governance good practice guide

key governance documents and information

This glossary provides brief information on key governance documents and sources of information on governance.

If you wish to know more, check out the web links as appropriate.

Go to the glossary of acronyms

audit code of practice

The audit code of practice is about accountability and risk management, and mirrors similar codes for businesses and the private sector.

It is issued by the LSC and is the key document that identifies the mandatory audit arrangements for FE colleges, and summarises the audit arrangements for the LSC's principal funding of other types of provision.

The audit code of practice underpins the basis on which the audit committee is established, and identifies the operational agenda for the audit committee throughout the year.

It sets out the common standard all colleges and auditors are expected to follow, and is part of the complex funding and accountability framework of the FE college sector.

Download the audit code of practice (PDF)

Certificate in Further Education College Governance (ICSA)

www.fegovernance.org

This is an NVQ level 5 (2005 National Qualifications Framework) award for clerks. Currently delivered by CEL (Centre for Excellence in Leadership), it consists of three main units:

1. Legal Responsibilities and Statutory Powers
2. Procedures and Practices
3. Smooth and Efficient Running.

college's key policies and documents

The governing board is responsible for determining the character and mission and the future strategy of the college, and for the overall conduct and oversight of the college's business.

This involves the governing board in approving certain policies and in routinely monitoring the effectiveness of the college's key operational policies. The clerk has a key role to play in ensuring that this is done.

Examples of significant documents for the board to approve and/or monitor include:

• the strategic development plan
• budget and three-year financial forecast
• self-assessment report and quality improvement plan
• financial regulations
• human resources strategy
• health and safety policy
• equality of opportunity policy
• child protection policy
• curriculum strategy
• employer and learner engagement strategies
• property strategy
• quality improvement strategy
• whistle-blowing policy.

College's Charter for Students/Learners

The College's Charter for Students (or Learners) is the document that defines the relationship between the college and the individual learner.

It provides a detailed explanation of what learners can expect of the college – e.g. induction programme, student handbook, teaching and learning programmes, work experience, personal tutor, entitlements, welfare provision, help in progression, arrangements for involving learners in assessing the services they receive and the facilities they use, etc.

college self-assessment report and Quality Improvement Plan

Colleges are required to produce a self-assessment report (SAR) annually as part of the national arrangements for quality assuring post-compulsory learning and skills.

Colleges analyse and assess their provision against the requirements of the Common Inspection Framework (CIF). They identify their strengths and weaknesses, benchmark nationally and locally (using measures of success), allocate grades to their provision, and submit evidence to support their judgements.

Colleges analyse and monitor trends, and specify how they plan to build on their strengths and improve their weaknesses in a Quality Improvement Plan (QIP), which is integral to the SAR.

Clerks support governors in playing a significant role in quality assuring the college's provision, and in monitoring the SAR and quality improvement plan.

Governors should:

• self-assess the quality and effectiveness of their own performance as a governing board and as individuals
• monitor the quality of the college's performance and services through its self-assessment and Quality Improvement Plan.

The clerk has a key role to play in supporting governors in the fulfilment of these responsibilities and in facilitating their proactive involvement in self-assessment activities.

The SAR and Quality Improvement Plan are submitted annually to the LSC, and form part of the LSC's annual review of the college and the planning dialogue.

When external inspection is announced, the SAR and integral Quality Improvement Plan are used by the Ofsted/ALI inspectorate to help plan its inspection activities. They are also used by the local LSC for individual provider reviews and for area reviews.

The SAR and Quality Improvement Plan should not be seen as simply preparation for external review and inspection, but should be used as powerful business tools for continuous self-improvement. Current inspection arrangements put even greater emphasis on a provider's capacity to self-improve through effective self-assessment, and on its success in achieving ongoing improvements.

Download the 2007/08 financial management and governance: self-assessment report questionnaire for colleges (Word document)

Financial Memorandum

The Financial Memorandum (FM) sets out the terms and conditions under which the Learning and Skills Council (LSC) provides funds to colleges.

It is in two parts. Part one sets out the general conditions, which apply to all colleges. Part two is tailored to each college and contains the specific elements under which individual colleges draw down their funding from year to year.

The FM identifies, for example:

• the responsibilities of the LSC, the college governors, principal and clerk
• key accountability requirements, which cover the college's use of funds, including arrangements for financial statements, financial management and audit
• arrangements for payment of funds, and restrictions over land and building transactions, and borrowing and leasing
• criteria for assessing the college's financial health category, and rules about setting (surplus/deficit) budgets.

governing board's policies and procedures

These include:

• Standing Orders
• Terms of Reference
• Schemes of Delegation
• Code of Conduct.

The governing board initiates, approves, implements and monitors these, supported by the clerk. The role of the clerk includes briefing the board on when changes need to be made, incorporating changes in ways of working decided by the board, and drafting key documents.

While these internal rules and 'bye-laws' are subject to the provisions of the Instrument and Articles of Government, they are all developed in-house and provide the means by which the governing board establishes detailed rules concerning the governance and conduct of the college.

These documents should be reviewed annually.

Instrument and Articles of Government

The Instrument and Articles of Government (lAG) set out the rules and regulations regarding governance responsibilities. They are the all-important documents that provide the underpinning authority for the proper management of college business.

They ensure that the governing board acts lawfully.

The Instrument sets out the constitution and procedures of the governing board.

The Articles set out the internal powers, duties and responsibilities of the college.

They include detailed guidance on categories and numbers of board members, interests and eligibility for office, statutory committees (Audit, Search, Special), non-delegable duties, and procedures relating to recruitment, suspension and dismissal of staff and designated senior post holders.

The Instrument and Articles of Government are the clerk's 'bible': when there is any doubt about operating under the board's own Standing Orders, reference should always be made back to the IAG.

Download the Instrument and Articles of Government