Planning and Resources Committee: Terms of Reference
Purpose
1. The Planning and Resources Committee (PRC)’s purpose is to enable the implementation of the University’s academic and strategic priorities through the management of the University’s financial resources. [1]
Objectives
2. The objectives of the PRC are:
- a. to recommend to the Regent House, through the Council and Finance Committee, an annual budget for operational income and expenditure and to approve capital (including infrastructure) expenditure that:
- i. align with the Schools’ academic visions and Non-School Institutions’ (NSIs) [2] strategic plans, and with the business plans to implement them;
- ii. support the successful operation of the University and manage associated risks; and
- iii. in all cases, stay within the five-year operational and investment fund envelopes set by the Finance Committee and approved by the Council;
- b. to develop systems, policies and mechanisms for managing the University’s financial resources that:
- i. are financially transparent, provide value for money, and incentivise income generation to support delivery of academic and strategic priorities; and
- ii. maximise flexibility and accountability for the Schools and NSIs in exercising budgetary control.
- c. to manage operational income and expenditure and distribution of capital expenditure across Schools and NSIs to achieve objective a and in line with objective b; and
- to drive the development and delivery of Schools’ and NSIs’ business plans and so enhance their income and expenditure performance.
Delegated authority
3. In the pursuit of its purpose and objectives, the PRC shall exercise the authority of the Council to manage the University’s resources [3]; and the authority of the General Board to manage allocations and expenditure relating to teaching and research. [4]
Responsibilities
Planning
4. The PRC recommends to the Council, through the Finance Committee, a financial planning system for approving budgets; and any financial policies.
5. The PRC approves any financial mechanisms that fall within the planning system and policies approved by the Finance Committee and the Council.
6. The PRC commissions, reviews and approves, annually, five-year rolling business plans for the academic visions, NSIs’ strategies, and any thematic strategies.
7. The PRC recommends, annually, to the Council through the Finance Committee with the endorsement of the General Board, a five-year rolling plan for operational income and expenditure and capital expenditure for the University, which may include:
- a. five-year rolling contributions from the Schools and NSIs based on their business plans and the PRC’s management of the overall budget;
- b. prioritised capital investment needs and opportunities, including indicative rolling five-year capital spend for committees overseeing thematic plans; [5]
- c. indicative ten-year capital commitments for major projects;
and, in all cases, falls within the five-year envelopes for operational expenditure and expenditure from the investment fund set by the Finance Committee and approved by the Council.
Annual budget for operational income and expenditure
8. The PRC recommends, annually, to the Regent House through the Council and Finance Committee, an operating budget for the University for the next academic year that:
- a. attributes income and expenditure to Schools and NSIs;
- b. sets contribution rates for operational income and expenditure for the Schools and NSIs in line with their business plans and the PRC’s management of the overall budget;
- c. allocates Chest income to Schools and NSIs in the current Chest model during the transition to a new planning and budgeting mechanism; and
- d. in all cases, falls within the five-year high/low envelope for operational income and expenditure set by the Finance Committee.
9. Through its Resource Management Committee (RMC), the PRC supervises in-year budgetary control by Schools and NSIs; the financial performance of Schools and NSIs against their approved business plans; and the delivery of those business plans.
10. Through its Resource Management Committee, the PRC approves, by exception, in-year operational expenditure on the Schools and NSIs to meet unforeseen and urgent costs, from a contingency budget agreed as part of the annual budget.
Capital expenditure
11. Working within the overall investment fund envelope set by the Finance Committee and approved by the Council, the PRC approves:
- a. the overall balance between capital (including infrastructure) investment on strategic priorities and tactical expenditure to address immediate needs;
- b. prioritisation of capital expenditure between business cases, in line with academic policy set by the General Board and the strategic direction set by the Council;
- c. capital (including infrastructure) and other expenditure from the investment fund, in line with paragraphs 11(a)–(b) and the PRC’s overall objectives;
- d. capital (including infrastructure) expenditure over £2 million from any other funding source, in line with paragraphs 11(a)–(b) and the PRC’s overall objectives; and
- e. delegations to appropriate bodies to approve capital (including infrastructure) expenditure under £2 million from any other funding source.
12. Through its Resource Management Committee, the PRC supervises budgetary control, financial performance, and delivery against approved business cases.
Other
13. The PRC approves the establishment of any sub-committees of the PRC, including the Resource Management Committee, and appointments to those sub-committees.
Membership
14. The membership of the PRC comprises:
- (a) the Vice-Chancellor, or a duly appointed deputy, as Chair, provided that the Chair shall not also be the Chair of the Finance Committee;
- (b) the Pro-Vice-Chancellors;
- (c) the Heads of the Schools;
- (d) a Head of House, appointed by the Colleges’ Committee and selected from those who are also members of Council;
- (e) one other member appointed by the Colleges’ Committee;
- (f) three members appointed by the Council, including at least one from its own membership;
- (g) three members appointed by the General Board, including one from an institution outside a School but under General Board supervision;
- (h) one student member of the Council appointed by the Council; and
- (i) up to two external members co-opted by the PRC, who shall not be serving members of the University’s Audit Committee.
15. Members in classes (e) to (g) and class (i) may serve for up to two consecutive terms of four years.
16. For PRC members appointed as a member of the Council in classes (f) and (h) or from an institution outside a School but under General Board supervision in class (g), if their membership of the Council or the institution ceases, PRC membership shall also cease.
17. The following officers shall be invited to attend meetings of the PRC: the Registrary; the Chief Financial Officer; the Director of Finance; the Head of Investment Appraisal; the Academic Secretary; the Director of Estates; the Director of UIS; the Executive Director of Development and Alumni Relations; the Head of Academic and Financial Planning and Analysis; and a representative from among the Secretaries of the Schools. The Chair may invite other persons to attend for the whole of meetings of the Committee or for particular items of business.
Meetings
18. The PRC meets as often as required to fulfil its purpose, and normally six times a year. Meetings have pre-circulated agendas and papers and agreed minutes and actions.
19. No business may be transacted unless a quorum of at least ten members is in attendance, including either the Chair or a deputy appointed by the Chair from the members in class (b).
20. In any vote, each member in attendance at the meeting shall have a single vote and voting shall be decided by a simple majority of the members in attendance. If two sides receive an equal number of votes, the Chair may make a second, casting vote.
21. The PRC may approve business between meetings by circulation, except that no business shall be approved by circulation if any member requests that it be discussed at a meeting.
22. The Chair of the PRC shall have delegated authority to act for the committee between meetings in urgent, minor or straightforward cases, reporting in full to the next committee meeting. All decisions made under delegation shall be reported to the PRC.
23. Conflicts of interest in relation to the business of the PRC shall be handled in line with the University’s Conflict of Interest Policy.
Reporting and review
24. The PRC shall report to the Council and the General Board by such means as the Council and the General Board shall determine.
25. The PRC shall review its performance and its terms of reference every three years, or sooner if needed. The PRC shall refer any changes to its terms of reference to the General Board and the Council for approval and subsequent publication by Notice.
Notes
- 'University’ refers to the academic University throughout these terms of reference.
- ‘NSIs’ here refers to both those NSIs under the supervision of the General Board and those under the supervision of the Council, including the Unified Administrative Service (UAS).
- See Statute A IV 1(a) (Statutes and Ordinances, p. 6)
- See Statute A V 1(a) and (b) (Statutes and Ordinances, p. 7)
- With projects approved on a case-by-case basis (see paragraph 11). Examples of committees overseeing thematic plans include the Estates Committee and the Information Services Committee