BC.04 Institutional Resources and Sustainability Committee Charter

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Last updated: Jun 11, 2020 by Sara Halteman
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Purpose

The Institutional Resources and Sustainability Committee is appointed by the Board to assist in safeguarding and monitoring the University’s financial stability, assets, and long term economic health. The Committee serves as the Board’s principal forum for matters and policies relating to the University’s financing, budgeting, financial reporting, business operations, investments, and advancement functions including donor, alumni and church relations. The Committee provides oversight to the Audit Committee in monitoring the independent registered public accounting firm’s qualifications and independence, the performance of the annual audit, and compliance with regulatory and legal requirements, and institutional policies by the University. On a regular basis the Committee provides the Board with complete financial overviews of the University and recommends policies and procedures governing the funding of yearly operational plans and the financing of long-term capital needs.

Committee Membership

The Board will appoint at least four trustees to serve on the committee and will select one of these members to serve as committee chair. Each committee member must be independent of management of the institution and free of any relationship that would impair such independence. Members may not receive consulting, advising, or other fees from the institution or any affiliated foundation or entity related to the institution.  

The majority of the committee members should have working knowledge of basic financial statements, and if practicable, at least one member should be a financial expert. A financial expert is someone who has an understanding of generally accepted accounting principles (GAAP) and financial statements and experience with internal control and procedures for financial reporting.  The committee may, at its discretion, contract with attorneys, accountants, consultants, and other experts from time to time to assist in its oversight role. 

The University’s Chief Financial Officer serves as the primary staff and liaison to the committee in collaboration with the University’s Vice President for Advancement. The President of the University and the Chair of the Board are entitled to attend meetings of the Committee and to participate in all Committee discussions. The Director of Finance serves as recording secretary for the Committee.

Meetings

The Institutional Resources and Sustainability Committee shall meet as often as it determines.  Minutes will be drafted by the recording secretary, and reviewed and approved by the Committee and the Board of Trustees.

Committee Responsibilities

  1. Financial Operations/Budget: The committee is responsible for keeping informed on, considering proposals for, and making recommendations with respect to the general business affairs and financial organization of the University, including the internal and external debt structure of the University. The Committee tracks University revenues and expenditures and ensures that they meet financial expectations. The Committee reviews and makes recommendations to the Board on the University’s annual budget process.  The Committee reviews and makes recommendations to the Board on fiscal policy, spending, and revenue sources of the University, with a view to ensuring the University’s effective operation and long-term financial health.  

    Each fiscal year the Committee reviews and makes recommendations to the Board on the annual operating budget of the University, including associated tuition and fee schedule, to ensure that funds are administered in accordance with the policies of the University and the Board. It is the Committee’s obligation to evaluate the assumptions upon which the University’s proposed budget rests, including assumptions about tuition rates, compensation and benefit increases, and other variables. 

  2. Advancement: The Committee is responsible to assist the board in all areas relating to the advancement functions of the University which include fund development, capital campaigns, and alumni, parent, and church relations. The Committee has responsibility to ensure that a) the advancement policies and strategies align with the mission, vision, and strategic plan of the University; b) the Board of Trustees provides the University with philanthropic leadership to financially support the university and to assist the President and vice president for advancement in identifying and cultivating prospective donors; and c) fundraising policies (including gift acceptance and accounting policies) adhere to ethical and professional industry standards, and d) that the University has effective policies and procedures for annually engaging support from alumni, parents and churches and tools to monitor achievement of annual goals.

  3. Investment/Endowment Management:  The Committee has the responsibility to monitor and make recommendations to the full board concerning the management and oversight of investments by a third-party investment pool or manager. The committee monitors the overall investment performance, asset allocation, and expenses.

  4. Capital Projects/Debt:  The Committee reviews and makes recommendations to the Board on the University’s plans for capital projects, construction, maintenance, expansion, renovations, leasing, repairs or development of the University’s land, infrastructure, or physical facilities.   The Committee reviews and makes recommendations to the Board on the University’s plans for incurring debt. The Committee reviews and makes recommendations to the Board on the University’s annual capital budget and the University’s capital plan. The Committee shall review plans and provide advice on the acquisition of real estate within the boundaries established from time to time by the Board of Trustees.   

  5. Audit, Compliance, and Risk Management Oversight: The Committee provides oversight of the Audit Committee in monitoring the independent registered public accounting firm’s qualifications and independence, the performance of the annual audit, and the compliance with regulatory and legal requirements, and institutional policies by the University. The Committee provides oversight of the Audit Committee for formal risk-management programs for finance, compliance, and reputational risks including reports on major financial risks and the institution’s risk management activities, a summary of conflict of interest reports, and an annual report of significant outstanding and resolved litigation. 

Communication with the Board

One of the Committee’s principal responsibilities is to keep the Board fully informed on the University’s financial condition and its long-term economic health. The Committee takes appropriate steps to ensure that all Board members understand the significance of all financial statements and reports as well as underlying assumptions. Committee members have an obligation to become knowledgeable about general higher education financial and advancement practices and to be sure that policy discussions conducted at the Board level are informed and transparent.

Limitation of the Committee's Role

While the Institutional Resources and Sustainability Committee has the responsibility and power set forth in this charter, it is not the duty of the Committee to plan or conduct audits or determine that the Company’s financial statements and disclosures are complete and accurate and are in accordance with generally accepted accounting principles and applicable rules and regulations. These are the responsibilities of management and the independent registered public accounting firm.

Review of Charter

This charter will be reviewed and reassessed periodically by the Institutional Resources and Sustainability Committee, and any proposed changes will be submitted to the Board of Trustees for approval.

Adopted and approved, November 2019

Board and Institutional Policies for Committee Oversight

The Institutional Resources and Sustainability Committee has responsibility to periodically review the policies and recommend any proposed changes to the Board of Trustees for approval: