Audit and Finance Committee

Return to the board of directors
General mandate

The Audit and Finance Committee acts as a watchdog over the financial operations of RDÉE Prince Edward Island to strengthen the Board of Directors' confidence in financial matters. To this end, the Committee develops policies and procedures related to RDÉE's financial management practices, provides opinions on its financial health, and makes recommendations for improving financial management. It serves as the link between the Board of Directors and the auditors. Additionally, it proposes the approval of RDÉE's operating budget to the Board of Directors.

Function
  • In order to maintain the independence of the Committee members in their role of overseeing the financial affairs of RDÉE Î.-P.-É., the Audit and Finance Committee reports to the Board of Directors and makes suggestions or recommendations to it. This Committee is a permanent committee.
  • The Committee shall consist of the Treasurer of the Board of Directors (who shall ordinarily serve as Chair) and two other members, preferably from the Board of Directors. If an insufficient number of individuals on the Board possess the required competencies, the Committee may recruit members from outside the Board.
  • If necessary, the Committee may invite employees, other advisors, financial experts, or outside individuals to attend certain meetings, either as observers or to offer advice or suggestions.
  • The Chairman of the Board of Directors shall be entitled to attend all Committee meetings, as an ex officio member.
  • The Committee members shall meet at least four times per year, preferably prior to each Board of Directors meeting.
  • The committee chairman will set the schedule, location, and agenda for the meetings.
  • A committee member will prepare minutes of the meetings.
Selection criteria

It is preferable that Committee members have experience in finance, auditing, and financial management, as well as in policy and procedure development.

Term of office

Members are appointed by the Board of Directors for a term of two years.

Specific Mandates of the Audit and Finance Committee
A) Audited annual financial statements

The Committee reviews the audited financial statements and the recommendations issued by the auditors in anticipation of their adoption by the Board of Directors.
He comments on the management's actions regarding the recommendations of external auditors and proposes, if necessary, corrective measures to the Board.
It also makes recommendations to the Council regarding the renewal of the mandate of the external auditors.
If necessary, the Committee meets with the auditors following the AGM to renew and clarify the audit mandate.
The Committee reviews audit reports and donor recommendations.

B) Annual Budget and Financial Reports

The Committee makes recommendations to the Council for the adoption of the annual operational budget.
Internal financial statements are presented at every Board meeting (Financial reports must be completed by the 30th of each following month.)

C) Procedures and Policies

The Committee develops and reviews RDÉE PEI's financial policies and procedures (including accounting practices) and makes its recommendations to the Council.
The Committee reports to the Board of Directors after each Committee meeting.
The Committee keeps written minutes of its meetings.
He periodically reviews a sample of expenditures in relation to the budget and financial policies and procedures.

D) Internal control

The committee verifies the application of procedures regarding internal controls for the following:

 

  • Minutes of the Council
  • Internal financial statements
  • Bookkeeping
  • Customer accounts
  • Revenue
  • Expenses
  • Cash Management
  • Expense claim
  • Credit cards
  • Allocation of administrative costs to projects
  • Salaries and benefits
  • Contract workers
  • Advancements
  • Director fees

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