The work of Education and Training Boards is governed by a number of pieces of legislation to ensure that the work we carry out is done so effectively and public sector money is properly spent. But what exactly does governance mean in practice? In this blog Senior Governance Specialist Dr Tom Ward and Assistant Specialist in Governance Alice Kelly from the Institute of Public Administration (IPA) tell us more about it.
What is Governance?
Governance can be described as ‘the systems and procedures by which organisations are directed and controlled’, as stated at the outset of the recently updated Code of Practice for the Governance of ETBs (2024).
Good governance comprises many elements, including clarity of roles and responsibility, a clear direction of travel in a strategy, a robust internal control system, good relationships with key stakeholders, responsible and ethical behaviours, and effective organisational reporting and transparency.
Good corporate governance is essential for well-informed decision making and the efficient use of resources. It strengthens accountability and places ongoing emphasis on improving public sector performance.
Governance in an ETB and why it is important
Good governance is important for every organisation and establishing and adhering to a good corporate governance framework is needed to assure stakeholders that the organisation is being run effectively, is performing against objectives, has an effective system of controls, is making proper use of public money and resources and is observing good practices and conduct.
Key pillars of the governance framework for ETBs are the ETB Act 2013 and the Code of Practice for the Governance of ETBs (2024).[i] The Code was recently updated, having been initially developed and circulated in 2019. The Code should be considered as a critical set of standards and requirements for board members, committee members and staff of ETBs.
Key themes in the Code of Practice
The 2024 version of the Code seeks to provide clearer distinctions between reserved functions, which are performed by the Board, and executive functions, performed by the Chief Executive and Executive. Board members of an ETB cannot direct executive functions, but they have an important role in the oversight of them. The Board have a collective responsibility in the leadership of an ETB through adopting the strategy and the annual service plan, adopting the budget, and holding the Chief Executive to account and providing oversight. The Board does not ‘manage’ the ETB or hold responsibility for the operational matters but rather oversees how well and effectively these functions are managed.
The Code places an emphasis on ethical standards and setting the ‘tone from the top’. Good governance begins with the setting of a good organisational tone through policies, codes of ethics, the development and promotion of good internal controls along with effective governance. For this to take place, the Board, the Chief Executive and their management team must commit to creating a culture of ethical behaviour which permeates all levels of an ETB.
The Code also provides for enhanced oversight with emphasis on Oversight Agreements between the Department of Education and each ETB, and for reporting and information sharing between those who primarily fund ETBs, being the Department of Education, the Department of Further and Higher Education, Research, Innovation and Science, and SOLAS.
Putting good governance into practice
Good governance helps deliver good outcomes. Governance should not be seen as a ‘box-ticking’ exercise, but rather as providing the sustainable foundations for performance. And governance is not just about good policies, systems and procedures, but also about the right tone, attitudes and behaviours.
[i] ETBs are also required to adhere to other statutory requirements (e.g. FOI, GDPR, Protected Disclosures) and government circulars.