Finance and Administration Committee Charter
The Finance and Administration Committee provides oversight for the University’s finances, business, and facilities activities. The committee advises the Board of Trustees on the state of the university’s financial operations, budgetary allocations, student fees, personnel policies, investment performance strategy and returns, and facilities. The committee serves to ensure the University operates within available resources and applicable federal, state, and University policies in a manner supportive of the University’s strategic plan.
The committee is responsible for formulating and recommending action or necessary policies in all matters relating to finance, business, and administration, including the investment of University funds. Specifically, the committee shall recommend the following to the Board or to the Executive and Compensation Committee when necessary between meetings of the Board:
- Guidelines to govern the administration’s submission of a proposed annual operating budget and appropriation request to state agencies and officials;
- The University’s final operating and capital outlay budgets for the fiscal year (after the General Assembly has enacted annual appropriations for the University);
- Student tuition and fees for which Board approval is required by Board policy and any proposal for waiver or discount of student tuition and fees unless mandated by state law;
- The University’s proposed annual capital outlay budget and appropriation request, prior to their submission to other state agencies and officia
- Construction of specific buildings and other capital improvements to be funded by revenues or other institutional funds not specifically appropriated for capital outlay; provided that the Board may authorize the 2 President to approve additional projects identified during the fiscal year, and these additional projects shall be reported to the Board at a subsequent meeting;
- Issuance of debt (which shall not constitute indebtedness of the State of Tennessee) to erect buildings, purchase real estate, or cooperate with agencies of the United States;
- A facilities master plan for each campus;
- Acquisition of any interest in real property, including acquisition by gift or devise if the acquisition obligates the University or the State of Tennessee to expend state funds for capital improvements or continuing operating expenditures;
- Conveyance of the University’s interest in real property by sale in fee, easement or right-of-way; provided that in the case of an interest acquired by gift or devise, if the conveyance must be approved before the next scheduled meeting of the Board or Executive and Compensation Committee, the President, upon recommendation of the Chief Financial Officer, shall have authority to approve the sale at or above the appraised value. All sales of real property acquired by gift or devise shall be reported annually to the Finance and Administration Committee, which in turn shall report the sales to the Board of Trustees;
- Proposals to implement a voluntary retirement incentive plan for a campus or institute or for a particular unit within a campus or institute;
- Policies relating to the University’s finances, operations, and facilities for which Board approval is necessary or deemed appropriate by the committee, including without limitation policies governing approval of student tuition and fees, cash management, debt management, investment of University funds, and operation of University aircraft; and
- University rules required to be promulgated under the Uniform Administrative Procedures Act, except rules governing student conduct, rights, and responsibilities, which shall be recommended by the Academic Affairs and Student Life Committee.
The committee shall review the University’s debt obligations annually.
The committee shall have the following subcommittees:
Subcommittee on Efficiency and Cost Savings. The subcommittee shall establish a time frame for the evaluation of each area of the University’s operations to determine whether more efficient operation and cost savings may be achieved. The subcommittee shall make recommendations as to efficiencies and cost savings that will improve the University’s operations. The subcommittee shall prepare an annual report of its findings, conclusions, and recommendations for review by the Finance and Administration Committee and the Board. The Board shall include the report of the subcommittee in its annual report to the General Assembly under Tenn. Code Ann. § 49-9-208;
Subcommittee on Tuition, Fees, and Financial Aid. The subcommittee shall make recommendations to the Finance and Administration Committee and the Board on student tuition and fees, taking into consideration the needs of both students and the University. The subcommittee shall also evaluate financial aid in relation to the cost of attendance and recommend policies to improve the availability of financial aid that are in the best interest of students, the University, and the state; and
Other subcommittees as the Board finds necessary and expedient from time to time.
Members of the committee, the committee chair, subcommittee members, and subcommittee chairs shall be appointed by the Board of Trustees upon the recommendation of the Vice Chair of the Board and in accordance with the provisions of Article III of the Bylaws.
The President shall designate one or more members of the senior administrative staff, or a designee of a member of the senior administrative staff, to provide staff support to the committee and its subcommittees.
Required and Called Meetings
The committee and the subcommittees shall meet at least two times annually, in conjunction with regular meetings of the Board of Trustees or at any other time upon a call in accordance with the following provisions.
A meeting of the committee may be called at any time by the Chair or Vice Chair of the Board, the President, the committee chair, or by the Secretary upon the written request of two members of the committee. A meeting of the subcommittees may be called by the subcommittee chair or the committee chair.
At the discretion of the committee chair, the committee may meet jointly with another standing committee or a subcommittee, in which case only the voting members of a particular committee or subcommittee shall vote on any agenda item requiring action by that committee or subcommittee.
Notice of committee and subcommittee meetings shall be given to all committee and subcommittee members. Notice may be given by regular mail, electronic mail, or facsimile transmission. At least five (5) days’ notice shall be given when feasible, but less notice may be given when there is a need for urgent action. If written notice is not feasible, by reason of urgency or other exigent circumstance, notice may be given by telephone.
All meetings of the committee and subcommittees shall be open to the public unless otherwise provided by the Tennessee Open Meetings Act or a judicially-recognized exception to the Act.
An agenda shall accompany the notice of every committee and subcommittee meeting when feasible, but when not feasible, the notice shall state the purpose or purposes for which the meeting is called.
Development of the committee agenda shall be the responsibility of the committee or subcommittee chair, in consultation with the President and committee or subcommittee staff. The agenda shall list in outline form each matter to be considered at the meeting. The committee and subcommittees may use a consent agenda in the manner provided by the Bylaws.
Matters not set forth on the agenda or in the notice may be considered only upon an affirmative vote of a majority of the total voting membership of the committee or subcommittee.
A quorum shall be a majority (more than one-half) of the voting members of the committee or subcommittee. The Vice Chair of the Board shall be counted for quorum purposes, but the President shall not be counted for quorum purposes. In the absence of a quorum, those attending may adjourn the meeting until a quorum is present.
Committee and subcommittee staff shall prepare minutes of all committee and subcommittee meetings, review the minutes with the committee or subcommittee chair, and provide the minutes to all committee or subcommittee members before the next committee or subcommittee meeting.