The governance of significant transactions – helping get the big stuff right
Paul Devlin
Governors are fundamental to foundation trusts. They bring an explicit connection to the communities we serve, and provide non-executive directors (NEDs) and boards with an essential reference point and check and balance on decisions. Good governance tends to be carried out when governors, testing out decisions taken by boards, are mindful of their constituencies – whether service user, a geographic area, trust staff, or a stakeholder organisation.
The scrutiny role of governors is especially important in dealing with "significant transactions" and in holding the trust to account for its financial performance. These aspects of governance can have wide-ranging consequences – for trusts, the services they provide, and the people they serve. It is essential that governors are well-prepared for this part of their role.
The following key questions may be useful to consider.
1. What does my trust mean by "significant transactions"?
2. What is the process in place for ensuring the appropriate, informed involvement of governors and confirming the representation of the views of their stakeholders?
3. What does "holding the trust to account for financial performance" mean?
4. Am I avoiding detours, cul-de-sacs and diversions?
5. Where are the people I represent in this decision?
6. Am I sufficiently satisfied with the assurances being reported to me so as to be able to support the proposals?
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