The mission of the Finance Committee (hereafter called “Committee”) is to:

• Provide support and financial information to the Board of Directors to aid in maintaining the financial soundness of The Cascades Home Owners Association (HOA). 

• Advise the Board on the development and implementation of investment policies.

• Monitor budget implementation and liaising with other Board Committees to coordinate expenditures.

• Drafting the annual budget and conducting monthly reviews of actual to budgeted expenditures.  Based on results the Committee makes recommendations to the Board for any needed adjustments to the budget.
• Preparing quarterly financial reports to the Board.
• Planning capital expenditures based on the facilities depreciation schedule developed by an expert commissioned by the Board in 2007.
• Managing the banking relationships and monitoring how the reserves are invested.
• Coordinating with the other Board committees (landscaping, beautification, etc.) to develop budgets and ensure that the financial impact of initiatives is fully understood by the Board.
• Developing the processes and internal controls required to ensure that only properly authorized expenses are paid.

• Assessment and fee delinquencies.  We have experienced an increase in delinquencies and it is important that we act with expediency to protect our position in case of foreclosure and/or sale by the bank.  A number of options are being reviewed by the committee for recommendation to the Board of Directors.  These options include:  Removing privileges, such as access to the clubhouse, taking residents to small claims court, contacting financial institutions that holds the lien, report delinquent residents to credit bureaus, consider engagement of a collection agency and making sure we file liens on a timely basis.

• Establish delegations and process for making payments.   Developing a detailed process for ensuring that all payments are properly approved and charged to the proper accounts.  Also, for recommendation to the Board of Directors,  establish dollar limits as to what level of expenses need approval by whom (property manager, Treasurer, Board).  Also establish dual control over approval of requisitions, as appropriate.

• Monitor Expenses.   The Committee may meet with various vendors to gain a better understanding of their fee structures in order to estimate expenses and to help develop the 2010 budget. 

• Populating the financial section of the webpage.  Possible items to be included in the section include: 1. the budget and quarterly results, 2. mission statement for the Finance Committee, 3. Reserving spreadsheets with brief analysis, and 4. a status report on all the projects the Committee is working on.

• Improve financial reporting to the Board.  Prepare monthly reports on the HOA financial position for the Board.

• Develop methods for determining reserve adequacy.  Develop a process for monitoring reserves and whether they are adequate.

• Review investment policy.  In the current environment of financial turmoil it is critical that the investment of HOA funds reflects a conservative balance between risk and return.