Governance for ESP-supported projects
Best practice, board management and counter-fraud statement
Best practice for community, voluntary and charity organisations
Following best practice is essential to the sustainability and success of any Irish community, voluntary and charity organisation.
There are many resources available to inform best practice in charities and not-for-profits.
In Ireland, two organisations offer advice and resources to Irish organisations no matter where they are:
The Governance Code
This is a resource to assist Irish community, voluntary and charity organisations develop their overall capacity in terms of how they run their organisation. It is a voluntary code provided free to all boards and committees of not-for-profit groups.
The Code has been put together by people with extensive experience in the Irish community, voluntary and charity sector. Visit their website to access their resources.
The Wheel
This is a support and representative body connecting Irish community, voluntary and charity organisations across Ireland. Established in 1999, The Wheel has evolved to become a resource centre and forum for the community, voluntary and charity sector in Ireland. Its range of guides offer practical advice and information for organisations of all types.
The following guides offer practical and realistic advice and information on running an organisation.
Board management
Strong, independent and committed boards are of critical importance. They are essential to the effective governance and sustainability of charitable and community organisations.
The Irish Abroad Unit look at the role and composition of a board when considering the sustainability of an organisation for ESP funding. We expect full compliance with relevant local laws governing boards and charitable organisations.
Guidance on board activities
The Institute of Directors in Ireland offers useful advice on the composition and activities of boards of non-profits.
They note that the key purpose of a board is to ensure an organisation’s prosperity by collectively directing the organisation’s affairs while meeting the appropriate interests of relevant stakeholders, and complying with all necessary legislation and regulation.
High standards of governance, transparency and accountability are expected of all organisations. Community, voluntary and charity organisations are no exception.
Custodial and stewardship role
The Charities Regulator in Ireland would also point out that board members are also trustees of the organisation and as such have a custodial and stewardship role.
Charity trustees are the people who exercise control over, and are legally responsible for, the management of a charity. They are volunteers who give their time to improve, protect and support the charitable purposes and activities that occur.
Accountability
Although they are volunteers, the role of a charity trustee carries significant responsibility. The board of trustees of a charity is collectively responsible for the oversight of that charity. While charity trustees can delegate tasks, they cannot delegate accountability.
Even though a board may serve on a voluntary basis, the directors, officers or trustees are obliged to make themselves aware of the organisation’s obligations. Their own personal obligations are to ensure the organisation operates effectively and efficiently and that they behave with integrity.
Setting strategic goals
The board should also set the strategic goals of the organisation and be in a position to see them through.
Strategic goals are what your organisation was formed to achieve. They set out what you intend to achieve over a set period of time, usually 3 to 5 years.
Setting strategic goals helps define organisational priorities. They aid the board to focus on sound business planning and organisation management.
>> Read Reporting procedures for more on the SMART Framework for goal setting
Succession planning
Encouraging younger generation participation in boards is important. It is therefore imperative that boards implement succession plans. These help to smooth the transition as board members leave and are replaced. Ultimately, succession plans ensure an organisation's continued effective performance and sustainability.
Board membership
Board membership should not be just about numbers but also of diversity in background and experiences.
A board needs to search constantly for potential members and find new ways to attract suitable candidates.
Board composition is key to sound oversight of an organisation. It is important that boards have the right makeup to carry out their work.
Guidelines include:
- Board members should serve for clearly defined terms rather in an open ended/undefined manner. Terms should be no longer than three years.
- In total, board members should not serve for more than 9 years on a board (i.e. three terms of 3 years).
- Board members should not spend more than two terms (6 years) in a role (e.g. chair or treasurer)
- Boards should not be made up of multiple members of the same family.
- Board members should not also work for the organisation.
- Board members should avoid conflicts of interest in terms of the finances of the organisation and services that the organisations uses.
Counter-fraud statement
The Department of Foreign Affairs has a zero tolerance policy towards fraud and has in place policies and procedures for prevention, detection and dealing with instances of fraud or suspected fraud.
This Emigrant Support Programme (ESP) counter-fraud statement is drawn from the Department’s Counter-Fraud Policy. The latter is available on request and is the Department’s comprehensive and authoritative Counter-Fraud Policy.
The Department’s Counter-Fraud Policy extends to recipients of grants awarded by the Department and all organisations in receipt of ESP funding will be bound by this policy.
As per the Department’s policy it will fully investigate any incidents of fraud or suspected fraud. The key principles underlying the Department’s approach to minimising the risk, and addressing instances, of fraud are:
- A risk management approach to the prevention of fraud is adopted which is incorporated into its business processes, management practices, grant management processes, internal controls and related activities;
- The relevant authorities are notified and prosecution is sought where appropriate, or other suitable sanctions are taken, against those who have committed fraud;
- The recovery of misappropriated funds or assets is sought;
- All cases of fraud will be handled and investigated in a confidential, prompt and professional manner;
- Protecting those who in good faith report instances of suspected fraud;
- Maintain the principles of confidentiality in any investigation of fraud;
- Making available confidential and appropriate reporting mechanisms so that anyone, in good faith, can report genuine concerns;
- Fully respecting the principles of due process and natural justice, pursue perpetrators to the fullest extent of the law.
Where fraud is suspected in an organisation supported by the Emigrant Support Programme it should immediately be reported to:
(a) The board of the organisation affected
(b) The Embassy or Consulate of Ireland, or Unit that the affected organisation liaises with on the Emigrant Support Programme.
Fraud or suspected fraud affecting an organisation in receipt of ESP should be reported even if the fraud itself is not directly linked to ESP funding.
The Department broadly defines fraud as an intentional act of deceit to obtain an unjust/illegal advantage.
Fraud shall include but is not limited to:
- Misappropriation, deception, bribery, forgery, extortion, blackmail, corruption, theft, conspiracy, embezzlement, extortion, false representation, alteration of negotiable instruments (such as cheques), falsification of accounting records or financial reports, or concealment of material facts and collusion;
- Theft or misappropriation of assets (including documents and information) owned or managed by the Department;
- Submitting false claims for payments or reimbursements;
- Accepting or offering a bribe or accepting gifts or other favours under circumstances that might lead to the inference that the gift or favour was intended to influence an employee’s decision making while serving the Department;
- Conflicts of interest;
- Abuse of power;
- “Off the books” accounting, or making false or fictitious entries;
- Knowingly creating and/or distributing false or misleading financial reports;
- Paying of excessive prices or fees where justification thereof is not documented;
- Violation of the Department’s procedures with the aim of personal gain or to the detriment of the Department;
- Wilful negligence intended to cause damage to the material interests of the Department;
- A dishonourable or reckless or deliberate act against the interests of the Department;
- Dishonestly obtaining a benefit or causing a loss, by deception or other means;
- Any acts where improper benefit is gained or loss to the Department arises, both tangible (e.g. misappropriated funds, theft of assets, etc.) and intangible (e.g. falsification of documents, improper use of the Department’s assets, concealment of material facts, false pretence, etc.);
- Any acts or omissions designed to obtain or to seek to obtain any official documents fraudulently or not in accordance with the policy, procedures and rules of the Department or Irish legislation, including but not limited to, passports, visas, other travel documents, consular documents, etc.
- Specific instances of offences as defined in the Passports Act 2008.