Finance Committee (or Advisory or Warrant Committee) The finance committee—or, in some towns, the advisory or warrant committee—is a town’s official fiscal watchdog. Its primary, statutory responsibility is to advise and make recommendations to town meeting on the budget and other areas of finance. One of the finance committee’s most important functions involves making transfers from the town’s reserve fund (a contingency fund normally created as part of annual budget appropriations) to other line items in the budget for extraordinary or unforeseen occurrences.

While the finance committee plays a vital role, it is within the executive authority of the selectmen, and/or their appointees, to prepare the town’s budget. The selectmen have ultimate responsibility to the residents for this service. The finance committee’s responsibility is to review the budget submitted to them and to make recommendations regarding the budget to the town’s legislative body: the town meeting.

The above is from the most current Handbook for Selectmen.

I think this spells out that the Advisory/finance committee is a checker or balancer on the selectmen and the Town's departments as a whole. I think of this as I do an Inspector General. This was demonstrated when one member of the Templeton Advisory Committee asked a question on one transfer, which resulted in a revelation that some action concerning financial transfers could be seen as illegal and some time was spent by selectmen and accountant making changes and then stating there would be some reclassification of some accounts to fix this issue. That is why it is important to have such a committee and to remain independent as possible.

Jeff Bennett