Terms of reference – Finance Committee

1. Membership

Members of the Committee shall be appointed by the Board in consultation with theChair of the Finance Committee. The Committee shall be made up of at least two members. Current membership is as follows:

• Mr Chris Macklin (Chair)
• Mr Stephen Hall (Vice Chair/Non –Executive Director)
• Mrs Fay Scullion (Non-Executive Director)

Only members of the Committee have a right to attend meetings. However, other individuals such as the Chair of the Board, the Chief Executive, other directors and any employee of the Trust may be invited to attend all or part of any meetings as and when appropriate.

Appointments to the Committee shall be for a period of up to three years which may be extended for two further three year periods (maximum of nine years).

The Board shall appoint the Chair of the Committee. In the absence of the Committee Chair and/or an appointed deputy, the remaining members will elect one of themselves to chair the meeting.

2. Secretary

The PA of the Director of Finance will act as Secretary to the Committee as a nominee of the Board Secretary.

3. Quorum

The Quorum necessary for the transaction of business shall be two members. A duly convened meeting of the Committee at which a quorum is present shall be competent to exercise all or any of the authorities, powers and discretions vested in or exercisable by the Committee.

4. Frequency of meetings

The Committee shall meet monthly at appropriate times in the cycles for budget and strategic planning, and otherwise as required.

5. Notice of meetings

Meetings of the Committee shall be summoned by the Secretary of the Committee at the request of any of its members or at the request of the internal or external auditors, if they consider it necessary.

Unless otherwise agreed, notice of each meeting, confirming the venue, time and date, together with an agenda of items to be discussed, shall be forwarded to each member of the Committee, any person required to attend and all other Non-Executive Directors, no later than five working days before the date of the meeting. Supporting papers shall be sent to Committee members and other attendees at the same time.

6. Minutes of the meetings

The Secretary shall minute the proceedings and resolution of all meetings of the Committee including recording the names of those present and in attendance.

The Secretary shall ascertain at the beginning of each meeting, the existence of any conflict of interest and minute them accordingly.

Minutes of the meeting shall be circulated promptly to all members and, once agreed, to all members of the Board.

Draw attention of the Board to any issues that require disclosure to the full Board, or require executive action.

7. Principal responsibilities of the committee

The Committee will have full oversight of the monthly financial position provided by the Director of Finance (or Deputy), including ICP/ICS implications/risks/opportunities of system working.

The Committee will receive specific updates regarding the efficiency, sustainability and the financial control environment and framework, as well capital programme and scrutiny of investment decisions.

The Committee will provide rigorous scrutiny of cost improvement programmes for current and future years, and challenge processes where necessary.

The Committee will review the adequacy of the financial and demand estimates, forecasts and plans, looking forward over the period as required by NHSI/E annually, five yearly or longer, depending on the investment.

The Committee will review the adequacy of any external financing arrangements to ensure that they are both adequate in provision and offer value for money for the Trust.

The Committee will ensure that there is congruence between the future plans and aspirations of the Trust, and the availability of adequate resources to support the plan.

The Committee will remain cognisant of the Trust’s risk register and particularly those risks classified as “red”, and seek assurance that those risks have been reflected in the strategic and financial plans going forward. The Committee will be informed of NHS/E’s financial risk rating as part of the financial reporting process.

The Committee will also seek reports and assurances sub-committees, directors and managers as appropriate, concentrating on the over-arching systems of resource planning, integrated governance, risk management and internal control, together with indicators of their effectiveness.

8. Reporting responsibilities

The Committee Chair shall report formally to the Board on its proceedings after each meeting on all matters within its duties and responsibilities.

The Committee shall make whatever recommendations to the Board it deems appropriate on any area within its remit where action or improvement is needed.

An annual report shall be produced which details the activities undertaken by the Finance Committee to meet its delegated responsibilities as stated in these terms of reference.

9. Other matters

The Committee shall have access to sufficient resources in order to carry out its duties, including access to the Trust secretariat for assistance as required.

The Committee will be provided with appropriate and timely training, both in the form of an induction programme for new members and on an ongoing basis for all members.

The Committee will at least once a year, review its own performance, constitution and terms of reference to ensure it is operating at maximum effectiveness and recommend any changes it considers necessary to the Board for approval.