Consistent with Article VIII, Paragraph 8.12 of the Academy Bylaws and Article XIII, Paragraph 13.16 of the Association Bylaws, the Finance Committee "shall manage, supervise and control the financial affairs of the Academy and Association."
- Comply with the Strategic Plan as adopted by the Board of Directors, and ensure that the organization-wide goals of unity and diversity are considered in all activities.
- Recommend to the Board policies and procedures that will ensure fiscal responsibility.
- Present to the Board the annual operating, capital and product development budgets with recommendations to balance the operating budget.
- Review financial performance monthly and identify areas requiring further investigation. Report to the Board programs not meeting financial projections and authorizations.
- Review new programs and business plans before presentation to the Board and report a recommendation to the Board with comment on the following criteria:
- Compliance with the Strategic Plan, particularly related to the Board-approved diversity and unity goals.
- Availability of sufficient resources to fund the activities.
- Demand for the activity.
- Projected profit/loss of the activity.
- Measures of success for the activity.
- Monitor and supervise AAOS investments, including
- Review investment results monthly.
- Authorize staff to buy/sell securities within Board-approved asset allocation ratios.
- Select/oversee investment advisors and managers.
- Review (and, if appropriate, amend) the Investment Policy at least annually.
- Recommend to the Board changes to asset allocation policy.
- Review internal audit projects and results at least annually.
- Work in conjunction with the Leadership Review Group to identify programs that are not meeting their goals and recommend to the Board remedial action.
- Function as the Compensation Committee: President, First Vice- President, Second Vice-President, Past-President, and Treasurer are all voting members.
- Function as the Retirement Savings Committee along with the Chief Financial Officer all as voting members.
The Finance Committee is responsible for the following audit activities:
- Select an independent auditing firm;
- Meet with the firm at least annually both in open and executive sessions;
- Review with the independent auditors the audit scope, plan and coordination;
- Review the firm's annual audit findings, internal control findings and recommendations, critical accounting policies and procedures, and significant risks or exposures;
- Review with the auditors and management any unique accounting initiatives and transactions;
- Obtain outside financial expertise when needed;
- Report the independent auditing firm's findings to the Board; and
- Review the Committee's "audit" responsibilities and effectiveness annually.
Reports to the Board of Directors
Treasurer, Chair of the Committee
Presidential Line (ex officio)
Treasurer-Elect (ex officio)
Chief Executive Officer (ex officio)
Term of Office
Treasurer - Three (3) Years
First Vice-President and Past-President - One (1) Year
Ex officio members - For Duration of Title
Staff Liaison (title)
Chief Financial Officer
Last updated: 3/31/10