governance townsville 6 april 2013

Saturday, 6 April 2013

Presentedby

Gerard Byrne B Com FCPA FAIM

Volunteering North Queensland

Gerard Byrne

Chair, NQ Community Supporting Police

Chair, Townsville Lifelong Learning

Presenter, Volunteering North Queensland

Governance Workshop 2013

Major Trends

National Not for Profit Reforms

Technology

Social Media

VOICE was developed as part of the Queensland Government Strengthening Indigenous Non-Government Organisations initiative

Source: www.communitydoor.org.au/voice

Source: www.reconciliation.org.au/governance/home


OverviewLegal and Financial Accountability Strategic Vision and Objectives Fundraising AdvocacyMeetingsVoice Program


Modern Governance and Community Groups

Governance is about how your organisation is run – the structures and systems and understandings that enable you to make the right decisions and set the right course. It's not the same thing as management – what the Board does is governance; what the CEO does is management, although the two functions can overlap to some extent at the upper levels.

Governance isn't your actual policies, either, or your mission or your direction; it's how your organisation decides what that mission and that direction and those policies are.

There's no one perfect organisational solution, and a not-for-profit organisation can do very well under a number of possible structures of governance.

(Source: Ourcommunity)


Governance Principles

Responsiveness Everybody who has an interest in a decision, and everybody who has information about the topic, should be able to be heard; if possible, everybody who has an opinion on the subject should be listened to.

DecisivenessAfter everyone has been heard a decision has to be made, and that decision must be implemented wholeheartedly across the organisation.

Ease of useAs far as possible the system should be transparent, flexible, and straightforward. It should be possible to see immediately who's responsible for what, and how that responsibility relates to the whole mission and to other sectors of the organisation.


The Board / Committee

The Board is at the head of the organisation's structure of governance.

The Board has total authority, under the law, until some of that authority is parcelled up and given away (delegated) to others.

Final decisions on important issues must always pass by the Board.

It is up to the Board to create the other organisational structures that will make it possible to carry out the mission.


The Board must:

Establish a clear mission and visionSet up the light on the hill that will guide the organisation.

Identify the organisation's core valuesWhat are the guiding principles that drive the organisation's response to events?

Define the organisation's programs and servicesAssessing the need in the community, analysing opportunities, and developing a strategic plan based on your resources

Obtain needed resources and community supportBoard members need to be comfortable selling the mission of the organisation and participating in fundraising activities. Board members should also be prepared to donate money themselves.


The Board must:

Provide financial oversight and ensure the organisation meets its legal and financial requirementsDeveloping budgets, monitoring program activities by tracking key performance indicators, managing investments, and reviewing financial statements

Develop appropriate risk management practicesGaining an understanding of the risks the organisation faces and its ability to obtain insurance for some of those risks.

Select leaders for management positionsChoosing staff and monitoring their performance. Governance is not necessarily about doing: it is about ensuring things are done. The Board must be definite about its performance expectations, must assign these expectations clearly, and must check to see that these expectations are being met.


Overview of your Legal Responsibilities

Duty to act in good faith and with care and diligenceDuty to act in the best interests of the organisation as a wholeDuty not to misuse information or misuse your positionDuty not to abuse a corporate opportunityDuty to avoid/ disclose any relevant potential conflict of interestDuty to maintain confidentialityDuty to observe the constitution Duty not to trade while insolventDuty to avoid negligence, fraud and other wrongs


Purpose of Meetings

The primary reason for holding meetings is to allow the Board to make decisions. However, meetings also serve a range of other important functions, providing a forum where:Board members are regularly brought together to focus on their roles and responsibilities, identify problems and plan for the future.Members are encouraged and motivated.Ideas are shared and discussed and then discarded, improved or implemented.Tasks are allocated and reported on.Regular updates about relevant issues are provided.Members can get to know each other, professionally and personally.

Governance Workshop 2013Minutes of Meetings

The Minutes are the official record of the actions and decisions of the Board. They are taken every meeting and approved the next time the Board meets. Generally, meeting minutes will include:The date and time of the meeting (including start and finishing times).Attendees (including absences and apologies – and noting when people have left and re-entered the meeting).A summary of the main points made during the discussion of each item.The result of each item discussed (decisions made or deferred, sometimes also including the number of votes for and against).The minutes are sometimes approved without much thought, or even having not been read by Board members. This is a dangerous practice indeed. The minutes show who voted for what and what action the Board has committed itself to – and they may be referred to as the official record days and weeks and even years after a decision has been made. They should therefore not be treated lightly.


What is risk management?

Many organisations have ways in which they currently manage risk: a sign warning people to watch the step, a requirement that there always at least two signatories to a cheque, inspecting an oval before competition to ensure it is free of hazards, or backing up the computers once a week to protect records. All are examples of risk management.

Standards Australia describes risk management as actions that prevent "the chance of something happening that will have an impact on our objectives". So the sign draws people's attention to possible danger, two signatories on a cheques guards against one person using funds without authority, the inspection ensures hazards that could injure are removed and the computer back-up protects your records should a virus or surge strike.


What is risk management?

Risk management is the process of thinking systematically about all the possible risks, problems or disasters before they happen and setting up procedures that will avoid the risk, or minimise its impact, or cope with its impact. It is also about making a realistic evaluation of the true level of risk.

The chance of a tidal wave taking out your annual beach picnic is fairly slim. The chance of your group's bus being involved in a road accident or a volunteer hitting an electrical cable whilst digging during a working bee is a bit more pressing.


What is risk management – basic questions?

Risk management begins with three basic questions:

1. What can go wrong?2. What will we do to prevent it? 3. What will we do if it happens?

Not every risk can be prevented. Football clubs, no matter how good their medical and support team, can not stop all injuries. Organisations can not always predict how people will react and in some cases the very activity the community organisation was set up to do is risky.


Summary

Governance is about leadership and decision making in an organisation. Doing the “right thing”.

Therefore, Governance is about having the best leadership team possible.

Governance is also about having the best systems and processes in place to aid decision making (VOICE).

Questions?

Thank you for your attendance at this session

Need further help?

Volunteering North Queensland

www.volunteeringnthqld.org.au

Townsville City Council

www.townsville.qld.gov.au

governance townsville 6 april 2013

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