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CLHOA FINANCE COMMITTEE CHARTER
Adopted 5-18-01
Revised & Accepted 4-22-03
Revised & Accepted 3-23-04
Revised & Accepted 2/28/06
The Finance Committee is a standing committee established
by the CLHOA Board of Directors. The committee is charged with the
responsibility of assisting the CLHOA Board and 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 CLOHOA
Board. The term of membership to this committee is for three years. To
fulfill this responsibility the Finance Committee is tasked with the
following specifications:
x
Annually review the CLHOA financial procedures and recommend
revisions, as needed, to the Board prior to the commencement of the annual
budget/forecast preparations. Implement the revisions approved by the
Board.
x
In accordance with the guidance provided by the Board and
the Treasurer, assist the standing committee chairs and the community
manager with the development of the annual operating and capital budgets
plus two-year forecasts of operating and capital funding requirements.
x
Assist the Treasurer with oversight of the execution of the
annual operating and capital budgets by the standing committees and the
community manager.
x
Annually, review for adequacy the capital reserves
established for capital asset additions, for replacements of and major
repairs to capital assets, and for other major maintenance. Ensure that
the methodology for determining the size of these reserves is correct.
x
As required, review CLHOA investments of operating capital
and capital reserves. Recommend changes in the investment strategy and
investment vehicles.
x
Work with the Treasurer and the community manager to
maintain and improve the management accounting and reporting systems
necessary for effective financial management of the CLHOA.
x
As required, review the policy and the procedure for
handling delinquent payment of property-owner assessments. Additionally,
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 as 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.
? 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.
? Arrange for
the annual audit of the CLHOA financial records, reports and controls.
Assist the Treasurer in implementing changes to operating procedures and
financial controls recommended by the auditors and approved by the Board.
? Any proposed
project other those specified herein shall be submitted to the Board for
approval before proceeding.
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