Finance and Risk Committee

Governance

The Articles of Association provide that the Board may delegate any of its powers to a committee. The Finance and Risk Committee is a sub-committee of the Board, to which the Board has delegated its powers in relation to all financial matters and the risk framework of the charity.

Composition

There shall be a minimum of four members, two of whom shall be Board members. The Chairman of the Committee shall be appointed by the Board and is to be one of the two Board members.

Quorum

Two members constitute a quorum, one of whom must be a Board member. Members must be present or capable of full participation in discussions via conference calls.

Frequency of meetings

There should be a minimum of four meetings each year.

Responsibilities

The Committee is responsible, on behalf of the Board, for supervising the financial affairs of the charity and for reporting the deliberations of the Committee regularly to the Board, including reporting to the Board any significant variances, together with recommendations for appropriate action.

The Committee is responsible for ensuring that suitable financial systems are in place and are working effectively, and that risks are properly identified, managed, mitigated and reported to the Board.

The Committee shall not sanction expenditure on behalf of the charity except in accordance with a budget that has been approved by the Board.

Duties

The duties of the Committee shall be:

to review the planning guidelines for the business plan and the budget to ensure they are in line with the strategies approved by the Board
to set the parameters for the annual budget
to review and challenge individual budgets and business plans to achieve compatibility with the overall business plan and recommend the revised budget and business plan to the Board for approval
to monitor the performance of the charity against the approved budget and report appropriately to the Board
to review the process of forecasting to ensure that it is appropriate and effective
to review the quality, format and presentation of the management accounts and other management information and recommend improvements
to oversee the process of the preparation of the Annual Financial Accounts, including review of accounting policies and reporting requirements
to review the charity’s system of internal control and risk management processes to ensure they are appropriate and effective for the management of the charity and as a basis for the Board’s deliberations
to appraise the significant risks faced by the charity and actions taken in mitigation and determine whether they are adequate and to report upon such risks and actions to the Board
to review and approve all significant contracts of the charity in line with the agreed delegated authority levels
to set the limits of authority of the management team in respect of their ability to bind the charity under contract
to approve all significant contracts in relation to the leasing of premise
to approve the list of those authorised to enter into contracts on behalf of the charity
to ensure that the seal of the charity has been used only in line with appropriate delegated authority
to approve the banking arrangements including overdraft facilities, deposit and investment arrangements, and cheque signatories
to offer advice to the management team in respect of financial matters, as and when required.