Finance and Operations Committee Independent Member

The Finance and Operations Committee will normally meet four times a year. The chair of the committee may convene additional meetings as they deem necessary, or as requested by a member of the committee.

The meetings can be conducted remotely so long as all members are able to contribute fully to the meeting.

This is a voluntary position, but reasonable expenses are payable in accordance with the NHS Confederation’s expenses policy.

To act as an independent member of the Finance and Operations Committee which is responsible for scrutinising the charity’s financial position, including the performance of the charity’s investments, and to oversee operations (excluding HR).

As a member of the Finance and Operations Committee, the independent member will work with the Committee Chair and other committee members to ensure that the committee complies with the committee’s responsibilities.

• Commitment to NHS Confederation’s aims, objectives and values. Able to work in a way that demonstrates this commitment and to communicate this enthusiasm to others.
• An understanding of the context in which the NHS Confederation works (and a willingness to learn more). Able to demonstrate an understanding of the legal duties, liabilities and responsibilities of charity boards and is clear on the difference between governance and management functions.
• Ability to analyse complex information, to question, probe and seek clarification and come to an independent and unbiased view.
• Ability to monitor and evaluate financial performance including investments. Providing sound advice to the Board of Trustees on financial and operational management.
• Experience of working at a senior finance level including other operational areas such as IT, property, infrastructure projects and insurance.
• A good communicator with excellent leadership and interpersonal skills, objective and independent and able to challenge supportively.
• Ability to devote time to the role.

Time Commitment

The Committee meets during office hours four times a year. Meetings last around two hours, plus preparation time. The meetings are held remotely or in London. There will be occasional training sessions.

Remuneration

This is a voluntary position, but reasonable expenses are payable in accordance with the NHS Confederation’s expenses policy.

Length of Term

The initial term of appointment is 3 years, which may be renewed for a further term of 3 years at the discretion of the board.

Oversight of the strategy and management of the Confederation’s Investment portfolio:

• To draft, review, revise and recommend to the Trustees for their approval the charity’s written investment policy including its treasury and ethical/responsible investment policy;
• Reviewing and recommending the long-term investment strategy to the board of trustees for approval, ensuring it meets the investment objectives set out in the Investment Policy, and is in line with the agree level of risk tolerance;
• Advising the board of trustees on any proposal to appoint or terminate the investment manager or equivalent (‘the Investment manager’);
• Agreeing the terms of the appointment of the Investment manager, including level of portfolio management discretion, custody and dealing arrangements, and fees;
• To set and review with the investment manager appropriate investment mandates ensuring consistency with the written investment policy and long-term investment strategy;
• Monitoring the long-term performance of the investment portfolio against the investment objectives, ensuring compliance with the Investment Policy;
• Establishing appropriate performance benchmarks for the investment managers and monitoring and evaluating performance over relevant time horizons; and
• Periodically reviewing the fees paid and appraising value for money.

Note that express approval will be required from the Board of Trustees for the following:

• Approval of and changes to the long-term Investment Strategy;
• Approval of and changes to the Investment Policy, including the overall investment objective and responsible investment policy; and
• The termination or appointment of the Investment manager.

Review of the financial results and annual budget, including the Confederation’s financial position and Reserve requirement:  

• Reviewing the most recent monthly Finance Report with the Director of Finance & Corporate Services or equivalent (‘the Finance Director’) and, where necessary, seeking explanations on the Confederation’s performance against budget (including significant variances), the year-end Forecast and any other relevant matters;
• Overseeing the calculation and timely updating of the Confederation’s Reserve requirement and, together with the periodic review of the Confederation’s rolling Three Year Plan (and other financial projections), highlighting to the Board of Trustees any potential problems in the Confederation’s future ability to meet this requirement;   
• Reviewing with the Finance Director the current cash position and projected future cashflow requirements in order to ensure that the Confederation’s future spending commitments can be met and that the optimum return is obtained on any cash held outside the Investment portfolio;
• Together with the Finance Director and Investment manager, identifying the amount and most appropriate timing of any future cash withdrawals from the investment portfolio;
• Reviewing and, where necessary, challenging the proposed annual budget presented by the Finance Director; and
• Recommending the final version of the proposed annual budget for adoption by the Board of Trustees at its meeting prior to the start of the new financial year.

Review of other operational areas: 

• Each meeting of the committee will receive a report from the Finance Director covering the other, non-financial areas of their responsibility;
• This report would detail performance, recent developments (including any concerns) and strategy for each of these areas, focussing particularly on IT, premises and office administration, and data protection. Other areas would be included as required or as requested by the committee – it is expected that HR matters would continue to be overseen by the Remuneration Committee (‘Remco’);
• The committee will review the report with the Finance Director and, where necessary, action steps will be agreed.

Oversight of major infrastructure projects: 

• After any necessary approvals have been obtained from the Board of Trustees (who will be responsible for determining which projects fall into this category for F&OC oversight), overseeing the performance of major infrastructure projects against both the agreed financial budget and the planned delivery date;
• Seeking explanations for any revised expectations, in terms of the project’s cost or delivery timing or both, from the sponsoring member of the Group Executive. 

Overview of insurance cover  

• Prior to the Confederation’s annual insurance renewal, carrying out a review of its insurance arrangements with the Finance Director and agreeing on the scope and level of cover, recommending changes as appropriate;
• Overseeing the procurement of cover including the re-tendering/benchmarking at least every three years.