ICSA consultation Academy governance maturity matrix 1 May 30 June 2015 1
About ICSA ICSA is the membership and qualifying body for governance professionals, including company secretaries, working across the corporate and not-for-profit sectors. We understand the need for boards to be fully conversant with the governance principles that apply to companies, charities and public entities, including schools. We understand too the challenges involved in developing the right knowledge and standards of practice in governance professionals, trustees and volunteers. What does good academy school governance look like? The Academies Act 2010 has given many English schools the opportunity to change how they meet the needs of their children and raise achievement through greater freedom and independence. These new freedoms have inevitably brought new challenges and responsibilities too, including the good governance of individual schools and multi-academy trusts. Research commissioned by ICSA into academy governance found that: The governance maturity matrix academies are still in a transitional phase, struggling to transform their governance governance services used by academies are often pick and mix, based on pre-existing relationships and with variable results the emphasis tends to be on compliance without there being a real driver for improved governance standards that add value to the school and their pupils larger trusts have more access to governance support. Improving school governance improves the life chances of our children. Lord Nash, Schools Minister To assist academy schools navigate the governance arena, ICSA has developed a governance maturity matrix. The matrix highlights factors that would indicate an academy having fledgling governance arrangements to those leading good practice and being sought out as best in class. It is designed to supplement existing governance support. Those involved in academy governance can use the matrix to establish their current governance maturity and trace their governance progression against highlighted destinations in the next 12 18 months. What we want to know Taking feedback from people working with, and in, academy trusts on governance is an essential part of our development process. This consultation seeks to gather views from individuals and organisations by 30 June 2015. To take part please send us your views on the questions on page 4. As individual schools will be at different stages in their governance maturity, collectively and within each function, the document can be used in different ways: a basic self-assessment tool as part of a governance review discussion by the governing body or academy board as part of any peer (where part of a formal chain or working more informally with other schools), stakeholder (pupils, parents, sponsors etc) or benchmarking reviews of the school s governance arrangements. We welcome views from both individuals and organisations. To take part simply review the matrix and send us your views on the questions outlined on page 4 of this document. We would also welcome any further observations that you have about the governance challenges within academy trusts. 2 3
Academy school governance maturity matrix The table below provides summary indicators of an academy s governance maturity using effective governance drawing on criteria detailed in the Ofsted School Inspection Handbook 2015 1 and other established principles of good governance. The matrix enables self-assessment by an academy of its current governance standards and highlights criteria for improving. Governance function Compliant Progressing Established Mature Leading good practice Clarity of role and understanding of the governing body (academy trust board) 2 Basic understanding of the legal role of the governing body (academy trust board) and the difference between governance and management. Thorough and comprehensive induction for new governing body (academy trust board) members and agreed development programmes for experienced ones. Governance development programme clearly linked to achieving strategic priorities. Each year the governing body undertakes an appraisal of its effectiveness (as a collective, as individuals and as committees) and agrees areas for development which are fed into succession plans (including diversity and equality). All governing body (academy trust board) members are recognised as integral to the success of the school and that links in to improved pupil performance Role descriptions in place and up-to-date. Agreeing the academy s vision, ethos and strategy The governing body (academy trust board) sets and agrees the school s vision, ethos and strategy, supported by the senior leadership team. A corporate calendar is in place that supports the achievement, and monitoring, of strategy as determined by the governing body s (academy trust board s) annual strategy session. Governing body (academy trust board) papers are clearly aligned to report on each agreed strategic objective. The ethos and values of the school are displayed within each activity and staffing level of the school. Strategic priorities are met and intrinsically lead to improved pupil performance. Success demonstrable in the impact good governance has had on pupil achievement. Performance monitoring Governing body understands and recognises the role and importance of data in developing and monitoring strategic objectives. Key performance indicators, academic standards and organisational development plans are agreed in light of strategic objectives and monitored accordingly. Performance monitoring is aligned to academic, financial and organisational planning cycles and discussions on the school s vision, values and strategy. Performance (academic, financial, organisational) is benchmarked against schools of a similar size or operating in a comparative economic environment. The academy continues to be a sector leader. The governing body (academy trust board) has confidence in the quality and robustness of its data analysis and assurance across the school s activities. Quality data demonstrates an increase in educational attainment. Holding the leadership team to account Information provided to the governing body (academy trust board) is focused, relevant, timely and accurate enabling it to constructively challenge the senior leadership team. Terms of reference, schemes of delegation and matters reserved to the governing body (academy trust board) are agreed, written down and reviewed regularly. Governing body triangulates information to ensure it receives evidence-based assurance (as opposed to re-assurance). Individual governing body (academy trust board) members and senior leaders are recorded as contributing to all governing body (board) discussions, not just contributing to areas of specialist knowledge. Evidence-based decision making is in place for the governing body (academy trust board) and demonstrates robust, constructive challenge to senior leadership proposals. Financial probity and solvency Budget, costs and other financial targets are clearly articulated to the governing body (academy trust board). New proposals include the cost implications on existing budgets and agreed strategic objectives, including potential costs of not agreeing the proposal. The school can evidence value for money while increasing educational attainment. The governing body (academy trust board) has a good grip on financial matters, including pupil premiums, investments, reserves, costs. Financial surpluses/savings are identified and allocated to ongoing developments in academic attainment. Governing body (academy trust board) members understand their fiscal duties, including value for money and pupil premium responsibilities. Staff remuneration is sufficiently attractive to teaching talent without being unduly excessive. There is clear evidence of the school s financial sustainability available to stakeholders in annual reports/accounts and other communications. Risk management Known risks are identified and mitigated. The governing body (academy trust board) is familiar with top ten organisational risks. Risks (including to reputation), and contingency plans, are regularly reviewed to ensure they are appropriate and effective. Risk appetite is acknowledged as a governing body (academy trust board) matter and cascaded throughout the school s operations. Stress-testing of risk management processes are undertaken, reported and plans revised accordingly. Major risk incidents are met with the minimum of disruption to pupils and academic activities. Stakeholder engagement Decision making by the governing body (academy trust board) takes into account the views of stakeholders and the impact of the decision on them. Stakeholders are identified and prioritised with appropriate, agreed engagement plans in place that are effective in establishing two-way communication. There are regular opportunities for stakeholders to hold the governing body to account for their decisions and actions. The governing body provides feedback to stakeholders as to how their input has added value to the decision-making process, including where it has changed a proposed course of action. Stakeholders know who, and how, to contact the governing body (academy trust board) when raising governance concerns. The governing body (academy trust board) is widely respected within the school and its operating environment. Leadership The governing body (academy trust board), and its individual members, understand their leadership role and that of the head teacher and appreciates the difference. There is an appropriate succession plan in place for the governing body (academy trust board) and the senior leadership team linked to strategic objectives. The school seeks, and is sought out by, potential partners in recognition of its success in the educational environment. The governing body (academy trust board) are recognised as providing effective and inspiring leadership inside the school. Stakeholders recognise the value added by the governing body (academy trust board) in raising school standards. The governing body (academy trust board) demonstrates the values, ethos and culture of the school in all their formal activities. Transparency and accountability Stakeholders understand the role of the governing body (academy trust board) and the range of decisions they can take. The company secretary works with the chairman and senior leadership team to ensure that decisions are made in accordance with the law and the articles of association and recorded appropriately. Annual reports and accounts provide a full range of information in an accessible format. Other formal information of the success of pupils, and the school, can be easily found on the organisation s website. The governing body (academy trust board) invites relevant stakeholders to an annual meeting (or other formal event) to be held account for their actions and decisions. The governing body (academy trust board) welcomes questioning and constructive challenge by all stakeholders. The school s annual report and accounts are recognised for their enhanced disclosure in providing a full, and fair review of the school s performance, risk and future plans. Probity The governing body (academy trust board) is aware of, and adheres to, the Nolan Principles. The governing body (academy trust board) has its own code of conduct that links to legal duties and the specifics of the articles of association. A formal, agreed conflicts of interest and loyalty policy and procedure is in place between the school and its sponsor. The register of interests is updated regularly and is available to the public on the school s website. Conflict of interests matters are declared at the start of each meeting and managed in accordance with an agreed policy. The recording and reporting of conflicts are clearly articulated to stakeholders. Media attention given to conflicts of interest at the school have been dealt with quickly and professionally, with stakeholders assured that decisions have been taken in the interests of the pupils and the school. 1 2 4 www.gov.uk/government/uploads/system/uploads/attachment_data/file/391531/school_inspection_handbook.pdf, page 47. Within multi-academy trusts the main body responsible for the governance of each school will be the academy board with certain functions delegated to local governing bodies which operate as committees of the board. 5
Consultation questions Your response 1 Is 2 Do 3 Which 4 Do 5 Are 6 Does the proposed matrix likely to provide your governing body/ academy board with a helpful toolkit to assist in governance discussions and development? Please explain why, or why not. the ten governance functions reflect the most important aspects of the governing body/academy board? governance functions, if any, are missing? the statements describing each stage of governance maturity reflect the reality? If not, which should be amended and why? the governance maturity stages appropriate? the matrix adequately cover governance arrangements in both single and multi-academy trusts? If not, why? When responding, please provide details of whether you are responding as an individual or on behalf of an organisation and your interest in academy governance. Deadline for responses is 30 June 2015. Responses should be sent to: Academy governance maturity matrix consultation Policy Department ICSA 6 10 Saffron House Kirby Street London EC1N 8TS or by emailing policy@icsa.org.uk. If you have any questions please contact Sheila Doyle, Policy Manager at ICSA on 020 7612 7035. Copies of this consultation and ICSA s other academy governance resources can be found at www.icsa.org.uk/academies 7 Does the matrix reflect other academy good governance guidance? If not, what should be included in the final version? 8 What would make the matrix more valuable/useful to you and your governing body/academy board? 9 Are there any other comments you would like to make on the governance maturity matrix or academy governance in general? 6 7
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