Committee Scope of Work:

• Oversight of Financial Reporting:
  • Reviewing and discussing the annual audited financial statements and quarterly financial reports with leadership and the independent auditors to ensure their accuracy, completeness, and compliance with accounting principles (like GAAP) and legal requirements
  • Reviewing the IRS Form 990 from the external tax preparer with management and providing the Board of Directors with the final Form 990 for approval.
• Independent Auditor Relationship:
  • Responsible for the appointment, compensation, retention, and oversight of the independent external auditors.
  • The auditors report directly to the committee, not leadership, which helps ensure their independence and objectivity.
• Internal Controls and Risk Management:
  • Overseeing the effectiveness of the organization's internal control over financial reporting and risk management systems.
  • This includes reviewing policies and procedures for identifying, assessing, and managing major financial and operational risks, including cybersecurity and fraud risks.
• Compliance with Laws and Regulations:
  • Monitoring the organization's compliance with applicable legal and regulatory requirements, as well as its own code of ethics and conduct.
• Whistleblower Procedures:
  • Establishing and monitoring procedures for the confidential and anonymous submission of employee concerns regarding questionable accounting or auditing matters.

Effective Audit Committee members combine financial expertise with a broad set of skills and personal attributes, including a dedication to the organization’s mission, goals and objectives. Committee members should have a balanced mix of background and experience, with members who are both financially fluent and independent, to effectively execute their oversight responsibilities.

• Financial literacy All members must be able to read and understand financial statements, including balance sheets, income statements, cash flow reports, budget reports, and audit reports. Ideally, members should have a strong accounting or financial management background capable of delving into complex accounting issues.
• Experience leading a finance function within a non-profit organization with complex funding sources. Knowledge of nonprofit-specific accounting principles and revenue streams (grants, donations, investments) is highly valuable.
• Risk Management Knowledge An understanding of enterprise risk management principles and the ability to assess potential financial, operational, compliance, and reputational risks.
• Nonprofit Financial Management Experience Experience in financial analysis, planning, budgeting, accounting, and risk/operations management.
• Leading on Equity Ability to apply an equity lens to financial oversight decisions and ensure our resources support equitable outcomes aligned with our mission.
• Integrity and Independence Members should be independent from leadership and have no material financial or other relationships that could impair their ability to act in the best interest of the organization. They should not be involved in the day-to-day operations or decision-making processes regarding specific transactions under their review.
• Dedication to the mission Members must be committed to the organization's mission and strategic goals. This connection ensures that financial decisions are always evaluated through the lens of supporting the organization's purpose.
• High-level view and communication skills Members must be comfortable asking probing questions from a high-level overview and can interpret complex financial information in a clear and concise way.
• Staying Current Knowledge of current accounting standards, federal and state regulations, and tax laws and requirements, and systems of internal controls