Terms of Reference : Finance and Business Committee

The LGB may co-opt persons to the Committee who are not Governors. The Committee shall consist of a minimum of 2 and a maximum of 6 members (of whom at least two shall be Governors and at least one of whom shall have the relevant skills and expertise).

All of the above are voting members. Other attendees may be invited to the meetings as appropriate but will not have a vote. The Trust Director of Finance & Resources will be an attendee.

Two members represent a quorum.

2. Term of Office

The members of the Committee shall hold office from the date of their appointment until their resignation or their omission from membership of the Committee on subsequent consideration by the Local Governing Body (LGB), whichever shall first happen.

3. Chairmanship

The Chair of the Committee shall be appointed by the committee and will be a Governor to allow effective feedback to the LGB. The Chair will be appointed at the first meeting of the committee in each academic year, along with a Vice-Chair who will take the position of the Chair in the event of his/her absence from a meeting.

4. Meetings

a) The Committee shall meet as necessary but normally at least once per term. The Chair or any two members may call a meeting.

b) The Clerk to the LGB shall be the Clerk to the Committee, keeping appropriate records of the proceedings.

c) The agendas and minutes of Committee meetings shall be circulated to all LGB members.

5. Duties

The duties of the Committee shall include:-

a) To consider the Academy’s indicative funding, notified annually by the EFA, and to assess its implications for the Academy, in consultation with the Trust Director of Finance and the Head of School, in advance of the financial year, drawing any matters of significance or concern to the attention of the LGB.

b) To evaluate and monitor fund raising activities.

c) To consider and recommend acceptance/non-acceptance of the Academy’s indicative budget, prior to the start of each financial year.

d) To receive and make recommendations on the broad budget headings and areas of expenditure to be adopted each year, including the level and use of any contingency fund or balances, ensuring the compatibility of all such proposals with the development priorities set out in the development plan.

e) To liaise with and receive reports from the other committees, as appropriate, and to make recommendations to those committees about the financial aspects of matters being considered by them. To monitor the Academy’s progress against financial plan targets.

f) To monitor and review expenditure, including information from budget reports, on a regular basis and ensure compliance with the overall financial plan for the Academy, and with the financial regulations of the EFA, drawing any matters of concern to the attention of the Local Governing Body.

g) To assess and authorise, as appropriate, the award of contracts or purchases of over £50,000 but below the Official Journal of the European Union (OJEU) limit.

h) To monitor and review procedures for ensuring the effective implementation and operation of financial procedures, on a regular basis, including the implementation of bank account arrangements and, where appropriate to make recommendations for improvement.

i) To ensure the withdrawal of any individual if she/he has a business, pecuniary or personal interest in the business of the committee.

j) To review, approve and amend finance related policies as appropriate.

k) To implement the pay and conditions policy set by the Trust (which is to be consistent with statutory requirements, national and local guidance and/or agreements made between the LA, the Trust Board, the staff and their unions/professional associations),

l) To implement this policy in a fair and equal manner in accordance with staff contracts of employment and employment law and giving due regard to the financial impact of any decision.

m) To draft and recommend for adoption a strategic staffing plan in accordance with the approved budget.

n) To implement and review the application of relevant HR policies established by the Trust Board.

o) To report to the LGB on all staff matters which relate to conditions of service.

p) To advise the LGB and Trust Board on all current human resource developments which may affect the Academy’s pay policy or budget.

q) To determine and monitor the appointments procedure on behalf of the LGB.

r) To delegate to the Executive Headteacher, Trust Director of Finance and Head of School all matters relating to the day to day selection, management and supervision (and dismissal) of the staff employed at the Academy.

s) To ensure that governors on the Finance & Business Committee and other committees which have human resource responsibilities are aware of and understand those responsibilities.

t) To ensure that all staff have an effective induction programme and compliance with the induction requirements for newly qualified teachers.

u) To ensure compliance with “Keeping Children Safe in Education” as issued by the DfE

6. Declaration of Interests

Where there is a conflict between the interests of any governor and the interests of the LGB or Trust Board, that person must declare the interest and withdraw from the meeting. If there is any dispute as to whether a person must withdraw from a meeting under the regulations on governing body procedures, the other governors present at the meeting will decide on the matter.

7. Terms of Reference

The Terms of Reference of the Committee will be reviewed annually at the first meeting of the year.

8. Authority

The Committee is authorised by the Board to:-

a) Investigate any activity within its terms of reference.

b) Seek any information it requires from the internal controls review service, the financial statements auditor, Governors, Committees and Academy employees, plus relevant information from subcontractors and other third parties.

c) Obtain external professional advice.

NB. The LGB must not add to these terms of reference responsibilities that require the Committee to adopt an executive role, or its members to offer professional advice to the LGB. Advice should only be given in Committee members’ capacity as Governors and co-optees and only within their terms of reference.

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