Terms of Reference for Finance and Audit
A Governor representative from each Governing Body, and Head from each school. Associate members may be appointed by the Trust.
At least one representative (Governor or Head from each school within the Trust)
The governing body must appoint a clerk to the committee. The clerk must not be the headteacher
Purpose of committee
A Finance and Audit committee would be concerned with
- A strategic role in the financial management by setting financial priorities through the School Development Plan (SDP), the 5 year financial plan, the annual budget. The committee will discuss how the school’s delegated budget should be spent, in accordance with the SDP and the statutory curriculum requirements laid down by Government. It will furthe monitor the annual budget and ensure that the budget is managed effectively so that the school meets all its statutory duties, whilst recognising that final approval of the budget remains the responsibility of Trustees.
- The use of premises, grounds and extended school facilities. Its terms of reference include making recommendation on accommodation, catering, cleaning, decorating and maintenance. It may monitor efficient use of utilities such as water, electricity or gas and maintain an overview of costs and lettings policy of premises. Health and safety will also fall within this remit.
The Committee shall elect a Chair and Vice-Chair of Committee on a meeting by meeting basis. (A Governor who is employed at the school cannot be elected as a Chair.)
The Finance and Audit Committee will meet at least termly, prior to the Trust meetings. Additional meetings will be held as and when required.
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 Body and Trust meetings.
The Chair of the Finance and Audit Committee will report the work of the Committee to the Full Governing Body and a report will be provided to the Trust.
Any matters that may be in conflict with the work of another committee must be referred to the Trust.
Terms of Reference
To review annually the Terms of Reference of the Finance and Audit Committee.
To ensure the Register of Business Interests is kept up to date.
To recommend to the Trust approval of the annual budget plan and cash flow forecasts for the forthcoming financial year in accordance with the timescales dictated by the EFA.
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 each 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 Body and Trust.
To review and monitor budget projections / medium term financial plans to ensure the school and Trust budget is realistic and any financial decisions are sustainable.
To review annually the Trust Financial Regulations and Scheme of Delegation.
To monitor all spending and income received in the school.
To ensure the school and Trust 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).
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 the FMGS.
To annually review all on going contracts (Including Local Authority Contracts).
To review the various leasing agreement schemes and options available to the schools.
To award contracts by tender up to a specified limit.
To agree and determine appropriate charges for lettings of the premises, in line with the Trust lettings policy.
To make decisions on expenditure within the Committee’s delegated powers.
To make decisions on virements within agreed budgets, within the Committee’s delegated powers, and authorising any budgetary adjustments made.
To advise the Governing Body and Trust 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 establish and keep under review a Building Development Plan
To establish and keep under review an Accessibility Plan
To monitor and review all aspects of maintenance and improvement or repair to the buildings, grounds and plant.
To advise the governing body on priorities, including Health and Safety, for the maintenance and development of the school’s premises
To administer applications for hire of premises
To ensure that the character of all of the school’s buildings are retained and improved.
To appoint architects, builders, ground maintenance teams, surveyors etc according to established procedures laid down by school governors and monitor all aspects of their work.