governance good practice guide

the governing board

Incorporated organisations (including colleges) are a legal entity in their own right. Governing boards may hold and sell property, establish subsidiary companies, enter into contracts, employ staff, hold assets and manage investments. All these activities fall within appropriate legal frameworks – e.g. employment law, charity and company law, health and safety law.

FE colleges were incorporated with a clear public purpose and must seek permission from the Learning and Skills Council (LSC) for some assignments because they receive government funding and must account for the use of public money.

In addition, governing boards must meet additional sector legislation and regulation – e.g. child protection.

The primary roles of further education governing boards are to:

• determine the direction of the college
• set the policy framework for the college
• monitor the performance of the college and its principal
• maintain financial health and protect the college's assets
• provide accountability.

In general terms, the governing board is responsible for strategy, direction and policy, while the principal makes proposals, and implements governing board strategies and policies. The distinction between management and governance should, therefore, be clear.

However, a governing board will decide how much detailed information on operational matters it needs in order to make decisions, by assessing how the college is performing.

Governing boards operate within a model of collective decision-making: only a quorate meeting may decide an issue and – while they can record their views – dissenting members must adhere to the decision of the majority. Postal votes and mandates are not permitted.

Some duties may be delegated – either to committees or to the principal – while other duties are non-delegable.

responsibilities under the statutory regulations

The governing board oversees:

• determination of educational character and ethos
• articulation of vision, values and strategic direction
• the quality strategy for the institution
• effective and efficient use of resources
• safeguarding of assets
• approval of annual estimates of income and expenditure
• appointment, grading, suspension, dismissal, appraisal and determination of pay and conditions of the principal, designated senior post holders and the clerk
• setting the framework for pay and conditions of service of all other staff
• setting the framework for tuition and other fees
• financial probity.

The principal is responsible for:

• making proposals to the governing board about the educational character and mission
• implementing policies and decisions
• day-to-day organisation and management of the college
• leadership of staff
• appointment and management of staff within the framework set by the governing board
• determining all college academic and other activities
• being the principal accounting officer, accountable to the governing board and, ultimately, to Parliament.

The clerk is responsible for:

• advising on the operation of the powers of the governing board
• advising on procedural matters
• advising on the conduct of business at meetings
• advising on good governance practice.

Governing boards organise themselves in a number of different ways in carrying out their duties and responsibilities. They establish their own internal rules and procedures, known as Standing Orders. These determine how business is conducted and vary from college to college.

They might include rules covering:

• membership
• quorum
• holding and organisation of meetings
• appointment of the chair/vice chair
• procedure for drawing up the agenda
• work of committees or task groups
• how members should behave at meetings.

Standing Orders must adhere to the Instrument and Articles of Government (I&A) and other regulations. When there is any doubt, reference must be made back to the primary regulation.

Go to the section on the distinctions between governance and management

Go to the section on clarity of vision and roles

Go to the section on models of governance