Our recent posts have covered issues associated with preparing the agenda, the key elements of an agenda as well as the use of an agenda timetable to assist with scheduling relevant issues throughout the year. In the examples provided, issues associated with Financial Management were agenda items forming part of the main board meeting.  They were added to the agenda by the Finance Subcommittee.

The subcommittee is a vital element of any board as it not only provides an effective way to discharge the board’s stewardship, but also allows the subcommittee to spend more time focussing on specific issues.  If you have missed our earlier posts, let me explain that a subcommittee is a branch of the main committee or Board of Management which has been created to focus on one important area of committee work.

As the financial management of any organisation is critical no matter how big or small it is,  we recommend that you establish a finance subcommittee to oversee this area of the organisation.

The name of the subcommittee is not necessarily critical but it is important to be clear about the role it will perform.  Here are some examples of names of subcommittees which reflect the different functions they may perform:

These are just some examples to highlight the different functions a finance related subcommittee could focus on.  If your organisation relies heavily on fundraising, government grants or donations then these may also be reviewed as part of the sub committee.  The important issue is to identify which are the requirements and main issues facing your organisation and from this, determine the best way to address this via a sub committee.   Once this has been done then it is good practice to develop a terms of reference.