Healthwatch Brighton and Hove CIC Financial Policy and Procedures

Healthwatch Brighton and Hove CIC Financial Policy and Procedures Agreed 14.01.15 1. Roles and responsibilities 1.1. Observations 1.1.1. There will be appropriate segregation of duties to prevent one person processing a complete transaction. 1.1.2. This policy aims to incorporate all other necessary financial controls for the routine operation of the financial system. In addition, there are controls exercised by management outside the day to day operation such as the review of management accounts and other review procedures 1.1.3. All Directors, staff and volunteers will have the appropriate level of knowledge and equipment to fully perform appointed tasks, or where necessary professional advice will be bought in. 1.2. Community Works Finance Officer The Community Works Finance Officer is responsible for the day-to-day administration of the Healthwatch Brighton and Hove (HWB&H) financial systems, as directed by the Healthwatch Brighton and Hove Board. The Finance Officer has the following responsibilities: a) in accordance with procedures set out below, to co-ordinate and maintain Healthwatch financial systems, including using computerised and manual records to process remittances, invoices, purchase orders, cheque requisitions, expense claims, petty cash, salaries/ni ers, assets and banking matters; b) to input data to HWB&H book-keeping system; c) to monitor day-to-day expenditure against agreed budgets; d) to make payments via cheque or electronic transfer to suppliers; 1 P a g e

e) to bank cash and cheques; f) to provide up to date coding sheets to HWB&H CEOs of each year s project codes and budget headings; g) to process the monthly payroll; h) to enter and allocate salary and NI ers; i) to invoice for grants and fees in accordance with (an income schedule derived from) the annual budget or as directed by the HWB&H Chair, or CEOs; j) to monitor fundraising income against budgeted targets, allocating as necessary; k) to provide quarterly budget vs actual reports to CEOs and forward the quarterly management accounts to CEOs; l) to exercise credit control; m) to monitor and control cash flow and transfers to and from the Deposit Account; n) to develop knowledge and skills around financial systems; o) to review HWB&H accounts prior to the quarter end, to identify discrepancies and variances; p) to produce quarterly management accounts, by the end of the second week of the month following the quarter end; q) to advise on submitting the financial parts of monitoring returns and to support HWB&H CEOs in their completion; r) to provide a narrative report to inform quarterly financial reports to HWB&H Board; s) to respond to queries raised by the HWB&H CEOs; t) arrange for / support the audit of the accounts;and u) to produce the annual budget for HWB&H in consultation with the Chair, Finance Director and CEOs and review it if a new funding agreement is obtained during the year. 1.3. HWB&H CEO The CEO is responsible for the following tasks, as delegated by Directors: a) to authorise budgeted expenditure where it is under 1,000, unless it is a recurrent cost that has prior approval of the Directors and this must be in writing and does not exceed the total annual budgeted limit for that budget heading within a cost centre; b) to authorise any unbudgeted expenditure only if it meets the criteria in 2.3.4.; c) to monitor HWB&H accounts and report to Directors on a regular basis, to oversee all financial systems, procedures and policies; d) to check and authorise the monthly bank reconciliation report. e) Generating and managing income, including: ensuring that funding agreements are up to date; liaising with the Community Works Finance Officer regarding invoicing and payment of income; and ensuring that income generation is in line with the agreed fundraising budget. 2 P a g e

f) Monitoring expenditure according to the budget agreed at the start of the financial year (see 2.3.3.) and to answer any specific queries during the month as they arise: review monthly budget vs actual reports (noting that these reports are not adjusted for uninvoiced commitments), report material variances on the budget (i.e. 25% over or underspend against budget to date) or other discrepancies to the Finance Director; review quarterly management accounts (noting that these reports are adjusted for uninvoiced commitments); raising queries for the Finance Officer through the HWB&H Finance Director. These will be addressed where possible through a regular monthly visit or ad-hoc if necessary; quarterly monitoring feedback to the Finance Officer with reasons for significant variances against the Management budget to inform the narrative report of the management accounts; and producing monitoring returns as required by funders, including writing the narrative part and liaising with the Finance Officer on completing the financial report. g) Producing agreements with partners for onward granting. h) Ensure the log for fee income is updated when notification of the necessity to invoice is known. 1.4. Directors The Directors delegate authority for financial management of HWB&H to staff, but maintain oversight by: a) authorising budgeted expenditure over 1,000 and unbudgeted expenditure; b) reviewing quarterly management accounts at quarterly Finance and Risk Sub- Committee meetings, which are then approved at quarterly Directors meetings. The accounts will be accompanied by them; c) a narrative financial report, which will monitor income and expenditure against budget and highlight significant variances. Commitment to immediate spend, income monitoring and cash flow for the next 6 months will also be covered as necessary; d) receiving and approving the annual accounts for presentation to the AGM; e) when considering any new policy initiative or variation of an existing policy, first considering the financial implications of such proposals; f) ensuring annual accounts are produced, audited and presented to the members at the AGM; g) reviewing the Risk Management Strategy annually; h) reviewing the Reserves Policy annually; and i) reviewing investment opportunities annually. 3 P a g e

1.5. The Finance and Risk Sub Committee The Finance and Risk Sub Committee s roles and responsibilities are as described in the HWB&H Finance Sub-Committee Terms of Reference. 1.6. HWB&H members HWB&H members at the Annual General Meeting are responsible for: a) Formally agreeing the annual accounts; and b) Appointing the Auditors. 1.7. The Auditors The Auditors are responsible for producing HWB&H Annual Audited Report, which accompanies the Company Accounts. 2. Financial Management Details 2.1. Bank 2.1.1. HWB&H holds an independent and ethical bank account, with Charities Aid Foundation, account details as follows: Account Name: Bank: Address: Sort Code: Account. No: Healthwatch Brighton and Hove CIC Charities Aid Foundation (CAF) (not for public circulation) (not for public circulation) (not for public circulation) 2.1.2. Two signatories are needed on each cheque and on any other instruction to the Company s bank to make a payment from the Bank Account (e.g. Standing order, Direct Debit instructions, etc.) 2.1.3. An encashment policy is held with HSBC or Royal Bank of Scotland. A limit of 500 per week is set for cash withdrawals. Director signatories and the CEO can authorise withdrawals. The CEO and Director signatories can cash cheques. 2.2. Accounting Records 2.2.1. All accounts and financial records shall be kept in a form agreed by the CEO with the Directors. All accounting records shall be retained for at least 7 years and may only be destroyed with the agreement of the Directors. 2.2.2. The accounting procedures will be in accordance with the legal requirements of the Companies Acts. 4 P a g e

2.3. Budget 2.3.1. An annual budget shall be prepared by the CEO in consultation with the Finance and Risk Sub Committee so that it is available to the Directors for consideration in February and approved by them before the commencement of that financial year. The annual budget generally includes budgets by cost centres, some of which will be core funded and some will relate to a specific funder or project, the latter itself being related one or more funders and time limited pieces of work. The efficacy of the budget will be assessed in relation to HWB&H Business Plan and Annual Work Plan and a realistic view taken about any fundraising targets. 2.3.2. If new funding is agreed upon subsequent to budget approval, a new cost centre will be created where any associated budgeted expenditure is allocated in isolation, i.e. not apportioned as described in 2.3.1. This budget amendment will be approved by the Directors at the following Finance Committee. 2.3.3. The Community Works Finance Officer shall provide the CEO with a budget at the start of the financial year for monitoring the budget as described at 1.2. The Community Works Finance Officer shall also provide the CEO with a quarterly budget vs actual report of budget headings. 2.3.4. Approval of the budget by the Directors shall confer authority on the staff to incur revenue expenditure provided for by the budget. All expenditure incurred will relate to specific budget headings within one or more of the cost centres within the approved budget. The following procedure applies to any proposed unbudgeted expenditure: a) where it does not exceed 1,000 of planned expenditure for that budget heading, (or budget heading within a cost centre in the case of a direct project cost), it can be approved by the Chair. b) where it does exceed 1,000 of planned expenditure for that budget heading, (or budget heading within a cost centre in the case of a direct project cost), it must receive Director approval. Directors must first consider whether proposed expenditure can be met from savings under another budget heading. If so, resources shall be vired between budget heads. A virement approval form (form CVF11), detailing the proposed budget movement has to be completed and authorised by the CEO prior to Directors approval. Following Directors approval, the Finance Officer shall be advised to action. Form CVF11 will indicate the following: cost centre; source of virement; destination of virement; amount of virement; CEO authorisation; Director s authorisation; and 5 P a g e

signed by Community Works Finance Officer. 3. Expenditure Procedures 3.1. Procurement of Goods and Services 3.1.1. Procurement of goods and services must be arranged in such a way as to obtain value for money using open and free competition. HWB&H does not hold a list of approved suppliers. Orders for routine expenditure shall be placed with the usual suppliers with whom the company holds an account. However, it is considered by the company good practice to review these usual suppliers from time to time by the CEOs ensuring suitability and best value for money is maintained. 3.1.2. Where an order is to be placed for expenditure exceeding 3,000, written quotations/estimates must be obtained from at least two suppliers to find best value for money before the order is placed. 3.1.3. When an order is to be placed for expenditure exceeding 10,000, an open tender process will be initiated, unless Directors decide there are exceptional circumstances not to do so, for which the reasons will be clearly noted. 3.1.4. No person is authorized to make financial commitments on behalf of HWB&H other than a CEO acting within his/her delegated authority. 3.1.5. CEOs only have authority to procure goods or services where expenditure: a) is within the approved CEO budget, and is under 1,000; and b) does not exceed the total annual budgeted limit for that budget heading. In all other cases, the additional approval of the CEO in collaboration with the Treasurer or in his/her absence a Director is necessary and this must be in writing. 3.1.6. The Directors have the authority to procure goods or services where expenditure: a) is within the approved budget, and is over 1,000, and does not exceed the total annual budgeted limit for that budget heading, or budget heading within a cost centre in the case of a direct project cost, unless meets the criteria in 2.3.4. 3.1.7. The Directors must expressly approve in advance all budgeted expenditure that is over 1,000 (with the exception of regular staff related costs) or expenditure that is not within the approved budget unless it is covered by 2.3.4. 3.1.8. A list of items of expenditure over 1,000 shall be published in the narrative report of the quarterly management accounts for review by Directors. 6 P a g e

3.1.9. Expenditure commitments are to be recorded in the tracking logs saved in the x files. This is to be completed by all staff members as they make financial commitments on behalf of HWB&H e.g. order stationery or book a meeting room. All purchases and financial commitments made should have the prior approval of the appropriate budget holder. Payments that do not require logging are: a) those in relation to a project cost which has a funding agreement in place (all funding agreements should include a payment schedule); b) a payment for staff costs; c) an expenses claim (volunteers, reps, directors and members) or reps fees; d) a periodic payment for utilities, rent or other payments in relation to our leasing agreement with Community Base; e) a petty cash payment; and f) other such exceptions that the Chief Executive/Central Services CEO may approve. 3.1.10. The purchase order system will indicate the following: a) the purchase order number (which should be quoted to the supplier when placing the order); b) the nature and purpose of goods or services required; c) details of the supplier; d) coding appropriate to the relevant project and budget heading (derived from the official coding sheet); e) the anticipated level of expenditure (excluding VAT); f) prior approval of the purchase order by the CEO confirming that they have the delegated authority, (as outlined in 3.1.5. or 3.1.6.), to order the goods/services; and g) authorisation of the invoice by the CEOs to indicate the necessary checks have been made as in 3.5.3. 3.2. Procedure for raising a purchase order 3.2.1. CW01 form Purchases Log & Financial Commitments made will indicate the following: (Form provided separately for review) a) the nature and purpose of goods or services purchased; b) details of the supplier; c) budget heading where cost is to be charged; d) the anticipated level of expenditure (including VAT); e) confirmation that the budget holder has approved the expenditure; and f) CW01 will be used by the Finance Officer to track the expenditure as it is included in the financial accounts and as the invoices are received and paid. 3.2.2. To place an order the Budget Holder shall complete CW01 electronically. 7 P a g e

3.2.3. The CW01 will be used as a register by the Finance Officer and shall record when the costs are included in the accounts and when they are paid. This will enable the finance officer to accrue for costs incurred but not invoiced. 3.3. Procedure for receiving goods 3.3.1. In the case of goods ordered, the member of staff who is physically responsible for receiving the goods shall approve the receipt of these goods against the delivery note, noting any discrepancies in quantity, quality or specification. Any shortage or discrepancy should immediately be notified to the Finance Officer. 3.3.2. If the invoice is not received at the same time as the delivery is made, the delivery note should be filed in the delivery note folder on the Finance Officer s desk. 3.4. Procedure on receipt of invoice from supplier 3.4.1. On receipt of the invoice, the Finance Officer shall update CW01 where appropriate or the other relevant project log and provide the invoice to the Budget Holder for authorisation. 3.4.2. It is the duty of Budget Holder to ensure that invoices are authorised and returned promptly to the Finance Officer for processing. 3.5. Purchasing 3.5.1. The Chair and Treasurer are responsible for authorising all expenditure, which is within the approved annual budget. However, where the CEO has raised the purchase order, he/she will have delegated authority to authorise this expenditure. 3.5.2. The Finance Officer has responsibility to ensure that prompt payment of all amounts to which the organisation has legally committed to are made after correct authorisation is obtained. 3.5.3. Payment can only be made once the CEO has authorised the purchase order for each invoice that they receive following 3.4.1. This is done by the CEO signing and dating the purchase order, indicating the following: a) that the goods/services ordered have been received and at the correct price; i.e. that the invoice matches the purchase order. b) that the expenditure has been analysed on the purchase order to the correct budget heading and project; i.e. that the invoice matches the purchase order. 3.5.4. No expenditure or commitment will be made unless there is planned budgetary provision (but see 2.3.4. for exceptions). Any such unplanned expenditure must be agreed at a prior meeting of the Directors. 8 P a g e

3.5.5. Capital equipment can only be purchased if it is included in the approved budget; otherwise, it must be authorised by the Directors. 3.5.6. In the exceptional circumstances of a cheque being required in advance of delivery of the goods or services, an official purchase requisition, (form CW02) shall be raised by the CEO, recording the supplier, the nature and purpose of goods or services required, the budget heading, and the project. This should be authorised by the Chair or Treasurer prior to the payment being made. On receipt of the invoice, it should be attached to the CVF02 and filed with the supplier invoices in the normal way (see 3.7.11.) 3.5.7. Procedure for receipt of invoice/expenses claim from the CEO 3.5.8. The Finance Officer checks that the CEO has authorised the purchase order. 3.5.9. The Finance Officer stamps the invoice with an authorisation stamp and enters the invoice/expenses claim on to the accounts system, signing and dating the authorisation stamp to indicate that this transaction has now been recorded. 3.6. Payments - Cheques and Transfers 3.6.1. The approval and authorisation of the payment is a key financial control due to the small size of the organisation. a) Blank cheques will not be signed in any circumstances. b) Signatories may not authorise their own expenditure. c) The cheque book and digipasses will be kept in a secure place by the CEO and digipass users respectively. d) Cheques and payment transfers will be authorised only with the relevant documentary evidence of the nature of the payment (see 3.7.). e) Full details (date, amount and payee) of each payment will be recorded either on the cheque stub or by printing an online report from Triodos of authorised payments. f) For all payments made, the signatories will be a CEO and Director. 3.7. Procedure for making cheque payments or bank transfers 3.7.1. Bank transfers can be made using Charities Aid Foundation electronic banking system using levels of authority made available by Charities Aid Foundation as control mechanisms. Transfers shall usually be initiated by the Finance Officer who shall hold a Charities Aid Foundation digipass that only allows him/her access rights and rights to prepare payments. 3.7.2. Transfers shall be authorised and verified by two cheque signatories), one of whom should always be a Director, who also hold Charities Aid Foundation digipasses that additionally give them authorisation rights. 9 P a g e

3.7.3. Wherever possible, electronic transfers should be made for all regular suppliers. This will reduce the number of cheque payments required. Such a facility will also enable greater control over cash flow. 3.7.4. Payments shall always be initiated by the creation of an official payment voucher (CVF03) which will take the form of a register representing a batch of due payments to be made. 3.7.5. Each entry in the register shall be given a payment reference number by the Finance Officer, which shall be entered on the authorisation stamp of the invoice: this enables cross referencing, ease of filing and retrieval. The purpose the CVF03 is: a) to summarise the details of the payment (see 3.7.6. a-c); b) to provide substitute supporting documentation for remotely authorising payments; and c) to provide a level of pre-authorisation by the CEO / Chair as confirmation that the original supporting documentation (invoice/delivery note/purchase order) accords to the CVF03, (see 3.7.6. (g)). 3.7.6. The CVF03 shall be prepared by the Finance Officer and indicate the following: a) the name, date and invoice number of the payee; b) a brief description of the purpose of the payment; c) the amount; d) the signature of the Finance Officer to indicate that the invoices and expense claims have been approved and within the Budget Holder s authority; e) the payment reference number (and cheque number where relevant); f) the date on which payment is to be made; and g) the date and authorisation of both signatories (cheque or bank transfer) 3.7.7. The Authorisers (as per 2.1.3) authorise each cheque/bank transfer against the CVF03 (see 3.7.6). It is the responsibility of the first cheque signatory to ensure that the details of each pending cheque/bank transfer agree to the register of payments in the CVF03. Authorisation of the first cheque signatory on the face of the CVF03 indicates that this check has been carried out. 3.7.8. Finally the authorised CVF03 is sent to the second cheque signatory for authorisation of the cheques/bank transfers against the CVF03 (see 3.7.6). Authorisation of the second cheque signatory on the face of the CVF03 indicates that the payment has been properly executed and that the checks in 3.7.7. have been carried out. 3.7.9. On completion of payment processing, all documentation shall be returned to the Finance Officer for cheque distribution and filing. Filing of invoices/cheque 10 P a g e

requisitions/expenses claims should be in payment reference order. The payment reference must be entered in to the accounting system to enable the subsequent tracing of documentation. 3.7.10. A hard copy of the completed CVF03 shall be filed by the Finance Officer along with the online report from Triodos of authorised payments. These documents shall be filed on top of the batch of invoices/cheque requisitions/expenses claims to which it relates. 3.7.11. In order to improve effective administrative procedures, payment of all cheques/bank transfers should, under usual circumstances, be dealt with on a fortnightly basis. 3.8. Petty Cash 3.8.1. The use of petty cash, except in exceptional circumstances is not permitted for single transactions exceeding 50 and its use should therefore be kept at a minimum. 3.8.2. The petty cash is to be kept in a locked tin and in a locked filing cabinet. An imprest system is to be used where a cash float is reimbursed on the basis of previous expenditure. The petty cash float shall be kept at 300. If it is predicted that an amount larger that 300 is required, then withdrawal of cash on the necessary day should be authorised by the CEO and the cheque signed by at least one Director. 3.8.3. Petty cash vouchers are required in support of all expenditure with details of date, amount, and purpose of expenditure, budget heading and project. These shall be sequentially numbered and wherever possible, must be accompanied by third party documentation or receipts. 3.8.4. Petty cash vouchers shall be authorised by the appropriate member of staff, as follows: a) the staff member where the expenditure forms part of their role i.e. Volunteer Expenses; and b) the CEO where the claim is done by a staff member. 3.8.5. An official petty cash requisition (CVF10) shall be updated by the Finance Officer at the time of petty cash reimbursement to record and analyse the expenditure (by relevant voucher number, budget heading and project) and to record the remaining balance on the account. 11 P a g e

3.8.6. The petty cash tin shall be reconciled at least once a month (and prior to the account being credited) to ensure that the value of cash and vouchers held corresponds to the amount of the imprest. 3.8.7. Advances from the petty cash float will be subject to strict control by the Finance Officer and restricted to emergencies only. 3.9. Salaries and Pensions 3.9.1. The Finance Officer shall make the payment of salaries, wages, pensions and other emoluments to employees under arrangements approved by the Board of Directors. 3.9.2. Payment of salaries will be conducted in line with the Salary and Grading Policy. 3.9.3. Particular care will be taken in this major area of expenditure; most specifically the keeping of proper personnel records to record the following: a) staff additional hours (form CVF07) to record extra hours worked; b) annual leave; c) sick leave; d) pension entitlement; and e) maternity/paternity pay. 3.9.4. Salaries are paid on a monthly basis in arrears by BACS transfer. The transfer will be requested from the bank by the 21st of each month, in order that it reaches staff bank accounts by 26th of each month. 3.9.5. The BACS transfer must be authorised by CEO and Director. 3.9.6. Authorisation as per 3.9.5. requires submission of all supporting documentation with the BACS transfer schedule. This includes the monthly payroll record (CVF09) and the staff additional hours (CVF07 s). 3.9.7. Direct debit payments shall be set up with the elected pension providers in line with the Employee Handbook. The direct debit payments shall be reviewed annually in January to reflect all pay increases from the previous April and back pay calculated accordingly. 3.10. Staff Expenses 3.10.1 Staff should refer to the policy on staff expenses in the Employee Handbook. 3.10.2 Staff expense claims should be submitted monthly by completion of a staff out of pocket expenses claim (form CVF08). It should be accompanied by receipts 12 P a g e

offering proof of expenditure and must be authorised by the CEO before reimbursement. 3.11. Representatives Fees and Expenses 3.11.1. Volunteers should refer to the Expenses Policy (volunteers, reps, Directors and members) with regard to claiming out of pocket expenses. 3.11.2. Expenses should be claimed by the individual who incurred the expense completing and submitting an official expenses claim (Volunteers reps, directors and members) (form CVF05), no later than a month after the expense has been incurred. A claim should be accompanied by receipts offering proof of expenditure and must be authorised by the CEO before reimbursement. 3.12. Members Expenses 3.12.1. Members should refer to the Expenses Policy (volunteers, reps, trustees and members) for claiming members expenses. 3.12.2. Members expenses should also be submitted as an incurred or not later than one month following the relevant meeting, by completing an official expenses claim (form CVF05) by the individual who incurred the expense. A claim should be accompanied by receipts offering proof of expenditure and must be authorised by the CEO before reimbursement. 4. Income Procedures 4.1. Income Receipts 4.1.1. Unbanked cheques and cash will be kept in the locked petty cash tin until they are banked, which will be at least once a week. 4.1.2. Receipts via BACS will be posted to the accounting system from remittance advices supplied by the remitter. 4.1.3. All remittance advices will be filed as evidence of receipt. Where they relate to project funding, they are also to be filed with the funding paperwork. 5. Bank Reconciliations 5.1. Reconciliation of the cash-book to all bank accounts is an essential control to ensure that all transactions have been adequately identified and recorded. The Finance Officer shall conduct this exercise on a regular and at least monthly basis. A record of the reconciliation shall be filed. 6. Fixed Asset Register 13 P a g e

6.1. The CEO shall maintain the asset register. The purpose of the asset register is to safeguard assets by maintaining a schedule of equipment and furniture etc. 6.2. The organisation has a minimum value for capitalisation of fixed assets. This is currently set at 1,000 above which fixed assets shall be capitalised and depreciated at 25% per year on a straight line basis. 6.3. All assets over the value of 1,000 will be physically verified once a year by the CEO. 6.4. The register shall indicate details of the following: a) detailed description of the asset concerned; b) derial number of equipment (if applicable); c) date of purchase; d) purchase cost; e) location; f) depreciation (rate and accumulated value); g) net book value; and h) any other relevant details (e.g. disposal date, proceeds etc.) 7. Fixed Asset Register 7.1. The attributed value of assets identified and recorded within the register should provide a basis for determination of the required level of insurance cover to be obtained. Where additional assets are acquired, it should be ensured that sufficient cover exists for those assets and the policy amended as necessary. 7.2. The company has Employers Liability, Public Liability, Business Interruption, and Professional Indemnity Insurance, which also covers the contents of the office. Name of Insurer: Zurich Municipal Policy: Insight Name of Policy Holder: Healthwatch Brighton and Hove Date of Renewal: 1 April each year Tel: 0845 602 3896 Broker David Eccles, Tennyson Insurance Tel: 01243 832091, email: david.eccles@tennysoninsurance.co.uk Legal Liabilities Employers Liability 10,000,000 Public Liability 5,000,000 Products Liability 5,000,000 14 P a g e

Forms CVF01 Purchase Order CVF02 Cheque Requisition CVF03 Payment Voucher CVF04 Reps Reimbursement Claim CVF05 Expenses Claim (volunteers, reps, trustees and members) CVF06 Purchase Order Log CVF07 Staff Additional Hours CVF08 Staff Out of Pocket Expenses Claim CVF09 Monthly Payroll Record CVF10 Petty Cash Requisition Appendix 2 1. Healthwatch Brighton and Hove Finance and Risk Sub-Committee Terms of Reference The HWB&H Finance and Risk Committee is a sub-committee of the Board of Directors. The Board of Directors selects all members and the Chair of the subcommittee. Chair: Bob Deschene 1.1. Membership: The sub-committee shall consist of at least two members of the Directors Board, to be determined at the first meeting of the committee following each year s AGM. The CEO is required to attend all meetings. The Healthwatch Brighton and Hove Chair can attend it anytime. Staff members attending the subcommittee may contribute to discussions but are not entitled to vote. Directors have the right to ask any staff member present to withdraw from the meeting, in the event of any perceived or real conflict of interest. 1.2. Purpose: The Finance and Risk Sub Committee is responsible to the Board of Directors for governance oversight with regard principally to the financial resources of HWB&H. This includes financial scrutiny and reporting to the Board, funders and regulators such as the Charity Commission / Companies House. The Finance and Risk Sub Committee is committed to ensuring that financial resources are used efficiently and effectively and that value-for-money is achieved in all its operations. 1.3. Responsibilities: 15 P a g e

1.3.1. Financial Statements To review and recommend for approval the financial statements of HWB&H. To review and recommend to the Board the appointment of the external auditors. To review and recommend the Directors report from the external auditors. To review the Related Party disclosure forms completed by all Board members. To ensure that financial systems and procedures are in place within the organisation to protect the assets of HWB&H from fraud and/or mismanagement. To ensure that Companies House Annual Returns are completed and submitted. 1.3.2. Annual Budget a) To evaluate the annual plan and budgets prior to submission to the Board, to ensure that the plans meet the Board s financial objectives. b) To monitor the achievement of the budget in terms of both income and expenditure. c) To make recommendations to the Board about funding applications for new developments / activities d) To monitor the level of reserves, ensuring they are proportionate to the needs of the organisation. e) To look for opportunities for HWB&H to reduce expenses and to increase income through effective financial management. 1.3.3. Risk a) To update the HWB&H Risk Register every quarter and Risk Management Strategy Annually. b) To report to the Board of Directors the high level/high impact risks and actions taken to mitigate against them. 1.4. Meeting procedure The Committee will meet quarterly. A quorum at each meeting shall be 3 members, with at least 2 trustees, and the meeting minutes will make it clear who attended the meeting and is making recommendations to the board. 1.4.1. Decision-making/reporting a) The Finance and Risk Sub Committee is a decision-making body. The Committee reviews, decides, reports and / or makes recommendations to the Board of Directors on a quarterly basis. b) The overall Board retains responsibility for approving the annual budget and quarterly monitoring reports as recommended by the Finance Sub-Committee. 16 P a g e

c) The Finance and Risk Sub-Committee s delegated authority is limited as follows: Any deviations from budgetary expenditure over 1,000 are to be presented to and decided by the Board. Any major developments in expenditure over 1,000, like maternity cover, redundancy, or new projects should be discussed and agreed by the Board or the relevant Sub-Committee with appropriate delegated authority. 1.5. Chair s responsibilities The Chair will: a) call and chair meetings, circulate meeting dates and co-ordinate communication; b) delegate a minute taker and ensure a written record of the meeting is forwarded to the Board; and c) liaise with committee members and staff to formulate meeting agendas and oversee (or delegate) circulation of papers to Committee members, at least 5 working days prior to the meeting. 17 P a g e