PURPOSE


To prepare a balanced operating budget for the Association, arrange for an annual audit, establish a policy for expenditures, and assist the Secretary/Treasurer in administering and accounting for all financial affairs of the Association.


COMPOSITION

One member of the Board of Directors, two members of the Association at large, and the Secretary/Treasurer.


PROCEDURES

  1. Prepare a balanced operating budget of estimated revenues and expenditures for the Association, to be presented to the Board of Directors for their consideration at the board meeting most closely preceding July 1. The budget shall be adopted by the Board of Directors by July 1, in order to fit in with the financial management arrangement with the N.C. League of Municipalities.
  2. Conduct an audit of the Association's financial records within three months of the close of the fiscal year. Upon completion of the audit, notify the NCLM’s finance officer of the results of the audit.
  3. The Secretary/Treasurer shall present quarterly reports of financial activity to the Board of Directors. A year-end report of financial activity in the preceding fiscal year will be presented at the January business meeting. The chairperson or another member of the Finance Committee shall make the report in the absence of the Secretary-Treasurer.
  4. Prepare or arrange for the preparation of the Association's annual tax return (IRS Form 990--Tax Return for Organizations Exempt from Income Tax or 990EZ as appropriate), to be completed and filed with the IRS by November 15. (Note that the service agreement with the League excludes tax returns from the provided services.)
  5. The Chairperson, prior to the expiration of his or her term, shall review this portion of the Association Handbook and furnish the incoming President with written recommendations that would improve the efficiency of the committee based on experience in working with these guidelines.