Finance and Audit Committee (FAC)
Senate reviewed its committee structure during 2009. At its meeting on 21 September in 2009 under item 3.2 Senate approved the suggestions made by the Working Party and established the new Finance and Audit Committee (FAC) and disestablished the existing Audit & Risk Management and Finance & Infrastructure committees.
The Terms of Reference for the new Committee were:
The role of the Committee is to monitor and advise Senate on issues relating to the financial performance and stability of the University of Sydney. It performs this role by reviewing and evaluating information provided by management on the financial impact of strategic proposals, on budget and planning priorities and on resource and capital allocation. The Committee has responsibility for oversight of the University's audit function, including reliability of financial management and reporting, compliance with laws and regulations and the maintenance of an effective and efficient audit capability. The Committee also monitors and advises Senate on matters relating to the University's IT infrastructure with particular reference to: major system development and acquisition, infrastructure management, operating resource allocation and sustainability. The Committee also has the responsibility of ensuring the effective management of financial risk across the University, including the financial risks of subsidiaries and controlled entities.
The Committee is authorised by Senate to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are directed to cooperate with any requests made by the Committee.
The Committee is authorised to obtain outside legal or other professional advice and to secure the attendance of external advisers with relevant experience and expertise if it considers this necessary, after consultation with the Chancellor. [Annual Report 2010, p. 60]
In 2012 Senate established an Audit Committee as a subcommittee of FAC. At its meeting on 23 February 2015 (Item 9.4) Senate approved the disestablishment of the Audit Sub Committee of FAC and approved the amendments to the Terms of Reference to the Senate Finance and Audit Committee as follows: the Committee has responsibility for oversight of the University’s audit function, including reliability of financial management and reporting, compliance with laws and regulations and the maintenance of an effective and efficient audit capability.
At its meeting in December 2017 Senate resolved to establish four committees to assist it with the exercise of its functions, effective from 1 January 2018. The Finance and Audit Committee was one of the four committees. Its Terms of Reference were:
The role of the committee is to monitor and advise Senate on:
a) issues relating to the financial performance and sustainability of the University, by reviewing and evaluating information provided by management on the financial impact of strategic proposals, budget and planning priorities, resource and capital allocation, and commercial activities
b) the University’s internal and external audit programs, including reliability of financial management and reporting, compliance with laws and regulations and the maintenance of an effective and efficient audit capability
c) ensuring the effective management of financial risk across the University, including the financial risks of subsidiaries and controlled entities
d) ensuring the effective management of non‐financial risk in areas covered by the committee’s remit e) conducting deep dive reviews in in the areas covered by the committee’s remit.
The committee’s terms of reference are reflected in the University of Sydney (Delegations of Authority – Administrative Functions) Rule 2016 (‘the Delegations’).
The committee is authorised by Senate to:
a) make decisions on the University’s Future Fund
b) approve major capital expenditure projects and strategic initiatives which are funded entirely from the Future Fund, including advice on the investment mandate for the Future Fund, which balances support for a broad range of core University objectives with seeking to achieve appropriate commercial returns
c) receive recommendations as to the appointment and retirement, as appropriate, of consultants and external managers, and make such decisions subject to reporting to Senate after the event
d) investigate any activity within its terms of reference
e) seek any information it requires from any employee. All employees are directed to cooperate with any requests made by the committee
f) obtain external professional advice with regard to matters within its remit, and to secure the attendance of external advisers with relevant experience and expertise if it considers this necessary, after consultation with the Chancellor (see also Delegation 10.3.7,below)
g) in accordance with Delegation 4.5.1, approve acceptance of sponsorship from third parties (other than sponsorship of chairs), valued above $10m, after consultation with the Vice‐ Chancellor and relevant dean
h) in accordance with Delegation 5.2.3, approve acceptance of a gift, bequest or devise valued above $10m, which is made to the whole or to a part of the University (such as a faculty), and establish the terms for its management after consultation with the VC and with the relevant dean (where applicable)
i) in accordance with Delegation 6.2.2, revise the approved capital budget if the total allocation across the University would materially change as a result of the revision, after consultation with the Vice‐Chancellor, University Executive and Vice‐Principal (Operations)
j) in accordance with Delegation 6.3.1, approve capital expenditure projects or strategic initiative business cases valued above $10m, which are within the approved University Finance and Audit Committee Terms of Reference Approved by Senate Resolution SEN‐17/6‐104 of 13.12.17 Page 2 of 4 budget total, after consultation with University Executive, the Chief Financial Officer and the Strategy Governance Board
k) in accordance with Delegation 6.6.1, approve the acquisition of real property valued above $10M
l) in accordance with Delegation 6.14.1, borrow money and raise capital (including issuance of securities or debentures), subject to approval by the Governor on the recommendation of the Treasurer, after consultation with the Chief Financial Officer and Investment Sub‐ Committee
m) in accordance with Delegation 6.15.1, approve bank signatories, including signature for internal authorisations for electronic transfers
n) in accordance with Delegation 8.3.1, acquire software or software as a service (cloud) valued above $10m, after consultation with the Chief Information Officer, Procurement, the Office of General Counsel, the Deputy Vice‐Chancellor (Education), and the Vice‐Principal (Operations)
o) in accordance with Delegation 10.3.7, appoint external lawyers, approve costs agreements, and authorise payments.
The Finance and Audit Committee shall form an Investment Subcommittee.
Approved by Senate Resolution SEN‐17/6‐104 of 13.12.17
In 2020 Senate undertook an external review of its committee structure and established the following committees, effective 1 October 2020: Building and Estates Committee, Finance Committee, Finance Investment Subcommittee, People and Culture Committee, Risk and Audit Committee, Honorary Awards Committee, Nominations Committee, Chairs Committee.