DIAKONIALake Victoria Rights Programme

Training for Board members from Partner organizations on

Governance and Accountability25th to 27th January 2012

Denis Obita Kay Heights LtdUganda, KampalaTe: +256 77 4 884 859Email: denisobita@yahoo.com

Background:

Diakonia is implementing the Lake Victoria Rights Programme through partners in the Lake Victoria region of Uganda, Kenya and Tanzania. Key partners of this programme are faith based organizations (FBOs). The purpose of this training was to train the Board and senior management on governance and accountability. In 2010, the team had training on Governance; this training was therefore a second phase specifically on accountability towards the overall goal.

Training Goal: The overall goal of the training is to enhance programme/project implementation through accountability and good governance.

For this training specifically, the goal is to improve programme implementation through accountability

Participating organizations

1. C.O.U –PDR2. ADS3. ELCT4. BAKWATA5. WRCCS6. DIAKONIA

The training specific objectives include:

1. To improve understanding and appreciation of the participants of accountability in programme work, especially in civil society work.

2. To improve participants understanding and appreciation of accountability to improve functionality and responsible management.

To note

Expected output.

Improved understanding of accountability. (concepts and practices)

A clearly developed action plan for all participating FBOs with short term benchmarks on accountability plans and appraisal.

Simple M & E tools with which policy managers can improve and ensure improved

Outline of first presentation

Understanding of what is a Board The duties and role of the non-profit board Code of conduct principles Board recruitment and orientation Board appraisalThe duties/Responsibilities and role of the

non-profit boardIntroduction: Definition of key concepts

A Board is a group of external people with the collective authority/responsibility to control and oversee an institution that is usually administered by a qualified executive and staff

They collaborate to provide technical, managerial, and financial support to an organization.

A board is required by law when starting a company or an organization

Governance refers to the body of principles that define an entity’s goals, objectives and policies. It is also used to refer to the collection of individuals assigned this responsibility

Role of the board

1. Governance role2. Support role While board members should and do act as supporters

and builders, they also play a role as questioners and monitors of the organization. The board must stand outside the organization and hold it accountable to the public interest.

Both these roles are critical for effective work by nonprofit organizations.

The two roles of support and governance encompass different tasks.

As support role , board members strive to ensure the success of the organization. Boards raise money, bring contacts and clout to the organization, provide additional skills and act as ambassadors of the organization in addition to playing a key medium role

between the organization and the community. The

governance role, Governance responsibilities for boards include recruiting top executive (the Chief Executive Officer) and assessing his or her performance, reviewing and authorizing plans and commitments, ensuring compliance with legal and contract

Day I (25th Jan 2012

Key Tasks of the Board include;

A board is the bridge between an organization and the society it operates in.

Task 1: Determining the organization's vision, mission and policies

Ensure that all stakeholders know and understand the organization's reason for existence

Ensure that the organization has a current statement of what it is, what it represents, what it does and how things should be done, core values.

The board should periodically review these for adequacy, accuracy, relevance and validity

Task 2: Determining and monitoring the organization's programs and services

Ensure that current and proposed programs and services are in line with the organization's purpose and available resources.

Prioritize and select best options in view of the limited resources.

Monitor and oversee by ensuring quality and cost effectiveness in the programs and services and allow staff to conduct and manage these programs and services.

Task 3: Ensuring effective organizational planning Extensive involvement in the strategic planning process as

well as monitoring and evaluation. Strategic plans may include; Vision and mission, strategic objectives, about the future, staffing strategies, financial projections, fund raising plans, etc

Task 4: Recruiting Key Management staff This responsibility has the greatest effect on the

organization's development and effectiveness Task 5: Ensuring adequate resources

An organization is only effective if it has resources to meet its purpose. Providing resources is the board’s main responsibility

It determines what is possible to achieve within the available resources and its best use.

Task 6: Effectively manage organizational finances It protects accumulated assets of the organization by

controlling income and expenditure It exercises this responsibility by approving a monitoring of

an annual budget It therefore, requires clear, accurate and regular financial

reportsTask 7: Serve as a Court of Appeal

It resolves disputes regarding staff in case the Executive`s judgment is challenged

Approval of policies and procedures that are communicated to staff and hence minimizing the need for the board to intervene on personal issues

Task 8: Enhance the organization's public image It is a link between the organization and its external

environment Ensure clear publicized achievements, and contributions to

community Task 9: Fundraising and income generation

Only with the support of a positive public image and productive staff, are board members able to carry out the task of fundraising and income generation

Task 10: Accountability Review organization structure and processes;

Salient Principals of BoardOver and above the board’s job, individual board members are expected to meet high standards of personal conduct controlled by the following principles

Voluntarism-service beyond oneself or willingness to contribute time and effort without pay

Due diligence -duty to act with caution and diligence as well as providing full participation at board meetings; Avoiding prejudiced judgments resulting from rumors, Insisting that grievances are formally dealt with, Avoid becoming over familiar with staff, Never asking for favors or information from staff without prior consultation from the Executive

Obedience to Law : Ensuring that the organization operates in keeping with the laws of the Land including statutory law, organization's constitution, memorandum and articles of association

Loyalty : A board member is always under obligation to act in good faith and in the best interests of the organization, and protect its integrity

Declaration of Interests : Conflict of interest occurs when a board member

Report on organization activities and plans and provide explanations for its actions to the AGM.

To note:

Duration of service for board members:

It is determined by the organization's constitution. However, a two year term be the minimum and a three year term the maximum

Board Recruitment There are two basic methods of planning your

recruitment; program-non-targeted (advertised) and targeted (head hunting). The targeted approach is recommended for board recruitment

This is because one is looking to fill an important volunteer position, which requires that a person have particular skills, experiences, aptitudes, attitude and interest.

Board members are appointed to meet a statutory requirement and fill skill gaps and support institutional development

Board members are either appointed by the general assembly or a nominating

Effective Boards should;

Evaluate itself: An effective board regularly assesses its performance and effectiveness as a whole and this process is guided by a clearly defined assessment criteria. Evaluate organizational performance : Effective boards are aware that they have the to assess the overall performance of the organizationCommunicate : Effective boards communicate the organization’s vision, mission and objectives to all the relevant stakeholdersProvide strategic direction: Effective boards are aware that they have the responsibility for the long term strategic direction of the organization, whereas the management team is responsible for operations. Identify the stakeholders: Effective boards have a clear understanding of who the stakeholders and target clients are. Formulate policies and provide direction : Effective boards are at the centre of determining the key challenges and opportunities that the organization should respond to.Shaping and maintaining norms: The Board is aware that the image, credibility and reputation of the organisation is

Board Appraisal Note:

Conducting a Board Appraisal Exercise

- The following are key steps in appraising Board (at any level of responsibility)

- Review; selection kits for Board, Responsibilities, organization strategy and Board annual plans among others

- Develop appraisal tools using agreed criteria's

- Review their performances against those set

Day One Recap

Training was greatTime well kept even when the sessions started lateImproved knowledge on roles/functions and tasksImportance of board self appraisalInclude more team work

Finish session earlier so they can move in Jinja town

Day II (26th Jan 2012)

What the Board should know

What will your organization’s funding look like in 5 years?

Are the people on Board adding value to the organization?

Do you know how to identify donors? What results are expected at the end of

year, 5 years etc? How often should you meet as a Board? Are salaries available for one year? The board is the captain of the ship. When to exit.

High light of the session;

- Understanding the role of board and management- Resource mobilization- In a Board Room.- Understanding Accountability

A)What does the board do?

B: What does Management do?

C: Thoughts on the board

What you should consider discussing with your board 1. Current funding situation of your organization2. Donor identification3. Ensuing accountability at multiple levels4. Funding policies for your organization5. Complimentary resource mobilization strategy

Key principles of Governance

Transparency (openness) Accountability Stewardship Internal control Representation

What Management should know

What will your organization’s funding look like in 5 years?

What is the tone and standard of accountability of the organization?

The community is the ultimate owner of the projects.

If information is hidden it leaves the organization ‘naked’ in front of an external evaluator.

The number of complaints from Jan- Dec and what has been done about them

Questions

Were you part of formulating the mission?

Do you involve Managers/Board in the vision and mission?

Do you know how resources came into the organization?

How much accountability is too much? How is the community involved in accountability?

Are there structures that support accountability?

Who is the community?

Global Funding environment

Emphasis is on pooled funds from different funders. Encourages NGOs to come together, do projects together or

supportive projects. Result oriented not activity based. Taking money closer to the people.

Positioning of Faith Based Organizations

Strong networks because of the pastoral development work but low profiles and an assumed funding base.

Tendency to remain with historic, safe donors and continuing to do the same things the same way all the time. This is without putting into consideration the global donor funding changes and challenges.

Beginning to form new partners

To note:

What does your current donor stand for?

What are the fundraising policies of your organization?

What are the significant gaps to avoid funding crises?

In the Board Room

1. Effective Leadership2. Boardroom engagement.

Effective Leadership

A family depends on the father and or Mother as the engine for living and thriving identity and prosperity. This in turn produces the Human capital (educated individuals) needed in a community and nation for development. Example Bishops, Teachers, Doctors Accountants, Engineers, Development Practitioners e.t.c are all products of a well functioning family and institutions.

Likewise, a nation depends on institutions as engines for generating wealth, innovation, prosperity, providing services among others.

Just like a well groomed/governed family produces the various professionals mentioned above, well governed institutions provide for thriving economies leading to social and political advantages to people.

Governance is the art of exercising power and decision making for the well being of a group of people.

A Board is a group of people officially administering or supervising an enterprise, entity or body.

Like Aristotle once said “it is better for a city to be governed by a good leader than good laws”.Therefore a member of a board is a strategic asset to

the board and organization who:

Brings in ideas, connections/networks and support to enhance performance of an entity.

Enhances decision making by infusion of knowledge, analysis and constructive engagement mentality.

Effective Boardroom engagement1. Know The Boardroom

It is critical to know the issues your organization is grappling with and come prepared to engage. You will know the issues by reading the papers presented in advance

Know the individuals on the board, why they are on the board and the skills & experience they bring to the board.

Be constructively engaged. Come ready to receive and transmit information, ideas, understanding and knowledge.

Listen to one another, share your thoughts, ask questions genuinely and integrate answers into the deliberations.

2. Know The People A valuable member of the board must engage broadly and deeply with people in and outside of the board. This demands that one is approachable on one hand and reach out to people. In this way:

One is able to respect and understand views of other members, staff and stake holders. It helps to harness passion and commitment to the organization. Members are helped to form own opinions and perspectives on information received

through Board papers.3. Know The Business

Understand the business by: Asking the hard questions in the boardroom Following up on answers and get something done Being sensitive to the factors influencing the organization’s capacity to survive and thrive as it

confronts the current and future challenges4. Know the Landscape

Members must keenly focus on: Global factors that shape the environment in which the organization operates. These include

Government regulations, member’s expectations, the shifting lifestyles and value systems, the ever-changing technology. This is the greatest value we can bring to the boardroom.

Be networked. One cannot keep on top without having global connection through social media e.g. face book, linked in, blog. These provide useful inlets for information.

Doing something with the information received is critical. We must always seek and seize opportunities in the organization to shape the environment in which our organization operates. The information must lead us to innovate and improve the sustainable performance of our organization.

5. Know When To Leave Research has shown that staying on the Board membership beyond nine years may not be as productive as the first six years.It is advisable to plan your exit from the Board to allow for fresh ideas into the Board.

This also makes for deliberate succession of the Board. This can be done in such a way that not all members exit at the same time providing for continuity and succession planning.

A: Accountability

Introduction: Definition of key concepts

Accountability in simple terms means “answerability”. It is about holding people answerable for their actions. It involves the rights of those impacted and the obligations of those with power. Thus, accountability can be defined as the obligation of power- holders to account for or take responsibility of their actions.

Types of Accountabilities

To note

Accountability has to be in all areas Accountability is a sister to

transparency Stakeholders include the Community,

Donors, Staff, Government and Board of Directors

Make accountability to the community easy; account in ways they can understand.

Establish avenues to help the stakeholders give feedback.

The top management determines the culture of accountability.

Session Three Definition of Accountability (types & categories) Categories of accountability Importance of accountability Social Accountability/tools for SAc

Personal Accountability - You are accountable to you. This takes structures in order for you to succeed because we have a lot of different layers of values and desires and our needs in the moment can sabotage our short or long term goals. Ideas for structures that work: measurement (weigh yourself, count your money, count your clients), success journal, Make deadlines.

Group Accountability– A specified categorization is answerable for what they are, Say a group of fire fighters are answerable for fire outbreak they responded to

Professional Accountability: Accounting for a professional engagement, its normally bureaucratic

Social/Public accountability: can be defined as ‘the duty to provide an account of those actions for which one is held responsible. Thus, accountability involves two responsibilities or duties: the responsibility to undertake certain actions (or forbear from taking action) and the responsibility to provide an account of those actions’

Bureaucratic Accountability. This is systems accountability (looking at internal system to support accountability) tells you what policies your board should adopt or has adopted to meet their responsibility for ensuring that the organization they govern is financially sound. Policy areas covered include: Finances, Budgets, Asset Protection and Major Risks.Categories of Accountability

Horizontal accountability: Institutions/persons at the same level accounting to peerVertical accountability: Institutions/persons report to the levels above them i.e. very hierarchal Downward accountability: Institutions/persons reporting to the lower levels i.e. community or beneficiaries.

Note: Importance of Accountability

- Improves credibility and integrity

- Improves governance of the organization

- Improves effectiveness and empowerment of communities as monitors etc

- Supports organizational development.

- Promotes human rights

Social/Public Accountability (SAc)

Importance of Social Accountability

Increases awareness : Social Accountability makes the flow of information more transparent, thereby increasing the level of awareness among the beneficiaries and community at large.

Peoples’ Empowerment : SAc initiatives would eventually lead to empowerment, particularly of the poor people. By

Social Accountability is an approach towards building accountability that relies on civic engagement, i.e., in which ordinary citizens and/or civil society organizations participates directly or indirectly in exacting accountability.’ It can be initiated by government, the private sector or civil society actors

providing information, and soliciting systematic feedback from the community, social accountability mechanisms provide a means to increase and aggregate the voice of the disadvantaged and vulnerable groups.

Better Governance : SAc practices enhance the ability of individuals and community as a whole to get involved in the development process in a more informed, organized, constructive and systematic manner. By inducing transparency, SAc would eventually make the governance more participatory and responsive to the needs of the people.

Increased Development Effectiveness : This is achieved through improved service delivery and more informed policy design. By enhancing the availability of information, strengthening people’s voice, promoting dialogue and consultation between stakeholders, SAc mechanisms can go a long way towards improving development effectiveness.

Enhances the Credibility : SAc also enhances the credibility of an organization and reaffirms the trust of its stakeholders. It provides a framework in which organizations can establish their own priorities, strategic plans and performance measurement criteria

To note:

The board and the top management share the responsibility for setting the tone and standard of accountability. The board, usually through the work of the finance committee, fulfils that responsibility in part by approving many aspects of the internal control accounting system

Tools for Social Accountability Social Audits : this is at Impact/

Results level, using appropriate tools; organizations can conduct social audits to ascertain their levels of performance.

Participatory Budgeting/planning : is a process through which citizens participate directly in the different phases of the budget formulation, decision making, and monitoring of budget execution.

Public hearings are formal meetings at the community level

Summary importance of Social Accountability.

Monitoring: Monitoring is the systematic collection and analysis of information as a project progresses. It is in simple terms; checking to see if you are on track and if you have what it takes.

Day III (27th Jan 2012)

Session One (Monitoring and Evaluation) Definitions Tools for Monitoring & Evaluation Key indicators Monitoring & Evaluation process.

Monitoring is a continuous exercise as part of the implementation of any project and has indicators planned for at the time of designing the project.

Important Components of Monitoring are;

The selection of indicators for each activity and desired impact;

The collection of data concerning the indicators; The analysis of data; Presenting the information in an appropriate way and Using the information to improve the work.

Evaluation

Evaluation is a systematic investigation of the worth or significance of an object/ Action. In simple terms, it’s the comparison of actual project impacts against the agreed strategic plans. It looks at what you set out to do, at what you have accomplished, and how you accomplished it.

It can be formative (taking place during the life of a project or organization) or summative (drawing learning's from a completed) Project

Essentials of Evaluation

Looking at what the project or organization intended to achieve

What impact did it want to make? Assessing its progress towards targets. Looking at the strategy of implementation? Effectiveness and Efficiency of the strategy. Opportunity costs. Sustainability of the project activities.

In Monitoring and Evaluation, we are looking out for three things

D: Reporting

Non Financial indicators

- Growth in terms of Area, number of clients etc

- Innovation- Quality of reports,

complaints resolutions and achievement of key results.

- Competitiveness- compare with previous reports, other organizations etc

Key Financial indicators

- Liquidity- Gearing level: Are more

borrowed funds being used or less?

- Asset base- Income/revenue trends- Reserves: Balance on

Profit/loss

ImpactEffectivenessEfficiency

Monitoring and Evaluation focuses on

Tools for M&E

Case Studies Recorded presentations Diaries Structured questionnaires Focus groups sample

surveys One on one interviews

Process of M&E Have a consultative planning (this to help

you agree on parameters) Design questions that should be able to

generate answers for those parameters Identify and make available resources for

the exercise Conduct the exercise (FGD, Key interviews

etc) Analysis the data (quantitative or

qualitative or both) Prepare the report with recommendations

Definition of a report: A narration containing information organized in a narrative, graphic or tabular form, prepared on ad hoc, periodic, recurring, regular, or as required basis. Reports may refer to specific periods, events, occurrences, or subjects, and may be communicated or presented in oral or written form.

Types of Reports

Informational

Inform or instruct – present information Reader sees the details of events, activities or conditions. No analysis of the situation, no conclusion, no

recommendations. Analytical

Written to solve problems Information is analyzed.

Session II Definition of Reports Types Characteristics of a good report Features of a good narrative report

Conclusions are drawn and recommendations are made Persuasive

An extension of analytical reports: main focus is to sell an idea, a service, or product.

Characteristics of a good report

Clear

Concise

Complete

Correct

Presentation is KEY

Reporting is part of Accountability

Features of a good narrative reportProperly dated and duly signedClear addressPurpose of the report should be clear i.e. should relate to what was required of what is now being reported on.Avoid difficult termsInclude facts and figures like photos, case studiesProvide remedial suggestionsConclusion and Recommendations.

Above: Group 4 presentation on a Report and its features

Below: Group 5 presentation on the different reports

Different Group discussions and presentations

Feed back on things learnt

Projects can fail even if finances are available

Accountability should be beyond simply presenting financial accountabilities.

Developing appraisal tools are critical to check self performance

Code of conduct principles

Boards are critical and should be technical in structure

Post training Feedback

More training on What was done well

Next training should

Financial management

Mix of facilitators More participatory

Resource mobilization

Board appraisal Be a must for executive directors and board members

Board room conduct/conflict

Accountability Both hard and soft copy hand outs

Addressing delegation

Interactive facilitators

More time on discussions even when they are out of topic being presented

Appraising and Evaluation

Mixing group discussions and plenary

Also focus on Financial mgt for non finance members

How to understand financial report

Resource mobilization

Be less stressing after session activities

Recommendations of Lead Facilitator

- Next training should be on Financial Management for Non Finance Managers to enable them improve their monitoring role.

- Deliberate efforts on following up on agreed plans to ensure that the team keeps on track

- Increased specific follow up on partners to address management issues in their respective organizations especially around distinguishing the faith structure from the project structure.

- Emphasis in partner development should include improving their professional outlook, at least ensure they develop the minimum standards for a Non- governmental organization so they can tap resources beyond Diakonia

- Acquiring resources from Diakonia should be more competitive.

END

Appendices

i) Programmeii) List of participants & Facilitatorsiii) Individual partner Board Appraisal Plans