Purpose
The Trustees are responsible for the viability and correct running of the financial affairs of the Charity. Whilst much of the running of the Charity is delegated to the Regimental Secretary, some decisions must be taken by the Trustees or formally delegated by the Chair.
Authority
1.1 The Finance Sub-Committee is authorised by the Board to:
a. Review the Risk Management Plan (in conjunction with the Governance sub- committee).
b. Review Cash Reserves Policy.
c. Approval of Forecast of Income and Expenditure.
d. Review Investment Policy
e. Approval of annual accounts prior to the AGM
f. Pay and terms of conditions of Charity staff.
g. Approval of annual budget plans submitted by Chairs of Sub Committees
h. Other related tasks as decided by the board.
Responsibilities and Accountability
1.2 The Finance Sub-Committee is responsible for advising the Board. The Committee is responsible to the Board for all matters pertaining to the successful running of the Charity. It provides advice and guidance to the Trustees and oversees the general running of the Charity and the terms and conditions of employed and contracted staff.
1.3 The Finance Sub-Committee is responsible for
a. Examining the draft audited annual accounts of the Charity and present the accounts and their recommendations to the Board.
b. Recommend to Trustees the annual Forecast of Income and Expenditure and monitor during the year.
c. Ensure sufficient funds are available for the charitable grants recommended by the Benevolence & Grants Committee.
d. Ensure that all the relevant financial policies, guidelines and checks are in place to ensure good governance, and recommend these policies as appropriate to the Board.
e. Monitor the income derived from the Payroll Giving Scheme through the Treasurer.
f. Monitor the income derived from the Gift Aid Scheme, donations and legacies to ensure efficiency and effectiveness.
g. Make recommendations to the Board regarding annual pay rises and allowances for employed and contracted staff.
h. Monitor the Auditors and recommend when a review is required. (every 5 years)
i. Deal with all other administrative matters arising or referred to the Committee by the Regimental Secretary as they occur.
j. Monitor and take action when there is cash in excess of expenditure. Making recommendations to the Board if required.
k. Internal Financial Controls. Internal financial controls are at Annex A.
Membership
1.4 The Finance Sub-Committee will be comprised of at least a Chair and three members appointed by the Board. The committee should consist of:
a. The Chair of the Board of Trustees.
b. Two other Trustees:
i. The specialist finance trustee
ii. A trustee who on the basis of the Annual Trustee Skills Audit has the required skills and knowledge
c. The Treasurer.
d. The Office Manager who will act as Secretary
e. Chairs of sub-committees will attend to present their annual spending plans and when requests for additional funding are required.
f. In addition, members may be appointed who in the view of the Committee would add value.
g. Appointment to and retirement from the committee may happen at any time with a majority of the Finance Committees approval, in or out of committee. The Committee must subsequently approve any nominations at their next meeting.
Reporting
1.5 An Action and Decision Log will be recorded and updated at each meeting. These will be confirmed by the Chair and all attendees within 4 weeks of the meeting. This log will be made available to all Trustees and Association staff via the website https://www.qarancassociation.org.uk/ and a summary of actions and decisions presented via a report to each Board meeting which should be submitted to the Regimental Secretary no later than 10 working days prior a Board meeting.
The Chair of the Finance Committee shall report to the Trustees at the Board AGM. In their absence, a nominated member of the Finance Committee shall make a report.
Frequency
1.6 The committee should meet quarterly or more frequently if required.
Annex A: Internal Financial Management Controls
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(Version 2019.1 updated November 2019)