Financial Accounting Foundation
Board of Trustees

Standard-Setting Process Oversight Committee

Committee Members

Nancy K. Kopp, Co-Chair Terry D. Warfield, Co-Chair
Myra R. Drucker John C. Dugan
W. Daniel Ebersole  Eugene Flood
Diane M. Rubin  

Committee Charter


The Board of Trustees (Board) of the Financial Accounting Foundation (Foundation) has established the Standard-Setting Process Oversight Committee (Committee) to conduct, on behalf of the Board, ongoing oversight and evaluation of the adequacy, transparency, independence, and efficiency of the standards-setting processes employed by the FASB and GASB (Standards Boards) in establishing and improving financial accounting and reporting standards. The Committee shall regularly report its findings and recommendations to the Board.

Membership and Structure

The Committee shall be a standing committee of the Board and all Committee members shall be Trustees.

The Committee shall consist of six or more members, at least one of whom shall be a Governmental Trustee (as such term is defined in Chapter A, Article A-I, Section 4 of the Foundation’s By-Laws). In order to expose the maximum number of Trustees to service on the Committee and to enable Trustees to carry knowledge of the Committee’s oversight functions to other aspects of their Board service, the assignment of Committee members shall allow for sufficient rotation among the Trustees on the Committee.

The Committee shall have a Chair or co-Chairs appointed by the Board. In the absence of co-Chairs, the Committee may have a Vice Chair who shall be appointed by the Committee members.

Non-Interference with Technical Standards-Setting

In exercising its responsibilities, the Committee may not direct the Standards Boards to undertake or to omit to undertake any particular project or activity or otherwise affect the exercise of the Standards Boards’ authority, functions, and powers in establishing and improving financial accounting and reporting standards. The foregoing shall not be interpreted as limiting the Trustees responsibilities to address and resolve, or the Committee’s authority to evaluate and provide recommendations to the Board in respect to, questions involving the jurisdictional authority, functions and powers of, and as between, the Standards Boards.

Principal Responsibilities

The Committee is charged with the following responsibilities:
  • Monitoring the standards-setting processes of the Standards Boards and evaluating those processes for consistency with the Standards Boards’ respective mission statements and governing documents. In monitoring these processes, the Committee shall consider and evaluate the adequacy, comprehensiveness, effectiveness and adherence to due process procedures through all stages of the standards-setting process including, without limitation, the following:
    (i) The agenda-setting process;
    (ii) The deliberations process;
    (iii) The finalization process; and
    (iv) The implementation process.
  • Monitoring each Standards Board’s agenda of projects, the cycle time of projects on the agenda, progress against milestones, and the timeliness, effectiveness and efficiency of the Standards Board in its disposition of agenda projects.
  • Establishing and overseeing the post-implementation review of standards set by the Standards Boards through processes and procedures that are independent of the Standards Boards.
  • Keeping apprised of external influences, such as international financial accounting standard-setting activities, Congressional and federal regulatory proposals and actions, and state legislative and regulatory proposals and actions that could be impactful and/or informative to the standards-setting processes of the Standards Boards, and providing recommendations to the Board of Trustees with respect to such influences.
  • As deemed necessary and appropriate, conducting and/or commissioning independent studies and surveys relating to the roles, responsibilities, processes and performance of the Standards Boards in fulfilling their missions.
  • Monitoring matters of the Standards Boards in order to assess whether they are within their respective jurisdictional authority, functions and powers, consulting with the Standards Boards on any such matters as appropriate, and referring those matters to the Board as deemed necessary.
  • Monitoring, and providing input, in consultation with the Standards Boards’ Chairpersons, to other Trustee committees (such as the Finance and Compensation Committee) as to the adequacy of staffing of the Standards Boards necessary to fulfill their missions.
  • As deemed necessary and appropriate, together with the other members of the Board, observing (or reviewing reports of) meetings and public forums of the Standards Boards and advisory groups.
  • Periodically communicating with members of the Standards Boards, advisory groups, and others to obtain input on the effectiveness and efficiency of the standards-setting process.
  • Evaluating, including through the development and use of performance measures, the processes employed by the Standards Boards to ensure that such processes are transparent, timely, robust, objective, effective and efficient.
  • Evaluating the adequacy of the Committee’s resources to fulfill its responsibilities.
  • Performing periodic self-assessments of the Committee’s roles, functions and performance, which will include a review of the Committee Charter and a recommendation to the Board of any necessary or appropriate amendments.

This charter may be amended only by the affirmative vote of the Board of Trustees.


Approved by the FAF Board of Trustees on February 24, 2015