The SFGB is a five member Board; the governor appoints 3 members and the state treasurer appoints 2 members. A member serves on the Board for no more than 4 years. Once a member of the Board's term expires, a successor is appointed (by the governor or treasurer) for a term of 4 years. At least 2 members appointed by the governor will have expert knowledge of the field of public finance, and one serves as chair. The members serve without compensation but receive their necessary expenses incurred in the discharge of their official duties.
The secretary of the Executive Office for Administration and Finance provides the Board with appropriate staff and other assistance and may engage professionals to advise the Board. The Board submits an annual written report to the secretary, the state treasurer, the state auditor, the house and senate committees on ways and means and the senate and house committees. This annual report includes information on bonding, capital expenditures and state assets with respect to findings regarding investments, borrowing and other financial transactions carried out by state entities and its activities to promote proper governance, transparency, public accountability and best practices.
The Board conducts a review, before its execution, of any transaction relating to derivative financial products, proposed to be entered into by a state entity. All state entities submit to the Board the terms of the proposed transaction and any supporting documents. The Board completes its review of the proposed transaction and notifies the submitting entity of its conclusions within a reasonable period of time after receiving the proposal.
In order to carry out its duties, the Board may:
(1) adopt regulations or guidelines requiring state entities to report, adopt appropriate policies and adhere to best practices with respect to governance, investments, borrowing and other financial transactions, but any such regulations or guidelines shall not apply to the commonwealth;
(2) make recommendations to state entities or state officers and propose legislative changes to improve governance practices or the management of public funds;
(3) conduct oversight hearings with respect to governance practices, investment, borrowing and other financial transactions made or entered into by state entities; and
(4) conduct meetings, conferences, or training sessions, maintain a website, publish materials or other activities to disseminate best practices to state officials, board members and managers of state entities and the public.