Governance

Governance is an over-arching responsibility and lies within the remit of the management board, company directors, management committee or trustees - those who are the guardians of the organisations' values and reputation.

Quality governance requires that the management board pay attenton to the checks and balances of the organisation as well as thinking creatively about plans for the future. It requires due diligence with regard to legal matters and compliance issues, resources and finance.

Corporate Governance Guidance (see also Compliance)

• The board must have access to professional financial advice 
• Evidence that a sub-committee of the board looks in detail at financial matters regularly, eg risk register and approval limits 
• Comments are expected in the board minutes on management accounts, annual accounts, budgets etc 
• Evidence of board involvement in budget and corporate plan development 
• An appropriate level of unrestricted reserves to be decided as a target by the board, eg three months’ expenditure 
• Evidence that the board supports achieving the reserves target should be place and evidence that the board has a plan for achieving it (say over five years)

Corporate Governance Useful Reading Good Governance – A Code for the Voluntary and Community Sector is among a range of resources produced by Governance Hub and is soon to be adopted by Arts Council England as a governance guideline for all regularly funded organisations. Financial Controls for Charities CC8 Treasury Green Book Annex 4

Managerial Guidance (see also Compliance)

• The Scottish Arts Council expects organisations to pay artists at appropriate levels.  We encourage you to consider experience, track record and the nature of the project when setting rates of pay.
• Appointments would be expected to be made to individuals with relevant experience 
• Staff and any volunteers should be competent, properly trained and qualified for the tasks they have to perform
• Annual update financial training programme in place for finance staff
• Job descriptions for budget holders should clearly define the level and area of the overall budget that the employee has responsibility for
• All job holders should have an organisational structure sheet attached to their job description showing clear reporting lines for everyone

Further guidance on appropriate terms and conditions can be sourced from the following organisations Musicians Union Equity/ITC Scottish Artists Union BECTU

Managerial Guidance for organisations with buildings 

• The premises comply with all statutory requirements to the best of their ability
• The premises are functional at all required times
• Premises costs are maintained within budgets
• Equipment and supplies budgets are set and maintained
• Capital and revenue purchases are correctly identified
• Appropriate venue security to preserve employee safety and asset security
• Appropriate technical support services and maintenance arrangements are identified and commissioned
• The working environment is maintained as safe and secure at all times

Managerial Guidance Useful reading Care Diligence and Skill – Scottish Arts Council A short guide to constitutions - Scottish Arts Council Charity Commission Governance Framework