oakgrove, middleton and monkston academies scheme...

December 2017

Members of the Kingsbridge Educational Trust

OAKGROVE, MIDDLETON AND

MONKSTON ACADEMIES

SCHEME OF DELEGATION OF FINANCIAL POWERS AND DUTIES TO

THE GOVERNING BODY AND HEADTEACHER

FOR THE FINANCIAL YEAR

2017-2018

Kingsbridge Educational Trust

of 52 Kingsbridge Educational Trust, a charitable company limited by guarantee and registered in England and Wales with company number 09144847. The registered office is at Oakgrove School, Venturer Gate, Middleton, Milton Keynes, MK10 9JQ

Contents Scheme of Delegation – Introduction ..................................................................................................... 3

Role of the Local Governing Body (LGB) ................................................................................................. 8

Delegation of Authority .......................................................................................................................... 9

Scheme of Delegation of the Financial Powers and Duties of the Governing Body ............................. 11

Scheme of Delegation ........................................................................................................................... 12

1. Accounting Policy and Procedures ............................................................................................ 12

2. Safeguarding Assets .................................................................................................................. 14

3. External Audit............................................................................................................................ 16

4. Budget – Financial Planning, Budgeting, Monitoring and Reporting ........................................ 18

5. Value for Money, Awarding Contracts, Placing Orders ............................................................ 21

6. Governance ............................................................................................................................... 27

7. Income (including lettings)........................................................................................................ 30

8. Information and Communications Systems .............................................................................. 33

9. Insurance and Risk Management .............................................................................................. 34

10. Investments and Borrowing .................................................................................................. 35

11. Payments ............................................................................................................................... 36

12. Salaries, Wages and Pensions ............................................................................................... 37

13. Taxation ................................................................................................................................. 42

14. Other ..................................................................................................................................... 43

Appendix 1: Terms of Reference for the Local Governing Body (each Academy) ................................ 45

Appendix 2: Terms of Reference for the Finance and Personnel Committee (each Academy) ........... 47

Appendix 3: Finance, Audit & Human Resources Committee (FAHRCT) – Terms of Reference (Trust)49



Scheme of Delegation – Introduction Oakgrove School, Middleton Primary School and Monkston Primary School are academies, which are part of Kingsbridge Educational Trust, a multi-academy trust (MAT), which is responsible to the Department for Education (DfE) for all its academies. Kents Hill Park is a new provision and will join the Trust in February 2018 (LA estimate) but will be assumed to be subject to the terms of this Scheme of Delegation before that date where applicable, for example for the purposes of procurement. The Trust is governed by the requirements of the various Academy Funding Agreements between itself and the Education Funding Agency (EFA), and also by the Charities Acts, the Companies Act, and the provisions of its own Memorandum and Articles of Association. Under the Trust’s Articles it has established a Local Governing Body (LGB) for each of the academies, Oakgrove School and Middleton Primary School, and to these governing bodies it delegates much of its responsibility for the strategic direction of each academy and also for monitoring performance in all fields, including financial. The LGBs in turn delegate some of their authority to the sub-committees that they establish and to the Headteachers of their respective academies. The Trust Board of Directors (BoD) also delegates some of its authority to the Trust Chief Executive Officer (CEO)/Executive Headteacher who in turn may delegate authority to other directors within the executive function of the Trust. The following diagram shows the relationship of the parties to the scheme of delegation:



Terms of Reference The Board of Directors The Board of Directors (BoD) is responsible for ensuring that high standards of corporate governance are maintained. It will exercise its powers and functions with a view to fulfilling a largely strategic leadership role in the running of the Academies. This will allow greater opportunities for collaboration, not only with regards to teaching, but also in terms of the management of each Academy, including the procurement of goods and services. The BoD is also governed by the terms of any Funding Agreements that are in place, the Academies Financial Handbook and the Treasury publications “Guidance on Codes of Practice for Board Members of Public Bodies” and “The Orange Book: Management of Risk – Principles and Concepts”. Section 1 – Responsibilities of the Board of Directors 1.1 Directors are responsible for addressing such matters as:

Policy development and strategic planning, including target-setting to support and

ensure Academy improvement;

ensuring sound management and administration of the Academies, and ensuring that

managers are equipped with relevant skills and guidance;

ensuring compliance with all legal requirements;



establishing and maintaining a transparent system of prudent and effective internal

controls;

the Trust’s MAT Development Plan (MDP);

managing the Academies financial, human and other resources (in particular control

over the spending identified in the MDP);

monitoring performance and the achievement of objectives, and ensuring that plans

for improvement are acted upon;

helping the Academies to be responsive to the needs of parents and the community

and making them more accountable through consultation and reporting;

setting the Academies’ standards of conduct and values;

assessing and managing risk (including preparation of a statement on the Academies’

risk management for the annual report and accounts). The risk management process

should include preparation of a risk register and a contingency and business continuity

plan to deal with crises that could face the Academies;

ensuring that employees of the Academies are paid for work done in accordance with

their contracts of employment with the Trust;

ensuring that the Academies have adequate insurance cover to support their activities.

It will be appropriate, in many cases, for the Directors to delegate personnel matters to the

Finance, Audit and Human Resources Committee of the Trust (FAHRCT) or LGB as

appropriate. The Board must then ensure that it obtains professional advice in establishing,

enacting and enforcing personnel policies to ensure compliance with employment and

other relevant legislation.

1.2 The Board of Directors will meet at least three times a year.

1.3 The LGBs and sub-committees support the BoD in a range of delegated and preparatory

duties and report regularly about the work done and/or make recommendations on matters

which the BoD may not delegate.

1.4 The LGBs and sub-committees ensure that all relevant Academy policies are in place and

amended as and when required and report matters arising to the Board as required.

1.5 The Trust is established as a charity and this confers certain obligations upon the Directors to

protect the assets, property and good name of the Trust. The legal requirements of

Directors are set out below.

1.6 Directors have full responsibility for the Trust and must:

act together and in person and not delegate control of the Trust to others;

act strictly in accordance with the Academies’ governing documents;

act in the Academies’ interests only, without regard to their own private interests;

manage the Academies’ affairs prudently throughout the life of the Academies;

not derive any personal benefit or gain from the Academies of which they are Directors;

and

take proper professional advice on matters on which they are not themselves

competent.

1.7 In managing the Trust’s finances, Directors must:



ensure that bank accounts, financial systems and financial records are operated by

more than one person;

ensure that all the Academies’ property is under the control of the Directors;

keep full and accurate accounting records; and

prepare accrual accounts giving a true and fair view of the Academies’ incoming

resources and application of resources during the year and of its state of affairs at the

year end.

1.8 In applying the Academies’ income, Directors must spend it solely for the purposes set out in

the Academies’ governing documents and spend it with fairness between persons qualified

to benefit from the charity.

1.9 The BoD must also elect the Chair of the Finance, Audit & Human Resources Committee

(FAHRCT) annually, following nomination by the committee. The Chair of the Committee

must not be an employee of the Trust.

1.10 The Chair of the BoD, in consultation with the Headteacher of the relevant Academy and the

Chair of the LGB/committee, will take appropriate action when a decision is needed urgently

on behalf of the Directors/LGB.

1.11 The Directors have a duty to take appropriate action when there are weaknesses in the

Academies.

1.12 The Directors will appoint a Headteacher to each Academy. The Headteachers are

responsible for the internal organisation, management and control of the Academies, the

implementation of all policies approved by the Directors and for the direction of teaching

and the curriculum. The Directors formally delegate these powers and functions to the

Headteachers.

Conduct of Directors/Governors 1.13 Directors, Governors and staff are public servants and as such must not use public monies or

official business for personal benefit. The Directors/Governors must avoid obtaining goods

and services that include elements of private use or accepting excessive hospitality from

prospective suppliers. The Treasury rules about the receiving of hospitality and gifts should

be followed, as these rules are there to protect staff and Directors/Governors. A register

will be maintained to record hospitality and gifts received. This should record, as a

minimum, the name of the organisation that gave the hospitality/gift, the date it was

received, its nature and approximate value.

1.14 Directors/Governors should be aware that the Prevention of Corruption Act places the

burden of proof on the recipient of favours.

NB: All duties and responsibilities of Directors/Governors detailed in the Financial Handbook (and other governance documents) apply equally to persons who are not Directors/Governors of the Academies but who have been appointed to serve on a committee of those Academies in an honorary capacity.

Declaration of Business Interests 1.15 It is vital that Directors/Governors and staff act, and are seen to act, impartially. All

members of the Board and LGBs are required to complete a declaration of their business

interests. It is also required as a matter of good practice, that the Headteachers and other



senior staff complete declarations. Individual declarations should be maintained together in

a register.

1.16 Where a Director/Governor or member of staff (or related person) has any interest, either

pecuniary or non-pecuniary, in a matter to be discussed at a Board meeting the Director,

Governor or member of staff must declare their interest and withdraw from that part of the

meeting.

1.17 Where a Director/Governor or related person has a pecuniary interest in a business, and

that interest exceeds limits that may be specified in the Academies’ Memorandum or Article

of Association, the Academies must not enter into any contract or arrangement (such as the

purchase of goods and service) with that business, i.e. The Academies would not be

permitted to trade with a company in which a Director/Governor holds more than 1/100th of

the share capital.

1.18 It is the responsibility of Directors/Governors and staff to ensure that their declarations of

business interests are kept up to date at all times, and to amend or update them as

necessary. At the start of each relevant meeting Directors/Governors should be asked to

declare any interests in a matter included on the agenda.

Payments 1.19 It is illegal for Board members to receive any remuneration for their work as Directors, other

than payment of all reasonable out of pocket travel, accommodation or other expenses

legitimately incurred by them in connection with their attendance at meetings acting in the

capacity of Director of the Trust.

1.20 No Director may hold any interest in property belonging to the Trust. Nor may a Director

receive remuneration in respect of any contract to which the Trust or Academies within it

are a party.

1.21 Members of the Local Governing Bodies shall also be bound by sections 1.19 and 1.20.

Board of Directors (BoD) meetings The Board of Directors will meet a minimum of three times a year and will hold an AGM annually. No business can be conducted at any meeting unless a quorum is present. A quorum is three (those with full voting rights) or one-third of the total number of Directors with full voting rights, whichever is the greater. Fourteen days’ notice must be given prior to the meeting to all Directors (in the case of the AGM notice must also be given to all Members and the Auditors).

1.22 Any three Directors may call an additional meeting via notice to the Clerk to the BoD. Any

such meeting should be convened as soon as is reasonably practicable.

1.23 The Directors will appoint a Clerk to the BoD, who will be someone other than a Director or

a Headteacher of the Academies.

1.24 In consultation with the Chair and Headteachers, the Clerk shall draw up a schedule of

proposed meeting dates for the Board and sub committees. This should be submitted, for

approval, to the full Board of Directors at their meeting which is held in July.

1.25 The BoD meeting in September will elect the Chair and Vice Chair, and agree membership of

Committees.

Scheme of Delegation 1.26 The Directors must agree a formal schedule of matters reserved for their decision, i.e. those

which should not be delegated within the Academies. Beyond this, the Directors will



establish a FAHRCT, at Board level, to deal with specific areas of Academies’ business, and

should determine the delegated responsibilities to be assigned to the committee. This will

ensure that matters can be dealt with in appropriate detail and with sufficient frequency.

1.27 Where the Directors decide to delegate certain matters for consideration by LGB

committees, each committee should be chaired by a Governor. The membership of the

committee may include persons who are not Governors provided that a majority of the

members are Governors. The Directors will ensure that they receive adequate feedback on

the work of those committees and are able to consider their proposals formally. The

establishment of committees does not absolve the BoD of its overall responsibility to

manage the Academies.

1.28 Directors/Governors are at risk of personal liability if they cause loss to the Academies by

acting unlawfully, imprudently or outside the terms of the Academies’ Terms of Reference.

Section 2 – KET procedures

2.1 The BoD will establish the following sub-committee:

Finance, Audit and HR Committee of the Trust (FAHRCT)

And any other sub-committees it feels is appropriate

The Governing Bodies of each academy must establish a Finance & Personnel Committee (terms of reference agreed by the BoD) and any other sub-committees they wish.

2.2 The terms of reference for each committee of the BoD and sub-committees of the LGB must be approved by the BoD and reviewed annually.

2.3 The FAHRCT will meet as follows to discuss relevant business:

Finance and HR Committee business – twice a term, with the exception of the first term

of operation when it will meet once

Audit Committee business – once each term

2.4 No persons employed by the Academies will act as Chair of a committee or sub-committee. In the absence of a Chair or Clerk of any committee the committee will elect a replacement from those present.

2.5 Each committee is authorised to invite attendance at its meetings from persons including parents and members of the Academies’ staff who are not members of the Board, to assist or advise on a particular matter or range of issues.

2.6 The committees will only operate within their particular areas of delegation.

Role of the Local Governing Body (LGB) The core duties of the LGB are:

1. Ensuring clarity of vision, ethos and strategic direction

2. Holding the Headteacher to account for the educational performance of the academy and its students; and

3. Overseeing the financial performance of the academy and making sure its money is well spent



4. Ensuring the highest standards of teaching and learning.

5. Ensuring the highest standards of safeguarding and welfare.

6. Overseeing equality and diversity across the school.

To achieve their objectives, the LGB should address matters such as:

Policy development and strategic planning, including target-setting to sustain momentum on school improvement;

Ensuring the sound management and administration of the academy;

Ensuring that managers are equipped with relevant skills and guidance;

Ensuring compliance with legal requirements;

Safeguarding and welfare;

Establishing and maintaining a transparent system of prudent and effective internal controls; (note that the Trust’s annual report and accounts must include a statement on the efficiency and effectiveness of such controls at each academy if applicable);

Management of the academy’s financial, human and other resources (in particular control over the spending identified in the Academy Development Plan);

Monitoring performance and the achievement of objectives, and ensuring that plans for improvement are acted upon;

Helping the academy be responsive to the needs of parents and the community and making it more accountable through consultation and reporting;

Setting the academy’s standards of conduct, behaviour and values; and

Assessing and managing risk. Specific areas which the LGB will oversee include:

Approval of the MAT Development Plan (MDP) and Self-Evaluation Form (SEF);

Approval of specific policies (e.g. related to curriculum, teaching and learning, etc.);

Recommending the academy budget for approval to the Board of Directors;

Determining employees' remuneration subject to the Trust’s policies and within the delegated levels (below senior management),

Making decisions involving controversial, significant or unusual discretion within the limits delegated by this scheme;

Safeguarding

Delegation of Authority

The schedule set out below specifies the way in which the financial responsibilities and duties imposed on the Trust, by the Academies Financial Handbook (AFH), the Academy’s Funding Agreement and by statute law, are allocated and how authority has been delegated. The operation of the scheme is clarified and explained in the appendices to the policy. The policy takes into account the requirements of the DfE Academies Financial Handbook, the Charity Commission Guide on Internal Financial Control for Charities, the Trust Financial Handbook and Financial Handbook for each Academy.



Under the Trust, each Academy’s financial procedures, as set out in its financial handbook, are to reflect and be consistent with this policy. Governors do not incur any personal liability in respect of anything done honestly, reasonably and in good faith in exercising their power to spend an Academy’s budget share, or delegating that power to the Headteacher. The Governing Body is accountable for all actions taken in its name by individuals to which it has delegated functions. Where the Headteacher delegates tasks to other members of staff, the Headteacher remains accountable to the Local Governing Body, and to the Trust. This scheme of delegation was presented to the Governing Body: Signed:……………………………………………………………………………………………………….…. Dated: ……………………….. Chair of Governors



Oakgrove, Middleton and Monkston Academies (Kents Hill Park from February 2018)

Scheme of Delegation of the Financial Powers and Duties of the Governing Body In order to allow the Academy to function efficiently, delegation to committees and sub-committees and the Headteacher is necessary. The extent and level of any such delegation is set out in the matrix of responsibilities below. Where committees are established, the name of the committee to which the function is delegated is specified in the matrix except for the Finance and Personnel Committee for each Academy which is referred to as F&PC. The Finance, Audit and HR Committee for the Trust is referred to as FAHRCT. Key to abbreviations: Abbreviation Full name Status AFH Academy Financial Handbook Academy document BD Business Director Trust appointment BM Business Managers Academy appointments BoD Board of Directors CEO Chief Executive Officer Trust appointment CFO Chief Financial Officer Trust appointment DfE Department for Education Government Department ESFA Education Funding Agency Agency of the DfE FAHRCT Finance, Audit & HR C’ttee of Trust Trust appointment F&PC Finance and Personnel

Committee Academy LGB committee FD Finance Director Trust Appointment FO Finance Officers Academy appointments HR Human Resources Trust appointment IA Internal Auditor Trust appointment KET Kingsbridge Educational Trust Multi-academy trust LGB Local Governing Body Academy MDP MAT Development Plan Trust document SM Site Managers Academy appointments TFH Trust Financial Handbook Trust document TOCA Transfer of Control Agreement Trust document


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Kingsbridge Educational Trust, a charitable company limited by guarantee and registered in England and Wales with company number 09144847. The registered office is at Oakgrove School, Venturer Gate, Middleton, Milton Keynes, MK10 9JQ

Scheme of Delegation

Responsibility Kingsbridge Educational

Trust Members

Kingsbridge Educational Trust Board of Directors

(BoD)

Academy Local Governing Body

(LGB)

Headteacher of each Academy

CEO/Executive Team and

centralised function

Comments

1. Accounting Policy and Procedures 1.1 Adhering to ESFA

and statutory financial requirements.

FAHRCT approves all accounting policies and procedures documented in Trust Financial Handbook (TFH).

Account procedures adhere to Trust Financial Handbook.

CFO recommends policies to BoD via FAHRCT.

External auditors are consulted on financial policies to ensure compliance.

1.2 Implementing and maintaining a robust system of internal control to minimise risk.

FAHRCT reviews Control Assurance Review reports from Internal Auditor, together with internal responses, and decides on action required.

F&PC reviews internal audit reports and takes action as required.

CFO designs systems of internal control for incorporation in the Trust Financial Handbook (TFH). Policies and procedures adhere to the ESFA and statutory financial requirements.

The internal auditor prepares a Control Assurance Review statement to evaluate effectiveness of internal control.


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Comments

1.3 Ensuring policies and controls are followed.

FAHRCT receives and reviews internal auditor reports on compliance.

F&PC receives and reviews internal control reports from internal auditor.

Headteacher receives copy of internal audit reports and adds response before the reports are published.

CFO receives internal control reports from internal audit. CFO takes action to remedy non-compliance with policies and procedures.

IA visit every academy at least twice a year and reports back to CFO and Headteacher.

1.4 Maintaining accounting records as required by statute.

FAHRCT receive and review termly consolidated budget monitoring reports.

F&PC receive and review budget monitoring reports year to date. Chair of F&PC reports on financial progress to Local Governing Body.

Review budget monitoring reports monthly.

CFO reviews budget monitoring reports monthly and Trust finance team check that all control accounts are reconciled.

The review of income and expenditure against budget in the monitoring reports and the control account reconciliations will highlight possible errors and omissions in the records so that they are rectified in a timely fashion.


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2. Safeguarding Assets 2.1 Arranging security

of physical assets such as buildings, furniture, equipment, stock, stores and cash.

FAHRCT approve guidance set out in TFH.

Ensure appropriate inventories are in place.

Headteacher oversees academy BM and SM arranging security of physical assets and site. FO controls cash.

CFO decides on minimum security procedures and recommends to FAHRCT incorporation into the TFH. CFO periodically checks cash reconciliations.

Staff will follow procedures as laid down in the TFH.

2.2 Maintaining an inventory of all high value or attractive moveable items of equipment and security marking such items.

Ensure appropriate procedures are in place.

Headteacher directs BM, SM and academy IT staff to tag all assets and control issues and allocations.

CFO oversees BMs and FOs in academies maintaining financial records and reconciling these to the inventory.

Procedures for recording and checking are laid down in the TFH.

2.3 Checking annually the inventory to verify the location and condition of

Consolidated report approved by FAHRCT.

F&PC will receive and review the IAs report on material losses and

Headteacher directs BM, SM and academy IT staff to physically

IA reviews all material losses and discrepancies.


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equipment. Write-offs above threshold approved.

discrepancies. check agreed sample of assets and update records accordingly. BM and FO amend financial records to reflect losses and disposals.

2.4 Authorising disposal of unusable or obsolete equipment included in the inventory and ensuring that the best value is obtained on disposal.

Write-offs above threshold approved.

Disposal of any asset that originally cost more than £10k and the plan for disposal (e.g. sale, scrap) are considered by F&PC and, if agreed, passed to CFO for final approval.

Headteacher approves, in writing, any disposal of an asset that cost less than £10k when acquired.

CFO is responsible for approving disposals of assets originally costing over £10k if recommended by the academy F&PC. CFO and FO amend financial records to reflect disposals.

ESFA prior approval via the Trust is required for any disposal beyond the delegated limits set out in the AFH.

2.5 Maintaining a record of all

Policy set by FAHRCT.

Policy implemented in

All issues and loans are signed for by staff


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property borrowed by staff.

each academy. All staff must return any issued equipment when they leave the academy.

3. External Audit 3.1 Appointing

auditors.

Appoints auditors

3.2 Making records and documents available for inspection by the External Auditor.

Clerk to the Governing Body will make copies of the minutes of all meetings of the LGB and its Committees available, if required. Also Register of Pecuniary Interests.

Provides auditors with any explanations required that cannot be dealt with by BM.

FD, in conjunction with each Academy’s FO/BM, prepares all information required for statutory disclosure and ensures records are in order for inspection.

There is a legal obligation to supply auditors with such information and explanations as they may require.

3.3 Receiving the reports and management

FAHRCT receives reports and decides what

LGB receives and reviews auditor’s reports and

Responds to points raised by auditors in report for the

CFO/FD prepare detailed plans for implementing

Internal and external auditors may issue reports and


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Comments

letters from audit inspections and implementing any recommendations.

recommendations to implement. Ensures compliance with decisions.

recommendations and the Headteacher’s response.

academy LGB. recommended changes. CFO/FD assists the Headteacher to prepare a response to audit points.

recommendations after their visits and audit work.

3.4 Receiving annual audited accounts.

BoD approves the audited accounts.

CFO and Auditor will present the audited accounts to the FAHRCT/BoD.

3.5 Receiving Internal Auditor’s reports.

FAHRCT reviews Academy reports that reflect material concerns or if it is identified as exceptional by Internal Audit.

F&PC receives Internal Audit’s report on the Academy and any response by the Headteacher and BM.

Receives reports and prepares response to points raised.

CFO reviews Internal Audit’s report and implements changes to procedures if required. CFO supports Headteacher preparing response to

CFO has a duty to pass on to the Audit Committee any reports that raises material concerns.


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reports.

4. Budget – Financial Planning, Budgeting, Monitoring and Reporting 4.1 Setting budget

objectives and reserves levels.

BoD sets reserves level. BoD set parameters for reserves as part of the reserves policy following recommendation from FAHRCT.

LGB decide on level of reserve within Trust parameters. Available reserves may be used in year in exceptional circumstances

CFO ensures proposed reserves level complies with Trust policy.

Policy will reflect Charity Commission requirements, if applicable.

4.2 Overseeing the preparation of the annual budget to reflect the priorities established by the MDP.

F&PC reviews Academy draft budget & recommends to LGB for approval.

Headteacher sets objectives to reflect MDP. BM or FM prepares draft Academy budget & presents to F&PC for approval by LGB. Following LGB approval, BM or FM submits budget

CFO consolidates budget and ensures it reflects the BoD’s direction and the Headteachers’ needs.

The budget must include details of each academy’s capital plans.


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to CFO for consolidation into single entry budget plan.

4.3 Approving the final budget.

BoD receives consolidated budget for approval. FAHRCT approves the final budget as recommended by each academy LGB as incorporated in the consolidated Trust budget.

F&PC review the budget in detail. Chair of F&PC presents budget to LGB who, in turn, recommend approval to BoD.

Headteacher supported by BM presents the proposed budget to F&PC.

CFO presents consolidated budget to the BoD for approval through the FAHRCT.

Governors should approve a balanced budget for the year unless reserves are used as in 4.1 above.

4.4 Notifying the approved budget to the DfE within the required timescale.

CFO/FD submits consolidated budget.

CFO/FD will issue a budget timetable to coincide with the ESFA reporting deadlines.

4.5 Monitoring actual year to date

Consolidated reports for the

F&PC review the year to date report

Headteacher reviews monthly

CFO/FD prepares consolidated

The monitoring reports include a


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Comments

income and expenditure against budget and explaining variances.

whole Trust are reviewed by the FAHRCT each term and in summary by the BoD.

at its meetings. Chair of F&PC reports any significant items to the LGB.

reports and outturn forecasts prepared by BM.

management accounts, outturn forecasts and monitoring reports. CFO team review and check monthly reports.

commentary to explain variances and a summary of risks and opportunities.

4.6 Approving transfers between budget headings (virements).

Authorise virements over £50k on recommendation from CFO.

F&PC can authorise virements up to £20k. HT to seek LGB approval for virements over £20k up to £50k.

Headteacher can make virements up to £10k.

CFO seek BoD approval through FAHRCT for virements over £50k.

Significant changes to budget plans should be notified to ESFA. Significant is interpreted as meaning that the MDP will have to change significantly as a result.

4.7 Approving expenditure not provided for in the annual budget.

Authorise additional expenditure in excess of £50k on recommendation

Can approve additional expenditure up to £50k provided that the budget remains

BM will assist Headteacher or other staff in preparation of the business case.

CEO can approve any non-budgeted expenditure between £20k and £50k.

A standard business case format must be used to propose all non-budgeted expenditure.


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from CEO/CFO. balanced or adequate reserves exist to cover additional expenditure. F&PC can authorise additional expenditure between £10k & £20k provided that the budget remains balanced or adequate reserves exist to cover additional expenditure.

Headteacher can approve additional expenditure up to £10k provided that the budget remains balanced or adequate reserves exist to cover additional expenditure.

CEO and CFO seek BoD approval for additional expenditure over £50k. CFO will notify the ESFA of significant changes to planned expenditure.

Significant changes to budget plans must be notified to ESFA. Significant is interpreted as meaning that the MDP will have to change significantly as a result.

5. Value for Money, Awarding Contracts, Placing Orders 5.1 Appointing

preferred suppliers. FO/BM can add

suppliers to Purchase Ledger within the accounting software.

CFO/FD will approve any supplier nominated for preferred supplier status.

Preferred suppliers are those whose rates/prices and terms and conditions have been checked in advance to ensure


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Comments

that they will provide good value for money.

5.2 Selecting a supplier for expenditure below £1,000.

BM will authorise orders and ensure that preferred suppliers are used where available.

Preferred suppliers must be used where available.

5.3 Selecting a supplier for non-ICT expenditure between £1,000 and £5,000.

BM will authorise orders and ensure that the chosen supplier is either a preferred supplier or that three prices were obtained. Headteacher must authorise any proposed purchase where the lowest cost is not chosen.

Academies must either use a preferred supplier or obtain three comparative prices prior to selection. Telephone/verbal quotes are acceptable if written quotes are not available.

5.4 Selecting a supplier for non-ICT expenditure

Headteacher must authorise any proposed purchase

Three quotes for the supply must be obtained in writing.


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between £5,000 and £10,000.

where the lowest cost is not chosen. BM will authorise orders and check that three quotes were obtained and that preferred suppliers were included where applicable.

Preferred suppliers may be asked to provide quotes if applicable.

5.5 Selecting a supplier for non-ICT expenditure between £10,000 and £50,000.

Headteacher will direct staff to obtain a minimum of three quotations. Headteacher must authorise any proposed purchase where the lowest cost offered is not recommended.

CFO will review quotes and authorise the order. CFO will review and approve any proposal to award the order /contract to any supplier other than the one who offers the lowest price.

Competitive quotes must be addressed to the academy and must set out clearly the details of the supply, including additional costs, contract periods, warranties etc and the total cost. Three quotes should be obtained or explanation given (e.g. bespoke or matching product)


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5.6 Selecting a supplier for expenditure over £50,000 (including ICT).

Headteacher will direct staff to prepare a detailed specification setting out the academy’s requirements.

CFO will oversee the tender process in accordance with the guidelines laid out in the TFH. CFO will keep a register of all tenders issued and results.

Formal tender process per the Trust Financial Handbook (TFH) will be followed. The quote must be based on the criteria set out in the tender document.

5.8 Waiving pricing/quote process for procurements up to £50,000 where only one supplier is considered suitable.

HT statement to be reviewed and endorsed by F&PC.

Academy must submit a statement signed by the Headteacher explaining why only one supplier is considered suitable.

CFO will decide whether to approve waiver after reviewing reasons given.

Waiver has to be confirmed by email and a copy attached to Purchase Order (PO) or contract. Waiver will be entered in tender register.

5.9 Waiving tender process for procurements over to £50,000 where only one supplier is

HT statement to be reviewed and endorsed by F&PC.

Academy must submit a statement signed by the Headteacher

CEO will decide whether to approve waiver after reviewing reasons given.

Waiver has to be confirmed by email and a copy attached to PO or contract.


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considered suitable.

explaining why only one supplier is considered suitable.

Waiver will be entered in tender register.

5.10 Authorising Purchase Orders up to £10,000 value.

Budget Holder raises purchase order in the accounting system ensuring appropriate authorisations obtained. BM authorises PO in the accounts system and arranges for the document to be issued to the supplier.

Final PO cannot be printed until authorised.

5.11 Authorising Purchase Orders over £10,000 value.

Headteacher authorises requisition prior to PO being raised in the accounting

CFO reviews the requisition and supporting documentation and authorises

Finance system is programmed only to accept CFO authorisation over £10,000.


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Comments

system by the FO. The requisition and supporting quotations are passed to the CFO.

the PO on the accounts system.

5.12 Executing contracts for a total or potential total value up to £10,000.

Headteacher signs contract on behalf of the academy. BM checks terms and conditions prior to execution.

5.13 Executing contracts for a total or potential total value over £10,000.

Headteacher signs contract on behalf of the academy.

CFO checks terms and conditions prior to execution.

5.14 Ensuring compliance with Public Contracts Regulations.

BoD approve the procurement policy that sets out procedure for managing tenders.

CFO recommends policy and procedures in Trust Financial Handbook. CFO team keeps


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tender register to ensure compliance.

5.15 Operating a competitive tendering process.

FAHRCT set the thresholds for procurement procedures to be used.

CFO recommends policy and procedures in Trust Financial Handbook. CFO keeps tender register to ensure compliance.

6. Governance 6.1 Appointing and

removing Members of the Academy Trust.

Members can agree by passing a special resolution to appoint or remove Members (as set out in the Articles).

6.2 Establishing the Members BoD establishes the CEO is ex-officio. Regulations for the


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Academy’s Board of Directors, Local Governing Body and regulations for its conduct and business.

establish the Board of Directors and approve subsequent Director appointments in accordance with Articles.

number of Governors required and the nature of the appointments and sets out the regulations for conduct of business by the LGB. BoD can appoint co-opted Directors.

CFO team prepares the regulations for approval by the BoD. CEO reviews draft regulations and presents to the BoD for approval.

Conduct of Business of the Governing Body include procedures for holding meetings, issuing notices, making and circulating minutes etc.

6.3 Appointing Governors to the Academies’ Local Governing Bodies.

BoD appoints Governors to the Academies’ LGBs.

LGB can nominate persons for appointment by the BoD.

CEO can nominate persons for appointment by the BoD

6.4 Appointing Chairs and Vice Chairs.

BoD appoints Chair and Vice Chair of the BoD.

Governing Body appoints Chairs and Vice Chairs of LGBs, the F&PC and any other committee or sub-committee they wish.

6.5 Establishing committees and

Terms of reference for the Academy

The LGB must establish the F&PC

Model Terms of Reference for


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sub-committees. LGB & F&PC are set by the BoD. BoD approves establishment of any non-statutory LGB sub-committees and terms of reference.

and may propose any other committee or sub-committee it considers necessary setting out its terms of reference and submitting to the BoD for approval.

committees are available from the BoD.

6.6 Removing a Director.

Members can remove a Director.

The BoD can recommend removal of a Director to the Members.

6.7 Removing a Governor from the Academy LGB.

BoD can remove a Governor.

The LGB can recommend removal of a Governor to the BoD.

The procedures for removing members are set out in the Regulations for the Conduct of Business of the Governing Body.

6.8 Maintaining a register of

The Clerk to the BoD will maintain a

The Clerk to the LGB will maintain a

All Governors/ Directors have a duty


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Comments

pecuniary business interests of Directors and Governors.

register of interests and will report the completion of the register or any non-compliance to the BoD.

register of interests and will report the completion of the register or any non-compliance to the LGB.

to disclose interests. Senior staff are also required to sign declarations of interest and a separate register is kept by the BM.

6.9 Maintaining a register of Gifts and Hospitality.

BoD sets the Trust policy for accepting and recording gifts and hospitality. The Clerk will maintain a register and will report any non-compliance to the BoD.

The Clerk to the LGB will maintain the register and will report any non-compliance to the LGB.

Will decide, within the parameters of Trust policy, whether to allow any offers of gifts or hospitality to be accepted.

All Directors/Governors have a duty to disclose gifts or hospitality received or offered.

7. Income (including lettings) 7.1 Approving a

Lettings Policy and setting rates to be charged.

The LGB decides local aspects of the policy relating to space and time available and

Headteacher has authority to allow discounts on rates for staff members and charities

BD is responsible for ensuring all legal obligations are met in licences, TOCA

TOCA and leases will be referred to Trust for legal checks before completion.


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charges to be made.

within limits set by the LGB.

and leases. 70% of profit from income generated at local level (excluding voluntary donations) is retained by the individual academy, e.g. lettings/breakfast clubs etc. with the remaining 30% to the Trust to be spent on agreed priorities.

7.2 Provision of centralised services to external customers.

Chair of BoD to approve external consultancy by CEO and report to BoD at next meeting.

CEO to approve external service provision from centralised function. SLAs for centralised function services to be agreed on an individual basis.

Income generated by external service provision to be retained by KET less any sums due to individuals on agreed terms.

7.3 Writing off debts For centralised F&PC must Headteacher can For centralised Wherever possible,


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Comments

for income not received.

function, FAHRCT write off any debt exceeding £1,000.

consider any proposed write off over £1,000 and recommend action to the LGB LGB must approve any write off exceeding £1,000.

authorise write offs up to £1,000 and must recommend any greater write off to the LGB. BM must prepare a report on any recommendation to write off a debt including actions already taken to recover the debt.

function, CEO can authorise any write off less than £1000.

and always for lettings, the Academy must require payment in advance to minimise the risk of bad debts.

7.4 Authorising other income generating activities, such as after school and sports clubs.

Decides which options, if any, to adopt. Approves schedule of charges.

Prepares plans and proposals, including risk assessments, for approval by LGB – proposes schedule of charges. BM will support the Headteacher in preparing the plans and

CFO will oversee risk assessment and viability appraisal for potential activities.


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Comments

proposals.

8. Information and Communications Systems 8.1 Controlling

systems, security and privacy of data.

BoD approves an Information Management Policy to ensure legal compliance and security of data.

LGB to adopt policy. Oversees safeguards and protocols to minimise the risk of loss or corruption of data or of unauthorised access to data.

ICT function is responsible to the BM and Headteacher for information management procedures.

8.2 Complying with Data Protection legislation.

BoD adopts Data Protection policy for the MAT.

Ensures appropriate protocols are in place. LGB notes the updated Data Protection policy.

CFO team will update the registration for all new academies, change of address etc and oversee compliance.

8.3 Complying with Freedom of Information Act

BoD approves the Publication Policy that is required by

LGB notes the updated FOI policy.

Headteacher will prepare draft replies to all

CEO/Executive Headteacher reviews queries

A register of queries and replies will be maintained.


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Comments

requirements. the Act (FOI policy) for the MAT.

queries relating to the Academy.

and responses.

9. Insurance and Risk Management 9.1 Reviewing

insurance cover in light of a risk assessment.

BM and SM will provide the CFO team with all information required to arrange cover.

CFO team will review cover levels and negotiate insurance cover.

9.2 Maintaining a Risk Register.

FAHRCT review overall risk management strategy, approach and attitude to risk.

LGB will review and approve the register annually. LGB will consider whether any risk needs to be amended or added at each meeting.

BM will provide all information required to CFO team to produce an Academy risk register.

CFO team will oversee production of risk register.

9.3 Producing Contingency and Business Continuity Planning (BCP) for risks that cannot be controlled.

F&PC approves the BCP and reviews annually.

Headteacher and BM provide information and plans for plan.

Review plans for each Academy annually.


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10. Investments and Borrowing 10.1 Setting aside funds

not required in the short term.

BoD decides the investment policy and in particular specifies what types of investments may be made.

Local Governing Body approves levels of funds to be invested in accordance with policy.

Headteacher approves recommendation prior to presentation to LGB.

BD prepares proposals for investment. CFO reviews proposals before passing to BoD. BD presents proposals to BoD.

10.2 Borrowing funds. Any proposals to borrow funds must be approved by the BoD.

CFO will prepare any proposal for borrowing and check compliance with DfE rules. CEO/Executive Headteacher must approve any proposal before consideration by BoD. CFO will apply for ESFA approval

This requirement extends to any purchase providing cash back facilities or deferred payment terms.


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Comments

where necessary prior to consideration by BoD.

10.3 Entering into operating leases.

CFO approves all leases and signs lease agreements.

Academies may only enter into operating leases that do not exceed 3 years. Finance leases are not permitted.

11. Payments 11.1 Authorising bank

payments. The following BoD

members act as ‘A’ signatories on the bank mandate.

Headteacher and Deputy Headteacher act as ‘C’ signatories on the bank mandate.

CEO/Executive Headteacher and CFO act as ‘B’ signatories on the bank mandate.

Payments great than £250K require one ‘A’ signatory plus any ‘A’ or ‘B’ signatory Payments between £1K and £250K require one ‘B’ signatory plus any other. Payments less than £1K require any two signatories.


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11.2 Approving application for Business/Credit Cards.

BoD set the policy for who may hold credit cards and the purposes for which they may be used.

Headteacher authorises any use of the issued card.

CFO approves all applications for credit cards.

11.3 Authorising reimbursements of personal expenses.

Expenses guidance is set by BoD.

Chair of LGB can authorise Headteacher’s expense claims.

Headteacher authorises all claims within the academy or delegates authority to budget holders.

CEO can authorise Headteacher’s expense claims or delegate to another Executive Director other than the CFO.

12. Salaries, Wages and Pensions 12.1 Approving Terms

and Conditions of Employment including salary scales, benefits and allowances.

BoD approve all Terms and Conditions.

Headteacher decides on application of Terms and Conditions in individual cases where the policy allows discretion.

HR will advise on Terms and Conditions and take legal advice to ensure compliance.


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Comments

12.2 Approving all salary variations and changes, including salary changes, allowances, working hours, overtime and unpaid leave.

Changes reported to F&PC Committee by Headteacher. F&PC monitor.

Headteacher authorises permanent and temporary variation to individual’s salary.

BD reviews the payroll changes for the month and reports any anomalies to the Headteacher.

12.3 Approving calculation of pay and deductions prior to payment.

Headteacher signs the draft payroll to authorise payroll service provider to process payment.

BD reviews the draft payroll and report to the Headteacher on all variations and anomalies prior to authorisation.

12.4 Approving salaries awarded to individual staff.

BoD reviews CEO salary changes.

F&PC reviews overall salary structure as part of the budget approval process. F&PC signs off salary recommendations from Headteacher.

Reviews staff salaries (other than own) and recommends changes in individuals’ pay scales.

CEO reviews Headteacher’s performance and salary with LGB Chair and recommends changes to LGB. CEO reviews


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(LGB)




Comments

salaries of Executive Team and recommends changes to BoD. CEO reviews and agrees central staff salary changes.

12.5 Approving other bonuses.

Policy for performance related bonuses, including exam and attendance bonuses, are set by the LGB.

Headteacher authorises payment to those who qualify.

BD drafts a list of persons qualifying for bonuses.

12.6 Appointing staff to vacancies.

BoD approve centralised Trust appointments, as recommended by the CEO. BoD appoint the CEO.

LGB ratify the appointment of Deputy and Assistant Headteachers.

Headteacher decides on staff appointments for posts below level of Assistant Headteacher. Headteacher recommends appointment of

CEO recommends centralised Trust appointments to BoD for approval. HR issues contracts to staff across the Trust. HR, in conjunction


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Deputy and Assistant Headteachers.

with CEO and Headteachers regularly review staffing requirements to ensure best use of resources across the Trust prior to vacancies being advertised. CEO approval required to advertise for Deputy or Assistant Headteacher vacancies.

12.7 Changing staff structure within academic and financial year.

Headteacher recommends additional posts.

CEO/Executive Headteacher authorises new posts.

12.8 Obtaining legal advice on severance

HR advises solicitors and obtains opinions

Legal advice must be taken on any disputed settlement


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Comments

payments. on liability in all cases, including redundancy payments.

items. Where legal advice suggests that the Trust’s chances of success are greater than 50%, the claim will be defended.

12.9 Authorising severance payments to individuals, including redundancy, below £10k.

. Headteacher prepares report on reasons for severance.

HR report and make recommendations on all severance for approval by CEO.

Ex-gratia payments are not made.

12.10 Authorising severance payments, including redundancy, in excess of £10k to any person.

Any proposed offer in excess of £30k requires approval of the Chair of the BoD.

Headteacher prepares report on reasons for severance.

HR prepares report and recommendations on reasons for severance and legal position. CFO team checks calculation of sum due.

Approval from HM Treasury is required for staff severance payments that exceed the statutory or contractual minimum by £50k or more. Ex-gratia payments


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Comments

CEO/Executive Headteacher authorises offer of settlement.

are not made.

13. Taxation 13.1 Complying with

VAT regulations. FAHRCT will receive

reports from IA on tax compliance.

CFO team prepares guidance for academies on charging VAT on income. IA will check VAT procedures.

VAT return will be submitted monthly.

13.2 Complying with PAYE regulations.

FAHRCT will receive reports from IA on tax compliance.

CFO checks that any payments to consultants and self-employed persons are tax compliant.

13.3 Ensuring that senior employee’s payroll arrangements fully

FAHRCT will receive reports on tax compliance.

CFO will check all consultants appointments for tax compliance.


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Comments

meet HM Treasury’s tax requirements.

14. Other 14.1 Administration of

voluntary funds LGB will set policy

for voluntary funds, including uses for which the funds collected may be applied.

Reviews accounts and makes decision on use of funds, subject to fund rules as set out by LGB.

CFO are responsible for maintaining fund records and reporting income, expenditure and balances.

14.2 Compliance with Companies Act regulations.

CFO acts as Company Secretary and ensures compliance.

14.3 Compliance with Charities Act regulations.

CFO ensures compliance.

14.4 Making controversial, significant or

Relevant committees will decide on issues

LGB can make decision where the total financial

CFO will consider whether any transaction under

Academies Financial Handbook requires novel and/or


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Comments

unusual decisions. where financial consequences of decisions are between £5,000 and £50,000.

consequences of the action do not exceed £5,000.

consideration needs to be referred to the ESFA.

contentious decision to be referred to ESFA before a final decision is taken.


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Appendix 1: Terms of Reference for the Local Governing Body (each Academy) Introduction 1. Membership

The Local Governing Body shall consist of: - two Parent Governors - two Staff Governors - a minimum of 4 further Governors - the Headteacher

2. Quorum The quorum for a meeting shall be one third of the total number of Governors holding office at

the date of the meeting. The Chair will always have the casting vote where applicable. 3. Meetings The Local Governing Body shall meet at least once a term and otherwise as required. 4. Duties

The duties of the Local Governing Body of the academy so far as they relate to financial matters or matters that may impact on the academy’s finances include:

1. Recruiting new governors as vacancies arise subject to ratification by the Board of

Directors (BoD).

2. Conducting the process for the election of staff and parent governors.

3. Holding at least three Governing Body meetings a year.

4. Establishing an F&PC Committee.

5. Identifying any sub-committees and seeking authorisation form the BoD to their terms of reference.

6. Appointing or removing the Chair and Vice Chair of any committee or sub-committee

7. Appointing and removing a Clerk to the Governing Body.

8. Delegating certain financial functions to committees, groups and individuals (subject to the Trust Regulations for the Conduct of Business of the Local Governing Body). The delegation must be reviewed and re-authorised annually.

9. Receiving reports from any individual or committee to whom a decision has been delegated and to consider whether any further action by the Local Governing Body is necessary.

10. Recommending the annual budget for adoption by the Board of Directors (BoD).


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11. Ensuring that 30% of any profit from income generated (excluding voluntary donations)

is passed to the Trust to be spent on agreed priorities.

12. Taking an overview with the Headteacher and CEO of publicity and marketing strategy.

13. Reviewing all building plans and maintenance programmes.

14. Reviewing and approving any local policies where responsibility has been delegated by the Board of Directors such as rates to be charged for letting Academy property.

15. Keeping the Health and Safety Policy and its practice under review and to make revisions where appropriate and authorising expenditure to improve safety provision.


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Appendix 2: Terms of Reference for the Finance and Personnel Committee (each Academy) Introduction 1. Membership

The Finance and Personnel Committee shall consist of: - Four Governors who are not employees of the Trust - Headteacher - Business Manager - Finance Director

2. Quorum The quorum for a meeting shall be three Governors. The Chair, who will not be a staff

member, will always have the casting vote where applicable. 3. Meetings The Finance and Personnel Committee shall meet five times during the academic year and

otherwise as required. 4. Duties

The specific duties of the Committee shall be to work in conjunction with the Headteacher and Business Manager (BM) of the Academy and with the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of the Trust. The Committee will provide guidance and make recommendations to the Local Governing Body on financial and staffing matters in line with the scheme of delegation.

The Committee responsibilities include the following:

1. Ensuring day to day financial transactions are carried out at the Academy.

2. Monitoring compliance with Trust, the Local Governing Body and DfE Academy Finance

requirements.

3. Reporting to the Local Governing Body any decisions made in accordance with powers delegated by the Local Governing Body, including decisions made on academy assets including depreciation and removal of items from asset register.

4. Considering a termly budget position statement, including virement decisions, and reporting significant anomalies from the anticipated position to the Governing Body; making recommendations where necessary.

5. Reviewing the draft budget taking account of priorities of the Academy Development Plan and presenting this to the Governing Body for approval.

6. Monitoring expenditure within all voluntary funds held on behalf of the Local Governing

Body.


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7. Ensuring that the principles of “Best Value” are applied to all services and goods

purchased and works contracted for.

8. Reviewing draft financial statements and presenting these to the Local Governing Body for approval.

9. Considering and responding appropriately to recommendations made by the auditors and internal auditors.

10. Undertaking self-review at the end of each academic year to assess whether priorities have been achieved, making recommendations to the Local Governing Body on committee membership, terms of reference, delegated powers and priorities for the coming year.

11. Monitoring and reporting on the Academy’s use of Pupil Premium.

12. Considering progress on personnel-related aspects of the Academy Development Plan and post-OFSTED action plan, including staffing structures.

13. Considering budget implications of pay awards, and making recommendations to the Local Governing Body.

14. To consider and approve the annual review of teachers’ performance related pay ensuring, not only that due process has been followed in a fair and equitable manner, but also that total cost of the awards recommended can be afforded within the Academy’s budget.

15. In conjunction with the CEO, to consider and review the Headteacher’s salary.

16. Considering proposals for all capital building projects in the light of available funding and presenting draft project plans and options to the Local Governing Body for decision.

17. Reviewing Trust policies on issues relating to finance and staffing, including Health and

Safety, and in consultation with the Headteacher, make recommendations to the Local Governing Body for the implementation of policies.

18. Drafting any local policies arising from Trust policies – e.g. a detailed lettings policy in support of the overall lettings policy – for approval by the Local Governing Body.


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Appendix 3: Finance, Audit & Human Resources Committee (FAHRCT) – Terms of Reference (Trust) Introduction 1. Membership

Chair of the BoD Chief Financial Officer 4 Directors who are not employees of the Trust Director of HR Accounting Officer (CEO) Chair of F&PC Committee of each Academy

2. Quorum The quorum for a meeting shall be three Directors who are not employees of the Trust. The Chair

will always have the casting vote where applicable. 3. Meetings

Meetings will be held at least once a term with additional meetings held as required. The meeting held at the end of the summer term will ratify the budget for the period of September to August, prior to approval by the Board of Directors. The meeting held in November/December will approve the audited year end accounts, financial statements and accounting policies. These will be ratified by the Board prior to submission to the Secretary of State (by 31 December) and filed with Companies House and the Charity Commission within stated timescales. Audit meetings shall be held once a term but additional meetings will be held if required. The external auditor may request a meeting, if considered necessary. Other Audit meetings will be held as required by the Trust, or Chair of the committee. The External Auditor will attend when required.

4. Financial matters

a. To regularly monitor and review the 5% charge delegated from each school budget for central

services and advise the BoD accordingly.

b. To lead the development of strategic plans and provide leadership on financial issues.

c. To consider the KET’s annual indicative funding (as notified by DfE) and delegation of funding to individual Academies, and assess the implications for the KET, in consultation with the Finance Director and Headteachers, in advance of the academic/financial year. Any matters of significance should be drawn to the attention of the Board.

d. To agree and make recommendations to the Board on the broad budget headings and areas of expenditure to be adopted each year.

e. To receive the KET’s proposed annual budget from the Chief Financial Officer, consider and recommend the acceptance/non acceptance to the Board of Directors at the start of each academic/financial year. This should include the level and use of contingency funds or balances.

f. To receive, consider and approve (or reject) quarterly/monthly/termly budget reports from

BMs including virement requests, major variance reports, staffing costs, allocation of


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curriculum development costs and forecast operational costs. Submit quarterly overview report to the Board of Directors, highlighting any specific concerns as required.

g. To consider and approve recommendations from CEO for Headteachers and Executive Team

salaries, ensuring, not only that due process has been followed in a fair and equitable manner, but also that total cost of the awards recommended can be afforded within the Trust’s budget.

h. To receive copies of MAT Development Plan(s) (and any subsequent updates) and review the

financial implication of these. The plans should include detailed objectives, costs and success criteria for measuring success for the coming academic year and outline objectives for the following two years.

i. To annually review and approve the Financial Procedures Policy, ensuring that all the

requirements of the Academies’ Financial Handbook are met. Report amendments to the Board, as required.

j. To monitor and review financial operation procedures to ensure effective implementation and operation, including progress against the ‘Financial Imperatives’ and, where appropriate, to make recommendations for improvement.

k. To consider financial benchmarking and consider how financial performance could be improved.

l. To provide relevant financial information to other KET Committees as required by them to make decisions on issues within their delegation.

m. To consider and approve (or reject) declaration of Earmarked Funds and Reserve Spend requests.

n. To consider and give outline approval (or reject) KET purchases greater than £60,000.

o. To prepare the financial statement to form part of the Annual report of the Board of Directors, for filing in accordance with the Companies Act and the Charity Commission requirements.

p. To ensure that the Board has considered, signed and published a Statement of Internal Control and Best Value Statement.

q. To approve annual accounts of the School Funds.

r. To ensure adequate insurance cover is in place to support all KET responsibilities such as employers’ liability, fidelity, building, Directors’ indemnity, public liability insurance etc.

s. To review the KET risk register document on a regular basis.

t. To authorise (or refuse) requests in writing to ESFA for disposal of an asset(s) in excess of

£20,000 in line with Financial Procedures.

u. To approve write-off of any debts (or liaise with ESFA if value of debt is greater than as stated in their guidance).


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v. To receive an annual review/summary of all Service Contracting arrangements with a value of

over £20,000.

w. To agree guidance for Governors expense allowances.

x. Review annually the Trust’s policies on fraud and whistle-blowing.

y. Consider (and approve) the Trust's charging and remissions policies.

z. To review these functions annually and propose any amendments to the Board.

5. Audit matters

The Audit Committee is authorised by the Board to investigate any activity within its terms of reference, and to seek any information it requires from staff. Staff are requested to co-operate with the Committee in the conduct of its enquiries. Requests for work and reports received from internal audit will be channelled through the Accounting Officer, to whom the Chief Financial Officer reports. The Audit Committee is authorised to obtain independent professional advice if it considers this necessary. The specific duties of the Committee shall be to: a. Review the Academies’ internal and external financial statements and reports to ensure that

they reflect best practice.

b. Review the risks to internal financial control of the KET and establish a programme of work to address these risks, inform the statement of internal control and, so far as is possible, provide assurance to external auditors.

c. Review the effectiveness of the Academy Trust's internal control system to ensure that the aims, objectives and key performance targets of the organisation are achieved.

d. Ensure that the Academy Trust internal control systems meet, or exceeds, the standards specified in the Government Academies Financial Handbook and complies in all other respects with these guidelines.

e. Ensure the Academy Trust is independently audited by an approved registered auditor.

f. Recommend to the Board the appointment (or reappointment) of the KET auditors, as required. Ensure a copy of the auditor's letter of engagement is submitted to DfE with the annual accounts and Management Letter.

g. Respond to the Auditor's Management Letter and inform the Board of any significant issues.

h. Consider internal reports, including the Auditor's report and recommend to the FAHRCT / BoD action as appropriate to respond to findings.

i. Review the operation of the Trust's code of practice for Board members and code of conduct for staff.


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j. Review annually the Trust’s delegation of financial responsibilities.

k. Consider any other matters where requested to do so by the BoD.

l. Report at least once a year to the Board on the discharge of the above duties as required.

m. To review these functions annually and propose any amendments to the BoD.

6. HR matters

The specific duties of the Committee initially shall be to: a. Work to harmonise contracts across different academies to ensure equality of roles and pay.

b. Work to centralise key policies regarding staffing and human resources issues.

c. To review and recommend HR policy and strategy and to monitor the impact on organisational

performance.

d. As and when required, offer HR advice to academies within the Trust.

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