Code of practise
controlled balamce of power |
Working procedures specified and adheared to |
fowllowibng of procedures can be verified |
proper division of responsibility |
due regard is paid to the wider public interest. |
Corporate Governance code
UK Corporate governance code.
reponsibility of the board for corporate governance |
companies must report how they have used the principles of the code |
confirm they have complied with it |
and explain why the have not |
statement of compliance should be reviewed by auditors before publication.
Financial Reporting Council 2016
code of principles
Leadership |
effectivnes |
accountability |
remuneration |
relationships with stakeholder |
Financial Reporting Council |
2016 |
Good governance standard for the public services, (2004)
this code set out looks at the public services ensuring that the organisations are achieving what they are meant to do as well as the aims and objectives set out by the organisation in regards to the public and is ethical, Effective and Efficient.
Corporate Goverance
corporate governance is the structure put in place to ensure companies are clear about are their accountability to the public and are making sure that they are responsible for actions used by the companies. |
Solomon (2010) defines corporate governance as " the system of checks and balances, both internal and external to companies, which ensure that companies discharge their accountability to all their stakeholders and act in a socially responsible way in all areas of their business activity".
Clear process which involves:
Decision making. |
strategic alignment. |
management control |
supervision |
accountability. |
NHS Wales Audit Committee Handbook (June 2012).
"A focus on the key purpose of the organisation to deliver safe and effective
services and to meet the broad range of stakeholder needs;
• Internal control matters;
• The maintenance of proper accounting records; and
• Reviewing the overall assurance mechanism of the organisation, both clinical
and non-clinical.
There are two key areas on which the Audit Committee should provide assurance to
the Board:
• On the organisation’s assurance system; and
• On the public disclosure statements that flow from the assurance processes,
including the Annual Governance Statement3 and the Annual Quality
Statement
The system of assurance is appropriate for the organisation;
• Processes to seek and provide assurance are robust and relevant;
• The controls in place are sound and complete;
• Assurances are reliable and of good quality; and
• Assurances are based on reliable, accurate and timely information and data" |
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10 principle of good governance.
Governing body in plance for key descisions |
Financial bhealth of organisation overseen |
role and resposnsibilities of governing body, comettie and senior management overseen. |
competencies of aabvove reveiwed regulary |
Statigic plans in placce |
coporate plans and finacial stragy in place |
oportunities and risk recognised, assed and manged |
information is reliable, relavent and timely |
Effective communication |
Clear structure |
Nolan priciples
selflesnes |
integrity |
objectivity |
Accountability |
openess |
Honesty |
Leadership |
3'Es 5'cs
Economic, Eviromental and Efficeint |
Challange , Consult, compare, compete and collabouration |
Value for money |
Best value |
Coombs and Jenkins (2002)
value for money example
Police equipped with body-worn cameras receive 93% fewer complaints from the public, according to a new study that suggests the technology helps to cool down potentially volatile encounters. the Guardian Galye 2016
the Cadbury report 1992
System for direction and control. |
shareholders appoint directors and auditors for company, and ensure they are satisfied. |
Financial Reporting Council (FRC)
London Stock Exchange 1 December 1992
the role of the board of directors
setting stategic aims |
leadership to achieve aims |
supervising management |
reporting to share holders |
board are subject to laws and regulations.
responsible to share holders in general meeting.
performance management
financial planning and budgeting |
project planning |
people management |
risk management |
management process supported by IT improve management strategy and decision making within the organisation to achieve this they have to take into consideration defining startigic objectives measuring performance/ analyzing performance reporting and reviews as well as aligning people and culture.
difficulties of preformance management
wide range of objectives and stakeholders |
conflicting aims and objectives of stakeholders |
what should be measured |
not purely a financial exercise |
increasing priority to quality and customer satisfication |
what is good performance, cost reduction, quality enhancement, or both |
who is it intended for. |
best done in partnership or regulation |
how to provide a meaningful picture of overall performance- without data overload. |
how to include scope and comparison for improvement. |
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CFO
"The CFO in a public service organisation is a key member of the Leadership Team, helping it to develop and implement strategy and to resource and deliver the organisation’s strategic objectives sustainably and in the public interest" |
"The CFO in a public service organisation must be actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and alignment with the organisation’s overall financial strategy" |
"The CFO in a public service organisation must lead the promotion and delivery by the whole organisation of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently, and effectively." |
"The CFO in a public service organisation must lead and direct a finance function that is resourced to be fit for purpose." |
"The CFO in a public service organisation must be professionally qualified and suitably experienced" |
accountability
Accountability means ensuring that officials in public, private and voluntary sector organisations are answerable for their actions and that there is redress when duties and commitments are not met.
CFO
"The CFO occupies a critical position in any organisation, holding the financial reins of the business and ensuring that resources are used wisely to secure positive results. While the global financial crisis and economic downturn
have made these tasks even more challenging, they have also underlined the fundamental importance of the role. Achieving value for money and securing
stewardship are key components of the CFO’s role in public service organisations, a duty enshrined in legislation for the CFO in local government. In order to support CFOs in the fulfilment of their duties
and to ensure that local authorities have access to effective financial advice at the highest level, CIPFA is introducing a ‘comply or explain’ requirement in the annual statement of accounts." |
the good governance standard for public services.
Focusing on organisations purpose and outcomes for public |
clear defined functions and roles being capable carried out. |
Developing capacity and capability of governing body. |
promoting values and demonstrating good governance to the company through how there achievements. |
having transparent and informed decision making and managing risk. |
interaction with the stakeholders as well as showing the accountability. |
Audit committee
integrity of financial statements |
review financial controls |
review risk management systems |
monitor and review the effectiveness of internal audit function |
make external audit recommendations. |
review and monitor external auditers independence |
aloows staff to make there concerns heard about the financial functions and reports. |
NHS Wales Audit Committee Handbook (June 2012). |
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