AORE Association Governance Update Finance Update | Page 2

AORE Finances 101

In order to successfully carry out its mission, it is important for AORE to be financially

sustainable. To this end, AORE has developed policies, practices, and structures to ensure the

continued financial health of the organization. This article will provide an overview of how the

AORE manages its finances.

Roles and Responsibilities

Responsibility for AORE’s finance do not lie with one individual or group, but are shared

between the Board of Directors, Executive Director, and Financial Advisory Committee. This

ensures financial decisions align with national, state, local, and AORE policies, are thoroughly

vetted in terms of impact on the AORE fulfilling its mission, and proper oversight is conducted.

Board of Directors

The Board of Directors has a fiduciary responsibility. As stated in the Board Packet signed by

all board members:

“I understand that I have a fiduciary responsibility to oversee the finances of AORE and

to protect its nonprofit status. To fulfill my fiduciary responsibility, I must be fully

knowledgeable about the Association. For that reason, I pledge to make myself aware

of generally accepted accounting principles, read and understand AORE’s financial

reports, committee reports and other documents pertaining to the operations of AORE,

and devote the time necessary to stay current with Association affairs. If necessary, will

obtain additional information from the staff to fulfill this obligation."

In fulfilling this role, the Board has several key areas of oversight. First, the Board must vote

within 60 days from the start of the fiscal year (March 1st) to approve the Association’s annual

operating budget. Additionally, the board monitors the performance of the organization against

the budget through a review of quarterly financial reports prepared by the Executive Director.

The Board is responsible for determining the Association’s strategy and setting annual goals

that the Executive Director operationalizes. As part of this role, the Board understands that

some programs may need to be cut or redistributed to free up resources to support the strategic work.