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Finance Committee

Members


(as of Jan. 1, 2014)

End of Term

Mr. Stuart (Kip) Cobbett Chair, Board of Governors, ex officio
Prof. Suzanne Fortier, Principal and Vice-Chancellor, ex officio
Mr. Thierry Vandal, Chair [12/31/2015]
Ms. Kathy Fazel [12/31/2015]
Mr. Claude Généreux [12/31/2014]
Mr. Eric Maldoff [12/31/2016]
Mr. Eric Rodier [12/31/2015]

Observers

Mr. Ronald Critchley [12/31/2015]
Prof. Juliet Johnson [12/31/2015]
Mr. Amine ArezkiStudent member [05/31/2014]

Senior Steward

Mr. Michael Di Grappa, Vice-Principal (Administration and Finance)

Special Advisor

Prof. Anthony C. Masi, Provost

Meeting Schedule


Terms of Reference of Finance Committee

Enacting provisions

 

The Finance Committee (“Committee”) is established under the authority of and is accountable to the Board of Governors (the “Board”) of McGill University (the “University”) and shall function as stipulated in these terms of reference and the Regulations of the Committees of the Board of Governors of McGill University (the “Regulations”). In accordance with the Regulations, meetings of Board Committees shall be held in closed session unless the Committee resolves to carry out a meeting or part of a meeting in open session. 

 

1.   Composition

 a.   Appointments to the Committee are approved by the Board, normally on the recommendation of the Nominating, Governance and Ethics Committee.

 b.   The Committee shall consist of:

 i. three to five members, exclusive of ex officio members, selected from among the following:

  • members of the general public;
  • At-Large and Alumni Association members of the Board; and
  • Governors Emeriti;

 ii. three non-voting members composed of the following Board members:

  • one Administrative and Support Staff member;
  • one Academic or Senate member; and
  • one Student member.

 c.    A majority of the members of the Committee must be financially competent and independent.

 d.   The Chair of the Board and the Principal shall serve as ex officio members of the Committee.

 e.    The Chair of the Committee shall be appointed by the Board, normally on the recommendation of the Nominating, Governance and Ethics Committee.

 f.     The Vice-Principal (Administration and Finance) shall serve as the Senior Steward to the Committee.

 g.     The Secretary-General or her/his delegate shall serve as Secretary and governance advisor to the Committee.

 h.      The Provost shall serve as special advisor to the Committee.

 i.        Where necessary or appropriate to facilitate and support the business of the Committee, the Senior Steward may invite University staff to serve as resource persons for particular items of business before the Committee at a meeting.

 
2.   Mandate of the Committee

The Committee assists the Board in fulfilling its governance responsibilities with respect to:

a)     financial planning and long-term stability and sustainability of finances;

b)    financial policy and funding strategies;

c)     allocation of available resources, approval of annual budgets and monitoring of budget implementation;

d)    borrowing and other commitments and obligations having financial implications; and

e)     overall financial status and well-being.

 The Committee may consider other matters referred to it by the Board, the Principal, the Provost, the Vice-Principal (Administration and Finance) or the Secretary-General.

 Without limiting the generality of the foregoing, the Committee shall review, analyze, evaluate, report and where applicable, approve or make recommendations to the Board with respect to:

 2.1 Functions delegated by the Board of Governors

 a.    the periodic reports on the implementation of the annual budget plan and any variances from budget in the University’s revenue and expenditure;

 b.     the extent and methods of external borrowing for both operating and capital needs granting approval to such borrowings for amounts up to a maximum of $ TBD;

 c.     in extraordinary circumstances only, granting final approval to the University’s operating budget;

 2.2. Functions subject to the authority of the Board of Governors

 a. the annual budget plan (operating and capital) together with the budget report and allocation of available resources from all sources;

 b. budget plans and projections for future years, including policies related to tuition, residence, ancillary, and other fees;

 c. financial policy affecting the long-term stability and sustainability of the finances of the University;

 d. the level of government funding (both operating and capital), and strategies for addressing deficiencies in funding;

 e. the levels of funding from sources other than the government, and related planning and strategies;

 f. plans to deal with the funding of any deficit;

 g. prepaid and projected capital expenditures, and plans for the funding thereof;

 h. the terms and conditions of internally financed capital projects, and the ongoing current status of such projects;

 i. the use and investment of the current balances, if any, of operating and restricted funds;

 j. the levels and status of amounts owed to and by the University, as well as outstanding and anticipated commitments and obligations that have financial implications;

 k. recommending to the Board the extent and methods of external borrowing for both operating and capital needs for amounts in excess of $ TBD;

 l. potential liabilities related to outstanding litigation and other claims;

 m. annual reports on the University's Pension Plan, with particular attention to funding arrangements and actual or potential liabilities which have a financial impact on the University;

 n. the annual updating of the multiyear resource allocations taking into account the requirements of the University’s academic, strategic, and development plans, current and future government commitments, the student tuition framework, and the funding models of peer institutional comparators.

 3.     Final provisions

 a.    The Committee shall meet at least three times during the year.  The Committee shall have a calendar of business, maintained by the Secretary-General or her/his delegate, for the purpose of ensuring that each meeting agenda addresses responsibilities as outlined in these terms of reference.

b.    The Committee shall report to the Board on a regular basis, and within a reasonable time following a Committee meeting. 

 c.    The Committee shall review its terms of reference at least once every three years and recommend any changes to the Board’s Nominating, Governance and Ethics Committee.

 

Final - Approved by the Executive Committee on September 24, 2007

Revised – Approved by the Executive Committee on March 17, 2008

Revised – Approved by the Executive Committee on January 25, 2010

Revised – Approved by the Board of Governors on September 27, 2011