Organizational Structure

Financial Committees

Through its financial committee’s structure, the board can help carry out its accountability function. Whenever possible — when the board is large enough and the necessary financial acumen is present — the board should strive for forming separate finance and audit committees. If the organization has an endowment or other sizable investments, it probably also needs a separate investment committee. In smaller boards a finance committee may have to carry on various functions. If this is the case, it is important for individual board members to always understand which role he or she is fulfilling at any given moment.

Additional references:

BoardSource book Financial Committees