About the Investment Committee

Background

The ICE Trustee Board has directed that the Institution establish a Finance, Assurance and Risk Committee (FARC) to report to the Trustee Board. The Committee has separate terms of reference to the ICE Audit Committee.

The role of an independent committee member with an investment management background is to help fulfil the committee’s purpose to scrutinise and make recommendations to the Trustee Board in relation to the investment policy and monitor the charity’s investment management arrangements.

This is an opportunity for an experienced investment manager to apply their knowledge to help ensure that the charity’s financial assets continue to generate sustainable long term returns for the benefit of the ICE membership.

There are currently 7 committee members serving on FARC, including 2 chartered accountants. The intention is to replace one of the chartered accountant members (who has resigned her term) with someone with a suitable investment management background.

The investment portfolio is managed by Mazars fund managers and is about £21M in size. There is a further Short Term Fund, recently set up of £9M, also managed by Mazars, with short term government bond holdings (Gilts).

FARC Purpose and Responsibilities

Budgeting and Financial Performance

• Scrutinising the annual budget and operational plan prepared by the Director General & Secretary and management team and advising the Trustee Board on their adoption. (This is to include a review of the Quest Fund budget and advice to the Trustee Board on its adoption)

• Reviewing management accounts and balance sheet and monitoring performance against the objectives approved in the Business plan and budget.

• Considering the budgetary impact of proposed variations to activities through restructuring, acquisition/ disposal or other significant changes, and reporting to the Trustee Board.

• Monitoring the financial position and future prospects of the Institution, including the income levels of Thomas Telford Ltd. to ensure that the Institution can meet its ongoing financial and nonfinancial commitments and strategic objectives.

Financial Strategy, Planning, and Policy

• Provide oversight and challenge effectiveness of financial modelling to support

Trustee Board in strategic decision making and resource allocation.

• Reviewing the financial strategy of the Institution over a 3 to 5 year horizon and advising the Trustee Board on its approval. Monitoring and reporting on any subsequent changes.

• Provide challenge and oversight to procedures that seek to ensure that all available resources of the Institution, including buildings and estates, are maximised in attaining the goals set by Trustee Board.

• Review business plans for significant investment proposals including new business lines, new geographical locations and major capital expenditure.

• Provide oversight of the management of the investment portfolios (main, Trusts and Quest Fund) as part of the available resources of the Institution and maximise the utility of the portfolio in achieving the goals of the Institution.

• To keep all financial investments continually under review in light of current market conditions; formally notify the Trustee Board of matters concerning the ongoing management of the portfolio, and; ensure the Statement of Investment Policy is fit for purpose.

• To maintain a continual and active dialogue with the investment manager.

• In response to requests from the ICE Pension Fund, ICE Foundation (QUEST), and ICE Benevolent Fund, to give the ICE view on investment strategy, and to suggest suitable providers of investment advice.

• To ensure the Committee is in compliance with ICE’s Fairness, Inclusion and Respect (FIR) Action Plan Area of Operation - 1.01. Governance and Leadership.

Assurance and Risk

• To recommend the reserves level of the Institution to protect the Institution against drops in income or to allow it to take advantage of new opportunities.

• Reviewing the financial strategic risks over a 3-5 year time horizon.

• The ICE Audit Committee retains responsibility for ensuring effective audit functions are in place (both external and if necessary, internal); monitoring risk management processes, and; ensuring that an adequate internal control environment is established and maintained.

• To monitor statutory reporting of Human Resources information and reports to Trustee Board.

• To challenge effectiveness and provide risk control in all areas of Management Information and to monitor compliance with GDPR and data security.

Effectiveness and Reporting Responsibilities

• At least once a year, the Finance, Assurance & Risk Committee should review its own performance and terms of reference to ensure it is operating at maximum effectiveness and recommend any changes it considers necessary to the Trustee Board for approval.

• The Secretariat shall minute the points of agreement and approvals from Committee meetings. This shall be circulated to the Chair for approval prior to being circulated to the members of the Committee.

• The Committee members shall report to the ICE Trustee Board at each Trustee Board meeting. The Finance, Assurance and Risk Committee shall provide an annual report on the financial performance of the Institution, the future outlook of the Institution and the performance of investments and other financial instruments and assets. The Annual Report and Audit could constitute this formal report.