- The primary function of the RISK AND FINANCE COMMITTEE (RFC) is to assist the Board of Trustees of NWTF in fulfilling its oversight responsibilities by reviewing:
- All periodic financial reports that will be provided to the Board including periodic internal reports, annual audited financial statements, annual budgets and strategic plans;
- The process for identifying and recruiting services in the areas of legal, banking and borrowing services;
- The investments of NWTF to ensure they are consistent with NWTF’s objective to achieve its vision, mission, and goals. The Committee assesses and makes recommendations regarding investments issues and develops and leads the process for investment policy and strategy.
- The primary responsibility for the financial reporting, information systems, risk management of the organization is vested in NWTF’s management and is overseen by the Board.
- The Risk and Finance Committee shall be comprised of SEVEN (7) members with three (3) Trustees, and two (4) non-Trustees who may be management representatives or non-Board foundation members.
- Committee members shall be appointed by the Board in accordance with the Guidelines for Committees of the Board [Section 2N].
- Any Committee member may be removed by the Board.
- Each Committee member shall be financially literate or shall become financially literate in a reasonable amount of time following appointment to the Committee.
- The Committee shall operate in a fashion that is consistent with the Guidelines for Committees of the Board, which are outlined in Section 2N of the Board Governance Manual.
- The Committee has access to NWTF’s senior management and documents as required to fulfill its responsibilities and is provided with the resources necessary to carry out its responsibilities.
- The Committee provides open avenues of communication among management, employees, if any, external auditors and the Board.
- The Committee shall meet at least twice per year.
- The Executive Office Manager shall be the Secretary to the Committee.
- Financial Statements & Other Financial Information
The Committee shall review and recommend for approval to the Board, financial information that will be made publicly available as well as key internal financial information. This includes the following:
- Periodic Financial Statements;
- NWTF’s Audited Financial Statements
- NWTF’s Annual Report, where appropriate;
- Annual Operating Budget; and
- Any long-term Financial Plans.
- 2. Risk Management, Internal Control and Information Systems
The Committee will review and obtain reasonable assurance that the Risk Management, Internal Control and Information Systems are operating effectively to produce accurate, appropriate and timely management and financial information. This includes:
- Reviewing NWTF’s Risk Management Controls And Policies;
- Obtaining reasonable assurance that the Information Systems are reliable.
- Approving and monitoring compliance with the levels of signing and spending authority policy (tab c-8); and
- Monitoring compliance with applicable laws and statutory requirements.
The Committee will:
- Review, monitor and make recommendations to the Board with respect to the status of NWTF’s instruments of borrowing;
- Review insurance coverage for significant risks and uncertainties;
- Review material litigation and its impact on financial reporting;
- Review policies and procedures for the review and approval of management expenses and prerequisites.
- Not less than every three years, review the selection of legal counsel and banking services.
The Committee has the responsibility to:
- Lead the process of the development of investment policy and strategy, if any, for recommendation to the Board.
- Annually review, monitor and make any recommendations regarding the investment policy and guidelines for the endowment and/or designated funds of NWTF, if any.
- Annually review, monitor and make recommendations regarding the performance of the investments, if any.
- The Committee Chair has the responsibility to make periodic reports to the Board, as requested, on financial matters of NWTF.
- The Committee shall report its discussions to the Board by maintaining minutes of its meetings, distributing minutes at the next Board meeting, and providing an oral report where required at the next Board meeting.