Transcript Effective Models of Governance

ColegauCymru/Colleges
Wales Annual Conference
Further Education Colleges as
charitable social enterprises in England
Julian Blake
Bates Wells Braithwaite
13th May 2014
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“Freedoms and flexibilities”: public sector to public benefit
sector (1)
• 1992 statutory corporations; sector rationalisation
• 2011 alternative legal structures; governance models (Schedule 4)
• Question: how better to deliver purpose
• Continuing prescription – standards; (political) policy; set ideas
• Quasi-regulation - inspection (Ofsted) and funding conditions (SFA)
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“Freedoms and flexibilities”: public sector to public benefit
sector (2)
• No need to change/slow change/ideas for change
• Good practice examples not systemic
• What is possible/what is desirable/how can it be done
• Association of Colleges; Gazelle Group; 157 Group
• Model of charitable social enterprise emerging from public sector
model
Charity law: the regulatory base
• Exempt charity status
• “Clarity of purpose” (First Pillar of effective governance - Humphreys
Report)
• “Public benefit ownership” (Third Pillar of effective governance)
•
Regulation for charity law: BIS; MOU with Charity Commission
• Charity law principles
– exclusively charitable (advancement of education);
– non-profit distributing;
– for the public (not private) benefit
• Duty of Governors (charity trustees)
– best interests of (charitable objects of) college;
– overarching governance responsibility;
– delegation principle
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Governance: the essentials (1)
• Professionalising Board of Governors model: compact; engaged;
(collectively) expert; unitary; appointed for capability; sensitive to
community needs (diverse)
• “Scrutiny and accountability” (Fourth Pillar of effective governance)
• New approaches: e.g. Carver “Policy Governance”; Co-operative
• Mechanism and basis of appointment; duration in office
• Roles/responsibilities/relationships – clarity; governance/management;
delegation for purpose
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Governance: the essentials (2)
• Chair/Principal/Clerk
• Learner/staff appointees, not “representatives”; union issue
• Governance: strategy; high level policy; delegation; scrutiny of
management
• Management: SMT: executive direction; advice and
recommendations; implementation; reporting
• Stakeholders: learners; staff; community; employers; alumni - aspect
of “public ownership”; constitutional roles; consultation forum(s)
• Payment: charity law general rule/exceptions; Principal on Board;
Governor payment
• Induction and training
Social Enterprise: a business model
• Legal structure secondary; necessarily charitable
• Social enterprise principles – independent; sustainable; purpose
driven; public benefit
• “Capacity and effectiveness” (Second Pillar of effective governance)
•
Shared services/collaboration: within sector; across sectors; purpose
alignment with public sector/public benefit sector
• Income/surplus generation for purposes/development/reserves
• Resource utilisation for income generation; premises; personnel;
intellectual property
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Business development: responding to the challenge (1)
• Commercial trading subsidiaries: charity law model;
• Learner/staff enterprise, including social enterprise
• Integrated education/vocational training/business model
• Business diversification and commercialisation
• Commissioning/procurement: purpose over process
Business development: responding to the challenge (2)
• Community/regional collaboration, leadership and funding (LEPs);
• Public, including EU and public benefit sector funding
• Social Finance, including social impact bond principle (payment by
results)
• Social Value and Impact Measurement
• Mutual principle - productivity from employee participation
Julian Blake
Bates Wells & Braithwaite London LLP
2-6 Cannon Street
London EC4M 6YH
Tel: 020 7551 7777
Fax: 020 7551 7800
Email: [email protected]
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