Terms of reference
Purpose
The Finance and Budget Committee (“the Committee”) is established by the University Council to provide oversight, advice, and assurance on all matters relating to the University’s financial management, performance, and sustainability.
The Committee supports the Council in fulfilling its statutory responsibilities under the Education and Training Act 2020, ensuring that financial decisions align with the University’s Strategic Plan, long-term sustainability goals, and the Tertiary Education Commission (TEC) financial performance expectations.
Objectives
The Committee’s key objectives are to:
- Ensure the University maintains sound financial stewardship and financial sustainability in accordance with Council’s fiduciary obligations.
- Oversee preparation of the annual operating and capital budgets and the Long-Term Financial Plan (10-year horizon).
- Monitor compliance with the TEC Financial Monitoring Framework, including reporting requirements and performance benchmarks and reporting such to Council.
- Monitor the financial implications of strategic initiatives.
- Support prudent financial decision-making consistent with the University’s Risk Appetite Statement and strategic priorities.
Responsibilities
Financial strategy and planning
- Review and recommend to Council the University’s financial strategy, ensuring alignment with the University’s strategic plan and government expectations.
- Oversee development of the annual budget and forecasts, including assumptions, key drivers, and sensitivity analysis.
- Assess the sustainability of financial plans in the context of projected enrolments, TEC funding, and external income sources.
- Review and advise on debt, cash flow, and investment strategies to maintain financial flexibility and resilience.
Financial performance, funding and reporting
- Review quarterly and annual financial results, including variances from budget and corrective actions proposed.
- Monitor performance against key financial indicators (e.g., operating surplus ratio, liquidity ratio, debt servicing ratio, and staff cost ratios).
- Review the draft Annual Financial Statements prior to consideration by the Audit and Risk Committee and approval by Council.
- Oversee internal reporting systems to ensure timely, accurate, and transparent financial information for decision-making.
- To monitor the financial strategy initiatives and provide advice to Council.
- Consider student tuition fees and student services fees and make recommendations to Council
Capital and infrastructure
- Review and recommend to Council all capital expenditure proposals above delegated limits.
- Monitor the Financial budget of major Capital projects
- Ensure the University Capital Plan aligns with strategic and financial priorities and includes robust business cases, funding sources, and lifecycle cost analysis.
- Consider student tuition fees and student services fees and make recommendations to Council
Financial risk and assurance
- Identify, monitor, and advise Council on key financial risks, including revenue dependency, liquidity, borrowing, and investment exposure including interest rate management.
- Oversee mitigation strategies consistent with the University’s Risk Management Framework.
- Coordinate with the Audit and Risk Committee on areas of overlapping assurance responsibility.
Policy, compliance, and Treasury
- Review and recommend financial policies to Council, including Treasury, Investment, and Delegations of Financial Authority policies.
- Monitor compliance with TEC funding conditions, statutory reporting, and other regulatory obligations.
- Review of major University supply contracts and recommend such to Council
Constitution
- Chancellor
- Pro-Chancellor
- Vice-Chancellor
- Up to five other members of the Council
- Convener – lay member of Council
In attendance:
- Chief Financial Officer
- Chief Operating Officer
- Registrar and Secretary to the Council
- Other senior officers or external advisers as required
Quorum
A majority of appointed members, including the Chair or Acting Chair.
Meetings
The Committee shall meet at least five times per year, with additional meetings scheduled as required to consider budget or urgent financial matters.
Meeting papers shall be circulated no fewer than five working days in advance.
Minutes shall be confirmed by the Chair and tabled at the next Council meeting.
Authority
The Committee is authorised by Council to:
- Seek any information it requires from management or staff to fulfil its responsibilities.
- Commission independent financial or legal advice where necessary.
- Review any financial or budgetary process, policy, or proposal within its remit.
The Committee does not have delegated authority to approve budgets or capital expenditure but makes recommendations to the Council for approval.
Reporting
The Committee shall report to each Council meeting through its Chair’s Report, outlining key matters considered, issues identified, and recommendations for approval.
Review
The Committee shall review these Terms of Reference annually, ensuring alignment with Council’s governance framework, TEC requirements, and best practice in university financial governance.
Any proposed amendments shall be recommended to Council for approval.
These Terms of Reference approved by the University Council 10 March 2026.