(as of July 1, 2017)
End of Term
|Mr. Ram Panda Chair, Board of Governors, ex officio|
|Prof. Suzanne Fortier, Principal and Vice-Chancellor, ex officio|
Mr. Pierre Matuszewski, Chair
|Ms. Nathalie Bourque||[06/30/2018]|
|Ms. Kathy Fazel||[06/30/2018]|
|Mr. Eric Maldoff||[12/31/2019]|
|Mr. Eric Rodier||[12/31/2018]|
|Mr. Ronald Critchley||[06/30/2019]|
|Prof. Derek Nystrom||[06/30/2019]|
|Ms. Abeer Almir Ali, Student member||[05/31/2018]|
Prof. Yves Beauchamp, Vice-Principal (Administration and Finance)
Prof. Christopher Manfredi, Provost and Vice-Principal (Academic)
Terms of Reference of Finance Committee
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”). It 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.
a. Other than the ex-officio members, 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 the following members, selected, as indicated below, from among the following membership categories:
i. three to six voting members, exclusive of ex officio members, selected from among the following
• members of the general public;
• At-large members of the Board (at least one);
• Alumni Association members of the Board; and
• Governors Emeriti;
ii. three non-voting members selected, as indicated below, from among the following Board membership categories:
• one Administrative and Support Staff member;
• one from among Academic Staff and Senate members; and
• one student representative (member or observer).
c. A majority of the members of the Committee must be financially literate and independent of the University.
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 Committee may recommend the appointment of a Vice-Chair of the Committee, who shall be appointed by the Board on the recommendation of the Nominating, Governance and Ethics Committee.
g. The Vice-Principal (Administration and Finance) shall serve as the Senior Steward to the Committee.
h. The Secretary-General or delegate shall serve as Secretary and governance advisor to the Committee.
i. The Provost shall serve as special advisor to the Committee.
j. Where necessary or appropriate to facilitate and support the business of the Committee, the Senior Steward or Secretary may invite University staff to serve as resource persons for particular items of business.
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:
2.1 Functions delegated by the Board of Governors
a. review the periodic reports on the implementation of the annual budget plan and any variances from budget in the University’s revenue and expenditure;
b. consider the extent and methods of external borrowing for both operating and capital needs and grant approval to such borrowings for amounts up to a maximum of $ TBD;
c. in extraordinary circumstances only, grant final approval to the University’s operating budget;
d. receive and review 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;
2.2. Functions subject to the authority of the Board of Governors
a. review and recommend the annual budget plan (operating and capital) together with the budget report and allocation of available resources from all sources;
b. review and develop multi-year budget plans and projections, including potential tuition, residence, ancillary, and other fees, 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;
c. develop and recommend financial policy affecting the long-term stability and sustainability of the finances of the University;
d. consider the level of government funding (both operating and capital), and propose strategies for addressing deficiencies in funding;
e. consider the levels of funding from sources other than the government, and related plans and strategies;
f. develop plans to deal with the funding of any deficit;
g. consider projected capital expenditures and plans for the funding thereof;
h. consider and recommend the use and investment of the current balances, if any, of operating and restricted funds;
i. take into account 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, and recommend to the Board the extent and methods of external borrowing for both operating and capital needs for amounts in excess of $ TBD;
j. annually review with the University’s General Counsel or outside counsel, litigation or other legal matters that may have a material impact on the finances or well-being of the University;
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 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 five years and recommend any changes to the Board’s Nominating, Governance and Ethics Committee.
Revised- Approved by the Board of Governors on April 21, 2016
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
Revised- Approved by the Board of Governors on October 8, 2015