www.cass.city.ac.uk rosalind oakley accountability – an exploration cass centre for charity...
Post on 20-Jan-2018
216 Views
Preview:
DESCRIPTION
TRANSCRIPT
www.cass.city.ac.uk
Rosalind Oakley
Accountability – an exploration
Cass Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Building Better Governance Seminar SeriesDATE TOPIC LED BY 19 Nov 14
Running effective board meetings
Caroline Copeman
13 Jan 15
Board reports that add value
Mary Chadwick
11 Feb
Board involvement in strategy
Jacqueline Williams
11 March
Using scorecards & dashboards
Jacqueline Williams
22 April
Board appraisal
Fiona Ash
28 May
The relationship between the Chair and CE
Caroline Copeman
23 June
Demonstrating accountability
Ros Oakley
29 July
Federated charities – an exploration
Denise Fellows
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Resources on website
https://casscce.wordpress.com/about-cass-cce/building-better-governance/
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Exploring accountabilityAccountable (noun) • Require to account for one’s conduct
Oxford English dictionary
Various academic definitions of accountability e.g.• Holding one (an individual or organisation) to account for their
actions (Stewart) • Voluntarily( Fry) • Includes evaluation of performance (Boyle et al)• Should include a moral dimension of socially responsible
behaviour (Roberts)
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
AccountabilityPurpose of tonight’s session is to explore two basic questions,:
As trustees•Who are you accountable to?•For what?
And a secondary question: How is that accountability carried out? In particular what are the board’s responsibilities?
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Group workAt your table discuss:
•Who is your charity accountable to?
•What are you accountable for?
Staff
SupportersService users
Who
Members
Local authority
Volunteers
Allies
Donors
Beneficiaries – current and
future
Suppliers
Regulators
Neighbours
Partners
Public
Partners
Legislators
Governance
Costs
Investment choices
Fundraising methods
Concerns
Ineffectiveness
Failure to protect the vulnerable
Terrorism
Fraud & theft
Campaigning
Fake charities
Unwelcomeneighbours
Conflict of interest
Unfair competition
Waste
Tax avoidance
Pay
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Accountability• Identifying to whom accountability is due•Understanding and reconciling expectations that may be both legitimate and divergent
•Setting reasonable standards•Providing accessible information by which to assess compliance
•Modelling integrity in decision and actions
Source R.P.Lawry Accountability and Nonprofit Organisations: an ethical perspective 1995
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Accountability and stakeholder theoryLot of the academic literature references stakeholder theory:Positive model linked to legitimacy theoryEmphasis on stakeholders in order to ensure organisation’s success. Shape their perception of the charity.
Ethical modelMoral and philosophical position. Responsibility to honour all stakeholders equitably and ethically via participation (and democracy). Dialogue and learning. Inherent to how the organisation operates
Key method for both: reportingDischarging not-for-profit accountability: UK charities and public discourse Alpa Dhanani
Ciaran Connolly, (2012)
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Charity CommissionParliament has given the Commission 5 statutory objectivesto increase or promote:• public trust and confidence in charities• awareness and understanding of the operation of the public benefit requirement • compliance by charity trustees with their legal obligations in exercising control and management of their charities• the effective use of charitable resources• the accountability of charities to donors, beneficiaries and the general public
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Key charity reporting requirementsThere are different accounting and reporting requirements depending on size and type of charity. Typically:•Annual return (online)•Annual accounts •Trustees Annual report (TAR)•Public benefit reporting (via TAR)•Serious incident report –as required
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Serious incidentsReport any serious incident that results in – or risks - significant:• loss of your charity’s money or assets•damage to your charity’s property•harm to your charity’s work, beneficiaries or reputation
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Serious incidents• Fraud, theft or other significant loss• A large donation from an unknown or unverified source• Links to terrorism or to any organisation that’s ‘proscribed’
due to terrorist activity• A disqualified person acting as a trustee• Not having a policy to safeguard your charity’s vulnerable
beneficiaries• Not having ‘vetting’ procedures in place to check your
prospective trustees, volunteers and staff are eligible• Suspicions, allegations or incidents of abuse of vulnerable
beneficiaries• Investigation by another regulator
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Public benefit reporting•Registered Charities are required to set out in their annual report the activities they have carried out for public benefit
•Two basic requirements:• An explanation of the activities undertaken by the charity for the public benefit
• Statement by the trustees that they have had regard to the Charity Commission guidance
•More info required by larger charities (over £500k)
Source: Charity Commission Annual Monitoring review public benefit reporting by charities March 2015
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
% of annual reports meeting public benefit reporting requirementPeriod / % of reports assessed 2011-
20122012-2013
Includes report of activities undertaken for public benefitIncludes statement that had regard to CC guidanceCharities who met both of the above
Source: CC Annual Monitoring Review Public benefit reporting by charities March 2015
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
% of annual reports meeting public benefit reporting requirementPeriod / % of reports assessed 2011-
20122012-2013
Includes report of activities undertaken for public benefit
44% 64%
Includes statement that had regard to CC guidance
44% 47%
Charities who met both of the above 27% 35%
Source: CC Annual Monitoring Review Public benefit reporting by charities March 2015
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Public benefit reportingPeriod / % of reports assessed 2011-
20122012-2013
Statement of purposesSummary of main activities to achieve purposesDescription of how activities benefit beneficiariesCharities who do all 3 of above
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Public benefit reportingPeriod / % of reports assessed 2011-
20122012-2013
Statement of purposes 81% 88%Summary of main activities to achieve purposes
71% 80%
Description of how activities benefit beneficiaries
55% 65%
Charities who do all 3 of above 44% 64%
Source: CC Annual Monitoring Review Public benefit reporting by charities March 2015
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Trust and confidence – things people want to know•96% agree it is important that charities provide the public with information about how they spend their money.
•94% of people agree it is crucial for charities to demonstrate how they benefit the public
•90% agree it is important that charities explain in a published annual report what they have achieved
Source: Public trust and confidence in charities. Ipsos Mori on behalf of the Charity Commission June 2014
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Annual reports triggering risk indicatorRisk indicator No of
concern% explained
Low charitable expenditureHigh fundraising costsSolvency issuesPension scheme deficitsRestricted funds used for unrestricted purposesSignificant loans by or to the charity
Source: CC Annual Monitoring- the quality of charity accounts March 2015
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Annual reports triggering risk indicatorRisk indicator No of
concern% explained
Low charitable expenditure 26 38%High fundraising costs 9 44%Solvency issues 28 61%Pension scheme deficits 7 71%Restricted funds used for unrestricted purposes
3 100%
Significant loans by or to the charity 23 70%
Source: CC Annual Monitoring- the quality of charity accounts March 2015
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Accountability and good practice
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Hallmarks of an effective charity1. Clear about its purposes and direction2. A strong board 3. Fit for purpose 4. Learns & improves5. Financially sound and prudent 6. Accountable and transparent
Charity Commission
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Hallmark 6 : Accountable and transparent • complies with its legal obligations (and best practice)
explaining what the charity has done for the public benefit • explains in its Annual Report how it has achieved its
charitable purposes • has effective complaints procedures • can show how it involves beneficiaries and service users
in the development and improvement of its services• has a communications plan ensuring information is given
to everyone with an interest in the work of the charity
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Code of Good Governance
1. Understanding of role2. Ensuring delivery of organisational purpose3. Working effectively as individuals and a team4. Exercising effective control5. Behaving with integrity6. Being open and accountable
Good Governance – a code for the voluntary and community sector (2nd edition October 2010)
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Principle 6 The board will lead the organisation in being open and accountable, both internally and externally. This will include:• open communications, informing people about the organisation and its work• appropriate consultation on significant changes to the organisation’s services or policies• listening and responding to the views of supporters, funders, beneficiaries, service users and others with an interest in the organisation’s work• handling complaints constructively, impartially and effectively• considering the organisation’s responsibilities to the wider community, e.g. its environmental impact.
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Board accountability in practice• Many nonprofit boards expect their executives to account
for use of their organizations’ resources. However, few boards apply any such expectations to themselves.
• When we asked interviewees to identify the board’s constituencies—those stakeholders whose concerns the board should hear directly and with whom its members should communicate—a surprisingly large number of respondents simply could not identify a single such group.
• Most boards did not do anything to address the matter directly except a few exemplary ones
Board Accountability Lessons from the Field, Thomas P. Holland 2002
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
ApproachesThoughtful rather than mechanistic approach to:• Clear expectations – real focus on mission, values, expectations
• Policies on conflicts of interest- avoiding even the appearance of self-dealing
• Identifying and staying focused on priorities • Communications with constituencies• Assessment of meetings• Formal evaluations• Experimenting with new ways of workingBoard Accountability Lessons from the Field, Thomas P. Holland 2002
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Group workAccountability to stakeholders
•What examples of good practice do you have?
•What ideas do you have for good practice?
•What are the challenges?
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
AA1000 Accountability principles standardAn accountable organisation will take action to:• Establish a strategy based on a
comprehensive determination of all issues that are material to the organisation and its stakeholders
• Establish goals and standards against which the organisation's strategy and performance can be judged
• Disclose credible information about strategy, issues, and performance to stakeholders
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Global Reporting Initiative• Aims to standardize and quantify the environmental, social
and governance costs and benefits from the activities of those who report
• Guidance on what is reported and how• Founded in 1997• Guidelines now in third version• In 2015, 7,500 organizations used GRI Guidelines for the
sustainability reports• Sector specific supplements including for NGOs • Can report at level A, B or C
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
The Accountability Charter• transnational, multi-sectoral code reflecting
the values and priorities of the NGO sector • developed in response to increasing
pressure from the media• founding organisations include Amnesty
International, Oxfam International, Greenpeace International and World Vision International,
• Charter Members required to report annually
- requirements based on GRI .
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
The Accountability Charter- 10 commitments1. Respect for Human Rights 2. Independence3. Transparency4. Good Governance5. Responsible Advocacy6. Participation7. Diversity/Inclusion8. Environmental Responsibility9. Ethical Fundraising10.Professional Management
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Global Reporting Initiative - NGOsGRI developed a sector specific supplement. It covers• Program effectiveness including affected stakeholder engagement, mechanisms for feedback and complaints, and monitoring and evaluation• Integration of gender and diversity into programs• Public awareness and advocacy• Resource allocation• Ethical fundraising• Working with volunteers• Marketing communications• Customer privacy
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
What is your board’s position on accountability?
•Does your board understand your legal responsibilities and are you meeting them?
•Have you identified the range of stakeholders interested in or affected by your work?
•Do you understand what information needs your various stakeholders may have?
•What voluntary disclosures and engagement do you choose to make, to whom and how?
www.cass.city.ac.uk
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Centre for Charity EffectivenessIntellectual leadership: developing talent, enhancing performance
Items in the resource bank for this seminar:
•CC guidance on reporting requirements•CC annual monitoring review report•Good practice resources•Other accounting and reporting initiatives and examples
•PowerPoint presentation
Available at https://casscce.wordpress.com/about-cass-cce/building-better-governance/
top related