Transcript CIPFA`s new governance mark of excellence

www.cipfa.org
CIPFA’s new Governance Mark of
Excellence
Presentation to CIPFA NW Region
2 October 2014
www.cipfa.org
Aim of this session
To become familiar with the Mark of Excellence as a
development tool to improve governance in public
bodies
www.cipfa.org
Presentation structure
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Governance- top of the agenda
CIPFA’s governance portfolio
Excellent governance and assessment
Benefits & pitfalls of accreditation
Next steps
www.cipfa.org
Governance – high on the agenda
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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?
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Lots of generic governance guidance and standards
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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
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Sectoral guidance e.g. higher education
Codes of conduct
Audit Committees
Accounts Direction and Financial Memorandum
‘It takes two’ – PCF & Institute for Government
CIPFA/IFAC Principles
www.cipfa.org
www.cipfa.org
Principles of good governance (CIPFA/IFAC)
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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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