluating exposures to loss, recommending specific risk management techniques for loss prevention, and reviewing various insurances coverages.
- Meeting with Management and the Association’s insurance broker, on an as needed basis.
- Recommending to the Board and Management the appointment of and/or the termination of the Association’s insurance broker.
- Recommending to Management and the Board an independent risk management consulting firm to review and make recommendations regarding the Association’s risk management programs, practices, and procedures, on an as needed basis.
- Providing advice on possible non-compliance with certain local, state, and federal regulations, as they pertain to risk management policies and procedures, upon request of the Board or Management.
- The Risk Management Subcommittee shall consist of four to five members, including the Finance Committee Chair, the Finance Committee Vice Chair, and at least two subject matter experts. An additional member may be appointed from either the Finance Committee or from the community at large if they were also deemed a subject matter expert.
- The appointment of the Subcommittee members, not already serving as officers of the Finance Committee, shall be confirmed by the Board of Directors.
- The Chair of the Finance Committee shall also serve as Chair of the Risk Management Subcommittee.
- The Subcommittee Members shall serve for a period of up to three full calendar years, except for the Finance Committee Chair and Finance Committee Vice Chair whose terms on the Subcommittee shall correspond to their terms as Officers of the Finance Committee. Other Subcommittee members’ terms are subject to the following:
- a. Proposed new members for any upcoming calendar year may be non-voting attendees at the meetings held prior to their term beginning.
- b. Term expiration dates shall be staggered, wherever possible, such that no more than two members’ terms will expire at the end of any one year. Accordingly, a new member may be assigned a term of less than three full calendar years. The Chair will assign a term expiration date to each member at the beginning of his/her term.
- c. Members must be in good standing with the POA to remain as participating and voting members of the committee.
- d. An exception to the maximum term of three years can be made, with approval of the Board.
Each member of the Risk Management Subcommittee shall be independent in their relationship to the day-to-day operations of the Association. By virtue of their Officer status as Chair and Vice-Chair of the Finance Committee, these two members will have general knowledge of the Property Owners Association financial operations. The subject matter expert Subcommittee members shall have current or past employment experience in risk management and/or insurance business operations.
- Meetings will be held on an as needed basis. Timing of these meetings will normally occur 90-120 days prior to insurance policy renewal dates, to allow adequate time for insurance policy reviews.
- A majority of the Committee members will constitute a quorum. The Director of Finance and the GM will schedule the meeting times and locations and will assist with meeting topics.
- Minutes of each Risk Management Subcommittee meeting will be prepared and provided to the Finance Committee for review, approval, and inclusion in the meeting minutes of the Finance Committee.
- A verbal report of actions taken by the Subcommittee will be provided to the Finance Committee at its next regularly scheduled meeting.
QUESTIONS?
