Policy 1.094

Finance Committee

1. Purpose.-- The School Board hereby establishes a Finance Committee as an advisory committee to the Board, whose primary purpose is to advise the Board on matters related to Board Policies 6.08 (Investment Policy) and 6.085 (Debt Management Policy) and the consistency of such matters to § 218.415, Fla. Stat. (Local Government Investment Policies). The Committee shall be governed by its charter, as set forth herein.

2. Advisory Authority

   1. The Finance Committee serves as an advisory committee to the School Board. Its mission and membership is consistent with School Board Policy 1.09, "Advisory Committees to the School Board."

   2. The Finance Committee shall advise the Board on matters related to the School District's investments and its short-term and long-term obligations as provided for in Board Policies 6.08 (Investment Policy) and 6.085 (Debt Management Policy) and consistent with § 218.415, Fla. Stat., "Local Government Investment Policies."

   3. The Finance Committee shall have regular quarterly meetings. Additional meetings may occur as needed. A quorum shall consist of 40% (rounded to the nearest whole number) of the existing voting members.

   4. To facilitate preparation for committee meetings, the agenda and backup materials should be available to members a week in advance of each regular meeting. If a special meeting is called, the agenda and backup materials should be available upon calling and noticing the meeting, at least 48 hours in advance.

   5. The Committee is advisory to the Board and will present reports to the Board that may include dissenting viewpoints. Whenever a recommendation of the Committee on a substantive issue is reported to the School Board and the recommendation was not unanimous, the basis for the majority and minority positions should be brought to the attention of the School Board.

3. Composition

   1. The Finance Committee shall be composed of seven voting committee members, who shall be appointed by the School Board as provided in this section and Policy 1.09 (Advisory Committees to the School Board).

   2. The seven committee members shall be residents of Palm Beach County and shall be appointed by the School Board upon nomination by a Board member. Each School Board member shall appoint a member to the Committee.

      1. In selecting committee members, emphasis should be upon persons who have substantial experience in the financial services industry or who have retired from finance-related professions.

      2. As to nominating new committee members, the committee may provide input to the Board and constitute and appropriate source for the names of potential nominees for membership with the preferred experience, as set forth in Policy 1.09.

   3. Committee members serve in a voluntary capacity, and the membership of a committee member who was nominated by a Board member continues consistent with Policy 1.09. If a vacancy exists as to the position of an appointing Board member, the committee member(s) appointed by that Board member may continue to serve as a voting member until and unless the new Board member decides to remove that committee member.

   4. After the initial appointments forming the Finance Committee, the committee members may continue to serve as members until such member resigns or is removed from the Finance Committee, as stated in subsection 3(c). In the event a committee member vacancy should occur, the Board may appoint a replacement at a regular or special Board meeting. To fill a vacancy, the source of the nomination shall be the same as it was for the member whose seat has become vacant.

      Committee members will be removed automatically should they miss three consecutive regular meetings, unless, by request of the member, the Chair grants compassionate leave due to personal, business, or familial exigency. A quarterly report will be made to the Board regarding the attendance of appointed committee members.

   5. Committee members shall annually elect a Chair and a Vice Chair.

   6. The Superintendent (or designee), the Chief Operating Officer, Chief Financial Officer, District Auditor, the Chief Counsel or designee, Treasurer, and other designated staff as requested by the committee, should attend the meetings to answer questions and to provide information to the committee. The Treasurer shall serve as the staff liaison and support for the committee.

4. Key Areas of Advisory Responsibility

   1. Investment Portfolio.-- The committee's first area of responsibility is the quarterly review of the School District's Investment Portfolio as further defined in School Board Policy 6.08, "InvestmentPolicy." At a minimum, the Finance Committee will review the Policy annually and comment on the adequacy of the policy in one of its quarterly reports to the School Board. However, it is not within the Finance Committee's charge to make investment recommendations regarding the acquisition or disposal of specific investment securities.

   2. Short-Term and Long-Term Obligations.-- The second area of responsibility is regarding the debt of the School District. The Finance Committee will review all proposed financings and provide recommendations to the School Board. Upon the implementation of Policy 6.085, "Debt Management," the Finance Committee will review that Policy at least every two years and comment on the adequacy of the Policy in one of its quarterly reports to the School Board.

5. Meeting; Quorum; Conflicts of Interest; and Rules of Procedures

   1. Robert's Rules of Order shall guide the conduct of Finance Committee meetings. These meeting-procedure Rules may be suspended for a meeting or portion thereof by a simple majority vote of a quorum of voting members present at the meeting.

   2. Under the following circumstance, Finance Committee members may attend meetings and participate at meetings through the use of an interactive video and/or telephone systems, as long as a quorum of voting committee members are physically present at the meeting: Voting members of the committee may participate and vote by the use of electronic media technology to allow a member of the committee who is not physically present to attend the meeting, in those instances where the Committee member is confined to home or hospital due to illness or accident or in those situations where the Committee member's absence is due to a death or serious illness of an immediate family member. Any other situations which cause a Committee member to be absent from a meeting will require a vote by majority of the Committee, based only on extraordinary circumstances as required by law, to allow the committee member to participate by the above referenced technology.

   3. No committee member or any company in which the member may have a direct financial interest shall do business with the district, as the committee member is subject to those standards within § 112.313, Fla. Stat. and relevant ethics opinions issued by the Florida Commission on Ethics.

   4. The Finance Committee's meetings shall be subject to the open meeting provisions of § 286.011, Fla. Stat. Absent permission from the Chair, public comment speakers may address the committee for no longer than three (3) minutes at the appropriate time. The committee, however, may vote to limit the time to a lesser amount due to the volume of speakers or the amount of time scheduled for a meeting.

   5. All documents maintained by persons in their capacity as Finance Committee members are subject to public disclosure unless exempt under § 119.07, Fla. Stat. or other statutes.

   6. A unanimous vote will be considered if all committee members voting (not abstaining due to potential conflict of interest) audibly vote "yes", show by hands a "yes," or all those who are voting and present have indicated a "yes" vote on the e-agenda system, or if they remain silent it will also mean consent (unless they abstained due to a potential conflict of interest.) However, if a member votes "no" on the e-agenda, audibly, or by a show of hands, it will then be considered a split vote. If a vote is evenly tied for and against a measure, such tie vote shall defeat the measure. For each vote, the Chair or acting chair shall announce the vote, and the names of any member in dissent, after it is tabulated.

6. Charter Expiration Date.-- Consistent with Policy 1.09(1)(f), the Finance Committee charter as set forth herein in this Board Policy shall remain in effect until repealed or amended by the School Board. Following appropriate procedures for revising or repealing this Policy, the School Board may modify or terminate the Finance Committee charter upon recommendation of the Superintendent for stated cause. This Policy shall be evaluated by the Finance Committee periodically, at least every two years, for possible revisions.