Notice: The following is a reference copy of the committee charter. The official charter document may be found on the FCHOA2 website.
FORD’S COLONY AT WILLIAMSBURG
HOMEOWNERS ASSOCIATION, INC.
FINANCE COMMITTEE CHARTER:
WHEREAS, Article III (A), Section 1 of the Ford’s Colony at Williamsburg Homeowners Association, Inc.’s (“Association’s”) Bylaws provides that “the affairs of the Association shall be managed under the direction of a Board of Directors;”
WHEREAS, Article III (C), Section 18 of the Bylaws provides that the Board of Directors “shall have all of the powers and duties necessary for the administration of the Association’s affairs...;”
WHEREAS, Article V of the Bylaws states that the Board may authorize committees to perform such tasks and to serve for such periods as may be designated by the Board, that each committee shall be composed and shall operate in accordance with the terms of the resolution of the Board of Directors designating the committee, that unless otherwise provided in the resolution, the members of a committee shall be appointed by the Board and shall serve at the pleasure of the Board, and that any committee member may be removed by a majority of the members of the Board, with or without cause, at any time, and with or without a successor being named;
WHEREAS, the Board of Directors deems it necessary and desirable and in the interest of the individual lot owners and the Association to establish a committee to advise and assist the Board on budgets, financial statements and other financial matters and policies;
NOW, THEREFORE, THE BOARD OF DIRECTORS RESOLVES THAT a Finance Committee be established, having the following terms of reference:
I. RESPONSIBILITY: The Finance Committee serves at the pleasure of the Board. The primary responsibilities of the Committee are as follows:
A. Review and make recommendations to the Board in preparation of the annual operating and capital budgets of the Association, consulting the Management Agent and members of other Association committees, as necessary.
B. Recommend the adoption of the budgets to the Board and recommend any changes in the homeowners’ assessments that would be required as a result of such adoption.
C. Assist the Board in developing a three-year plan process in order to create realistic reserve funding necessary to avoid special assessments.
D. Review the monthly financial statements prepared by the Management Agent for compliance with the adopted budget and investigate any significant variances, review findings and discuss concerns with the Board.
E. Periodically perform test audits of the financial records of the Management Agent to determine compliance with policies and procedures.
F. Assess performance and quality of current independent auditors and, if deemed necessary, recommend to the Treasurer and the Board any change in auditors; assist the Treasurer and the Board in preparation and review of bids, if necessary. Consideration should be given to bidding the contract for services every 5 years to assure that the Association is getting quality services for a reasonable price.
G. Ensure that a Capital Replacement Study is conducted at least once every five years to determine the necessity and amount of reserves required to repair, replace and restore the capital components of the Association; in conjunction with the Management Agent and Treasurer, monitor actual replacement requirements against plan projections and recommend funding requirements; review the Study annually to determine if reserves are sufficient.
H. Identify and evaluate major projects requiring significant capital or operating funds, including evaluation of financing alternatives and recommend appropriate action to the Board.
I. Recommend investment policies for Association reserves and excess operating funds to the Treasurer and the Board.
J. In conjunction with the Association Treasurer and outside accountant coordinate the timely preparation and filing of the Association's Tax filings.
K. The Committee shall perform such other tasks as may be assigned from time to time by the Board.
II. MANNER OF ORGANIZATION:
A. Membership:
1. The Finance Committee shall consist of at least seven (7) and no more than nine (9) members appointed by the Board of Directors. The Association Treasurer shall be an ex-officio member of the Committee. For the purpose of conducting its business, a simple majority of members shall constitute a quorum.
2. Committee members shall be lot owners in Ford's Colony, however, they may not simultaneously be members or spouses of members of the Association's Board of Directors. The Management Agent shall be an ex officio, non-voting member and will act as an advisor to the Committee.
3. Members of the Board of Directors shall be informed of scheduled committee meetings and may attend and participate in the meetings of the committee but may not vote on any motion before the committee.
.B. Terms:
1. The Finance Committee members shall normally serve a term of three (3) years and shall be eligible to serve no more than two (2) terms consecutively.
2. In an effort to promote continuity, terms should be staggered so that one-third or the closest number to one-third of the Committee membership is appointed or reappointed each year.
3. Terms of committee members will begin on January 1 and end on December 31.
C. The Finance Committee Chair shall be a member of the Committee, shall be appointed annually by the Board of Directors and shall serve no more than two (2) consecutive years in that position. The committee shall designate a Vice Chair who shall be approved by the Board of Directors. Meetings without the presence of the Chair are not anticipated; however, should such an occasion occur, the Vice Chair shall lead the meeting.
D. The Board may remove a member of the Finance Committee, with or without cause. Vacancies may be filled by appointment by the Board.
E. The Finance Committee Chair will designate a recorder from among the committee members. The recorder shall be responsible for maintaining committee records, minutes of meetings, and assisting the Chair in preparing quarterly and annual reports to the Board of Directors.
III. MANNER OF OPERATION: The Finance Committee shall conduct its business in the best interest of the Association and in accordance with this Charter, the Association's Declaration, Bylaws and Rules and Regulations. However, any recommendation to the Board shall be forwarded only when a quorum is present. The Committee will take no action on behalf of the Association without the prior authorization of the Board of Directors as reflected in the Association's minutes.
A. Function of the Chair: Functions of the Chair shall include the following:
1. Coordinate and supervise all committee activities, including subcommittees if applicable, and preside at all committee meetings.
2. Prepare required reports to the Board, including routine quarterly reports.
3. Represent the committee to the Board
B. Meetings:
1. The committee will meet monthly, at a minimum, to review previous month financial statements, and more often as deemed necessary by the Chair.
2. The committee will determine its own meeting agenda.
3. Except as provided in the Code of Virginia for convening in executive session, all meetings shall be open to all members of the Association. Notice of each meeting shall be provided to the Management Agent in time for publication to the membership. At least one copy of the agenda and any supporting material shall be made available for inspection by the membership at each meeting of the committee.
4. Special meetings, with notice to all committee members, may be called by the Chair or upon written request signed by the Association Treasurer or any two members of the committee.
C. Reporting:
1. The Finance Committee will provide quarterly reports, as requested, summarizing its activity to the Board of Directors.
2. The Finance Committee will, annually, provide a written, one (1) year and three (3) year outlook focusing on internal and external events affecting the Association and providing specific recommendations for action where appropriate.
3. The recorder or interim recorder shall prepare and submit through the Chair minutes of all Committee meetings. Copies of all approved meeting minutes shall be delivered to the Management Agent and Board of Directors as soon as practical.