Item 11 - Amendment to Terms of Reference
North Lanarkshire Council · 22 March 2023
Back to Health and Social Care Integration Joint Board — 22 March 2023 and its agenda
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1 REPORT Item No: 11 SUBJECT: Terms of Reference Performance, Finance & Audit Committee (PFA) TO: Integration Joint Board Lead Officer for Report: Ross McGuffie, Chief Officer Author(s) of Report Amanda Kilburn, Chief Finance Officer DATE: 22nd March 2023 1. PURPOSE OF REPORT 1.1 This paper is coming to the Integration Joint Board (IJB). For approval For endorsement For noting 1.2 To review the Terms of Reference for the PFA and approve any proposed amendments. 2. ROUTE TO THE INTEGRATION JOINT BOARD 2.1 This paper has been: Prepared By; Chief Finance Officer Reviewed By; Chief Officer 3. RECOMMENDATIONS 3.1 The IJB is asked to approve the revised Terms of Reference for the PFA noting the changes outlined in section 6.3. 4. VARIATIONS TO DIRECTIONS 5. BACKGROUND/SUMMARY OF KEY ISSUES 5.1 The Terms of Reference for the Integration Joint Board are formally set out in the Public Bodies (Joint Working) Integration Joint Monitoring Committees (Scotland Act) Orders 2014 with particular reference to the Scottish Statutory Instruments 2014 No.285. http://www.legislation.gov.uk/ssi/2014/285/pdfs/ssi_20140285_en.pdf 5.2 The Terms of Reference for the PFA were formally approved at the IJB meeting on 23 November 2017 and formally reviewed in March 2018 and December 2020. 5.3 The IJB is asked to approve a further extension to the PFA Terms of Reference which is detailed at section 6. 6. PROPOSED AMENDMENT 6.1 The IJB Terms of Reference, which was approved on 23 November 2017, currently reserves the following specific power for the IJB: Approve the annual accounts. Yes No N/A
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2 6.2 The IJB is asked to delegate to the PFA the power to approve the IJB Annual Accounts, effective from the financial year 2022/2023 and each year thereafter. This amendment would give flexibility allowing the accounts to be approved within the scheduled timetables of either the IJB or the PFA and would reduce the need for a further meeting to be convened. 6.3 The financial information reported in the IJB Annual Accounts has been reported to both the IJB and PFA throughout the financial year. 6.4 Subject to the approval of the proposed amendment by the IJB, the above responsibilities in respect of the consideration of the External Auditors Annual Audit report and the approval of the IJB Annual Accounts would be delegated to the PFA. The revised Terms of Reference for the PFA are attached at Appendix 1. 7. IMPLICATIONS 7.1 NATIONAL OUTCOMES N/A 7.2 ASSOCIATED MEASURE(S) N/A 7.3 FINANCIAL This paper has been reviewed by Finance: Yes No N/A 7.4 RISK ASSESSMENT/RISK MANAGEMENT N/A 7.5 STAKEHOLDER ENGAGEMENT N/A 7.6 INEQUALITIES & FAIRER SCOTLAND DUTY Equality and Diversity Impact Assessment Completed & Fairer Scotland Impact Assessment Form Completed: Yes No N/A 7.7 CARBON MANAGEMENT IMPLICATIONS Yes No N/A 8. APPENDIX Terms of Reference Performance, Finance & Audit Committee (PFA) Appendix 1 Chief Finance Officer Members seeking further information about any aspect of this report, please contact Amanda Kilburn on telephone number 07816 126362.
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3 APPENDIX 1 TERMS OF REFERENCE COMMITTEE: PERFORMANCE, FINANCE AND AUDIT COMMITTEE DATE: March 2023 Version 4 1. Purpose The Performance, Finance and Audit Committee has been established by the Integration Joint Board (IJB) to: Oversee a range of matters relating to finance, internal audit, and external audit. Ensure financial and other controls are in place to operate effectively, including processes for audit and risk management. Oversee the development of the annual integrated budget and financial statement. Oversee a range of matters relating to service provision and performance reporting. Ensure the delivery of the highest possible quality of service to users by monitoring performance and considering audit inspection reports. Oversee the development of the annual performance report. 2. Membership and Quoracy Meetings will be held four times a year. Additional meetings may be held as necessary. The IJB shall appoint members to the Committee and nominate a Chair and Vice Chair. The Committee will comprise of 13 members as follows: 4 voting members appointed by the NHS Lanarkshire Health Board (NHSL). 4 voting members appointed by North Lanarkshire Council (NLC). 5 non-voting members representing stakeholders. The quorum for meetings of the Committee is four voting members, comprising two NLC members and two NHSL members. The Chief Accountable Officer and the Chief Finance Officer will attend all meetings. Attendance by other staff and officers will be agreed by the Chair in advance. Any updates or proposed variation to membership will be approved by the IJB in line with the IJB Terms of Reference and Statutory Instruments. 3. Reporting Arrangements The Committee will report to the IJB. The minutes of Committee meetings will be submitted to the next appropriate meeting of the Committee for approval as a correct record and will then be submitted to the next IJB meeting for noting.
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4 4. Key Responsibilities In relation to finance matters, the PF&A Committee is authorised to: Provide financial governance and scrutiny of the in-scope budget for the IJB. Review the annual budgets with recommendations to the IJB. Review the overall internal control arrangements of the IJB and ensure that appropriate levels of accountability, scrutiny and discussion are undertaken in the key areas of business. Ensure that the senior management team maintain effective controls within their services which comply with financial procedures and regulations. Ensure effective arrangements are in place to register all finance and audit risks as soon as possible and that the appropriate lead officer is notified to ensure compliance and mitigating actions are detailed. Review risk management arrangements and receive regular risk management updates and reports, as appropriate. Report and review the IJB’s financial strategy in support of the strategic commissioning plan and recommend approval to the IJB. Receive reports on any new and emerging national policy developments related to health and social care and consider any impact on the financial position. Consider the unaudited Annual Accounts and oversee the preparation of the Governance Statement before submission to and approval by the IJB. Approve the Annual Accounts. In relation to audit matters, the Committee is authorised to: On an annual basis, approve the risk-based Internal Audit plan, including Internal Audit’s resource requirements. Consider reports from Internal Audit on their activity and performance during the year including the Internal Audit annual opinion on the overall adequacy and effectiveness of the IJB’s framework of governance, risk management and control. Consider the external auditor’s annual plan and all relevant external audit reports issued to those charged with governance. Consider, where appropriate, responses to internal and external audit and scrutiny reports and to monitor any subsequent recommendations and requirements emanating from these. Consider and review strategic financial risks pertaining to the IJB’s responsibilities. In relation to performance matters, the Committee will: Review service performance reporting processes. Review quarterly performance and recommend remedial action to address concerns.
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5 Consider response/actions in relation to any external scrutiny reports that relate to service provision. Oversee the implementation of any recommendations made within external scrutiny reports. Ensure a rigorous and systematic approach to the monitoring of delivery of national and local priorities. Ensure effective arrangements are in place to identify and register all performance and finance risks as soon as possible and review high rated risks at each meeting to ensure effective mitigating actions are being followed and risks regularly updated. Oversee the development of the annual performance report. Ratified by Integration Joint Board: Version 1 – December 2017 Version 2 – March 2018 Version 3 – December 2020 Version 4 – March 2023 Review Date: The Terms of Reference for the Performance, Finance & Audit Committee will be reviewed every 3 years and approved at the Integration Joint Board. Planned Review Date – March 2026