Good governance explained

What is governance?

Governance includes the task of defining roles, objectives and standards of an approved housing body whist setting in place the funding programmes and the necessary structures which allow housing associations to effectively achieve their objectives.

The two main components of governance are compliance and performance. The Code offers the opportunity to openly demonstrate that the organisation is meeting its compliance requirements i.e. complying with standards, legislation, expectations of key stakeholders. The performance of the housing association is linked to how it is fulfilling its purpose and ensuring how it can continue to do so into the future.

The Board of Management in an AHB will be central to developing good governance practices, and will also assume the ultimate responsibility for the implementation of these, regardless of the size of the Association.

Good governance = Sustainable performance

In general most associations will already be implementing many features of best practice, and these will include:

Features of Good Governance

· Acting solely in the best interests of the Housing Association

· Defining the role of the Board and evaluate their performance

· Establishing a balanced competency based Board

· Setting the vision and mission and provide leadership

· Establishing effective controls

· Promoting good governance throughout the organisation

· Engaging with other bodies in the sector

· Acting with transparency and be accountable to stakeholders

Following on from these general features, several key features of good governance can be developed, all of which combine to ensure effective and transparent management and governance.

Principle	Rationale	How it could be applied for Housing Associations
Accountability and Transparency	Increase public confidence	Publish accounts, management policies and complaints policies; Details published by regulation office i.e. list of AHBs signed up to VRC include link.
Renewal of Management Boards	Ensure continuity in management	Ensure appropriate skills are available on the Board; Limit consecutive terms for Board members to two 5-year terms.
Clarity of roles	Avoid Duplication	Board members clear on their legal responsibilities and officer roles; Allocate distinct roles to staff and Board members.
Conduct	Maintain high standards in service delivery	Require each Board member to sign a declaration and act at all times in the best interests of the Housing Association.
High Standards	Excellence in service delivery	Monitor performance through HAPM and continuously strive to improve standards.
Probity	Ensure public confidence	Issue clear communications and maintain transparency in all areas of operations, such as logging receipt of gifts etc.

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Good governance explained

What is governance?

Features of Good Governance