Council of Governors Report

Transcription

1 Attachment 5 Council of Governors Report Date 14 July 2016 Committee Subject Report of Review & Planning Committee consideration Governors Nomination & Remuneration Committee Policy for Payment of Expenses, Chairman and Non Executive Directors Ann Filby, Head of Communications & Corporate Affairs 15 June 2016 Summary of purpose The appointment/terms and conditions of service for the Chairman and Non Executive Directors (NEDs) are agreed by the Council of Governors as part of their statutory role as set out in the Health & Social Care Act The Trust has a Travel and Expenses Policy that governs our staff and this has previously been utilised in the Board of Directors induction pack as a guide. There is also information included in the Trust s Corporate Governance Framework, Standing Financial Instructions, regarding Board members, as set out at Appendix 1. However, there has not been absolute clarity on the process for Non Executive Directors and what they are entitled to claim. A detailed options paper was presented to Committee for consideration. This has now been refined into a preferred option, which is presented for Council approval. Which Governor responsibility is supported by this paper Holding NEDs to account Member/Public interests NED appointments/service x Significant transaction/ private patient increase Constitutional/forward plans Auditor/CEO appointment Action required of Council Approval X Discussion Decision Information Future monitoring arrangements In future, to be reviewed annually at Governors Nomination & Remuneration Committee and Council as part of the Remuneration Policy (salary review) of Non Executive Directors.

2 Policy for the Payment of Expenses - Chairman and Non Executive Directors July Introduction 1.1 The annual cost of Non Executive Director (NED) expenses is included in the Trust s Annual Report as part of the wider Board reporting requirements in line with Monitor s (now NHS Improvement) Code of Governance. 1.2 This policy sets out the guidelines under which Non Executive Directors may be reimbursed for expenses incurred in the course of their duties. This is in addition to the remuneration levels included in the Council of Governors approved Remuneration Policy, reviewed annually, and as set out in the Trust s Annual Report. 1.3 The budget for the NEDs is held by the Trust Secretary (Head of Communications & Corporate Affairs). 2. Trust principles 2.1 Trust staff are permitted to claim expenses when incurred as part of Trust duties. Objectives as set out in the Trust s Travel and Expenses Policy include individuals always considering the cost and the carbon footprint of their journey, and every effort must be made to minimise both financial cost and the environmental impact. 2.2 The Trust will reimburse the following expenses: i. Travel expenses to attend All Board of Directors meetings and Board Seminars All Board Committee meetings as required by the relevant Terms of Reference Any other meeting or event that the Chair or NEDs attend as part of their duties as a Board member of this Trust. Where travel by public transport is not possible or feasible, then mileage will be reimbursed. ii. Parking expenses In line with staff requirements, NEDs will pay car parking on a monthly basis, through payroll, at the appropriate level in relation to their remuneration, as a monthly deduction or pay as you go. This will be managed through the Facilities Management team. Page 2

3 iii Subsistence allowance/overnight accommodation The Trust policy will be followed with reimbursement for the necessary extra costs of meals, accommodation and travel arising as a result of official duties away from the Trust. (See Appendix 2 for current rates in line with the Trust s policy, February 2016.) In general, the booking of hotels is undertaken by the Chairman s PA in consultation with the relevant NED and the Trust Secretary as budget holder. Any individual issues or concerns are dealt with on a case by case basis. 3. Travel Expenses 3.1 For a Non Executive Director home is their office and where the majority of their preparation for Trust meetings takes place. 3.2 The Trust will pay expenses, including home to work mileage, at the HMRC rate, currently of 45p, in line with the Trust s Governors. This is regardless of size of engine. 4. Submission of Claims 4.1 Claimants remain responsible for the accuracy of their claims and ensuring that the claim complies with the policy as outlined above. Claim forms are available from the Chairman s PA. All claim forms are to be presented to and approved by the Trust Secretary. Should there be any anomaly the Chief Executive retains the discretion to permit the payment in exceptional cases. 4.2 Receipts The Trust s policy requires that, when claiming for expenses other than mileage, all receipts must be included with the claim form. 4.3 Payment will be made direct into the claimant s bank account with salary payments. 5. Review and monitoring 5.1 The Council of Governors Nomination & Remuneration Committee will in future review the approved policy annually as part of the review of the Remuneration Policy for the Chairman and Non Executive Directors. Page 3

4 Appendix 1 Extract of Standing Financial Instructions Corporate Governance Framework Appendices Appendix H Travel and Expenses Guide for Executive and Non Executive Directors Introduction This guidance has been produced to facilitate clarity on what claims the Trust will pay and should be used in conjunction with the Trust s Travel and Expenses policy. Responsibility It is the responsibility of the individual executive or non-executive director to make appropriate claims for reasonable expenses incurred. Travel and expenses claims made by executive or non-executive directors are publicly available and this should be considered when making any claim. Every effort must be made to minimise both financial cost and the environmental impact of travel arrangements. All claims must be supported with original receipts to support and verify any claim. Travel reimbursement For car journeys and mileage claims please refer to the Trust s Travel and Expenses policy for current rates. For rail travel reimbursement only second class travel can be claimed. If first class travel is preferred then the upgrade is to be paid for at the executive or non-executive director s expense. Should it be necessary, all taxi reimbursements should be supported with an original receipt. Subsistence reimbursement The Trust will reimburse expenses incurred for the necessary extra costs of meals and accommodation as a result of official duties away from the regular place of work. Business expenses which may arise, such as the cost of a fax or official telephone calls, may be reimbursed subject to validation and original receipts. Under no circumstances will claims for alcohol be reimbursed. Page 4

5 Appendix 2 Page 5

6 Trust Remuneration Policy 2015/16 Non Executive Directors DRAFT - To be further updated at Governors Nomination & Remuneration Committee October 2016 The Council of Governors has responsibility for setting the remuneration, following the recommendations of the Governors Nomination & Remuneration Committee. The current range is set out: Trust Chairman (12 days per month) 35,000-60,000 Trust Deputy Chair (six days per month) 25,600 Non Executive Directors (minimum three days per month): Chair, Safety & Quality Governance Committee 14,000-17,000 Chair, Audit Committee 14,000-17,000 Senior Independent Director 14,000 Non Executive Directors 12,800-14,000 These rates reflect current rates of pay in other NHS Foundation Trusts and take account of market data collected from the Foundation Trust Network/ Capita. Where the posts of Deputy Chair, Senior Independent Director and Chair of the Safety & Quality Governance or Audit Committees are held by the same person, only one of these posts will be recognised for payment. The pay scales should be uplifted annually on 1 April in line with the general inflation increase for other staff in the NHS. During periods of economic difficulty, this will be reviewed. The policy is reviewed each year at the relevant Committee and presented to the Council of Governors for approval. Approved by: Governors Nomination & Remuneration Committee 19 November 2015 Council of Governors 10 December 2015 Amended to take account of Audit Committee Chairman, omitted in error; incorrect salary previously set out for Deputy Chair ( 26k instead of 25,600) Page 6