With the start of the new financial year, it is an ideal time to review the performance of the Finance SubCommittee.

Depending on your constitution, often at the Annual General Meeting (AGM) all Board positions and subcommittees become vacant so new appointments will need to be made.  Therefore, in the time leading up to the AGM, it is a good opportunity to undertake an evaluation of your finance subcommittee and its performance.

This evaluation should not be done in a critical way but should identify whether there needs to be any changes to help improve the performance and meet the strategic objectives of the organisation.

In addition, the committee of management should also be involved with this process.  In particular, their involvement should include, for example, an evaluation of the information, reports, recommendations or any other advice coming from the finance subcommittee and how relevant and useful the information was in subsequent decision making.

This also highlights the need to ensure the values, purpose and the strategic objectives are clear as this provides a framework for the finance subcommittee to operate within.

The next post will discuss some key issues to include as part of the evaluation of the finance subcommittee.