Finance Committee
THE MILLHOUSE & VANGE SCHOOLS’ FEDERATION
FINANCE COMMITTEE TERMS OF REFERENCE
Membership
As defined by the Governing Board. The Executive Headteacher & Heads of School (who are Associate Members) will automatically be members.
Associate Members have full voting rights.
Quorum
The quorum will be four members, one of whom must be the Executive Headteacher (or Heads of School in their absence). At least 3 must be non-staff members.
Chair
The Committee shall elect a Chair and Vice-Chair of the Committee annually. (A Governor who is employed at the school cannot be elected as a Chair.)
Meetings
The Finance Committee will meet at least four times per academic year prior to the Full Governing Board meeting.
Management Accounts will be reviewed by the committee at least six times a year.
The Clerk will make a record of all proceedings at each meeting. Minutes will be circulated to members within ten school days of the meeting (or as agreed) and presented with the agenda for the next Full Governing Board meeting.
The Chair of the Finance Committee will report the work of the Committee to the Full Governing Board.
The Committee will liaise with such other committees and invite members of other committees to attend its meeting as should be deemed appropriate.
Any matters which may be in conflict with the work of another committee must be referred to the Governing Board.
Terms of Reference
To review annually the Terms of Reference of the Finance Committee.
To ensure the Register of Business Interests is kept up to date with notification of changes and through an annual review
To maintain oversight of the management of declared interests and ensure compliance in respect of any transactions that may cause a conflict of interest, or perceived conflict of interest.
To approve the annual budget and cash flow forecasts for the forthcoming financial year in accordance with the timescales dictated by the Essex Scheme for Financing Schools; bring to the Full Governing Board for ratification.
To determine the school’s financial priorities through the School Development Plan (SDP) and the Asset Management Plan (AMP).
To receive monthly management reports, to facilitate the monitoring of the school’s actual financial performance compared with budgeted priorities and cash flow, and to take remedial action as necessary. Such action will be reported to the Governing Board. In all cases liaison must be maintained with other appropriate committees.
To review and monitor budget projections / medium term financial plans to ensure the school’s budget is realistic and any financial decisions are sustainable; including in relation to current pupil numbers and projected forecasts
To review annually the school’s Financial Regulations and Scheme of Financial Delegation.
To monitor all spending and income received in the school i.e. Local Authority (LA) Delegated /Devolved Budgets and School Private Fund(s).
To ensure that funding from the LA and other sources is used only in accordance with any conditions attached.
To ensure the school has appropriate internal financial controls in place.
To ensure that all financial controls are adhered to via regular testing and management checks in order to protect against fraudulent or improper use of public money and assets and enable satisfactory completion of the Schools Financial Value Standard (SFVS) (and Statement of Internal Control (SIC) if applicable from the Financial Regulations).
To ensure the school adheres to the policies and procedures as specified by the Department for Education and its Schools Financial Value Standard (SFVS) and review the information contained in the dashboard including in respect of the relationship between resources/spending and pupil attainment and outcomes
To receive and comment on the content of any audit report relating to LA funding, and to monitor the implementation of the agreed action plan.
To agree and sign an annual Best Value Statement.
To annually review all on going contracts (including Local Authority Contracts).
To review the various leasing agreement schemes and options available to the school.
To award contracts by tender up to a specified limit.
To make decisions on requests from other committees that will have an impact on the school’s financial position.
To review and agree the school’s 3 year budget plan.
To agree and determine appropriate charges for lettings of the premises, in line with the school’s lettings policy.
To make decisions on expenditure within the Committee’s delegated powers as defined in the financial scheme of delegation.
To make decisions on virements within agreed budgets, within the Committee’s delegated powers, and authorising any budgetary adjustments made.
To advise the Governing Board on the appropriateness, or otherwise, of virements to be made outside of the Committee’s delegated powers.
To review appropriate financial benchmarking data, in order to compare the schools financial performance with other similar schools.
To review any trading accounts (children’s club / catering)
To review Pupil Premium and Sports Premium allocation.
To review COVID recovery related allocations (Catch-up funding, recovery premium, school-led tuition)
To discuss and allocate funds received through federation activities.
Authority
The Committee is authorised by the Governing Board:
- To investigate any activity within its terms of reference.
- To seek any information from any employee, with all employees directed to cooperate with any request made by the Committee.
- To obtain any outside legal or independent professional advice where it deems it necessary.
Note: Ensure that the terms of reference correspond with your latest version of the Finance Regulations.