Finance and Performance Committee

Annual Report

1 April 2024 to 31 March 2025

1. Period covered by this report

This report covers the work of the Finance and Performance Committee for the financial year 1 April 2024 to 31 March 2025.

2. Introduction

The Finance and Performance Committee has powers delegated to it by the Board to seek high-level assurance on the controls and management in respect of performance reporting, emergency planning and resilience, financial governance and business and growth opportunities focusing on areas including: the financial data for submission to the Board; the financial plan; the procurement strategy; income contracts; the information technology and information governance strategies; the capital programme; estates strategy; and business planning.

This report covers the work the Committee has undertaken at the meetings held during 2024/25.  It seeks to assure the Board on the work it has carried out and the assurances received, and to demonstrate that it has operated within its Terms of Reference.

3. Assurance

The Committee receives assurance from the executive director members of the Committee and from the subject matter experts who attend the meetings as required dependant on the agenda items being discussed. Assurance is provided through written reports, both regular and bespoke, through challenge by members of the Committee and by members seeking to validate the information provided through wider knowledge of the organisation; specialist areas of expertise; attending Board of Directors’, and Council of Governors’ meetings.

The Committee is assured that it has the correct membership to provide the right level and calibre of information and challenge, and that the right reporting methods, structures and work plans are in place to provide oversight on behalf of the Board in respect of performance in the areas covered by its Terms of Reference.

Part of its assurance role is to receive the Board Assurance Framework (BAF), a primary assurance document for the Board which details those key controls in place to ensure that the risks to achieving the strategic objectives are being well managed. The BAF lists the committees that are responsible for receiving assurance in respect of the effectiveness of those controls. The Finance and Performance Committee is asked to note, in particular, those where it is listed as an assurance receiver to confirm that it has received sufficient assurance through the reports presented to the Committee, or to commission further information where there is a lack of assurance (actual or perceived). These are:

• There is a risk that a lack of financial sustainability results in the destabilisation of the organisation and an inability to meet our objectives.
• Due to an inability to provide adequate working and care environments we risk being unable to deliver safe and effective services.
• As a result of insecure, inadequate and poorly utilised digital technologies there is a risk the quality and continuity of services is compromised.
• There is a risk we fail to understand, plan and deliver services that meet the health needs of the population we serve.

The Committee views the BAF, containing the details for SR4, SR5, SR6 and SR7, on a quarterly basis.

4. Terms of reference

In September 2024 the Terms of Reference for the Finance and Performance Committee were approved by the members. In November 2024, they were ratified by the Board of Directors.

5. Effectiveness of the Finance and Performance Committee

The Committee reviewed its effectiveness in July 2024 and considered what developments could take place to ensure it remains effective.

In October 2024, a representative from The Value Circle observed a Finance and Performance Committee meeting as part of an independent review of the Trust’s Well Led governance arrangements. It was noted that the meeting was well chaired, creating a space for respectful and appropriate challenge.

6. Meetings of the Finance and Performance Committee

In 2024/25 the Committee formally met on eight occasions and each of these meetings was held virtually. The dates on which the Committee met during the year are as follows:

• 23 April 2024
• 24 May 2024
• 23 July 2024
• 23 September 2024
• 30 October 2024
• 25 November 2024
• 28 January 2025
• 25 March 2025

7. Membership of the committee and attendance at meetings

The membership of the Finance and Performance Committee is made up of three non-executive directors; the Chief Financial Officer; the Chief Operating Officer; the Director of Nursing and Professions and the Director of People and Organisational Development. The Committee is chaired by a non-executive director (NED), Cleveland Henry. The Committee also has as one of its NED members the Chair of the Audit Committee (Martin Wright) who provides independent financial expertise to the Committee. Katy Wilburn is the other NED member of the Committee and also the Deputy Chair of the Committee.

Should the NED Chair be unable to chair the meeting this role will fall to the Deputy Chair of the Committee. The Chair of the Audit Committee should not chair the Finance and Performance Committee. This allows the Chair of the Audit Committee to maintain a high degree of independence within the governance structure as required by the Audit Committee handbook. In exceptional cases such as a NED vacancy on the Committee, the Chair of the Audit Committee would be asked to chair the meeting if the NED Chair was unavailable.

The Committee is attended by a number of subject matter experts to provide expertise and knowledge on the areas that they are responsible for. On these occasions, they are attendees and do not count towards the membership of the meetings as outlined in the Terms of Reference.

The Trust also invites governors to observe Board sub-committee meetings. This opportunity allows governors to observe the work of the Committee, rather than to be part of its work as they are not part of the formal membership of the Committee. Governors observe Board sub-committee meetings in order to get a better understanding of the work of the Trust and to observe non-executive directors appropriately challenging the executive directors for the operational performance of the Trust.

Attendance at Finance and Performance Committee meetings by substantive members

Attendance at Finance and Performance Committee meetings by formal attendees

Attendance at Finance and Performance Committee meetings by governors

8. Reports made to the Board of Director

The Chair of the Finance and Performance Committee makes an assurance, escalation and advisory report regarding the most recent meeting of the Committee to the next available Board of Directors’ meeting. This report seeks to assure the Board on the main items discussed by the Committee, and should it be necessary to escalate to the Board any matters of concern or urgent business which the Committee is unable to conclude. The Board may then decide to give direction to the Committee as to how the matter should be taken forward or it may agree that the Board deals with the matter itself.

Where the Board wants greater assurance on any matters that are within the remit of the Terms of Reference of the Committee the Board may ask for these to be looked at in greater detail by the Committee. The table below outlines the dates that the assurance and escalation reports were presented by the Chair of the Finance and Performance Committee to the Board of Directors’ meetings.

9. The work of the committee during 2024/25

During 2024/25 the Committee has carried out its role in accordance with its Terms of Reference. Further details of all these areas of work can be found in the minutes and papers of the Committee.

A high-level overview of the areas of work on which the Committee has received assurance during 2024/25 are set out below.

Financial performance and forecast out-turn:

• reviewed the financial performance reports at each meeting
• reviewed the Trust’s capital expenditure and revenue position at each meeting
• received regular updates on the financial performance of the West Yorkshire Integrated Care Board
• received regular updates on the workstreams overseen by the Workforce and Agency Group as part of the Trust’s financial efficiency work
• received assurance on the successful submission of the 2023/24 National Cost Collection
• received analysis on the 2022/23 and 2023/24 National Cost Collection publications
• received the annual update on off-payroll engagements as of 30 September 2024
• received updates on progress against the Trust’s 2024/25 organisational priorities and the delivery of each priority’s high-level milestones and underpinning tasks
• supported the proposed amendments to Standing Financial Instruction 8 (Tendering and Contracting)
• reviewed the 2025/26 Operational Plan submission

Procurement:

• received updates on the Trust’s Procurement and Logistics Strategy and was assured that good progress was being made
• received updates on the key activities and developments within the Trust’s Procurement and Logistics Function

Estates:

• reviewed and endorsed the Trust’s Strategic Estates Plan for 2025-2030
• reviewed the quarterly Estates and Clinical Environments Report which provided updates and assurance from the Estates Steering Group and Clinical Environments Group
• reviewed and endorsed the Trust’s Green Plan for 2025-2028
• received updates on the arrangements to manage the expiry of the Private Finance Initiative (PFI) concession

Clinical Contracts:

• received updates on the signing of contracts for 2024/25
• received updates on the contract negotiations during 2024/25
• reviewed and approved the Yorkshire and Humber Perinatal Mental Health Provider Collaborative Business Case

Informatics

• received updates on the Digital Plan for 2023-2025 which provided assurance on progress against the main projects, initiatives and workstreams
• regularly reviewed the Cyber Security Dashboard which provided a clear indication of the status of each element of the “ten steps to cyber security” devised by the National Cyber Security Centre and was assured there were no unmitigated risks in this area
• reviewed the Data Security and Protection Toolkit return and noted that Internal Audit had given a finding of significant / high assurance and on this basis the Trust had claimed a ‘standards met’ outcome on the Toolkit
• received regular assurance reports and the Annual Report from the Information Governance Group

Performance:

• regularly received the report from the Chief Operating Officer and considered the different factors affecting performance and received assurance on the actions taken to improve performance related issues
• sought assurance on demand and capacity issues relating to out of area placements and bed occupancy rates
• received regular updates on the Improving Patient Flow Programme
• received the Winter Resilience and Operating Plan for 2024/25, noted the challenges likely to affect the Trust during this period and was assured that robust continuity plans were in place

North of England Commercial Procurement Collaborative (NOE CPC):

• received regular updates on the North of England Commercial Procurement Collaborative Hub and CPC Drive

Business Continuity:

• reviewed the Emergency Preparedness, Resilience and Response (EPRR) Annual Report which covered the period 1 April 2023 to 30 March 2024
• reviewed the declared position of the Trust against NHS England’s mandatory core standards for EPRR and noted the final assessment submission

Thrive by Design:

• received update reports on Thrive by Design

10. Conclusion

The Chair of the Finance and Performance Committee would like to assure the Board of Directors that the Committee has fulfilled its Terms of Reference during 2024/25 and has provided assurance to the Board in respect of performance reporting as well as financial governance focusing on areas including: the financial data for submission to the Board; the financial plan; the procurement strategy; income contracts; the information technology and information governance strategies; the capital programme; estates strategy; and business planning and growth opportunities.

It has added value by maintaining an open and professional relationship with officers of the Trust and has carried out its work diligently; discussed issues openly and robustly; and kept the Board of Directors apprised of any possible issues or risks.

Members of the Finance and Performance Committee would like to thank all those who have responded to its requests during the year and who have supported it in carrying out its duties.

Cleveland Henry

Non-executive Director and Chair of the Finance and Performance Committee

April 2025

Appendix 1 – Terms of Reference

A link to the current Terms of Reference of the Finance and Performance Committee can be found here.