USPS Operations Manual 2015.1
3.85 The Finance Committee works in cooperation with the treasurer's department and the budget committee, checking throughout the year on compliance with the budget and the general financial operations of USPS.
After consultation with department heads, and having the approval of the chief commander, the budget as prepared by the budget committee is submitted to the finance committee. Upon determining that the necessary funds to finance the budget can be anticipated, the finance committee submits the proposed budget for approval to the Board of Directors. At this time dues and fees for the ensuing year are also approved.
All requests for financial appropriations must be submitted to the finance committee through the budget committee. Under these requirements reopening the budget requires unusual circumstances. All special requests for subsequent appropriations are submitted to the finance committee through the appropriate department head. Any resolutions for new projects or expenses are required to show the source of funds to cover the cost. The source of funds must be identified so that the Governing Board can evaluate the feasibility of the projects.
The Finance Committee administers the Endowment Fund [Refer to F.1 on page F-1], including approval of both contributions to the fund and grants of available income.
The Finance Committee, with the concurrence of the treasurer, may retain, within budgetary limitations, investment counsel as may be required from time to time. In the event any substantial engagements are required, the approval of the Board of Directors will first be obtained. Investment counsel will be granted only limited discretionary powers.
The Finance Committee, with the concurrence of the treasurer and the Board of Directors, may designate additional custodians for the funds of USPS. These additional custodians must offer insurance in an amount to cover the total of USPS funds deposited with their institution.
The Finance Committee continually reviews long-range fiscal planning. This involves the monitoring of receipts, expenditures, reserves, investments, budgetary controls and trends affecting sound financial operations.
The Finance Committee determines suitable investments for such funds as are not required for day-to-day operations, so as to obtain a rate of return consistent with security of the funds, and recommends such investments to the treasurer. Such investments may include selected common stocks; triple-A corporate bonds; mutual funds; government bonds, notes, bills and money-market funds.
There are two separate but coordinated functions of USPS financial control operating on clearly defined lines of authority: 1) the finance committee provides planning and investment advice and supervision; and 2) the treasurer's department, through the budget committee, provides budgeting, administration and control of expenditures. No member should serve on more than one of these committees at the same time.
