What are the co-operative governance check lists?
Last Updated on Saturday, 01 May 2010 22:24 Written by David Griffiths Thursday, 29 April 2010 02:29
Twelve checklists on the governance practices of the co-operative:
Accountability for Member Funds
Annual Reporting
Board and Management
Board Meetings
Code of Conduct
Communication with Members
Finances
Internal Controls
Leadership
Member Meetings
Minutes of Meetings
Statutory Accountability
Accountability for Member Funds
Has the board established appropriate arrangements to ensure that member funds are:
- Properly safeguarded
- Used economically,efficiently and effectively
- Used in accordance with the legislative authorities that govern their use
Does the board publish on a timely basis an objective, balanced an understandable annual report?
Does the board include in its annual report a statement explaining itsd responsibilities for the co-operative's accounts and its adherence to co-operative values and principles?
Does the board include in its annual report a statement confirming that it has complied with relevant standards or codes of co-operative governance and does this include compliance with co-operative values and principles?
Board and Management
Is there a clearly defined and documented division of responsibilities between the board and management?
Does the board meet regularly?
Does the board retain full and effective control over the co-operative?
Does the board effectively and efficiently monitor and question management?
Board Meetings
What follows is a checklist for board meetings:
1. A regular schedule of meetings.
2. Regular attendance by all directors.
3. A definite agenda.
4. Adequate time schedule for each agenda item.
5. Meeting agendas and reports are received before meetings.
6.All directors read the agenda and reports before meetings.
7.All directors participate in discussion and ask questions.
8.Free expression of views at meetings.
9.Comprehensive reports with clear proposals and recommendations.
10. Board requires adequately researched and analysed recommendations.
11. Duration of meetings is long enough for adequate discussion.
Code of Conduct
Has the board developed a formal code of conduct defining the standards of co-operative values and principles and personal behaviour to which individual board members and all employees of the co-operative are required to subscribe?
Has the board established appropriate mechanisms to ensure that directors and employees are not influenced by prejudice, bias or conflicts of interest?
Communication with Members
Has the board established clear channels of communication?
Has the board established appropriate processes to ensure that these channels operate effectively in practice?
Has the board made an explicit commitment to openness in all the activities of the co-operative?
Does the board report to members the appointment of casual vacancies to the board?
Does the board make available the names of all board members together with their relevant experiences and other interests?
Finances
What follows is a checklist for the finances of co-operatives:
1. Defined financial objectives and updating process.
2. Written financial policies and updating process.
3. Monitoring of financial objectives.
4. Measurable standards for monitoring e.g. rate of return and equity level.
5. Annual budgets presented to board for approval.
6. Financial reports presented to each board meeting that are understandable and facilitate informed judgement.
7. Inclusion of key comparisons in financial reports.
8. Does the co-operative retain financial records for the statutory period?
9. How often are the books updated?
10. Does the co-operative have current lists of debtors and creditors?
11. Does the co-operative have cash payment and receipt books?
12. Does the co-operative have an asset registrar and depreciation schedule?
Internal controls
has the board taken steps to ensure that systems of internal control are established and continue toi operate in practice?
Does the board include in its annual report a statement on the effectiveness of the systems of internal control?
Has the board taken steps to ensure that effective sysvtems of risk management are established as part of the systems of internal control?
Has the board taken steps to ensure that an effective internal audit function is established as part of the systems of internal control?
Leadership
Has the board taken steps to ensure that its directors and managers exercise leadership by conduncting themselves in accordance with co-operative values and principles and high standards of personal behaviour?
Member Meetings
What follows is a checklist for member meetings:
1. Open to all members.
2.Planning to maximize attendance.
3. Adequate notification of time, date, place and purpose of meeting.
4. Encouraging members to suggest agenda items before meeting and explaining the process for doing so.
5. Circulation of readable and accessible agenda in advance of meetings.
6. Encouraging members to raise questions and comment at meetings.
7. Recording any dissent if required by member(s).
8. Clear communication to members of their participation rights and obligations at meetings.
Minutes of Meetings
What follows is a checklist for the minutes of meetings:
1. Type of meeting is identified.
2. Those present listed.
3. Apologies and absences recorded.
4. The date of the minutes of the previous meeting submitted for approval with any necessary amendments.
5. All motions considered by the meeting.
6. All motions moved, seconded and carried or defeated recorded.
7. Motions carried are clear and explicit.
8. If requested any dissent recorded.
9. If required, any conflict of interest recorded.
10. Names of reports considered at meeting.
11.Date, time and location of next meeting.
Statutory Accountability
Has the board established effective arrangements to ensure compliance with all applicable legislation and regulations including the Co-operatives Act and Corporations Law?
