The purpose of the Finance Committee is to oversee the development and implementation of general financial policy of the organization and to provide oversight of budgeted funds, reporting any significant variance to the Executive Committee.

A unit may form a Finance Committee to oversee the administration, collection, and disbursement of the financial resources of the unit.

It is essential that a well-planned budget be one of the first goals of the administrative year. An adequate budget ensures there will be funds earmarked for the various Auxiliary programs throughout the year. A close review should be made each month to make sure that operating expenses are kept within the budget.

By provision of the ALA National Constitution and Bylaws, unit officers having custody of organization funds shall be bonded. The National Organization keeps a blanket position bond so that all unit officers are bonded. Departments reimburse National for this coverage based upon the number of units in the department. Contact your department secretary for more information about bond coverage and instructions on filing a claim.

Finally, it is important that the Finance Committee is familiar with federal and state compliance and tax laws.