Finance and Treasury Committee

Role

The Finance and Treasury Committee has budgetary and financial oversight responsibilities for the University as well as an oversight responsibility for the Long Term Portfolio, its Treasury investments, and its liability structure.

Terms of Reference

Establishment

  • The terms of reference of the Finance and Treasury Committee were approved by the Committee on Governance and Nominating at its meeting of September 7, 2011 and by the Board of Governors on October 24, 2011 by resolution 2011.28, on May 28, 2012 by resolution 2012.14 and on February 25, 2013 by resolution 2013.3. and on June 22 by resolution 2015.64

Status

  1. The Finance and Treasury Committee is a Committee of the Board of Governors of the University of Ottawa.

Powers and Functions

  1. The Finance component of the Finance and Treasury Committee has budgetary and financial oversight responsibilities for the University. The Treasury component of the Finance and Treasury Committee has oversight responsibility for the Long Term Portfolio as well as the University's Treasury investments and its liability structure. Without restricting the generality of the foregoing, the Finance and Treasury Committee shall exercise the powers set out below:

(a) With respect to the Finance component, its budgetary and financial oversight responsibilities:

  • to recommend, to the Board, the University’s annual budgets or the provisional authorization for expenditure, as the case may be;
  • to approve financial transactions and contracts which are within the approved budgets but exceed the limits of approval delegated to the Administration Committee under current regulations;
  • to approve the periodical financial projections of the University;
  • to recommend to the Board the proposed financing structure for major capital projects
  • to review the financial structure of major capital projects and to assess its compliance with various relevant financial regulations of the University;
  • to recommend, to the Board, policies and regulations on financial management.

(b) With respect to the Treasury component, its responsibility regarding issues related to the University’s Long Term Portfolio, its Treasury investments and its liability structure:

i) Long Term Portfolio (Fund)

  • to recommend the SIPG Fund, including performance objectives and asset mix policy, for approval by the Board of Governors;
  • to recommend the adoption of changes to Policy 111, including the expenditure rate, for approval by the Board of Governors;
  • to approve the appointment, removal or retention of investment managers and other external service providers related to the Fund.

ii)  Treasury Investments

  • to approve the SIPG Treasury, including performance objectives and asset mix policy;
  • to recommend changes to Policy 56, including performance objectives and asset mix policy, for approval by the Board of Governors;
  • to approve the appointment, removal or retention of investment managers and other external service providers related to treasury investments;
  • to approve the investment policies for the sinking fund.

iii) Liability Structure

  • to recommend changes to Policy 114, including financial ratios and related thresholds, for approval by the Board of Governors.

(c) With respect to the Treasury component's responsibility for oversight:

i) Long Term Portfolio (Fund)

  • to monitor Fund investments to ensure compliance with the Statement of Investment Policy and Goals (“SIPG Fund”) approved by the Board of Governors;
  • to monitor Fund performance relative to established performance benchmark objectives and relative to other similar funds;
  • to monitor investment manager performance to evaluate achievement of objectives relative to established performance criteria;
  • to monitor the expenditure rate for endowed fund to evaluate compliance with Policy 111 Non Expendable Endowment Funds (“Policy 111”).

ii) Treasury Investments (Treasury)

  • to monitor Treasury investments to ensure compliance with Policy 56 Investment (“Policy 56”) and the Statement of Investment Procedures and Guidelines (“SIPG Treasury”) that is approved by the Finance and Treasury Committee;
  • to monitor investment manager performance to evaluate achievement of Treasury objectives and established performance criteria.

iii) Liability Structure (Liabilities)

  • to oversee implementation of external debt financing transactions and monitor the asset and liability structure related to Policy 114 Liability Management Policy (“Policy 114”);
  • to monitor the specific financial ratios that are defined in Policy 114 to measure the current actual and expected future impact of outstanding debt on the financial position of the University of Ottawa.

Membership

  1. The Finance and Treasury Committee is composed of the following members, appointed by the Board on the recommendation of the Committee on Governance and Nominating:

(a) With respect to the Finance component and powers and functions under article 2(a) :

  • Six members, including the President, who is an ex-officio member and one member as Chair of the Committee. The Finance and Treasury Committee shall elect a Vice-Chair from among its members. It is expected that members of the Audit Committee may not serve on the Committee.

(b) With respect to the Treasury component and powers and functions under article 2(b) and 2(c) :

  • Six members, including the President, who is ex-officio member and one member as Chair of the Committee. The Finance and Treasury Committee shall elect a Vice-Chair from among its members. It is expected that members of the Audit Committee may not serve on the Committee.
  • Two external members that have relevant professional background, preferably from the banking and /or investment industries. An external member is a person who is neither employed by the University of Ottawa nor a member of the Board of Governors. For greater clarity, the two external members have no responsibility for material, discussions and/or decisions related to matters considered to be Finance issues under article 2(a).

Term of office

  1. The membership terms shall be for a period of three years, renewable.

Quorum

  1. Quorum is fixed at four members for each component.

Method of Operation

  1. The Committee shall meet generally eight times a year, including four meetings of the Finance component and four meetings og the Treasury component.

The Committee reports to the Board of Governors to address relevant issues within its mandate.

Internal Functioning

  1. To assist it with fulfilling its mandate, the Finance and Treasury Committee calls upon the Financial Resources Service and the Treasury/Pension Fund Office of the University of Ottawa, respectively. The Committee may also use the necessary consultants to carry out its duties.

The Finance and Treasury components of the Committee are administered separately.

Office of the Vice-President, Governance

  1. Secretarial services are provided by the Office of the Vice-President, Governance and Secretary of the University of Ottawa.

Members

Chair

L. Denis Desautels
Accountant and Former Auditor General of Canada
End of mandate: 2019-12-15

Members

Dane Bedward
Principal
Dane Bedward Associates
End of mandate: 2019-12-08

Kathryn Butler Malette 
Former Chief Human Resources Officer, Human Resources, Corporate Planning and Communications Services
The House of Commons of Canada
End of mandate: 2019-06-19

James C.L. Clark
President
Dunhelm Consulting
(Treasury Component)
End of mandate: 2020-10-23

Stephen A. Cotsman
(Treasury Component)
End of mandate: 2020-10-23

Jacques Frémont
President and Vice-Chancellor
End of mandate: 2021-06-30

Stéphane Giguère
Chief Executive Officer
Ottawa Community Housing Corporation
End of mandate: 2022-06-30

François Guimont
Former Deputy Minister of Public Safety Canada
Enf of mandate: 2020-08-31

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