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CIPFA’s new Governance Mark of Excellence

Presentation to CIPFA NW Region2 October 2014

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Aim of this session

To become familiar with the Mark of Excellence as a development tool to improve governance in public bodies

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Presentation structure

Governance- top of the agenda CIPFA’s governance portfolio Excellent governance and assessment Benefits & pitfalls of accreditation Next steps

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Governance – high on the agenda

Governance revolution Growth in public accountability Rising public expectations ‘Professionalisation’ of Boards Branding of failures

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CIPFA – the place to go

Broad governance portfolio Professional standing Regional, national and international

coverage Captive market

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What is excellent Governance?

Lots of generic governance guidance and standards

The Good Governance Standard for Public Bodies(2004) Corporate Governance in central government departments – code of

good practice HMT (2011) ‘Essential Skills for Board Members’ CIPFA (2011) CIPFA/IFAC Standards (2014)

Lots of specific governance guidance

Sectoral guidance e.g. higher educationCodes of conductAudit Committees

Accounts Direction and Financial Memorandum‘It takes two’ – PCF & Institute for Government

www.cipfa.orgCIPFA/IFAC Principles

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Principles of good governance (CIPFA/IFAC) Demonstrating strong commitment to integrity and ethical

values Ensuring openness and comprehensive stakeholder

engagement Defining outcomes in terms of economic, social and

environmental benefits Determining the interventions necessary to optimize the

achievement of intended outcomes Developing leadership capacity and capability Managing risk and performance through robust controls and

strong PFM Implement good practice in transparency, reporting and audit,

to deliver effective accountability

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Can good governance be sensibly assessed?

Some basic principles: Depth of assessment Breadth of assessment Objectivity of assessment

Best to be proactive rather than reactive

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CIPFA’s new Governance Mark of Excellence

Pre-assessment check – web-based self assessment to get on the starting grid

In-depth assessment: Desk research Questionnaires Interviews Analysis, including professional judgement Automated scoring of findings Conclusions and reporting Regular review

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…..but, beware potential pitfalls

Dynamic and fast-changing environment

Risky, not immune from weakness Resource intensive? Adding to bureaucracy…yet another

return!

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What is the incentive –why bother?

Lighter touch regulation/inspection ‘Earned autonomy’ and more strategic

freedom External recognition Demonstration of strong leadership Credibility with stakeholders Setting a standard for others

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In summary

Demonstrating good governance is increasingly important

Good governance can be identified Public bodies are increasingly

becoming more proactive than reactive

Accreditation of good governance can move public bodies to a new level of assurance

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Conclusion

Questions/further discussion

Thanks for attention, participation and feedback

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