Finance Committee

Terms of Reference and Membership 2019-20

Role:

To provide oversight of and advice on matters relating to the financial position of the University.

Responsibilities:

1. To recommend to the Council approval of the Annual University Budget and medium term Financial Forecasts, (including allocations to Corporate Services, the Colleges, the Capital Programme, and the Students’ Union) in order to achieve the objectives of the University’s Strategic Plan.
2. To monitor the University’s financial key performance indicators and performance against the Annual Budget, (including the investment programme for capital and infrastructure) and to approve variations to that of over £1 million and up to £5 million.  Above £5 million variations are to be considered and recommended to the Council for approval.
3. To receive the annual accounts of the University and recommend their approval to the Council.
4. On behalf of the Council, to investigate aspects of the financial situation which require further analysis or action.
5. To approve and monitor the University’s treasury management policy and activities including strategy for, and performance of, endowed funds and investments. (DELEGATE TO INVESTMENTS COMMITTEE)
6. To advise on borrowing policy, and to consider and approve proposals for borrowing and capital financing structures and related external funding arrangements, and the details of their terms, reporting as necessary to the Council.
7. To oversee the University’s arrangements for tax, purchasing, TRAC, subsidiary companies and financial relationships with associated bodies. 
8. To approve the formation of spin-out and subsidiary companies.
9. To determine and oversee the University’s policies for the University’s own pension schemes (PAS and the FriendsLife Stakeholder) and to determine University policy towards the national pensions schemes that the University participates in (USS and the NHS Pension Scheme).   To approve changes to pension arrangements which do not impact on the overall terms of conditions of the employment of staff.  To authorise the Chief Financial Officer to act on behalf of the University, as employer, at meetings of the PAS Trustees.
10. To consider and approve capital works programmes.
11. To oversee significant aspects of estate developments in the delivery of the capital programme, to monitor capital disposals, and receive reports in respect of the condition of the estate. 
12. To ensure appropriate governance of strategic issues relating to the University’s estate, including asset management, capital projects, maintenance and repair, facilities management, and energy and environmental issues.
13. To provide oversight of, and institutional strategic alignment to, the development and ongoing review of the University’s Physical Environment Strategy and Sustainability Strategy, and recommend any amendments or new strategies to Council for approval.
14. To monitor progress of carbon reduction against agreed targets.
15. To receive and consider relevant extracts of the University risk registers.
16. To determine the University’s Financial Regulations. To approve substantive changes and receive reports of changes made under the scheme of delegation.
17. To monitor performance of the University's commercial activities and consider proposals to establish new commercial ventures. (For Spin Out proposals and monitoring DELEGATE TO LEICESTER INNOVATION ADVISORY BOARD)
18. To maintain an overview of the financial performance and sustainability of the Students' Union.
19. To consider, record and address the potential equal opportunity impacts of decisions made by the Committee (in accordance with the ‘due regard’ provisions of the Equality Act 2010).

Reports to:

The Council 

Constitution and membership 2019-20

a. The Treasurer (Chair)
b. The Chair of Council 
c. The Vice-Chancellor
d. The Deputy Vice-Chancellor 
e. Registrar and Chief Operating Officer 
f. The President of the Students’ Union 
g. Three lay members of Council, appointed by the Nominations Committee
h. One member of Senate, appointed by the Senate 

Duration of appointment:

Members appointed under a. to e. are ex-officio.
Members appointed under f. and g. shall serve for three years, renewable, but maximum length of service is normally six years.

Normally in attendance at meetings:

Chief Financial Officer
Director of Estates & Campus Services
Deputy Chief Financial Officer
Chief of Staff (Vice-Chancellor’s Office) 

Secretariat:

Governance Office 

Frequency of Meetings:

The Committee will normally meet five times in each academic year

Quorum:

4 members including one lay member