Ideally a nonprofit organization’s Board of Directors should have separate audit and finance committees, the idea being that the audit committee appoints and oversees the external auditor and the finance committee oversees the internal financial function, roles that are somewhat antithetical. For smaller organizations that are constrained by resources and talent available on the Board, the two committees are usually combined as a practical matter.
Several years ago we at NFP Partners compiled a number of key governance documents from various sources and combined them into an accountability kit. Most of the documents in the kit are still applicable including the one describing the responsibilities of the audit and finance committee and the qualifications for the committee chair and members. We have separated this document so it can be downloaded individually. It is in Word format for editing and modification to local requirements.
Both the Accountability Kit and the Audit and Finance Committee Charter can be downloaded.