Board Governance Policies

A.2.5.9.1 Board Audit & Risk Management Committee

Approved/revised: December 2, 2011

POLICY

The NVIT Audit and Risk Management Committee is a committee of the Board of Governors with a mandate to assist the Board in meeting its financial, fiduciary and statutory responsibilities as NVIT’s governing body as outlined in the College and Institute Act.

Terms of Reference

Purpose

The purpose of the Audit and Risk Management Committee is to assist the Board in fulfilling its financial, fiduciary and statutory responsibilities related to:

1.     Financial Policies;

2.      Financial and enrolment reporting to government;

3.     Operating and Capital Budgets;

4.      Internal Controls;

5.      External Audit;

6.      Identification and management of risk;

7.      Investments and Capital Planning.

Committee Membership

The Committee shall be appointed by the Board on an annual basis, at the September Board meeting, for a one year term. Members may serve any number of consecutive terms.

The Committee shall be comprised of no more than four (4) Board members (non-NVIT employees) with a quorum being two members. The Chair and Vice Chair shall be selected annually by the Board from within the Committee.

The President/CEO shall be an ex-officio non-voting member of the Committee and the Executive Assistant shall provide administrative support to the Committee.

NVIT’s senior financial officer and the manager responsible for budgets and financial reporting shall provide the necessary support to the Committee.

Guiding Principles

The Committee shall be guided by the values of financial integrity and institutional accountability and will conduct itself within the framework of the mission and values of the Institute. Committee members will at all times strive to maintain direct, open and respectful communications with management, the Board, the Auditor and other parties as appropriate.

Committee Meetings

The Committee will meet 4 times per year with additional meetings at the call of the Chair. Meetings will normally be held in September, November, January and May. 

Responsibilities

1.         Financial Policies 

The Committee will review and recommend for approval to the Board policies related to financial matters of the Institute. 

2.         Financial and Enrolment Reporting to Government 

The Committee will review and recommend to the Board:

a)  Acceptance of the quarterly financial statements and the accompanying management analysis;

b)  Those financial reports requiring Board approval by the Ministry. (e.g. Quarterly Financial Forecast);

c)  The annual FTE Report for government. 

3.          Operating and Capital Budgets

The Committee will review the annual Ministry base funding letter.

The Committee will review and recommend to the Board Annual Budgets including Capital Plans.

4.         Internal controls

The Committee will review internal control procedures, and shall review and recommend to the NVIT Board acceptance of correspondence related to internal control, from the external auditor.

5.         External Audit

The Committee shall be involved and approve the external audit activities including:

a)     Assessing the performance of and recommending the annual appointment of the external auditor;

b)     Meet with NVIT’s auditor to discuss NVIT’s annual audited financial statements and auditors report and recommend approval to the Board;

c)      Review of the auditor management letter and management’s response.

6.        Identification and Management of Risk 

The Committee will review and assess, in coordination with management, any significant risk with respect to the Institute’s business including financial and accounting policies or practices. 

7.      Investments and Capital Planning

The Committee will review and recommend to the Board:

a)      acceptance of the Annual Investment report;

b)   acceptance of the Institute's 5-Year Capital Plan.