Terms of Reference for

Finance Committee (to incorporate Corporate Planning)

Objective
The purpose of this Committee is to oversee and give guidance to the finance & corporate planning affairs of the Jamaica Urban Transit Company Limited (JUTC) in keeping with all regulatory framework namely: legislations, policies and standards, in order to secure the interest and financial health of the organization.

Membership
The members of the Committee shall be three non-executive directors.

The Chairman of the Board shall appoint the Chairman of the Committee.

The quorum of the Committee shall be two members.

Invitees include the respective Department Heads plus other members of the Executive and Managers as required.

The Committee will meet bi-monthly.

Secretary
The secretary of the company shall be the secretary of the Committee.

Duties and Responsibilities
1. Ascertain and/or set the financial planning and reporting requirements and deadlines. These include corporate plans and budgets, accounts, audits, taxation and annual reports. (See Appendix A)

2. Ensure that reporting requirements and deadlines are met.

3. Set and review financial targets, plans and budgets.

4. Monitor actual financial performance against the set plans, targets and budgets and revise as deemed necessary.

5. Recommend banking mandates, financial institutions and limits.

6. Ensure that the JUTC is in full compliance in terms of income tax, general consumption tax (GCT) when applicable, statutory deductions and payments. (See Appendix B).

7. Review and recommend finance and accounting policies.

Appendix A
• Corporate Plans are prepared annually and reviewed/reported quarterly to the Ministry of Transport & Works (MTW). The draft is to be submitted by January 1 and the approved by January 31. The corporate plan covers three years with the first year representing the operation plan, which is broken out into quarterly targets. The Corporate Plan must be copied to the Ministry of Finance.

• Budgets are prepared annually based on the operational plan (first year of the three-year corporate plan) and submitted to MTW and Ministry of Finance (MOF).

• Accounts are prepared monthly and quarterly and circulated by the 15th internally and externally to MTW and MOF.

• External Audits must be completed after the year-end in time for the annual report to be prepared and submitted within 120 days after the end of the financial year, as per the Public Bodies Management and Accountability (PBMA) requirements.

Appendix B
• Annual Income Tax returns are to be filed by March 31 following the accounting year-end.

• Quarterly estimated income tax is to be paid by the 15th of each quarter month end.

• Monthly statutory deductions are to be paid to the respective institutions by the 14th of the following month.

• Annual statutory returns (for the calendar year) are to be filed by January 31 each year.

Appendix C – Limits for Purchase Order and Cheque Signing

Abbreviations Used:

MTW: Ministry of Transport & Works
MOF: Ministry of Finance

Members of the Finance Committee

  • Clement Ellington – member since May 2016
  • Bancroft Thomas – member since May 2016
  • Newlyn Seaton- member since May 2017, Managing Director (ex officio) and Board Chairman (ex officio)