GIVEN THAT THE Bylaws of The GlenRiddle Community Association, Inc., ARTICLE 10, provide that the Board of Directors may appoint committees as deemed appropriate
GIVEN THAT the Board of Directors recognizes that a healthy and active committee structure is essential to the effective operation of the Association; and
GIVEN THAT the Board of Directors deems it reasonable and prudent and in the interests of the Members to establish an Advisory Committee to advise and assist it in managing the financial assets of the Association;
NOW, THEREFORE. THE BOARD OF DIRECTORS RESOLVES THAT a Budget and Finance Advisory Committee be established, having the following terms of reference:
The primary responsibility of the Budget and Finance Advisory Committee is to advise and assist the Board of Directors in prudently and efficiently administering the Association’s assets in order to meet both the requirements of the Community Constitution and Bylaws and the needs and the desires of the Community Founder and members.
1. The Budget and Finance Advisory Committee is a Standing Committee appointed by the Board of Directors of GlenRiddle. The Committee works closely with the Managing Agent and shall consist of a Chairperson, also appointed by the Board of Directors and four (4) other Resident voting members in good standing with the Association.
2. The Chairperson shall organize and supervise the Committee’s work based primarily on these approved Terms of Reference, establish a meeting schedule, plan agendas for meetings, submit timely written reports on the Committee’s activities and progress, and finally, submit the Committee’s recommendations to the Board of Directors.
3. The Budget and Finance Advisory Committee may meet at a designated time at the Community Center. All meetings of the Budget and Finance Committee shall be open to all members of the Association and be held in accordance with Section 3.10 and Section 6.1 of GlenRiddle Community Association Bylaws. The Committee may from time to time establish working groups of interested residents to research specific areas.
4. The Budget and Finance Advisory Committee may identify major areas of concern in the current and out-year budgets and recommend financial management approaches to the Board of Directors that will moderate Resident assessments while maintaining the quality of services and amenities offered and be consistent with the overall plan for The GlenRiddle Community as put forward in The GlenRiddle Disclosure Documents and the overall plan of the Community Founder.
5. The Budget and Finance Advisory Committee may review existing contractual, purchasing procedures, and other contracts that result in a financial obligation to the Association. The Committee may, working with the Management Agent, research opportunities to improve these arrangements for the benefit of the Association. The Committee shall be provided the opportunity to review and comment on future major obligations before they are incurred. However, such review and comments process shall not unreasonably delay recommendations from Management and the decision-making process of the Board of Directors.
6. As part of their financial management efforts, the Budget and Finance Advisory Committee may review requirements for contingency and reserve funding for possible major future capital improvement/replacement.
7. The Budget and Finance Advisory Committee may periodically review reserve fund investments and provide recommendations to the Board of Directors on types and sources of investment opportunities. Such recommendations shall ensure the safety and preservation of the principal, liquidity of the funds, and return on invested funds, in that order of priority.
8. The Committee may review requirements, recommendations, and priorities for amenities and services, submitted by the Residents through the other Standing Committees and determine the cost implications to the budget, but such recommendations shall not adversely impact the management and financial plan of the Board of Directors or the overall plan of the Community Founder for the operation of the Association. This information shall be provided to the Board of Directors with the recommended actions as part of the written quarterly report presented prior to the Board of Director’s Meetings or more frequently, if necessary.
9. The Budget and Finance Advisory Committee advises the Managing Agent during the development of the annual budget. Comments and recommendations shall be completed in time to provide Management with the necessary information to complete its draft budget.
10. The Budget and Finance Advisory Committee shall review actual versus planned expenditures at each meeting. Significant deviations or other concerns will be reported to the Board of Directors for further action.
The Budget and Finance Advisory Committee may establish formal mechanisms for Residents to communicate with the Committee. In addition, Committee members shall be available throughout the year to address Resident questions and concerns regarding the budget. However, the Managing Agent and the Board of Directors shall be the source of answers to specific budget questions.
IN WITNESS WHEREOF, the undersigned, being the Secretary of the GlenRiddle Community Association, Inc., has caused this Policy to be adopted on this 14th day of May 2020.
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