Terms of reference: Finance committee
SWINESHEAD PARISH COUNCIL
PARISH OFFICE
1-2 North End
Swineshead
PE20 3LR
EMAIL: swinesheadpc@gmail.com
WEBSITE: www.swineshead.parish.lincolnshire.gov.uk
CHAIRMAN: Carl Gibbard
CLERK: Mrs Victoria Clark
SWINESHEAD PARISH COUNCIL FINANCE COMMITTEE
TERMS OF REFERENCE
Reviewed and Adopted: 23rd May 2022
Reviewed and amended 10 October 2022
1 Role
1.1 The role of the Finance Committee is to oversee all aspects of: Financial Administration; Human Resource activities (for both employees and Councillors); Audit and Governance.
1.2 The committee is NOT empowered to make decisions, and acts as an advisory committee only.
2 Objectives
2.1 The purpose of the committee is to bring matters relating to Finance, HR, Audit and Governance to the attention of the full council.
2.2 To make recommendations to the full council where necessary.
2.3 To report to Council any issues or areas of concern for corrective action.
3 Membership
3.1 The Committee shall consist of six members of the Parish Council, as follows: Parish Council Chairman, Parish Council Vice Chairman, Borough Councillor (where possible), three other councillor (nominated by the Parish Council, and agreed annually).
3.2 The Committee may not appoint anyone other than Parish Councillors.
3.3 The quorum for a meeting will be a minimum of three councillor members.
4 Meetings
4.1 The committee is required to hold meetings at least four times per year.
4.2 The committee meetings are formal and therefore the agenda will be displayed publicly, minutes taken and standing orders will apply.
4.3 The Responsible Financial Officer shall attend all Committee meetings.
5 Purpose
5.1 The committee will not have delegated powers to make decisions, however will meet to promote best practice, and make recommendations to the full Parish Council regarding matters relating to Finance, HR, Audit and Governance.
6 Finance
6.1 Develop and recommend to Council policies and procedures for the financial management of the Council.
6.2 Monitor reserves to ensure that surpluses are not built up other than for working capital or for earmarked projects and known liabilities, ensuring that sufficient reserves are retained for future maintenance, replacement or upgrading of items for which the Council is responsible.
6.3 Prepare an annual budget for the Council and recommend an annual precept.
6.4 Monitor performance against budget and report significant variances to Council with recommendations for appropriate action.
6.5 Undertake a quarterly review and reconciliations of the account(s).
6.6 Monitor purchasing decisions to ensure value for money as agreed in the Financial Regulations.
6.7 To review any lease or legal arrangement and make recommendations to Full Council.
6.8 Undertake a financial risk analysis annually and review the Council’s insurance arrangements to ensure that property and identified risks are adequately insured.
6.9 Receive and review Audit Reports and ensure the implementation of any recommendations.
6.10 Consider and determine requests for community and other grants within agreed annual budgets.
7 Human Resources
7.1 To determine and recommend to Council, policies and procedures for the line management of the Council’s human resources.
7.2 To undertake reviews of the working practices of the Council and to make recommendations to Full Council.
7.3 To determine the staffing levels and positions that will efficiently discharge the work of the Council and to review workloads periodically.
7.4 To agree Job Descriptions and Skills requirements for all positions
7.5 To agree recruitment procedures that do not discriminate against sex, age, race, colour or disability and that consider both the needs of the job and that of Council
7.6 To advertise, select, interview and ultimately appoint staff in conjunction with the line manger having taken due regard to the budget.
7.7 To encourage residents to participate in the work of the Parish Council and to promote suitable candidates to become prospective Councillors according to the needs and the work of the council.
7.8 To promote and lead the continuous professional development and training of both staff and councillors.
7.9 To determine pay and contractual conditions of employment and review/update these as necessary to comply with UK Employment Law as well as good practice.
7.10 To set the expenses policy for both staff and councillors.
7.11 To recommend ex-gratia payments, honoraria or exceptional increments.
7.12 To oversee and agree the appraisal of all Parish Council staff through their appropriate reporting lines.
7.13 To attend the appraisal of the Clerk, the Responsible Financial Officer.
7.14 To oversee the grievance, misconduct and dismissal procedures and make recommendation to Full Council when appropriate.
7.15 To ensure that Health and Safety of all involved in the work of the Council by providing appropriate workspaces, tools and equipment and to train staff as necessary to safeguard their health & safety at work.
7.16 To further assess personnel risks as defined by the Audit Commission and provide appropriate recommendations to Full Council.
8 Audit and Governance
8.1 Carry out an annual review of the Standing Orders, Financial Regulations and Terms of Reference for all committees and present them to the full council at the annual meeting of the parish council for acceptance.
8.2 To review on a regular basis, the governance of the Parish Council and recommend any actions as appropriate.
8.3 Ensure that the Parish Council’s financial practices and annual governance reviews comply with the Financial Regulations set out by the Audit Commission, Central Government and Council’s adopted Financial Regulations.
8.4 Review and monitor the Council’s Financial Management Risk Register and recommend appropriate action to the full Council.
8.5 Receive the report of the Auditor and recommend to the full council any action necessary.
8.6 Consider the financial implications of the Council’s responsibilities arising from any non-budgeted recommendations of its committees and make appropriate recommendations to the Finance Committee.
8.7 Manage, oversee, monitor, scrutinise and provide appropriate support to the appointed project managers responsible for improvement projects undertaken by Swineshead Parish Council.
8.8 Monitor and make recommendations to the full Council regarding performance against its adopted Key Performance Indicators.
9 Rules and Regulations
9.1 The councillor’s code of conduct will apply to all members of the committee.
9.2 The conduct of the meeting (declaration of interests, debate, voting etc) will be governed by the Council’s Standing Orders.