www cipfa org CIPFAs new Governance Mark of

www. cipfa. org CIPFA’s new Governance Mark of Excellence Presentation to CIPFA NW Region 2 October 2014

www. cipfa. org Aim of this session To become familiar with the Mark of Excellence as a development tool to improve governance in public bodies

www. cipfa. org Presentation structure § § § Governance- top of the agenda CIPFA’s governance portfolio Excellent governance and assessment Benefits & pitfalls of accreditation Next steps

www. cipfa. org Governance – high on the agenda § § § Governance revolution Growth in public accountability Rising public expectations ‘Professionalisation’ of Boards Branding of failures

www. cipfa. org CIPFA – the place to go § Broad governance portfolio § Professional standing § Regional, national and international coverage § Captive market

www. cipfa. org What is excellent Governance? § Lots of generic governance guidance and standards Ø Ø § The Good Governance Standard for Public Bodies(2004) Corporate Governance in central government departments – code of good practice HMT (2011) ‘Essential Skills for Board Members’ CIPFA (2011) CIPFA/IFAC Standards (2014) Lots of specific governance guidance Ø Ø Ø Sectoral guidance e. g. higher education Codes of conduct Audit Committees Accounts Direction and Financial Memorandum ‘It takes two’ – PCF & Institute for Government

CIPFA/IFAC Principles www. cipfa. org

www. cipfa. org Principles of good governance (CIPFA/IFAC) § § § § Demonstrating strong commitment to integrity and ethical values Ensuring openness and comprehensive stakeholder engagement Defining outcomes in terms of economic, social and environmental benefits Determining the interventions necessary to optimize the achievement of intended outcomes Developing leadership capacity and capability Managing risk and performance through robust controls and strong PFM Implement good practice in transparency, reporting and audit, to deliver effective accountability

www. cipfa. org Can good governance be sensibly assessed? § Some basic principles: Ø Depth of assessment Ø Breadth of assessment Ø Objectivity of assessment § Best to be proactive rather than reactive

www. cipfa. org CIPFA’s new Governance Mark of Excellence Pre-assessment check – web-based self assessment to get on the starting grid In-depth assessment: Ø Desk research Ø Questionnaires Ø Interviews Ø Analysis, including professional judgement Ø Automated scoring of findings Ø Conclusions and reporting Ø Regular review

www. cipfa. org …. . but, beware potential pitfalls § Dynamic and fast-changing environment § Risky, not immune from weakness § Resource intensive? § Adding to bureaucracy…yet another return!

www. cipfa. org What is the incentive –why bother? § Lighter touch regulation/inspection § ‘Earned autonomy’ and more strategic freedom § External recognition § Demonstration of strong leadership § Credibility with stakeholders § Setting a standard for others

www. cipfa. org In summary § Demonstrating good governance is increasingly important § Good governance can be identified § Public bodies are increasingly becoming more proactive than reactive § Accreditation of good governance can move public bodies to a new level of assurance

www. cipfa. org Conclusion § Questions/further discussion § Thanks for attention, participation and feedback Feel free to follow me on Twitter @mungavin_steve