Home

Budget & Finance Committee Charter

Submitted by Chris Casey on October 21, 2006 - 9:58pm
ARTICLE 3, ENCLOSURE 1
STANDING COMMITTEE CHARTERS
BUDGET AND FINANCE COMMITTEE CHARTER
  1. BACKGROUND: The Budget Committee has been tasked with the development of a budget for approval of the Board of Directors to ensure that sufficient funds are available to meet the bonafide requirements for a one year operating cycle and also provide funds for a contribution to reserves.

  2. OBJECTIVES:

    1. To ensure that sufficient funds are programmed in the annual operating budget to provide Board-directed and community expected services, security and ground facilities maintenance.
    2. To ensure adequate reserve funds are retained, collected and allocated for the purchase and maintenance or required capital equipment to include the expansion, repair and refurbishment of common facilities.
    3. To make recommendations to the Board of Directors concerning the establishment of formal policy related to the financial management of the Association.
  3. GUIDANCE:

    1. The Budget committee has been appointed to perform those necessary,
      1. to assist the MPOA Board of Directors in establishing the annual budget as prescribed in Article 4, Section 4.1 of the MPOA Amended Declaration, and
      2. to assist the MPOA President and MPOA Treasurer in the performance of their duties concerning financial matters as authorized in Article 7 of the MPOA Bylaws.

    2. The Budget Committee is to coordinate their activities under the direction of the MPOA President and Treasurer and is to work in close harmony with the MPOA Community Manager, Accountant and effected Committee Chairpersons.
  4. REQUIREMENTS:

    1. Develop a proposed budget for the coming fiscal year for approval of the Board of Directors.
    2. Develop and generate a proposed assessment which will support the proposed budget.
    3. Review budget proposals made by the MPOA Manager, department heads, committee members effected by the budget and any interested property owners.
    4. Make periodic, at least quarterly, reviews of the current operating budget to determine if current year budget revision should be recommended to the Board of Directors.
    5. Periodically review the MPOA Reserve Fund and any other MPOA financial matters to determine if any recommendations should be made to the Board of Directors.
    6. Evaluate previous fiscal year budget execution and then recommend any required action which should be taken by the Board of Directors to ensure closer adherence to future budgets.
    7. Forward initial drafts of the proposed budget to the Board of Directors as deemed appropriate.
    8. Present the fiscal budget proposal to the Board of Directors for approval at the December Board of Directors meeting.

  5. ADMINISTRATION:

    1. Article 3 of the community Guidelines of Montclair (Committees) will be used as the basic document for administration of the Committee activities.
    2. The Committee is responsible to the Board of Directors under the administration of the MPOA Treasurer. The Community Manager will assist the Treasurer and will provide administrative support to the committee.
    3. Membership of the committee shall include the MPOA Treasurer.
    4. The Budget Committee meetings at which the proposed budget is discussed and compiled will be open to all property owners. Preliminary discussions and organizational meetings may be closed to the public.


Home