KENSINGTON SQUARE HOMEOWNERS ASSOCIATION, INC.
ADMINISTRATIVE RESOLUTION NO. 12-05
FINANCIAL ADVISORY COMMITTEE CHARTER WHEREAS, the Board of Directors deems it desirable to establish a committee of homeowners to advise the Board of Directors, in a reasonable and productive manner, on issues affecting the financial position of the Association;
NOW THEREFORE, be it resolved that a Financial Advisory Committee shall be established, and that the following procedures for this committee be adopted and implemented herewith:
A. RESPONSIBILITIES
The primary responsibility of the Financial Advisory Committee is to advise the Board of Directors, in a reasonable and productive manner, on issues affecting the financial position of the Association. In accomplishing this goal, the Board of Directors shall assign the committee with tasks from time to time that may include but not be limited to, those listed below. The scope of tasks that are appropriate for committee delegation may increase with the substantial completion of development activities.
Providing the Board of Directors with recommendations regarding:
• Review the monthly financial statement and supporting documentation prepared by the Association’s managing agent and identifying any issues or concerns for Board consideration
• Identification of potential capital improvements or landscape enhancements; funding requirements and phasing
• Reviewing and making appropriate recommendations related to Association investment policies for replacement reserves and operating reserves
• Receiving and reviewing discretionary programmatic funding recommendations from other Association committees for inclusion in the annual operating budget, including analysis of the financial impact of committee funding recommendations
• Reviewing the annual operating budget draft, prepared by the Associations managing agent and making appropriate recommendations for Board consideration
• Review and recommend changes, where appropriate and correct, to the annual draft audit prior to the Board of Director’s acceptance of same B. ELIGIBILITY
Committee candidates and members shall be property owners in good standing. Good standing shall be defined as the absence of any liens, privilege penalty, assessment delinquency, architectural or covenants violation, or pending legal action with the Kensington Square Homeowners Association.
C. APPOINTMENT AND TERMS
Available committee seats will be advertised at least fourteen (14) days prior to appointment. Recruitment of candidates may be done through the newsletter, posting in the community center, announcement at the Annual Meeting, or by any other means deemed appropriate by the Board. The Board of Directors will strive to ensure that members from varying house types and locations within the association are represented on its committees.
Interested homeowners must submit a written request for appointment to the Managing Agent. Committee members in good standing are eligible for reappointment.
The Board of Directors will announce committee appointments each year at the Annual Meeting for terms beginning in January of the following year. The Board of Directors may make additional appointments throughout the year if vacancies occur.
Committee terms will be staggered so that approximately one half of the committee positions will become available each year. In order to appropriately stagger committee terms, the Board shall initially appoint two members for a two-year term and one members for a one-year term. Thereafter, committee members will be appointed for two-year terms. Members appointed to fill vacancies that occur during the year shall serve for the remainder of the term of the committee member they are replacing.
D. REMOVAL
The Board of Directors may remove any committee member, including the chairperson, at any time.
The committee may make recommendations to the Board of Directors regarding the removal of committee members.
A committee member may be removed, upon written notice from the committee chairperson, for failure to attend three consecutive committee meetings without notice or explanation.
E. ELECTION OF OFFICERS
The Board shall appoint the Chairperson of the committee. In January of each year, members of the committee may make recommendations to the Board of Directors for the appointment of a Chairperson. Other officers of the committee may be elected by the committee membership. At a minimum, the committee shall elect a Secretary who shall be responsible for recording accurate minutes of the committee’s meetings and submitting them to the Community Manager, in a timely manner, for inclusion in the monthly Board meeting package and for posting on the web site. Minutes shall include a record of the date, time and place of each meeting. Minutes shall also include a record of committee member attendance and all votes of the committee.
The Chairperson, or his or her designee, shall be responsible for chairing meetings of the committee. In addition, the Chairperson is responsible for responding in a timely manner to committee e-mail messages forwarded from the web site.
F. MEETINGS
All committee meetings shall be open to the membership. In order for the membership to be reasonably informed of committee meetings, the committee Chairperson shall ensure that all regular committee-meeting dates of the committee are listed in the newsletter, on the web site, posted in the community center and publicized through any other means of posting that the Board deems appropriate. If it is necessary for the committee to reschedule or cancel a meeting, the committee Chairperson shall notify the management staff at the earliest possible time so that the membership can be reasonably notified. The Committee Chairperson shall be responsible for contacting the members of the committee regarding rescheduled or canceled meetings. The Committee Chairperson shall designate a limited time period on each meeting agenda for resident input at the beginning of each meeting.
A majority of the members shall be three (3) with a five-person committee or at least 51% of the overall SMC membership. A majority vote of members while a quorum is present shall constitute a decision of the Committee. All Committee meetings shall be conducted generally in accordance with Robert’s Rules of Order.
Some FC review requirements, to be determined by the simplicity of the request, may be decided via an e-mail exchange to facilitate a quick turnaround without the need for an actual meeting. These will be on a case-by-case basis as determined by the FC Chairperson. These decisions will be submitted to the Board in the same matter as used for normal committee meetings and reporting via the Kensington Property Manager.
G. COMMUNICATIONS
In the interest of ensuring strong communications between the Board of Directors and the Committee, it is expected that the Committee Chairperson, or his or her designee, will attend each regularly scheduled business meeting of the Board of Directors. The Committee representative will present committee recommendations, update the Board on the status of pending committee tasks, request assistance from the Board, as needed, and answer any questions the Board may have regarding committee assignments.
The Committee is expected to maintain regular communications with the Board Liaison designated by the Board of Directors, if any, and with the Kensington Property Manager.
It is expected that the Committee will provide accurate and timely information about its activities for publication in the newsletter, on the web site and other communication vehicles of the Association. It is the responsibility of the Committee to ensure that this information is updated on a regular basis.
H. SUB-COMMITTEES
The Committee may designate volunteer sub-committees to work on specific projects on behalf of, and at the direction of, the Committee. Sub-committee volunteers are not voting members of the Committee unless they have been appointed as such in accordance with Paragraphs B & C of this resolution.