Finance Management Committee
Considers the College's financial
policy and makes recommendations/reports to Board of Trustees. Chaired by the Honorary
- Dr Jan Falkowski, Honorary Treasurer
- Prof Rob Poole, Divisions’
- Dr Lenny Cornwall, Faculties’
- Prof Keith Lloyd, Elected
- Malcolm Basing, Lay Trustee
- Chief Executive
- Director of Finance and
A Committee Secretary will attend to
minute the meetings and carry out the usual related tasks, but will
not be a member of the FMC. Heads of Department or other
appropriate staff should be invited to attend to present particular
budgets or papers.
The Role and Remit of the Finance Management Committee
The Finance Management Committee (FMC) was established as an ad
hoc group tasked with managing a situation of financial difficulty
for the College. At that time the membership included a
representative of the College’s auditors, the Honorary Treasurer,
the Chief Executive and the Head of Finance. The constitution was
not formalised nor the remit clearly spelt out. That situation no
longer pertains and over time the committee has developed its
current role of scrutinising financial issues before they proceed
to the Board of Trustees.
The College’s new committee structure became operational in July
2006, with Council and the Executive & Finance Committee being
replaced by the new Council. The FMC was recognised as a formal
sub-committee of Council then. In 2014 the College introduced a new
Board of Trustees, which is our governance body.
Council and E&F were never appropriate vehicles for detailed
scrutiny of financial issues, as neither time nor the large
membership enabled this. The situation will be the same for
Council. A way needs to be found to ensure that trustees are
involved at this detailed level and the FMC can serve this purpose
with appropriate membership (see below). It is proposed that the
primary purposes of the FMC should be defined as:
To monitor the current and longer term financial situation of
the College by regular review of relevant management
To scrutinise all annual budgets.
To scrutinise Research grant budgets when and if funding has
been approved rather than at the point of application.
To scrutinise in appropriate detail the financial implications
of any new project, initiative, service or contract.
To review and make recommendations about travel and subsistence
rates, staff cost of living increases, payments to users and carers
and membership subscription & registration fees.
To develop further, monitor and analyse fund-raising activities
in conjunction with relevant groups.
To monitor income from all sources and to promote income
To monitor risk management aspects of new and ongoing activities
with particular regard to potential financial risks.
In practice, and on an annual cycle, this should involve:
Budget scrutiny (annual)
Scrutinising Annual Business Plans from each Faculty, Section,
Division and Special Interest Group, including proposals for prizes
Scrutinising the delegate fee recommendations from Programmes
& Meetings committee for the Annual Meeting.
Scrutinising annual activity plans from the Examinations
Department, the Post Graduate Educational Services Department, the
Facilities & Office Services Department, the External Affairs
Department and the CRTU together with a 3 year IT budget and annual
staff training budget. The Publications Management Board, which
includes in its membership the Honorary Treasurer, Chief Executive
and Head of Financial Services, shall retain responsibility for its
own financial affairs with the minutes of the Board being copied
additionally if required.
Budget scrutiny (one off projects)
In principle any new initiative or project should be considered
by the FMC with regard to financial & risk management
implications. This would ensure that Council is presented with all
the information needed to make policy decisions.
Any substantial new proposal to be funded centrally by the
College should be presented first to FMC, and no funding for new
initiatives should be committed without the scrutiny of this
committee. FMC may consider it necessary to forward proposals to
Council which, as the constituent body of College Trustees, has the
In this context “substantial” will usually mean involving
expenditure in excess of £5,000 in any one financial year. It might
also refer to any initiative which is complex or unusual, or which
has the potential for impact upon the reputation of the
If urgent action is required on substantial proposals action may
be taken by the Chief Executive but always in consultation with the
The Chief Executive must approve the appointment of any new
member of staff, consulting with the Honorary Treasurer if
The following management reports should continue to be
considered at each meeting:
- Monthly management accounts
- Cash Flow projections
- Capital Expenditure summary
- Conference budgets and outturns
- Transactions on the College investment portfolio
- Summary of FSDSIG balances
- Subscription arrears outstanding
The FMC will also review the College’s annual accounts and
liaise generally with the College auditors. It is likely that other
useful monitoring exercises may be identified and other reports
Financial & Administrative Recommendations
The FMC should:
- Review travel & subsistence rates annually.
- Recommend annual subscription & registration fee
- Recommend any annual cost of living increase for staff.
- Review lists of members to be presented to Council for removal
from the Register for non-payment of fees.
- Make recommendations to Council for signatories to cheques/BACS
payments and other College documents.
- Review investment strategies and make recommendations to the
Other management information
It is likely that other management information from Departments
would be useful for review and monitoring. Examples might include
numbers and 5 year trends in examination candidates, the monthly
membership statistics already circulated to Officers and donations
to the College. Heads of Departments (HoDs) could agree specific
Frequency & timing of meetings
In order to function effectively the FMC will need to take
account of the Board of Trustees meeting schedule. It is suggested
that the FMC meetings follow the Board of Trustees meeting schedule
and precede those dates by 2-3 weeks. The FMC meetings should be
included in the annual diary review and set at that time.
- Financial reports, as above
- New projects
Cyclical items (timings are notional):
Cost of living increase
Review of annual accounts
Following year membership subscription fees – initial review
Membership fees – formal recommendation
Examinations budget for following year
Departmental budgets for following year
FSDSIG business plans for following year
Risk management (separate meeting inc Heads of Department)
Annual meeting budget
Number of meetings per annum: 5
Updated 1 July 2016