Community Foundation in Wales

Terms of Reference for Finance, Risk Investment Committee

The Finance, Risk and Investment Committee (FRIC) is a committee of the Community Foundation in Wales (CFiW) Board of Trustees as per para 5.4 of the CFiW Articles of Association.

Composition. The Board shall appoint sufficient voting trustees to the Committee to sustain a quorum of 2 trustees at each meeting.

  • The Treasurer is ex-officio Chair of the FRIC.
  • The Chief Executive is a non-voting member of the FRIC.
  • Any other trustee may attend FRIC meetings as an observer

Role.The role of the FRIC is to take delegated responsibility on behalf of the Board of Trustees for overseeing all financial, investment and risk management aspects of the charity so as to ensure medium and long term viability.

Advice to Board.The FRIC shall make recommendations on the following matters to the Board - where approval authority lies:

  • Annual core expenditure budget.
  • Reserves policy.
  • Annual report and accounts.
  • Borrowing requirements.
  • Expenditure of endowment (capital depletion) for client grants.
  • Appointment of the external auditor - to members at the AGM through the Board.
  • Investment strategy.
  • Appointment of investment managers.
  • Acquisition and disposal of property.
  • Risk management policy & risk register.
  • Other issues appropriate to the charity’s strategic financial viability.

Operation of FRIC.The FRIC shall conduct its business through the application of the following powers as appropriate to the practical management of the charity:

  • Approve key financial policies/regulations, accounting system and internal controls.
  • Approve levels of financial authority.
  • Decide investment asset allocation operating rangesand performance targets for the segregated portfolio, the mix of pooled funds, and the balancing of the charity’s investment holdings within the limit set by the investment strategy.
  • Appoint an investment adviserto comment on performance of each investment manager.
  • Controlling the discharge of the charity’s property responsibilities for insurance, rent collection, biennial maintenance inspection, quinquennial rent review and ongoing car park investment appraisal.
  • Maintaining the risk register as per the risk management policy.
  • Decide frequency and depth of FRIC performanceand control monitoring: including management accounts, cash flow forecast, investment portfolios and risk management review.
  • The committee shall meet at least 4 times per year.

Approved by the CFIW Board on 22 Mar 13. This approval of these terms of reference constitutes delegation of the aforesaid specified powers to the FRIC.