WESTON AREA HEALTH NHS TRUST

STANDING ORDERS, RESERVATION and DELEGATION of POWERS, SCHEME of DELEGATION and STANDING

FINANCIAL INSTRUCTIONS

January 2014

/ CONTENTS / Page /
SECTION A
INTERPRETATION AND DEFINITIONS FOR STANDING ORDERS AND STANDING FINANCIAL INSTRUCTIONS / 8
SECTION B – STANDING ORDERS
1.
1.1
1.2
1.3
1.4 / INTRODUCTION
Statutory Framework
NHS Framework
Delegation of Powers
Integrated Governance / 10
10
10
10
11
2. / THE TRUST BOARD: COMPOSITION OF MEMBERSHIP, TENURE AND ROLE OF MEMBERS / 11
2.1
2.2
2.3 / Composition of the Trust Board
Appointment of the Chairman and Members
Terms of Office of the Chairman and Members / 11
11
12
2.4
2.5
2.6 / Appointment and Powers of Vice-Chairman
Joint Members
Role of Members / 12
12
12
2.7
2.8
2.9 / Corporate Role of the Board
Schedule of Matters Reserved to the Board and Scheme of Delegation
Lead Roles for Board Members / 13
14
14
3.
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8 /

MEETINGS OF THE TRUST

Calling Meetings
Notice of Meetings and the business to be transacted
Agenda and Supporting Papers
Petitions
Notice of Motion
Emergency Motions
Motions: Procedure at and during a meeting
(i)  who may propose
(ii)  contents of motions
(iii)  amendments to motions
(iv)  rights of reply to motions
(v)  withdrawing a motion
(vi)  motions once under debate
Motion to Rescind a Resolution / 14
14
14
15
15
15
15
15
15
15
15
16
16
16
16
3.9
3.10
3.11
3.12
3.13 / Chairman of meeting
Chairman’s ruling
Quorum
Voting
Suspension of Standing Orders / 17
17
17
17
18
3.14
3.15
3.16
3.17
3.18 / Variation and amendment of Standing Orders
Record of Attendance
Minutes
Admission of public and the press
Observers at Trust meetings / 18
18
19
19
20
4.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8 / APPOINTMENT OF COMMITTEES AND SUB-COMMITTEES
Appointment of Committees
Joint Committees
Applicability of Standing Orders and Standing Financial Instructions to Committees
Terms of Reference
Delegation of powers by Committees to Sub-Committees
Approval of Appointments to Committees
Appointments for Statutory functions

Committees to be established by the Trust Board

/ 20
20
20
20
20
21
21
21
21
4.8.1
4.8.2
4.8.3
4.8.4
4.8.5 / Audit and Assurance Committee
Quality and Governance Committee
Remuneration and Terms of Service Committee
Trust and Charitable Funds Board
Other Committees / 21
21
21
22
22
5. / ARRANGEMENTS FOR THE EXERCISE OF FUNCTIONS BY DELEGATION / 22
5.1
5.2
5.3 / Delegation of functions to Committees, Officers or other bodies
Emergency powers and urgent decisions
Delegation of Committees / 22
23
23
5.4
5.5
5.6 / Delegation to Officers
Schedule of matters reserved to the Trust and Scheme of Delegation of Powers
Duty to report non-compliance with Standing Orders and Standing Financial Instructions / 23
23
24
6. / OVERLAP WITH OTHER TRUST POLICY STATEMENTS/PROCEDURES, REGULATIONS AND THE STANDING FINANCIAL INSTRUCTIONS / 24
6.1
6.2
6.3
6.4 / Policy statements: general principles
Specific Policy statements
Standing Financial Instructions
Specific guidance / 24
24
24
24
7. / DUTIES AND OBLIGATIONS OF BOARD MEMBERS, MEMBERS, DIRECTORS AND SENIOR MANAGERS UNDER THE STANDING ORDERS AND STANDING FINANCIAL INSTRUCTIONS / 25
7.1
7.1.1
7.1.2
7.1.3
7.1.4
7.1.5
7.1.6
7.2
7.3
7.3.1
7.3.2
7.3.3 / Declaration of Interests
Requirements for Declaring Interests and applicability to Board
Interests which are relevant and material
Advice on Interests
Record of Interests in Trust Board minutes
Publication of declared interests in Annual Report
Conflicts of interest which arise during the course of a meeting
Register of Interests
Exclusion of Chairman and Members in Proceedings on Account of Pecuniary Interest
Definition of terms used in interpreting ‘Pecuniary’ interest
Exclusion in proceedings of the Trust Board
Waiver of Standing Orders made by the Secretary of State for Health / 25
25
25
25
25
26
26
26
26
26
27
27
7.4
7.4.1
7.4.2
7.4.3
7.4.4 / Standards of Business Conduct Policy
Trust Policy and National Guidance
Interest of Officers in Contracts
Canvassing of, and Recommendations by, Members in relation to appointments
Relatives of Members or Officers / 29
29
29
29
30
8. / CUSTODY OF SEAL, SEALING OF DOCUMENTS AND SIGNATURE OF DOCUMENTS / 30
8.1
8.2
8.3
8.4 / Custody of Seal
Sealing of Documents
Register of Sealing
Signature of documents / 30
30
30
30
9. /

MISCELLANEOUS

/ 31
9.1 / Joint Finance Arrangements / 31
SECTION C – STANDING FINANCIAL INSTRUCTIONS / 32
10.
10.1
10.2
10.2.1
10.2.2
10.2.3
10.2.4
10.2.5
10.2.6
10.2.7 / INTRODUCTION
General
Responsibilities and delegation
The Trust Board
Reservation of Matters to the Board
The Chief Executive
The Director of Finance
Board Members and Employees
Contractors and their employees
Form of Financial records / 32
32
33
33
33
33
33
34
34
34
11. / AUDIT / 34
11.1 / Audit and Assurance Committee / 34
11.2 / Director of Finance / 35
11.3
11.4
11.5
11.6 / Role of Internal Audit
External Audit
Fraud and Corruption
Security Management / 36
37
37
37
12. / ALLOCATIONS, PLANNING, BUDGETS, AND MONITORING
BUDGETARY CONTROL / 38
12.1
12.2
12.3
12.4
12.5 / Preparation and Approval of Plans and Budgets
Budgetary Delegation
Budgetary Control and Reporting
Capital Expenditure
Monitoring Returns / 38
38
39
40
40
13. / ANNUAL ACCOUNTS AND REPORTS / 40
14. / BANK ACCOUNTS / 40
14.1
14.2
14.3
14.4 / General
Bank and GBS Accounts
Banking Procedures
Tendering Review / 40
40
41
41
15. / INCOME, FEES AND CHARGES AND SECURITY OF CASH, CHEQUES AND OTHER NEGOTIABLE INSTRUMENTS / 41
15.1
15.2
15.3
15.4 / Income Systems
Fees and Charges
Debt Recovery
Security of Cash, Cheques and other Negotiable Instruments / 41
41
42
42
16. / TENDERING AND CONTRACTING PROCEDURE / 42
16.1
16.2
16.3
16.4
16.5
16.5.1
16.5.2
16.5.3
16.5.4
16.5.5
16.5.6
16.5.7 / Duty to comply with Standing Orders and Standing Financial Instructions
EU Directives Governing Public Procurement
Reverse eAuctions
Capital Investment Manual and other Department of Health guidance
Formal Competitive Tendering
General Applicability
Health Care Services
Exceptions and instances where formal tendering need not be applied
Fair and Adequate Competition
List of Approved Firms
Building and Engineering Construction Works
Items which subsequently breach thresholds after original approval / 42
42
43
43
43
43
43
43
44
45
45
45
16.6
16.6.1
16.6.2
16.6.3
16.6.4
16.6.5
16.6.6
16.6.7
16.6.8
16.6.9 / Contracting/Tendering Procedure
Invitation to tender
Receipt and safe custody of tenders
Opening tenders and Register of tenders
Admissibility
Late tenders
Acceptance of formal tenders (see overlap with SFI No. 16.7)
Tender reports to the Trust Board
List of approved firms (see SFI No. 16.5.5)
Exceptions to using approved contractors / 45
45
46
46
47
47
47
48
48
49
16.7
16.7.1
16.7.2
16.7.3
16.7.4 / Quotations: Competitive and Non-Competitive
General Position on quotations
Competitive Quotations
Non Competitive Quotations
Quotations to be within Financial Limits / 49
49
49
49
50
16.8 / Authorisation of Tenders and Competitive quotations / 50
16.9 / Instances where formal competitive tendering or competitive quotation is not required / 50
16.10
16.11
16.12
16.13 / Private finance for capital procurement (see overlap with SFI No. 22)
Compliance requirements for all contracts
Personnel and Agency or temporary staff contracts
Health Care Service Agreements (see overlap with SFI No. 17) / 50
51
51
51
16.14
16.15
16.16 / Disposals (see overlap with SFI No. 24)
In-house Services
Applicability of Tendering and Contracting SFIs to funds held in trust (see overlap with SFI No. 27) / 52
52
53
17. / NHS SERVICE AGREEMENTS FOR PROVISION OF SERVICES / 54
17.1
17.2
17.3
17.4 / Service Level Agreements (SLAs)
Involving Partners and Jointly Managing Risk
Reports to Board on SLAs
The NHS White Paper, Equity and excellence (see overlap with 16.13) / 54
54
54
54
18. / TERMS OF SERVICE, ALLOWANCES AND PAYMENT OF MEMBERS OF THE TRUST BOARD AND EMPLOYEES / 55
18.1
18.2
18.3
18.4
18.5 / Remuneration and Terms of Service
Funded Establishment
Staff Appointments
Processing Payroll
Contracts of Employment / 55
55
56
56
57
19. / NON-PAY EXPENDITURE (see overlap with SFI No. 16) / 57
19.1
19.2
19.3 / Delegation of Authority
Choice, Requisitioning, Ordering, Receipt and Payment for Goods and Services
Joint Finance Arrangements With Local Authorities and Voluntary Bodies / 57
58
60
20. / EXTERNAL BORROWING / 61
21. / FINANCIAL FRAMEWORK / 61
22. / CAPITAL INVESTMENT, PRIVATE FINANCING, FIXED ASSET REGISTERS AND SECURITY OF ASSETS (see overlap with 16.10) / 62
22.1
22.2
22.3
22.4 / Capital Investment
Private Finance
Asset Registers
Security of Assets / 62
63
63
64
23. / STORES AND RECEIPT OF GOODS / 64
23.1
23.2
23.3 / General Position
Control of Stores, Stockholding, Condemnations and Disposal
Goods Supplied by NHS Logistics / 64
64
65
24. / DISPOSALS AND CONDEMNATIONS, LOSSES AND SPECIAL PAYMENT (See overlap with SFI 16) / 65
24.1
24.2 / Disposals and Condemnations
Losses and Special Payments / 65
66
25 / INFORMATION TECHNOLOGY / 66
25.1
25.2
25.3
25.4
25.5 / Responsibilities and Duties of the Director of Finance
Responsibilities and Duties of Other Directors and Officers in Relation to Computer Systems of a General Application
Contracts for Computer Systems with Other Health Bodies or Outside Agencies
Risk Assessment
Requirement for Computer Systems which have an impact on Corporate Financial Systems / 66
67
67
68
68
26. / PATIENTS’ PROPERTY / 68
27. / FUNDS HELD ON TRUST (see overlap with 16.16) / 69
27.1
27.2
27.3 / Corporate Trustee
Accountability to Charity Commission and Secretary of State for Health
Applicability of Standing Financial Instructions to Funds Held on Trust / 69
69
69
28. / ACCEPTANCE OF GIFTS BY STAFF AND LINK TO STANDARDS OF BUSINESS CONDUCT / 69
29. / RETENTION OF RECORDS / 70
30. / RISK MANAGEMENT AND INSURANCE / 70
30.1
30.2
30.3
30.4 / Programme of Risk Management
Insurance: Risk Pooling Schemes Administered by NHSLA
Insurance Arrangements with Commercial Insurers
Arrangements to be Followed by Board in Agreeing Insurance Cover / 70
70
71
71
SECTION D – SCHEME of RESERVATION AND DELEGATION OF POWERS / 72-89
SECTION E – DETAILED SCHEME OF DELEGATION / 90-103

SECTION A

1. INTERPRETATION AND DEFINITIONS FOR STANDING ORDERS AND STANDING FINANCIAL INSTRUCTIONS

1.1 Save as otherwise permitted by law, at any meeting the Chairman of the Trust shall be the final authority on the interpretation of Standing Orders (on which they should be advised by the Chief Executive or Secretary to the Board).

1.2 Any expression to which a meaning is given in the National Health Service Act 1977, National Health Service and Community Care Act 1990 and other Acts relating to the National Health Service or in the Financial Regulations made under the Acts shall have the same meaning in these Standing Orders and Standing Financial Instructions and in addition:

"Accountable Officer" means the NHS Officer responsible and accountable for funds entrusted to the Trust. The officer shall be responsible for ensuring the proper stewardship of public funds and assets. For this Trust it shall be the Chief Executive.

“Associate Member” means a person appointed to perform specific statutory and non-statutory duties which have been delegated by the Trust Board for them to perform and these duties have been recorded in an appropriate Trust Board minute or other suitable record. Associate Members do not have voting rights.

"Board" means the Chairman, executive and non-executive members of the Trust collectively as a body.

"Budget" means a resource, expressed in financial terms, proposed by the Board for the purpose of carrying out, for a specific period, any or all of the functions of the Trust.

“Budget holder” means the director or employee with delegated authority to manage finances (Income and Expenditure) for a specific area of the organisation.

"Chairman of the Board (or Trust)" is the person appointed by the Secretary of State for Health to lead the Board and to ensure that it successfully discharges its overall responsibility for the Trust as a whole. The expression “the Chairman of the Trust” shall be deemed to include the Vice-Chairman of the Trust if the Chairman is absent from the meeting or is otherwise unavailable.

"Chief Executive" means the chief officer of the Trust.

"Commissioning" means the process for determining the need for and for obtaining the supply of healthcare and related services by the Trust within available resources.

"Committee" means a committee or sub-committee created and appointed by the Trust.

"Committee members" means persons formally appointed by the Board to sit on or to chair specific committees.

"Contracting and procuring" means the systems for obtaining the supply of goods, materials, manufactured items, services, building and engineering services, works of construction and maintenance and for disposal of surplus and obsolete assets.

"Director of Finance" means the Chief Financial Officer of the Trust.

"Executive member" means a member of the Trust who is either an officer of the Trust or is to be treated as an officer by virtue of regulation 1(3) (i.e. the Chairman of the Trust or any person nominated by such a Committee for appointment as a Trust member).

“Funds held on trust” means those funds which the Trust holds on date of incorporation, receives on distribution by statutory instrument or chooses subsequently to accept under powers derived under S.90 of the NHS Act 1977, as amended. Such funds may or may not be charitable.

"Member" means executive or non-executive member of the Board as the context permits. Member in relation to Board does not include its Chairman..

.

"Membership, Procedure and Administration Arrangements Regulations" means NHS Membership and Procedure Regulations (SI 1990/2024) and subsequent amendments.

Motion” means a formal step at a Board meeting to introduce a procedure or item of business. A motion can be ‘substantive’ – original, independent and complete in itself – or be an amendment to another motion.