State and Territory Reports

Working towards better governance for the National Sport of Dragon

BoatingWorkshop 2

What we will be doing today.

Quick recap of the 7 key responsibilities you have as Directors of your State or National bodies.Consider how to roll out policy to the best effect.Chat about membership modelsOpen discussion…..

Good GovernanceA ‘principle driven approach’ to bridging the gap between what ‘must’ be done, and what ‘should’ be done, for the good of the organisation and its owners.

Good Governance

Good Governance is pretty basic.If we apply common sense, it falls into place!

Let’s start with your questions?

IT WOULD BE GREAT IF……..

Good Governance outlines 7 MAJOR RESPONSIBILITIES OF A BOARD

Get the Structure right Ensure good Processes Set the Strategic Directions

Manage the activity(or CEO)

Monitor the Organisation

Report to theMembers & Stakeholders

Take responsibility for the Culture

1.Establishing the LEGAL and GOVERNANCE STRUCTURE

Membership Structure

Management structure

Governance & Board Structure

Management Committees

Volunteers

The Constitution should be an ‘enabling’ document!

The Constitution is the system of fundamental laws and principles that prescribes the nature, functions, and limits of your Association as laid down by the Registering body.Incorporating separates the individual person (member) from the entity and makes the group (body) a single entity with certain rights and legal protections as well as some additional obligations.

Other matters relating to day to day issues on how the Board operates, how the organisation functions and the policies are best separated and placed in a:• Board Charter, • Operations manual• Policy Manual.

1. Board Policies2. Operational Policies3. Sport Policies (Public documents posted on your web site.)Don’t panel beat it, replace it!

Reviewing the Board structure

A Governing Board in the eyes of the law is viewed as a legal person - but only one legal person, which means that it can only have one opinion at a time.Board Solidarity is critical.For this reason I support the ASC principles of no Council, non-voting (Independent, skilled based) Directors and no Executive Committee.

Skill based nomination process.Before a vacancy arises, proactive Boards are looking for potential candidates to fill those positions.They have conducted a skills audit, identified where the current skill sets lie and identified any gaps to match the work that is forecast for the coming year. They then approach people directly to invite them to nominate for the vacant positions.

The key Good Governance principles.

Members are the ‘owners’. What flows from this principle?• Equality of ownership- one member one vote.

Therefore, no proportional voting.

Let’s bust a major Myth!The State or National Association is the Controlling body. It has the POWER! In reality:

The owners have the power and they give Authority to the Board at both the State and National level.

2.ENSURING EFFECTIVE GOVERNANCE PROCESSES

Board Evaluation

Board Agenda

3 levels of policyBoard Solidarity

POLICY DEVELOPMENT- The big picture!AIM: To promote the effective implementation of National policies at all levels of the sport.

CHALLENGES• Getting the State Associations and clubs to take ownership of the

policies.• Ensuring that a contractual relationship exists between the

individual and the organisation so that jurisdiction can be established.

• Ensuring that the processes outlined in the policy have pre-eminence so that procedural fairness and natural justice is observed.

• Making sure that the policy is implemented and observed.• Having a system in place to monitor the process so the

organisation can be on the front foot if things go wrong.

THREE APPROACHES: DIRECT RELATIONSHIP

CONSTITUTIONAL ALIGNMENTPOLICY ADOPTION MODEL

INTERNATIONAL

NATIONAL

STATE

DISTRICT

club

2 Key issues to address are: Jurisdiction & Pre-eminence

1. Direct relationshipwhere individuals are

recognised as members of the NSO

2. Constitutional alignmentWhere each entity recognises

the other

3. Policy adoption model.(A Belt & Braces approach.)

Contractual relationship exists.

Local implementation, support and enforcement of the policy.

Acceptance by individuals to be bound by the clubs policies.

Member Protection Policy checklist

A key aspect of the prevention of discrimination, harassment and child abuse is the development and promotion of a written policy that makes it clear that these behaviours will not be tolerated under any circumstances.

Fundamental features of a policy to address the above issues include:

• Endorsement message/statement from the President and/or Chief Executive Officer• Statement on organisation’s attitude and objectives regarding discrimination, harassment and child abuse.• Statement that discrimination and harassment on any grounds listed in anti-discrimination legislation are against the law• Statement that child abuse is a criminal offence• Clearly worded definitions and examples of behaviour (types of harassment, discrimination and child abuse)• Description of who the policy applies to• Organisational and individual responsibilities for ensuring harassment, discrimination and child abuse does not occur within

the organisation• Where/how to get help if the above does occur• User-friendly complaints procedure• Commitment to prompt action when a complaint/allegation is made• Commitment to confidentiality• Appeals system• Standard of behaviour required by organisation (codes of conduct)• What a breach of the policy is• Likely consequences that can be imposed if the policy is breached.• Reporting requirements, if any.

The policy should be written in easy to understand language, be easily accessible and be communicated to all members and others to whom the policy applies.

The policy must comply with the requirements of the organisation’s constitution, By-laws, Memorandum and Articles of Association and/or other existing policies, rules and procedures.

Risk Management

What direction is your NSO heading?

• Question: Is there a risk of duplicating effort by not adopting National policies and programs?

BOARD BUDDIESOne of the biggest complaints made against peak bodies by the members is that they are not consulted, and not informed about what is happening.

Consensus decision making

The majority of decision making at a Board or Committee meeting can be addressed by the Chair adopting a consensus model.The Board resolved to…Where the implications of a particular decision have the potential to make a significant impact on the viability of the Association, a poll may be called and voting recorded accordingly.

Annual Board Calendar

This would cover topics such as:• A schedule to review all policies • Financial reporting schedules • Board performance review • Chief executive officer performance appraisal process • Annual review of the organisation’s strategy • Preparation for the annual general meeting • Any changes to personnel on the board or in key management roles • Consultation with key stakeholders • Meeting the external auditor • Signing off on the annual report • Key events such as national championships • Other matters as required.

Running a SEE meeting

If you run a Short, Effective and Enjoyable meeting you are more likely to encourage people to switch off their phones and switch onto the meeting agenda!

Set up your sub committees for success!People sit on your committee with a variety of responsibilities. The aim is to get them to do their work outside the actual meeting and bring their findings to the meeting (not debate them when they arrive!)A well structured Committee can deal with the issues more effectively and efficiently.Papers presented are either:• for Approval (which means there is a recommendation) , • for Discussion (alerting to an issue or seeking guidance), • an Update (which is for information only.) For this to work, the sub committees must have terms of reference and delegations, which clearly outlines the extent of any decision making authority they may have.

Committee Report____________ Cover Sheet: Date______

Area:_____________________________Approval Discussion UpdateOverview:

Recommendation:

Attachments: Yes ______________No Signed:____________Outcome:_______________________________

Reports are not read out!Reports are sent/brought to the meeting with the action cover sheet. They report against progress, not activity!

Cater for people to participate in your meeting via Telecommunications.

• Ensure your Constitution, Board Charter and Committee Terms of Reference allow for meetings via telecommunications.

• Invite people to participate via phone for all or part of the Board or Committee meetings.

• Keep a record of the meeting!

3. Setting the strategic direction of the Association.

What’s in a name?• STRATEGIC PLAN• DEVELOPMENT PLAN• ORGANISATIONAL PLAN• OPERATIONAL PLAN• BUSINESS PLAN

• IS IT A SMART PLAN?

S.M.A.R.T Planning

• S- Specific• M- Measurable• A- Achievable• R- Realistic• T- Time linked

We aim to be the NationalChampions by 2014.

Currently ranked 7th.

4. Managing the work of the Organisation

Providing guidance to the Volunteers or Committees

Performance Review

Associations tend to attract two categories of volunteers:

Core Volunteers who are welded onto the organisation and can be relied on to be there year in and year out.

Peripheral Volunteers who come and go.

You need to treat each group differently.

Recognition of service over a number of years is irrelevant to peripheral volunteers. Give them a sausage sandwich and a thank you and they are probably good to go!

Core Volunteers value the recognition of ‘service over time’ and are the ones you look to recognise with awards and other forms of acknowledgement of their contribution.

KNOW YOUR AUDIENCE

Traditionalists

Born between 1927 and 1945, Traditionalists, also called the (Silent Generation) are in their 60s, 70s and 80s. They are loyal, respect authority, Tech challenged and have traditional values.

Baby Boomers

Born between 1946 and 1964, Baby Boomers are predominately in their 40s and 50s. They are well-established in their careers and hold positions of power and authority. They are independent, confident, goal orientated and competitive.

Generation X

Members of Generation X are largely in their 30’s and early 40’s. On the whole, they are more ethnically diverse and better educated than the Baby Boomers. They are individualistic, Tech Savvy, flexible and value their work/life balance.

Generation Y

Generation Y, birth dates range from the mid-1970 to 2000. They are in their late teens to twenty something.They crave attention, are team orientated and are achievement orientated.

5. CHECKING FINANCE, COMPLIANCE and RISK

Board Reports

Financial literacy

BUCKET BUDGETING

Fixed Income Fixed ExpenditureCash Reserves 10%

Fees, Grants, Sponsorship, Interest Rent, Ground Hire, Wages, Insurance, Affiliations

Net result + or - =$ (X)

Variable Income(Speculative)

Variable Expenditure(Discretionary)

Tied moneyDiscretionary Vs Non discretionary

Sponsorship, Grants, sales, etc Equipment, Trips, capital expenditure

Which bucket is this coming out of and do we have the money in the bank?

AUDIT AND RISK COMMITTEE

The role of an Audit and Risk Committee varies, but is typically to monitor and review, on behalf of the Board, the effectiveness of the control environment in relation to nominated functions which may include:• financial reporting, • legal/regulatory compliance, • fraud prevention and • risk management. The Committee is also responsible for review of performance and nomination of the external auditors.

The Finance report is explained and questions are encouraged.

• Tell the story and let the numbers prove it.

• A picture paints a thousand words, so use graphics if you can.

• The role of Treasurer is an ‘additional responsibility’ not a ‘sole responsibility’!

FRAUD It can happen to your Association!

Your Association is vulnerable to fraud for at least three reasons:

The person responsible for collecting and disbursing funds is likely to be the individual who provides the financial reports.

Associations tend to raise much of their funds in cash. Cash is more easily misappropriated than any other type of transaction.

Small non- profits are run by trusting and committed individuals. Sadly these individuals tend to be too trusting.

6. REPORTING TO THE BOARD, MEMBERS and STAKEHOLDERS

Annual Report & Audited Financials

The typical Annual Report will include:• Chairman’s statement • CEO’s statement (review of operations) • Description of the organisation’s purpose, vision, values,

services and programs and who’s who in the organisation • A copy of the audited account (funding and financial

overview - the story behind the numbers) • A corporate governance statement • A description of the major achievements during the past

year

7. Managing the Culture of your Board

Ideal Board

• Displays Leadership, Integrity & Good Judgement.

• They use these three attributes to ensure more effective decision making.

• They ensure the Association demonstrates transparency, accountability and responsibility.

Any questions?

Thank You!Paul GroganManaging DirectorMDO Consultingwww.mdoconsulting.com.au

M- 04 67 63 23 03

LUNCH!