Finance and General Purposes Committee Terms of Reference

Finance and General Purposes Committee - Terms of Reference

Finance & General Purposes Committee Terms of Reference

  1. Purpose:
    • To oversee the day-to-day corporate governance and financial administration of the Parish Council.
    • To review and approve policies and procedures.
  2. Membership:
    • The Committee shall consist of all councillors on the Parish Council.
    • The quorum for meetings shall be two members unless the total membership of the parish council is more than five members when the quorum is three.
  3. Meetings:
    • The Committee will meet as necessary or in months when there is no Full Council meeting.
    • The Chair or the Clerk of the parish council may convene a committee meeting with a minimum of three clear days’ notice but in the event of urgent business this may be reduced. 
    • Meetings will be chaired by a member appointed by the Parish Council and in the event of that person not being present the committee will elect a chair for that meeting.
  4. Responsibilities:

The committee has delegated power to decide all matters delegated to it;

  • Governance: Ensure compliance with GDPR, transparency, and Freedom of Information regulations.
  • Financial Oversight: Monitor and review the Council’s financial controls, risk register, and risk policy.
  • Forward Planning: Consider future financial needs and provide earmarked reserves for equipment, buildings, and other expenditures.
  • Contracts: Draft tender documentation and oversee contracts for services such as cleaning, security, and grounds maintenance.
  • Health & Safety: Ensure compliance with Health & Safety regulations, including risk assessments and accident investigations.
  • Budgeting: Work with the Responsible Financial Officer (RFO) to prepare the annual budget and recommend the precept to the Full Council.
  • Partnerships: Collaborate with other local authorities and organizations for beneficial and cost-effective partnerships.
  • Reporting: Provide regular reports to the Full Council on the Committee’s activities.
  • General Functions: Perform all Parish Council functions except those that must be decided by the Full Parish Council (listed in Appendix 1).
  1. Review:
    • The Terms of Reference will be reviewed annually at the Annual Meeting of the Parish Council or as required.

Appendix 1:  Items that cannot be delegated to a committee by the Parish Council

  1. Setting the Precept
    • Statutory Reference: Local Government Finance Act 1992, Section 41
    • Parish councils must determine and issue a precept to the billing authority.
  2. Approval of the Annual Budget
    • Statutory Reference: Local Government Act 1972, Section 151 and Accounts and Audit Regulations 2015
    • Councils must ensure proper financial administration and approve their budget.
  3. Approval of the Annual Governance and Accountability Return (AGAR)
    • Statutory Reference: Accounts and Audit Regulations 2015 (SI 2015/234), Part 2
    • The full council must approve and sign the AGAR before submission to external auditors.
  4. Borrowing Money
    • Statutory Reference: Local Government Act 2003, Schedule 1, Paragraph 2
    • Parish councils require permission from the Secretary of State (via the Ministry of Housing, Communities and Local Government) before borrowing.
  5. Co-opting Councillors
    • Statutory Reference: Representation of the People Act 1985, Section 21 and Local Government Act 1972, Section 89
    • If a casual vacancy arises and no by-election is called, the full council must co-opt a new councillor.
  6. Making, Amending, or Revoking Standing Orders, Financial Regulations, or Committee Terms of Reference
    • Statutory Reference: Local Government Act 1972, Section 101(1)(a)
    • A council may delegate functions but must approve and amend its own standing orders.
  7. Appointment of the Clerk and Responsible Financial Officer (RFO)
    • Statutory Reference: Local Government Act 1972, Section 112 and Section 151
    • The council must appoint necessary staff, including the Clerk and RFO, and set their terms.
  8. Adopting or Changing Key Policies
    • Statutory Reference: Localism Act 2011, Section 27 (Code of Conduct) and Public Sector Equality Duty (Equality Act 2010, Section 149)
    • The council must adopt policies on conduct, transparency, and compliance with legal duties.
  9. Decisions on Assets and Land
    • Statutory Reference: Local Government Act 1972, Sections 124, 126, and 127
    • The acquisition, disposal, or appropriation of land must be approved by the full council.
  10. Election of the Chairman and Vice-Chairman of the Council
  • Statutory Reference: Local Government Act 1972, Sections 15(2) and 34(2)
  • The council must elect a Chairman annually at its Annual Meeting in May.

These are the main statutory provisions that ensure certain decisions must be taken by the full council.

These Terms of Reference were approved at a Full Council Meeting on 5th February 2025.