CSO Development Effectiveness Working Group WORKING GROUP MEETING

CSO Development Effectiveness Working Group WORKING GROUP MEETING April 24 2013 Introduction to the Transparency and Good Governance Tool 1

Content 1. Why and how was it developed? 2. Who developed this? 3. What is in? 4. How is it applied? 5. What have we learned? 6. What is next? 2

1. Why and how was it developed? Why? • Code of Conduct is positive but not enough. • Society was asking for it. Potential crisis of confidence and public trust. External pressure and increasing expectations from the public. • Increasing questioning of the other certification schemes 3

Objetives of the Herramienta • Continuous improvement approach: helps NGO to continually improve and grow in their organizational development in transparency and good governance. • Internal accountability: the Coordinadora has an objective tool to evaluate the level of transparency and good governance of the member organizations. • External accountability: the public report can be used as a mechanism of accountability to society at large. 4

How? Jun 05: Agreement on intensifying the Coodinadora’s work on T & GG. NGO directors’ meeting Sep 06: Agreement on what we wanted. Working Group issues recommendations at the First NGO biannual meeting. – Verifiable standards & certification scheme – Small but comprehensive set of indicators – Indicators must be objective, not subject to interpretation – Highly credible > evaluated by external and independent agent – Avoid rankings 5

2006 -08. Internal discussion indicators and final agreement over the structure and March 09 Approval by the General Assembly 2009 Negotiation and agreement with auditors from ICJC - agreement on the particular Process of revision of agreed procedures adhoc for the Herramienta - adaptation of some indicators in consequence - clarification on the role of the auditors vs. that of the Coodinadora March 2010 Final version approved by the General Assembly 6

2009 and 2010 Volunteer self-evaluation (16 NGO evaluated) 2011 Volunteer evaluation with auditor (9 NGO) From 2012 Compulsory evaluation with auditor (53 NGO) 7

Results in 2012 ejercise • Participation: – 60% of the NGOs presented their auditor report of 2012 to the Coordinadora : Of 91 members: 53 YES, 33 NO, 5 did not have to. – NGOs of all sides represented among those that have applied – Reasons for not applying mainly financial • Results: – More than 80% of NGO succeed in all the dimensions. – Of the remaining 20%, half did well in 9 out of the 10 dimensions. – The success is slightly higher in TR than in GG 8

2. Who developed this? 1. Coordinadora 2. Auditors 3. NGO members 9

2. Who developed this? Coordinadora: host the initiative, manages and serves as secretariat • Secretariat: receive, review conformity, compile and register audit reports from NGO; analyses results and issue letter on compliance; elaborates consolidated report; external and internal diffusion of information • Working Group (WG): formed by representatives from member NGOs of different sides. Main actor in the development of the Herramienta. • Board: Oversees the progress of the initiative. Sets the strategic action framework. Approves proposals from the WG. When appropriate, the Board could command apply the agreed and corresponding sanctions. • Commission for the Code of Conduct: get involved when the Board asks for it to contact the NGO that have not applied or have failed to accomplish several dimension recurrently. Emits recommendation to the Board on the contravention of the agreement of the general Assembly • General Assembly: approves the initiative and compliance mechanism 10

Auditors Third independent impartial party in charge of assessing and verifying compliance of participating organisations against the common set of objectively verifiable indicators agreed. • ICJC representative organization of the auditing profession. Equivalent to the CNCC (Compagnie Nationale des Commisaries aux Comptes) in France, or the ACCA (Association of Chartered Certified Accountants) in the UK It is the body that negotiated with Coordinadora and developed the process of agreed procedures. • REA and CEA – the two other major bodies for professional accountants in Spain that later suscribed the process 11

3. What is in? • 2 Areas: Transparency and Good Governance • 10 Dimensions: 4 in TR and 6 in GG • 71 objectively verifiable indicators: 25 in TR and 46 in GG. Each indicator has: – Source of verification – Relevance (compulsory or important) – Value (between 5 and 30) • Evaluation system: minimum of 70 point out of 100 to fulfill each dimension + all of compulsory indicators. 12

TRANSPARENCY • Principles /thematic. Nºareas GOOD GOVERNANCE ind. Nº Ind. 1. Governance structures 4 1. Governance structures 9 2. Mission, vision and values 5 2. Mission, vision and values 7 3. Constituency and social support 6 3. Planning and evaluation 8 4. Planning and accountability 10 4. Financial management 9 5. Human Resources 7 6. Local partners and interest groups 6 25 13 46

Example Dimension 5: Human Resources Nº Indicator Aim BG 5. 1 The NGO has a policy approved by its board, with criteria on salaries, compensation and social benefits that is public and accessible for its workers BG 5. 2 Source of Verification Value Importance To have a set of criteria that is objective and known Policy document with criteria and the by the persons involved board minutes record stating its approval 15 Compulsory The NGO has a policy approved by its board that regulates the selection and hiring process of workers that is internally known To have a set of criteria that is objective and known Policy for seletion and the board minutes by the persons involved record stating its approval 15 Relevant BG 5. 3 All the HHRR policies expressly state that the NGO will avoid discrimination. To guarantee there in not discrimination to start HHRR policies and maintain a collaboration relation with the NGO 10 Relevant BG 5. 4 There is a list of job profiles and a job description for each post at the To guarantee that the workers know its functions NGO and responsibilities List of profiles and job description 15 Relevant BG 5. 5 The NGO fosters the training and continuous professional development of its team To develop and improve the capacities of the NGO team Budget line for training and list of trainings 15 made Relevant BG 5. 6 The NGO has a procedure to sign with all its volunteers as a compromise that expresses their rights and the content of their functions, activities and time The relation between the NGO and its volunteers is Procedure and Memorandum of formalized and expresses rights and duties of each understanding model part and the mutual compromise assumed 15 Relevant BG 5. 7 The NGO has an assurance for its volunteers according to the Volunteer Law To fulfill the Volunteer Law and cover potential risks Assurance polizi 15 Compulsory Total value 100 14

4. How is it applied? • Initiative - NGO • Verification: - Auditor – Form: Evidence base – Frequency: depending on compliance, yearly or every 3 years. New members have 2 years to aply • Reporting - Coordinadora – Detail: at the level of dimension not indicators – Frequency: yearly – Publication of reports: The Coordinadora publishes the letters that emit to the NGOs that have applied the Herramienta. – Seal • Sanctions - Coordinadora – For no presentation of results – For no compliance with all the dimensions 15

5. What have we learned? • Slow and flexible process: need to respect and accommodate to the rhythms of very different members; long negotiations among members and with auditors; time needed to sensitize and facilitate the coming on board and allow members to see themselves in the tool ; flexibility to allow the organic learning process to unfold. • Gradual and continuous process: need to update; tackle resistance about sensitive issues and fears for excess of standardization. • Good balance of different needs: certification scheme and compliance based tool vs. enabling tool for continual improvement; simplicity vs. comprehensive • Need to offer room for improvement to all NGO • Build a common language • Strong leadership and need for funding for backbone organization 16

6. What is next? In the short term: • • • The objective for 2013: all the members have applied The Coordinadora itself will probably apply it in 2013 Guarantee the necessary funding to assure its sustainability Obtain recognition from the public Explore synergies with AECID and other donors accreditation processes. • Compare and benchmark it with similar mechanisms and processes in other countries. • Study incorporation of impact assessment criteria 17

In the medium/long term (ways forward): • Continuous update: possible changes and improvements in the dimensions and criteria • Explore feasibility and convenience of applying the audit of processes instead of revision of agreed procedures (or other approaches for assurance mechanisms) 18

For more information http: //webtransparencia. coordinadoraongd. org Focal Point: Elena Mendez transparencia@coordinadoraongd. org 19