Finance Committee - Terms of Reference
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Revision |
1.0 |
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ADOPTED |
MAY 2024 |
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Last Reviewed |
First Issue |
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Review period |
Annually |
DOCUMENT CONTROL: Rev 1.0 Effective May 2024
FINANCE COMMITTEE – TERMS OF REFERENCE
INTRODUCTION
Introduction
The purpose of the Hemswell Parish Council (PC) Finance Committee is to assist the PC in overseeing its proper financial management, financial risk management strategy, internal audit, and financial transactional matters. This includes preparing the annual budget, recommending the annual precept levy, and overseeing the preparation of the annual governance and accountability report to the full PC. All matters from the Financial Committee will be presented as recommendations to the full PC for resolution.
The Finance Committee is constituted as a Standing Committee of Hemswell PC, and its Standing Orders, Financial Regulations and Code of Conduct shall apply to the Finance Committee and its members. Nothing in these terms of reference shall prevent the PC from dealing with a matter that might otherwise be dealt with by the Finance Committee.
- The Finance Committee shall consist of a minimum of three members of Hemswell PC.
- The quorum of the Finance Committee shall be three members.
- The Chair of the Finance Committee, who will not be the Chair of the PC, will be elected annually by the members at the inaugural meeting and at the first meeting immediately following each Annual Parish Council Meeting.
- The Chair of Hemswell Parish Council, if not a member of the Finance Committee, may attend as an ex-officio.
The Responsible Financial Officer (RFO)/clerk shall be a standing member of the Finance Committee and responsible for the proper administration of the PC’s financial affairs. The RFO/clerk has no voting powers within the Finance Committee. The clerk is responsible for preparing and maintaining documents and records necessary for the Finance Committee to fulfil its duties and for circulating minutes of Finance Committee meetings to the full PC.
The Finance Committee will hold a minimum of three (individual) meetings per year. April/May for review of audit documents, September/October for development of the budget and precept requirement for the following financial year, and January/February for review of contracts prior to financial year-end. Additional meetings will be scheduled as and when required.
Times and location of meetings shall be in accordance with Hemswell PC Standing Orders.
The Finance Committee has the following duties, including reports and recommendations made to the full PC as necessary.
i. To review and update the PC’s Financial Regulations annually, to make appropriate recommendations for amendments/updates as required and to ensure they are fully observed.
ii. To prepare and co-ordinate the detailed budget of the PC and recommend to the full PC the annual budget and the annual precept to be levied.
iii. To ensure adequate financial controls are in place to utilise and protect the PC’s finances and assets, including insurance of buildings and property and maintenance of the asset register.
iv. To conduct an annual review of the council's insurance policies and monitor the procedure for risk assessment of all PC activities.
v. The Chair shall report to the full PC on income and expenditures quarterly and review against budget. The RFO shall prepare an annual bank reconciliation and report it to all members.
The RFO shall prepare an annual bank reconciliation and report it to all members.
vi. To monitor and consider the findings of the Internal Auditor reports and make recommendations to full the PC on appropriate actions.
vii. To make recommendations to the full PC regarding the transfer of funds to/from a particular operating budget, including making future provisions for agreed-upon capital projects.
viii. To advise on the reserves strategy of the PC and recommend to the full PC amounts to be allocated to earmarked reserves and those amounts to be held in general reserve.
ix. To monitor and, where appropriate, recommend the purchase of all capital items.
x. To periodically review the PC’s banking provider/services to ensure they best meets the requirements of the PC.
xi. To seek grant aid and appropriate support with respect to the responsibilities, aims and objectives of the PC.
xii. To periodically review the procedure for making grants and donations.
xiii. To assist the RFO/Clerk in preparing tenders and job specifications for planned works and periodic review of maintenance contracts.
xiv. To review fees and charges, including Hemswell Civil Cemetery fees, at least annually and make recommendations to the full PC.
xv. To review annual subscriptions to external agencies at least annually.
xvi. To recommend to the PC such delegated powers to the clerk as thought appropriate.
Only Finance Committee members may participate and vote at a meeting. In the case of an equal vote, the Chair shall have a second or casting vote.
If a member of the Finance Committee has an interest as defined by the Code of Conduct adopted by the PC, then they shall declare such interest as soon as it becomes apparent, disclosing the nature and extent of the interest as required.
If a member who has declared an interest, then considers the interest to be prejudicial, they must withdraw from the room during consideration of the agenda item to which the interest relates.
These terms of reference are to be reviewed annually.