Finance and Investment Committee

FINANCE AND INVESTMENT COMMITTEE

A.  Purpose

The Board is responsible for overseeing and directing all matters respecting the management, administration, and control of the University’s property, revenues, investments and financial affairs.  The Board carries out its oversight responsibilities for financial management of the University primarily through the finance and investment committee.

The finance and investment committee shall provide direction, monitor, evaluate, advise and make recommendations to the Board with respect to all strategic and significant financial matters and policies of the University.
 
B. Membership

The finance and investment committee shall include the following representation: the chair or vice-chair of the Board and the president of the Students' Union. Resource officers to the committee include the vice-president (finance and resources), the controller. The provost and vice-president (academic), the vice-president (research), the vice-president (advancement and community engagement) and the assistant vice-provost, institutional planning and assessment are invited to attend all meetings of the finance and investment committee.

The finance and investment committee may invite such officers, directors, and employees of the University and external consultants as it may see fit from time to time to attend meetings of the committee and assist in the discussion and consideration of matters before the finance and investment committee. 

C. Accountabilities

The finance and investment committee is responsible for approving policies and reviewing procedures, guidelines, processes and information to provide assurance that:

1.  Expenditures, commitments and revenues are properly authorized and in compliance with regulatory and legislative requirements,

2.  Assets of the University are safeguarded, and utilized in compliance with regulatory and legislative requirements,

3.  University resources are used to best advantage for the purpose for which they were intended,

4.  Multi-year financial and operational plans are established in accordance with the strategic directions of the University and that those plans inform resource allocation decisions and performance measurements,

5.  Mechanisms are in place to continuously monitor financial risks and assess opportunities and evaluate performance.

D. Items for the Board

The committee will make recommendations for approval and/or report to the Board for information with respect to the following:

1.  Policy and procedure guidelines relating to the expenditure of any funds required to conduct University business, including review and approval of:

     (a) cheque signing and contract signing and authorization;
     (b) significant contracts/agreements as outlined in the contract signing policy (including affiliation, systems, banking agreements);
     (c) employee expense reimbursement policies;
     (d) procurement policies and vendor payments;
     (e) delegation of authority policy indicating amount of expenditure which can be authorized by various positions in the organization;
     (f) policies regarding retention and utilization of ‘carry-forward’ funds;
     (g) budget (funding) allocations, including:
              i. 5-year rolling budget,
              ii. Detailed operating budget,
             iii. Spending policy and interest allocation policies,
             iv.Operating budget policies, and
              v. Approval of specific budget increases in excess of $250,000 and of budget allocations which exceed $500,000 in total in a given year.

2. Policy and procedure guidelines relating to revenue generation and obtaining resources, including review and approval of:

    (a) policies regarding establishment of rates for residences and meal plan services;
    (b) policies regarding financial operating philosophy/strategy of ancillary operations;
    (c) tuition and fees policies and approval of tuition rates as required by policy;
    (d) significant funding plans and external requests (including Operations Forecast, major CFI submissions, fundraising plans, debt financing plans);
    (e) policies relating to assessment of fees and overheads for services provided.

3. Policies and procedures relating to the safeguarding of assets and compliance with contractual terms, laws, and regulations, including review and approval of:

   (a) policies and guidelines regarding gift acceptance and recognition;
   (b) policies and procedures relating to compliance with research grants and contracts;
   (c) policies relating to inventory and fixed asset controls, disposition of surplus assets, collection of accounts receivables (securing and collection of debts);
   (d) review and consideration of reports from management regarding structure and process in place to ensure safeguard of assets and compliance with contractual terms, laws and regulations.
   (e) policies and guidelines regarding investments, endowment spending and debt management (including compliance reports provided by investment fund managers).

4. Receiving and monitoring periodic reports to ensure that resources are used to their best advantage for the purposes for which they were intended, including

    (a) comprehensive interim and year-end financial reports providing an overview and comparing actual results against Budget Plan or Multi-Year Plan;
    (b) identification of significant variances from budget or variances from established policy/practice;
    (c) performance measures and benchmarks report on results against plan;
    (d) annual reports on performance of all University investment funds (including pension and long-term disability funds).
    (e) periodic reports on the financial status of the University’s defined benefit pension and long-term disability plans.

5. Reviewing its own terms of reference annually and recommending changes as appropriate.

6. Performing any other duties that the Board may assign or the President’s Office may refer.