Introduction to Introduction to GovernanceGovernance

© 2006

Objectives

• Identify the business of the organisation including the core functions of the organisation

• Work within the structure of the organisation

• Monitor operations

• Follow legal requirements when carrying out Committee/ Board duties

• Work with the wider community to ensure relevance

Volunteering SA Inc and the Government of South Australia accepts no responsibility or liability for any

inaccuracies contained in any material in this presentation.

This presentation is intended to provide general useful information and should not be relied upon as

constituting any advice.

Attendees should, before acting on any matters arising out of or otherwise in relation to this presentation,

seek their own specific independent legal or other advice about their situation.

Disclaimer

Know Your Organisation

Identify relevant documents addressing the core business of your organisation, e.g. Mission statement,

constitution…

Identify how your organisation is structured and your role within it

Be clear about operational outcomes for each section of the organisation

Ensure compliance with relevant legislation

What is your ”community” and how does your organisation keep in touch?

What is a Management Committee or Board?

Brainstorm

Difference between Structure and Function?

Handout 1 - where do you fit?

is a horse designed by a committee

Sir Alec Issigonis

A Camel

Benefits of Committee Work

Why do you want to be on a committee?

To see the big picture

Guide the organisation

Improve the organisation

Review procedures

Appoint the CEO

Build the public profile

Financial management

Provide leadership and direction

Who is on a Committee/ Board?

Founding members

Officials and service providers

‘Wonderfuls’

Status seekers

Grass roots

Service users

Staff

Government representative

What the Law says 1

This is a summary – not legal advice

Members cannot be undischarged bankrupts

Special permission is needed to have as members people who have been convicted within the last five years of a

serious fraud or other crime, or a company offence

Members are expected to use their skills and experience, so the reasonable care which the law expects from an inexperienced member is less than that expected from,

for example, a treasurer who is a qualified accountant or chairperson who is a manager

What makes a good committee?

CommitmentTime

EnergyRegular attendance

Accurate recordsAbility to seek clarification in a supportive environment

Ability to accept complaints as feedback and address them constructively

Supporting and encouraging staff and one anotherPlanning and regular reviews

Dispute resolution and grievance proceduresClear roles and portfolios

Connections and networksDirection

Bad Board Game

Let’s play the game!!

Problems and Solutions…..

It’s a Risky Business!

What if …

Your Treasurer is away a lot?

Staff/ Volunteers use their own cars?

The bar at an event is unlicensed?

Someone breaks confidentiality after a meeting?

You don’t have a volunteer policy?

Someone argues with the local MP at a meeting?

You don’t acquit your funding?

Managing Risk

The Board is responsible for minimising and managing risk.

This ensures protection of assets such as:

People

Property

Income

Goodwill

What the Law says 2

Check the Associations Incorporation Act 1985:

Minutes kept and confirmed

Accounting records

Special requirements if income is over $200,000

Larger organisations must be audited by qualified accountants

Responsibilities of Individual Members

Duty of care

Conflict of interest

Authority

Moving on

Representing another organisation

Personal consumer issues

Whose Job is it?

Committees of Management have the job to manage, set direction, review and evaluate

Policy

Staff have the job to implement the decisions of the Committee, report and provide advice and

support

Procedure

What the Law says 3

Representatives of other organisations have to put the interests of your organisation first when they are sitting

on your Committee. They cannot vote to the instructions of their nominator, although they can put

their point of view in discussions. They have no right to report back on any information which your Committee

agrees is confidential.

No Committee member can take part in a decision about any contract in which they have financial interest. The committee member must disclose their interest to the Committee, and to the members at the next annual

general meeting.

What the Law says 3 (cont)

A Committee member who gets paid by the Association has a direct financial interest which they must disclose, and on which they cannot vote. If their partner or family member is paid, they have an indirect interest and the

same rules apply.

Each committee member of any incorporated association is personally responsible for seeing that the legal

requirements in the Associations Incorporation Act are complied with.

What the Law says 4Boards and committees must act within the following laws:

Commonwealth Legislation:

Racial Discrimination Act

Sex Discrimination Act

Disability Discrimination Act

Income Tax Assessment Act

Fringe Benefits Tax Assessment Act

Superannuation Guarantee (Administration) Act

State Legislation:

Industrial and Employee Relations Act

Equal Opportunity Act

Long Service Leave Act

Occupational Health, Safety and Welfare Act

Workers’ Rehabilitation and Compensation Act

Pay-roll Tax Act (where applicable)

NB: A committee or member risks personal liability for negligence by failing to comply.

Chairperson’s RoleThe meeting starts and finishes on time

Attendees, apologies, minutes are recorded accurately and in sufficient detail

Meeting rules are followed

Everyone gets a chance to speak on each topic

Business is conducted in an orderly manner

Discussion is focussed on the agenda item of the moment

Discussion is courteous at all times

The views of all members are respected

Decisions are made according to the policies of the organisation

Tasks are delegated appropriately and fairly

All guests are made to feel welcome

All guests understand their rights at the meeting

Minutes are signed as a true record

Interviews prospective Board members

Media spokesperson

A Good Chairperson isCommitted to the goals of the organisation

Willing to be unbiased on issues

Able to focus on principles, not politics or personalities

Familiar with basic meeting procedure

Able to avoid repetition, arguments, interruptions and distractions

Willing to encourage relevant debate

Committed to encouraging everyone to participate

Willing to allow dissenting views to be expressed

A good listener who can summarise

Focused on the process of the meeting, not the content

Able to suggest appropriate delegations of authority or tasks

Able to recognise and make the most of the talents of other members

Willing to acknowledge the work of other people

Secretary’s role To ensure:

Records of the organisation are kept

Incoming and outgoing correspondence is managed (although this task, in whole or part, may be delegated to a paid worker)

Meetings are called according to the constitution

Agendas are prepared (usually in conjunction with the Chairperson and/or senior staff member) and circulated at least a week before the meeting

Formal records of all meetings of the Board are kept

Treasurer’s role

To ensure:

The finances of the organisation are managed appropriately

Recommendations are made to the board about income and expenditure and investments and debts

Records are kept of all incoming and outgoing payments

Attend meetings

Read papers before meeting

Listen

Contribute to decision making

Carry out work

Support office bearers

Take on agreed tasks

Be involved

Act in the best interest of the organisation

Be clear about the role

Committee Member’s role

Motion in a minute

Endgame Activity – this leads

Look at the book

Meeting procedures

Pages 67 - 75

Further information

Volunteering SA library

Contacts list handout

Websites handout

Training Schedules

TAFE accredited courses

Objectives

Objectives for this workshop were:

Identify the business of the organisation including the core functions of the organisation

Work within the structure of the organisation

Monitor operations

Follow legal requirements when carrying out Committee/ Board duties

Work with the wider community to ensure relevance

Please complete an evaluation form and leave it with the trainer before you leave

THANK YOU

Evaluation