Finance Committee

Purpose

The Finance Committee provides financial analysis, advice, and oversight of the organization’s budget (e.g. expenses, income and budget formulation). Their primary responsibility is to ensure the organization is operating with the financial resources it needs to provide programs and services to our PA community.

COMMITTEE COMPOSITION

  1. The Treasurer will serve as the chairperson for the committee.
  2. The committee shall consist of at least 2 PSPA members appointed by the chairperson.
  3. The President is an ex-officio member of the committee.

COMMITTEE CHAIR JOB DESCRIPTION

  1. Be a PSPA member in good standing.
  2. Appoint committee members.
  3. Appoint one member of the committee to serve as the vice-chair.
    • The vice-chair’s responsibility will be to assist the chair with all the functions of the committee as well as be prepared to take over the committee in the unlikely event that the chairperson is unable to complete the functions of the committee. Estimated time needed to fulfill the duties of this position is approximately 2-4 hours per month.
  4. Attend at least three (3) Board of Directors’ meetings per year.
  5. Ensure that accurate, timely, and meaningful financial statements are prepared and presented to the board.
    • Present monthly financial statements to the board
    • Present the findings of the Society accountant’s audit to the PSPA Board of Directors annually.
  6. Ensure that accurate and complete financial records are maintained.
    • Monitor income and expenditures.
    • Complete a quarterly committee report to include income and expense statements for each Board of Directors meeting.
    • Pay society debts and record/deposit revenue in a timely fashion.
    • Monitor and balance the Society’s checking account.
    • Tabulate and have readily available year-to-date spending for the different PSPA organizational divisions.
  7. Oversee budget preparation and financial planning.
    • During the annual Spring Board of Directors meeting, propose for board approval a budget that reflects the organization’s goals and board policies.
    • Ensure that the budget accurately reflects the needs, expenses, and revenue of the organization.
  8. Ensure compliance with federal, state, and other requirements related to the organization’s finances.
    • Ensure that organization maintains adequate insurance coverage.
    • With the assistance of the Society’s accountant, ensure that the IRS Form 990, other forms, and employment and other taxes required by government are filed completely, correctly, and on time.
    • Review and have some knowledge of non-profit laws and tax requirements.
  9. Ensure that the organization has the proper risk-management provisions are in place.
    • With the assistance of the Society’s financial planner, review and make the necessary recommendations for adjustments to the society’s investments.
  10. Review and recommend financial policies to the Board.
  11. Participate in the development of the biannual PSPA Action Plan.
  12. Estimated time needed to fulfill the duties of this position is approximately 10 hours per month
    • Some increased time requirements may be necessary during budget review/recommendation and tax preparation.

COMMITTEE MEMBER JOB DESCRIPTION

  1. Be a PSPA member in good standing.
  2. Attend one scheduled meeting per year to finalize the PSPA budget.
  3. Complete assigned task and report progress to the chairperson regularly by verbal, written, or electronic means.
  4. Expenses for committee business are reimbursable if approved by the Treasurer.
  5. Estimated time needed to fulfill the duties of this position is approximately 2-4 hours per month.

COMMITTEE GUIDELINES

  1. Shall abide by all PSPA and AAPA bylaws and policies.
  2. Board of Directors approval is necessary to enter into any legal or financial agreement on behalf of the Society.

COMMITTEE PROCEDURES

  1. Collect proposed budget requests from each PSPA committee.
  2. Prepare the annual PSPA budget recommendation for Board approval at the Spring Board of Directors meeting.

RESIGNATIONS

A 2-month notice of resignation is requested of the chairperson. It is also recommended that the outgoing chairperson supply the names of two potential replacements that could step into the position. The resigning chairperson should submit all files and copies of the correspondence regarding the committee’s activities to the new chairperson or to the Board Advisor for the committee.

Approved 10/10/00; Reviewed/Revised 11/1/22

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