Terms of Reference

Finance Sub-Committee Terms of Reference

1. Terms of Reference:

To provide effective stewardship of school finances.
To accomplish this the Committee will be responsible for:

a) Recommending a budget for the school from the allocation of funds to the school from the DfES/LEA/LSC and the revenue grants to the school from lettings, catering and other sundry income. The budget to be based on proposals prepared by the Head, in consultation with the Senior Management Team.

b) Monitoring expenditure against the budget and taking appropriate steps in the event of possible over/under-spending.

c) Monitoring capital expenditure and taking appropriate steps in the event of possible over/under-spending.

d) Considering policy with regard to income generation and the use of such income.

2. Frequency of Meetings:

There should be a minimum of four meetings in each financial year at which time the quarterly Income and Expenditure reports can be approved. In the interim, monthly reports detailing variances should be circulated to members.

This does not preclude further Special Meetings which can be called at any time by any three members of the committee.

3. Management of the Budget:

The budget proposed each year should comprise the main headings as laid down by the Department for children, schools and families /LEA in the CFR and Financing schools regulations.

The management of the budget to be delegated to the Head subject to the following restrictions:

Between meetings of the Finance Committee amounts of up to £5000 can be vired at the Head Teacher’s discretion between any two of the main budget headings, such transfers to be reported to the Finance Committee at the next scheduled meeting.

No additional transfers can be made without the Finance Committee’s approval. Transfers above £5000 must have the Finance Committee’s prior approval. Within each main budget heading the Head Teacher would have absolute discretion to vire money.

Capital Items:

The Head Teacher may authorise expenditure on capital items up to amounts of £5000. Purchase of capital items exceeding £5000 must be authorised by the Finance Committee.

Tendering:

Due regard should be given to value for money considerations, that is, of quality or fitness for purpose and delivery against price, in all purchases of works, equipment, goods and services. Except where there is good reasons to the contrary, contracts should normally be placed on a competitive basis, the lowest tender of three to be accepted; where a difference decision is taken the reasons for it should be documented. Contracts should also be reviewed and renegotiated at regular intervals where appropriate.

4. Reporting:

Minutes of meetings together with a summary report by the Chairman will be circulated to all members of the Governing Body before each meeting of the full Governing Body. The Chairman of the Committee shall report at these meetings.