TERMS OF REFERENCE
The purpose of the Finance Committee Terms of Reference is to ensure that the responsibilities and expectations delegated to the Finance Committee by the Board of Governors are clear and well defined.
The Finance Committee has the primary role of assisting the Board of Governors in fulfilling its oversight responsibilities over the financial affairs of the University, to ensure the establishment of sound financial policies and practices which will lead to the long-term financial sustainability of the University.
Without limiting the general responsibilities as described above, the Finance Committee shall:
- Approve the University’s budget framework, which sets the guiding principles between costs, government funding and tuition fee levels.
- Review and recommend to the Board of Governors the annual budgets.
- Monitor the financial health of the University through projections and forecasts, recommending corrective action where required.
- Review actual versus budgeted results on a quarterly basis.
- Endorse the underlying principles surrounding tuition fee levels, as well actual recommendations for the fiscal year, reviewing the recommendations in conjunction withPolicy #71 (Consultation with Students About Tuition and Mandatory Fees).
- Review and recommend policies and actions to the Board of Governors that enhance the University’s financial position or financial performance (cost control or revenue generation).
- Review and recommend to the Board of Governors capital expenditure proposals in accordance with Board-delegated authority and signing resolutions.
- Review and recommend policies and actions that enhance the University’s investment position or portfolio performance. Policies will be applicable (but not limited) to the framework in which UBC Investment Management Trust (IMANT) operates within the UBC investment framework approved by the Board of Governors.
- Review trends which have implications for the financial health of the University or which have the potential to impair the strategic plan approved by the Board of Governors.
- Review debt management policies for recommendation to the Board of Governors, including extent and methods of obtaining external borrowing for operating and capital expenditures.
- Review and recommend policies and actions to the Board of Governors to ensure that assets are utilized in the most efficient and effective manner for the benefit of the University.
- Ensure that a sound resource-allocation framework is in place and that decisions are made within the approved framework.
- Advise and assist the President (through the Board of Governors) in advancing the strategic goals of the University.
A summary of each Finance Committee meeting is circulated to each Board member, generally within two business days following the Committee meeting.
MEMBERSHIP & PROCEDURES
Committee members are appointed from among the Board members and include:
- the Board Chair, the Chancellor and the President as ex officio members
- the Board of Governors Vice-Chair(s)
- one (1) student member
- one (1) faculty member
- five (5) Board members who are external to the University
The Chair of the Board of Governors should appoint Committee members with the assistance of the President, based on qualifications and interest, and to avoid potential conflicts of interest.
Appointments are made for a one-year term from September 1 to August 31, with annual renewal.
Members of the Finance Committee shall elect a Committee Chair from among the external members. The Committee Chair is responsible for the better conduct of meetings, including agendas, information processes, and oversight of reporting and action items.
The Committee may delegate, or be directed by the Board to oversee, work tasks and action items to subcommittees, the University Executive, or independent third parties, on Board approval.
The Committee will receive additional and reasonable support for the assembly, assessment and reporting of information, including, with the approval of the Board Chair, access to independent counsel, subject to reasonable limits on resources available to the Board of Governors for these matters.
MEETINGS & QUORUM
The Finance Committee meets prior to each regularly scheduled Board of Governors meeting and in addition may meet at the call of its Chair as required.
Attendance by 50% of Finance Committee members is required to establish quorum.