TERMS OF REFERENCE AND WORKPLAN 2012/13

1.         Introduction

This paper outlines the terms of reference for the Finance and Resources Committee (as approved by the Board, and contained within the NHS Tayside Code of Corporate Governance) and the Committee’s 2012/13 Work Plan.

2.         Executive Lead Officer

The Executive Lead Officer for this Committee is Mr Ian McDonald, Director of Finance, NHS Tayside. 

3.         Support Officer

Items for the agenda should be submitted to the Committee Support Officer who is Mrs Rhonda Forbes, Office Manager, Directorate of Finance, Maryfield House, 30 Mains Loan, Dundee, DD4 7BT, Tel 01382 424443, or internal extension 70443. 

4.         Purpose of Committee

To keep under review the financial position of Tayside NHS Board, to ensure that suitable arrangements are in place to secure economy, efficiency and effectiveness in the use of all resources, and provide assurance that these arrangements work effectively.

5.         Membership

Dr David Dorward, Non-Executive Member, NHS Tayside is the Chair of the Committee and Mrs Judith Golden is Vice- Chair.

Members

6.         Quorum

Meetings of the Committee will be quorate when at least three members are present.

7.         Frequency of Meetings

The Committee meets 10 times a year on a monthly basis except in August when the Board is in Summer recess and in December.  Meetings are open to the public.

8.         Remit

Financial Position

The Committee shall have accountability to Tayside NHS Board for ensuring that the financial position of Tayside NHS Board is soundly based, having regard to:-

• Such financial monitoring and reporting arrangements as may be specified;
• Compliance with statutory financial requirements and achievement of financial targets;
• Levels of balances and reserves;
• The impact of planned future policies and known or foreseeable future developments on the financial position.

Policy Endorsement

Endorse all finance and governance policies.

Performance Management - Arrangements for Securing Value for Money

The Committee shall keep under review arrangements and provide an annual opinion to the Board with regard to the arrangements, for securing economy, efficiency and effectiveness in the use of resources. 

These arrangements will include procedures for:

• planning, appraisal authorisation and control, accountability and evaluation of these of resources;
• reporting and reviewing performance and managing performance issues as they arise in a timely and effective manner.

The Committee has key responsibilities:

• To oversee the development of the Board’s Financial Strategy in support of the Strategic Health Plan 21012/15 and the Local Delivery Plan 2012/13
• To review all resource allocation proposals outwith the authority delegated by the Board to any Committee including the CHP Committees, and making recommendations to the Board thereon
• To monitor the use of all resources available to the Board
• Specifically, the Committee is charged with recommending to the Board, annual revenue and capital budgets, and financial plans consistent with its statutory financial responsibilities.  It shall also have responsibility for the oversight of the Board’s Capital Programme and the review of the Property Strategy (including the acquisition and disposal of property).

9.         Best Value

The Committee is responsible for reviewing those aspects of the Best Value work plan which are delegated to it from Tayside NHS Board.  The Committee will put in place arrangements which will provide assurance to the Chief Executive as Accountable Officer, that NHS Tayside has systems and processes in place to secure best value for these delegated areas.  The assurance to the Chief Executive will be incorporated as an explicit statement in the Committee’s Annual Report.

The Committee, by way of its Annual Report, will combine progress around all of the best value characteristics including the “Cross Cutting Themes” but will specifically focus on progress around the specifics in relation to the responsibility of the Finance and Resources Committee.

10.       Authority

The Committee’s authority shall be within the following framework.  In performing these functions, the Committee is expected to operate at a strategic governance level.  Through the Accountable Officer, and with Internal and External Audit assistance where required.  It must satisfy itself that there are, appropriate operational controls in place throughout NHS Tayside.

Tenders, Contracts, Business Cases within the Limits of previously approved Revenue and Capital Budgets

See also:

• Section E, Reservation of Powers and Delegation of Authority - Scheme of Further Delegation, and
• Section F Standing Financial Instructions, Section 13, Contracting and Purchasing and Annex 1, Tendering Procedures.

The Finance and Resources Committee has delegated authority to approve the acceptance of tenders and business cases on behalf of the Board up to a value of £3.0 million (IM&T Schemes up to £2.0 million) which cannot be accepted by any other Committee or Accountable Officer in terms of delegated powers and where the most economically advantageous tender is to be accepted.

The Chief Executive, as Accountable Officer, acting together with the Director of Finance, has delegated authority to approve acceptance of tenders and business cases up to a value of £1.0 million and where the most economically advantageous tender is to be accepted.

The CHP Committees have delegated authority to approve the acceptance of tenders and business cases with a value up to £1.5 million and where the most economically advantageous tender is to be accepted.

The Chief Operating Officer, CHP General Managers, Board Executive Directors and Operational Unit Directors, acting together with the Director of Finance/Director of Finance – Operational Unit, have delegated authority to approve acceptance of tenders and business cases up to the value of £1.0 million and where the most economically advantageous tender is to be accepted.

The Chief Executive/Chief Operating Officer shall submit to the Finance and Resources Committee, a report detailing all tenders and business cases in excess of £0.15 million and accepted by him or her in terms of the above delegated powers during the preceding two months in an appropriate format.

The CHP General Manager shall submit to the Community Health Partnership a report detailing all tenders and business cases in excess of £0.15 million and accepted by them in terms of the above delegated powers during the preceding two months in an appropriate format.

Authority to Spend Funds and Virement
(See Section E - Reservation of Powers and Delegation of Authority - Scheme of Further Delegation)

Delegated authority is granted, as undernoted, to approve the funding of individual items of expenditure, provided that approval can be funded within the Board’s overall Revenue and Capital Budgets, and to transfer funds up to this level between budgets including transfers from reserves and balances:

The Finance and Resources Committee up to a value of £3.0 million (IM&T Schemes up to £2.0 million) in any one instance.  This authority shall be exercised in respect of all proposals greater than the delegated limits below;

• The Chief Executive as the Accountable Officer, acting together with the Director of Finance of the Board, to a value of £1.0 million;

• The Chief Operating Officer, acting together with the Director of Finance – Operational Unit, up to the value of £1.0 million;

• The CHP Committees up to a value of £1.5 million in respect of all proposals with a value greater than £0.25 million;

• The CHP General Manager, Board and Operational Unit Executive Directors, acting together with the Director of Finance/Director of Finance -  Operational Unit up to the value of £1.0 million.

Capital Programme

The Board’s Capital programme shall be managed within the framework approved each year by the Board. 

The Committee shall, within this framework, approve tenders and business cases up to a value of £ £3.0 million.  Variations in cost from the approved framework in excess of 5% or £0.15 million, whichever is the higher, shall be reported to the Committee. 

In order to fulfil its remit the Finance and Resources Committee may obtain whatever professional advice it requires, and require Directors or other Officers of the Board to attend meetings.

The Finance and Resources Committee will appoint a Capital Scrutiny Group to co-ordinate the production of the 5 year Capital Plan, to oversee the implementation of the Capital Programme and to ensure the appropriate levels of governance is in place regarding NHS Tayside’s Capital Programme.

11.       Reporting Arrangements

The Finance and Resources Committee reports to Tayside NHS Board.

Following a meeting of the Finance and Resources Committee the minutes of that meeting should be presented at the next Tayside NHS Board meeting;

• The Finance and Resources Committee should annually and within three months of the start of the financial year provide a work plan detailing the work to be taken forward by the Committee;

• The Finance and Resources Committee will produce an Annual Report for presentation to the Audit Committee.  The Annual Report will describe the outcomes from the Committee during the year and provide an assurance to the Audit Committee that the Committee has met its remit during the year.  The Annual Report must be approved by the Finance and Resources Committee before it is presented to the Audit Committee considering Annual Accounts.

12.       Work Plan

At each meeting of the Committee, the following business shall be transacted:

Monthly

• Minutes, action plans and any matters arising from the previous meeting of the Committee;
• Minutes of the Capital Scrutiny Group;
• Consideration of the Corporate Financial Report incorporating financial performance against budget, risk analysis and forecasts.  Reports to be enhanced during 2011/12 to have a greater focus on operational budgets and a more detailed assessment of outcomes from the Steps to Better Health programme;
• Report on Contract Awards - Single Tenders, Contracts in Excess of £150k, and Contracts to other than lowest tender (as and when appropriate);
• Consideration of any Initial Agreements, Outline Business Cases, and Full Business Cases, relevant to the delegated powers of the Committee;
• Consideration of a progress report on Capital Expenditure;
• Minutes of the Mental Health Programme Board (as and when appropriate).
• Policies arising from Business IM&T Group and Information Governance Committee (as and when appropriate)

Quarterly

• Minutes of Electronic Employee Support System (EESS) Programme Board;
• Flash Integrated report – Procurement;
• Minutes on the progress of the Steps to Better Healthcare Programme Board.

Six monthly

• NHS Tayside Business IM&T group on any information governance issues;
• Change Fund progress update;
• HUB progress update;
• Property Strategy progress update;
• Post Occupancy Evaluation and Post Project Evaluation Progress Update;
• Disposal of Surplus Property 2012/13 – 2014/15.

Annually

The Committee shall consider and make recommendations to the Board with regard to:

• The Corporate Financial Plan 2012/13;
• The Strategic Financial Plan for the ensuing three-year period 2012/13 – 2014/15;
• The Capital Forecast for the ensuing five-year period 2012/13 - 2016/17;
• Public Procurement;
• Proposals regarding “Bundled Allocations”;
• The Annual Report of the Committee 2012/13;
• Annual Report of the Capital Scrutiny Group;
• Annual Report of the Area Business IM&T Group;
• Annual Report of the Information Governance Committee.

12.       Timetable for submitting agenda items and papers

From 1 April 2011 Board of Trustees meetings are held prior to the Finance and Resources Committee.  The Finance and Resources Committee meets on a Thursday in the Board Room at King's Cross Conference Suite immediately following the Board of Trustees, therefore the start time of the meeting is subject to change. 
Where there is no meeting of Board of Trustees the F&R will start at 9.30 a.m.

The exception to the timetable is the meeting held in June which meets on a Tuesday  immediately prior to the Tayside NHS Board meeting to approve the Board’s Annual Accounts. 

The dates of the Committee meetings for 2012/13 and the submission dates for agenda items are set out in the following table.

It is essential to ensure the smooth running of the business of the Committee that reports are submitted in accordance with the timetable. 

Any reports NOT submitted to the above timescales will be considered for submission to future agendas by the Chairman and Executive Lead Officer. 

Final papers must be submitted, electronically, to Mrs Rhonda Forbes, (rhondaforbes@nhs.net) Office Manager, Directorate of Finance, Maryfield House, Mains Loan, Dundee, DD4 7BT, in accordance with the above timetable.

I S McDONALD

DIRECTOR OF FINANCE

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