Finance Committee (FC) (2020)

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.

The role of the Finance Committee was 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 external audit program, including reliability of financial management and reporting and compliance with laws and regulations ensuring the effective management of financial risk across the University, including the financial risks of subsidiaries and controlled entities;

c) ensuring the effective management of non‐financial risk in areas covered by the Committee’s Terms of Reference;

d) effective management of the University’s short-term portfolio, cash flow and liquidity positions; ande) conducting reviews in the areas covered by the Committee’s Terms of Reference.

The Committee’s Terms of Reference are reflected in the University of Sydney Delegations of Authority Rule 2020 (‘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 Terms of Reference, 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 6.4.4, below);

g) in accordance with Delegation 6.15.9, approve business case or capital expenditure projects within approved University budget total valued above $10m, which are within the approved University budget total, after consultation with University Executive;

h) in accordance with Delegation 6.19.1, approve the acquisition of goods and services from a supplier, other than an independent contractor or a labour hire agency (above $10M);

i) in accordance with Delegation 6.27.1, approve the acquisition of real property valued above $10M and Delegation 6.27.4, approve any other dealing with real property where the authority is not retained by Senate under the Act;

j) in accordance with Delegation 6.4.4, appoint external lawyers, approve costs agreements, and authorise payments;

k) in accordance with Delegation 6.4.5, approve expenditure on external lawyers (above $2M);

l) in accordance with Delegation 6.24.6, approve acceptance of sponsorship from third parties (other than sponsorship of chairs), valued above $10m, after consultation with the Vice‐Chancellor and relevant Dean;

m) in accordance with Delegation 6.24.2, 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 Faculty), and establish the terms for its management after consultation with the Vice-Chancellor and with the relevant Dean (where applicable);

n) in accordance with Delegation 6.18.2, 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);

o) in accordance with Delegation 6.15.10, approve agreements for expenditure for infrastructure works or services (above $10M); and

p) in accordance with Delegation 6.23.1, 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 Subcommittee.

The Committee is to:

a) review the annual and three-year Internal Audit Plan to ensure audits that fall within the purview of the committee are appropriate, timely and comprehensive; and

b) review relevant Internal Audit Reports.

The Finance Committee shall form an Investment Subcommittee.Senate appointed the Chair from the Fellows of Senate. All members, including the Chair, were appointed for a term of office of two years. The Committee was to meet six times a year and report to Senate after each meeting. Terms of office were staggered where possible so that expertise and continuity could be maintained.