Governance Townsville 6 april 2013


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Governance Townsville 6 april 2013

  1. 1. Saturday, 6 April 2013 Presented byGerard Byrne B Com FCPA FAIMVolunteering North Queensland
  2. 2. Gerard ByrneChair, NQ Community Supporting PoliceChair, Townsville Lifelong LearningPresenter, Volunteering North Queensland
  3. 3. Governance Workshop 2013Major TrendsNational Not for Profit ReformsTechnologySocial Media
  4. 4. VOICE was developed as part of the Queensland Government Strengthening Indigenous Non-Government Organisations initiative Source:
  5. 5. Source:
  6. 6. Governance Workshop 2013OverviewLegal and Financial AccountabilityStrategic Vision and ObjectivesFundraisingAdvocacyMeetingsVoice Program
  7. 7. Governance Workshop 2013 Modern Governance and Community GroupsGovernance is about how your organisation is run – the structures and systems andunderstandings that enable you to make the right decisions and set the right course. Itsnot the same thing as management – what the Board does is governance; what the CEOdoes is management, although the two functions can overlap to some extent at the upperlevels.Governance isnt your actual policies, either, or your mission or your direction; its howyour organisation decides what that mission and that direction and those policies are.Theres no one perfect organisational solution, and a not-for-profit organisation can dovery well under a number of possible structures of governance. (Source: Ourcommunity)
  8. 8. Governance Workshop 2013Governance PrinciplesResponsivenessEverybody who has an interest in a decision, and everybody who has information aboutthe topic, should be able to be heard; if possible, everybody who has an opinion on thesubject should be listened to.DecisivenessAfter everyone has been heard a decision has to be made, and that decision must beimplemented wholeheartedly across the organisation.Ease of useAs far as possible the system should be transparent, flexible, and straightforward. Itshould be possible to see immediately whos responsible for what, and how thatresponsibility relates to the whole mission and to other sectors of the organisation.
  9. 9. Governance Workshop 2013 The Board / CommitteeThe Board is at the head of the organisations structure of governance.The Board has total authority, under the law, until some of that authority isparcelled 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 makeit possible to carry out the mission.
  10. 10. Governance Workshop 2013The Board must:Establish a clear mission and visionSet up the light on the hill that will guide the organisation.Identify the organisations core valuesWhat are the guiding principles that drive the organisations response to events?Define the organisations programs and servicesAssessing the need in the community, analysing opportunities, and developing a strategic plan basedon your resourcesObtain needed resources and community supportBoard members need to be comfortable selling the mission of the organisation and participating infundraising activities. Board members should also be prepared to donate money themselves.
  11. 11. Governance Workshop 2013The Board must:Provide financial oversight and ensure the organisation meets its legal and financialrequirementsDeveloping budgets, monitoring program activities by tracking key performance indicators, managinginvestments, and reviewing financial statementsDevelop appropriate risk management practicesGaining an understanding of the risks the organisation faces and its ability to obtain insurance forsome of those risks.Select leaders for management positionsChoosing staff and monitoring their performance. Governance is not necessarily about doing: it isabout ensuring things are done. The Board must be definite about its performance expectations, mustassign these expectations clearly, and must check to see that these expectations are being met.
  12. 12. Governance Workshop 2013 Overview of your Legal ResponsibilitiesDuty to act in good faith and with care and diligenceDuty to act in the best interests of the organisation as a wholeDuty not to misuse information or misuse your positionDuty not to abuse a corporate opportunityDuty to avoid/ disclose any relevant potential conflict of interestDuty to maintain confidentialityDuty to observe the constitutionDuty not to trade while insolventDuty to avoid negligence, fraud and other wrongs
  13. 13. Governance Workshop 2013 Purpose of MeetingsThe primary reason for holding meetings is to allow the Board to makedecisions. 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 andresponsibilities, identify problems and plan for the future.Members are encouraged and motivated.Ideas are shared and discussed and then discarded, improved orimplemented.Tasks are allocated and reported on.Regular updates about relevant issues are provided.Members can get to know each other, professionally and personally.
  14. 14. Governance Workshop 2013 Minutes of MeetingsThe Minutes are the official record of the actions and decisions of the Board. They aretaken every meeting and approved the next time the Board meets. Generally, meetingminutes 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 andre-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 alsoincluding the number of votes for and against).The minutes are sometimes approved without much thought, or even having not beenread by Board members. This is a dangerous practice indeed. The minutes show whovoted for what and what action the Board has committed itself to – and they may bereferred to as the official record days and weeks and even years after a decision hasbeen made. They should therefore not be treated lightly.
  15. 15. Governance Workshop 2013What is risk management?Many organisations have ways in which they currently manage risk: a signwarning people to watch the step, a requirement that there always at least twosignatories to a cheque, inspecting an oval before competition to ensure it isfree 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 "thechance of something happening that will have an impact on our objectives". Sothe sign draws peoples attention to possible danger, two signatories on acheques guards against one person using funds without authority, theinspection ensures hazards that could injure are removed and the computerback-up protects your records should a virus or surge strike.
  16. 16. Governance Workshop 2013What is risk management?Risk management is the process of thinking systematically about all thepossible risks, problems or disasters before they happen and setting upprocedures that will avoid the risk, or minimise its impact, or cope with itsimpact. 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 groups bus being involved in a road accident or a volunteerhitting an electrical cable whilst digging during a working bee is a bit morepressing.
  17. 17. Governance Workshop 2013What 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 theirmedical and support team, can not stop all injuries. Organisations can notalways predict how people will react and in some cases the very activity thecommunity organisation was set up to do is risky.
  18. 18. Governance Workshop 2013SummaryGovernance is about leadership and decision making in anorganisation. Doing the “right thing”.Therefore, Governance is about having the best leadershipteam possible.Governance is also about having the best systems andprocesses in place to aid decision making (VOICE).
  19. 19. Questions?Thank you for your attendance at this session Need further help? Volunteering North Queensland Townsville City Council