Sandwell Compact 2008 - 2011
Governance Code of Practice
Introduction:
The Governance* Code of Practice forms part of the Sandwell Compact
which sets out the agreed framework for the relationship between the
voluntary and community sector (vcs) in Sandwell and their statutory
partners. Whilst the Compact is not a legally binding document it is a
statement of intent and aspiration. This code focuses primarily on the
aspirations of the vcs in Sandwell to adopt standards of good
governance.
Governance is defined as “the systems and processes concerned
with ensuring the overall direction, effectiveness, supervision and
accountability of an organisation”.
The voluntary and community sector in Sandwell is committed to
maintaining high standards of operation and service delivery, and to
achieving consistency of governance across the sector.
Key Principles of Good Governance
Board Leadership
Every organisation should be led and controlled by an effective Board of
trustees which collectively ensures delivery of its objects, sets its
strategic direction and upholds its values.
The Board in Control
The trustees as a Board should collectively be responsible and
accountable for ensuring and monitoring that the organisation is
performing well, is solvent, and complies with all its obligations.
The High Performance Board
The Board should have clear responsibilities and functions, and should
compose and organise itself to discharge them effectively.
Board Review and Renewal
The Board should periodically review its own and the organisation’s
effectiveness, and take any necessary steps to ensure that both continue
to work well.
Board Delegation
The Board should set out the functions of sub-committees, officers, the
chief executive, other staff and agents in clear delegated authorities, and
should monitor their performance.
Board and Trustee Integrity
The Board and individual trustees should act according to high ethical
standards, and ensure that conflicts of interest are properly dealt with.
Board Openness
The Board should be open, responsive and accountable to its users,
beneficiaries, members, partners and others with an interest in its work.
Financial Management
The Board should maintain informed and effective financial management
and review processes ensuring that resources are properly allocated and
managed.
The Code and Diversity
The national Governance hub has developed the Code of Governance
Toolkit incorporating standards and principles of good governance
ensuring equity, diversity and equality of treatment for all sections of the
community. This is fundamental to the work of all voluntary and
community sector organisations; rather than creating a separate
‘Equality’ section, the principle has been used to inform all sections of the
Code.
Sign up to the Code
By signing up to the Compact the VCS in Sandwell is expressing its
commitment to achieving standards of Good Governance demonstrating
their commitment to good practice in running their organisation.
The Governance Hub Standards contain four units
Unit 1:
Unit 2:
Unit 3:
Unit 4:
safeguarding and promoting the values and mission of the
voluntary and community sector.
determines the strategy and structure of voluntary and
community organisations.
ensures the voluntary or community organisation operates
in an effective, responsible and accountable manner.
ensures the effectiveness of the voluntary or community’s
board of trustees.
Each unit contains:
Elements of competence, Responsibility, Understanding, Information,
Qualities, Reading and understanding, Unit commentary
The Governance Hub Code covers issues of:
Leadership, Control, Performance, Review and Renewal, Openness,
Delegation, Integrity
* See separate Glossary of Terms