DENEFIELD SCHOOL. Finance, Premises, Personnel, Pay & Audit Committee Terms of reference

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1 Finance, Premises, Personnel, Pay & Audit Committee Terms of reference Purpose Membership Election of chair Type of Committee Quorum Voting Rights Meetings Clerking Reporting Terms of reference 1. To assist the decision making of the Governing Board (GB) by enabling detailed consideration of how the GB fulfils is responsibility to ensure sound management of the academy s (including Nursery) finances and resources, including proper planning, monitoring and probity. 2. To make appropriate comments and recommendations on such matters to the GB on a regular basis 3. To consider issues which have implications for other committees and to make recommendations as appropriate. At least 3 governors including the Headteacher (Accounting Officer) & Finance & Business Director (FBD) Appointed annually by members of the committee Non-Statutory (Advisory) At least 3 governors Head teacher and FBD Governors only 6 times a year Clerk to the Governors Minutes to next full Governing Body meeting Reviewed annually at start of year by the Coordinating group Finance responsibilities & delegated powers 1. Budget approval To consider the school s indicative funding, notified annually by the ESFA and to assess the implications for the school, in advance of the financial year, drawing any matters of significant or concern to the attention of the FGB To review annual budgets (ensuring these are balanced) for all sources of school income and expenditure (i.e. Revenue, Capital and Nursery budgets) for all activities undertaken by the school (and Nursery) before presentation to the FGB for approval. 2. Budget monitoring To monitor the budget and to receive and review reports from the FBD on income, expenditure and commitments for all the school s activities during the financial year. To approve action when budget shows variance from the agreed plan. To share monthly management accounts with the Chair of Governors (new requirement under Academies Financial Handbook 2018) 1

2 3. Virements & expenditure To agree any expenditure or virement (i.e. transfer of money from one budget line to another) beyond the powers delegated to the Headteacher, as determined in School s Financial Management Policy. 4. Budget planning To review all short-term and long-term financial planning (i.e. 3 year budget forecasts) as prepared by the FBD. 5. Charging & remissions To establish and review the principles and objectives of the school s approach to cases of hardship and ensure they are accurately reflected in the relevant policies (e.g. Charging & Remissions Policy). 6. Contracts To review and agree contracts for goods and services drawn up by the school in accordance with the school s financial management policy, noting any possible conflict of interest. To seek external professional advice regarding these as deemed necessary. 7. School finance policies To determine, review and approve the Lettings Policy, Staff Expenses policy, Financial Management policy (including Financial Procedures Manual), Charging & Remissions policy, Reserves policy, Investments policy, Governors expenses policy and Bursary Fund policy. To monitor and review the performance of the school in relation to above. 8. Development plans To contribute to the formulation of the school s development plans by financial planning. 9. Compliance with statutory requirements To ensure that the School and Nursery s financial arrangements comply with financial regulations issued by the EFSA. 10. Financial statements: To review and approve statutory accounts and returns for submission to Regulators (i.e. EFSA, DfE, Companies House, Charities Commission, Teachers Pension Agency, HMRC) within the prescribed timescales. 11. Best Value: To monitor and review the processes by which the school and nursery achieves best value in its use of funding. To prepare a best value statement for inclusion in the annual statutory accounts. 2

3 12. Benchmarking: To benchmark the school s income and expenditure annually against other similar schools and to establish follow up action to improve the school s effectiveness in usage of funds. 13. Assets: To receive and review the inventory/asset register on an annual basis, signed off by the Head teacher. 14. Insurance: To ensure the school s insurance requirements are adequately covered. 15. Catering contract and cleaning contract: To monitor performance of the external catering contractors. 16. Pupil Premium funds: To monitor pupil premium funds to ensure money is spent on improving the outcomes for children eligible for the pupil premium. To publish spending plans, a strategy and impact reports on the school s website 17. Reserves policy: to review and approve a reserves policy and to determine an appropriate level of reserves to be maintained. 18. DDT: to review and approve the accounts for Denefield Development Trust Co Limited before submission to Companies House 19. Nursery: to review the statutory accounts for Denefield Nursery before approval by Nursery Trustees. Audit duties & responsibilities 1. Statutory auditors: To recommend to the full governing board the appointment or reappointment of statutory auditors to the school and nursery (appointment can only be made by members). To hold the auditors to account for their performance. 3. Statutory Audit: To discuss with the external auditor the nature and scope of each forth coming interim and final audit and to ensure that the external auditor has fullest cooperation of staff 3. Audit findings: To consider reports from the external auditors including management letters. To recommend to the full governing board action as appropriate in response to audit findings 4. Arrangements for independent review of the school s financial systems and procedures a) internal audit function 3

4 To determine a programme of internal assurance work to be conducted by the external auditor on a bi-annual basis. The work will involve checks on the implementation of the school s financial controls, procedures and identification of potential risks. To consider the internal assurance reports and take appropriate action in response to the findings. b) Self assessment of financial management and governance To perform a review of the school s financial management and governance arrangements using the EFSA s Financial Management and Governance Self- Evaluation (FMGS) document. To consider the outcome of the review and agree appropriate action. Pay responsibilities & delegated powers 1. To determine the salary of the Headteacher (from 1 September of each year), taking account of any report from the Headteacher s Performance Management Panel. (The Headteacher s Performance Management Panel in conjunction with an External Advisor reviews the Headteacher's objectives set for the previous year and sets objectives for the following academic year). 2. To determine the salaries of the leadership group from 1 September of each year, taking account of any objectives set for the previous year, and recommendations of the Headteacher. 3. To determine the salaries of all teaching staff from 1 September of each year, with reference to the current national Pay and Conditions Document and attendant Circular, the school's current pay policy, and the recommendations of the Headteacher. 4. To determine the salaries of all support staff from 1 April of each year using the relevant scales, taking account of the current pay policy and the recommendations of the Headteacher. 5. To determine the remunerations of staff directly supporting the Governing Board (Clerk to the Governors) on 1 April each year taking into account the recommendation of the Chair of Governors. Premises and related matters: responsibilities and delegated functions 1. To prepare and maintain a rolling programme of maintenance for the school premises and to monitor its progress against the funds delegated. 2. To develop, review, monitor and evaluate policies concerning the occupation and use of the school premises. 4

5 3. To monitor health & safety issues within the school, including liaising with H&S Monitoring Group, assessing Fire Safety and monitoring the Accident Log. 4. To develop, review, monitor and evaluate implementation of Premises and Health and Safety related policies, including Emergency and Accessibility Plans. 5. To assess progress made against the school s Accessibility Plan and to report annually on this progress to stakeholders. 6. To develop, review, monitor and evaluate implementation of the Security Policy and ensure that a regular Security Risk Assessment is undertaken. 7. To ensure all capital funding and assets support the aims and objectives of the school. To review the capital plan annually. 8. To review Government s Nutritional Standards and service provided by external providers. Approved by FGB: Dec 2018 Next review due: Sept