TALLER SAN JOSE HOPE BUILDERS (10)

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44 HB Fiscal Polices a Procedures Section 12: Fiscal Oversight Roles Et Responsibilities of the Board A. Overview The Board provides effective financial oversight, which includes making financial decisions that further HB's mission, program(s), and goals. B. Description of Roles Et Responsibilities 1. Board Fiscal Oversight Responsibilities • The Board approves HB's fiscal policies, adopting and updating them annually. • The Board is aware and knowledgeable of its fiscal responsibilities. • The Board reviews and approves HB's annual budget. The Board reviews and approves operating, cash, and capital budgets for HB annually, based on Finance Committee recommendations. • The Board monitors key variances between HB's budget and the current financial reports on a regular basis. The Finance Committee receives and reviews variance reports as it deems necessary. Staff provide the Board with reports bi-monthly. • The Board approves large expenditures in excess of a pre-determined limit. HB establishes a threshold amount on purchases for which Board approval is required. 2. Roles of the Finance Committee The Finance Committee takes the lead in reviewing and recommending internal accounting and financial controls, practices, and procedures for HB. A standing or ad hoc committee of the Board reviews large or unusual purchases, relying on expertise appropriate to the requirements of the decision. Appointed committees are authorized to consult with outside experts, as necessary, to fulfill their responsibility and make recommendations to the full Board on these issues. i. Overall Responsibilities • Each Board member of the Finance Committee shall be in good standing and shall be independent in order to serve on this committee. • At least one member of the Committee shall be designated as Finance Committee Chair by the Board. This member must have a background and expertise in fiscal management or accounting. • The Committee reviews its charter annually, reassesses the adequacy of this charter, and recommends any proposed changes to the Board. It considers changes that are necessary as a result of new laws or regulations. • The Committee meets at bi-monthly prior to board meetings. The Committee may ask members of management or others to attend the meetings and provide pertinent information as necessary. ii. Financial Responsibilities • Ensure that accurate and timely financial information is presented to and understood by the Board. Last updated September 2022]