The Corporation of Brown University
January 31, 2023
Tags Advisory and Executive, Main

Committee on Budget and Finance

Committee

The Committee on Budget and Finance shall keep itself fully and currently informed concerning the fiscal affairs of the University and shall advise the President and the Corporation on fiscal matters. 

The Committee has specific responsibilities for recommending expenditure and revenue budgets each fiscal year, but shall primarily concern itself with monitoring and assessing the long-range fiscal planning and health of the University. It shall be informed in doing so by the work of the Committees on Academic Affairs, Facilities and Campus Planning and its Subcommittee on Real Estate and Development, Campus Life, and Investment, and the University’s overall academic plans and initiatives. 

Responsibilities and Duties

The Committee shall, in advance of its February meeting, receive the report of the University Resources Committee and the recommendation of the President regarding tuition and fee charges, endowment payout rate, and staff and faculty merit pool for the next fiscal year. The committee shall endorse or amend those recommendations as appropriate and recommend action to the full Corporation.

The Committee shall in advance of its May meeting, receive the report of the University Resources Committee and the recommendation of the President regarding the operating budget of the University for the next fiscal year. The Committee shall endorse or amend those recommendations as appropriate and recommend action to the full Corporation.

The Committee shall also advise the Corporation regarding the endowment spending policy.

The Committee shall have responsibility for reviewing the University’s multi-year financial plans, objectives and needs. This will include setting parameters and risk tolerance for the cash flow profiles and revenue streams of the university, including the endowment, tuition, and fundraising, and communicating those goals and expectations to the Committees on Investment, Academic Affairs, and others as necessary.

The Committee shall, on an annual basis, review the capital plan of the University, shall approve a three-year capital budget, and shall recommend – as part of the revenue and expenditure budgets – to the Corporation financing and expenditures for capital projects, including acquisitions.  The Committee shall have responsibility for ongoing review of capital expenses, including facility renewal and any changes in scope or expense of capital projects, and may receive information from the Committee on Facilities and Campus Planning regarding such projects.

The Committee shall oversee the University’s debt strategy and make recommendations to the Corporation regarding changes in debt strategy and for the issuance of debt offerings.  The Committee shall also monitor and advise the Corporation regarding the University’s cash management policies. 

On an annual basis the Committee shall receive, review and accept risk management plans prepared by the administration in areas appropriate and relevant to the charge of the Committee. 

The Committee may meet once a year with the members of the University Resources Committee.

Membership

The Committee shall consist of the President, the Chancellor, and the Chair of the Committee on Investment, all ex officio, and approximately seventeen members of the Corporation.

Staffing

The Committee shall be staffed by the Executive Vice President for Finance and Administration.