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ColegauCymru /Colleges Wales Annual Conference

Explore the importance of governance and business development in further education colleges as charitable social enterprises in England. Learn about the regulatory base, roles and responsibilities, social enterprise principles, and strategies for business development.

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ColegauCymru /Colleges Wales Annual Conference

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  1. ColegauCymru/Colleges Wales Annual Conference Further Education Colleges as charitable social enterprises in England Julian Blake Bates Wells Braithwaite 13th May 2014 199999/0119

  2. “Freedoms and flexibilities”: public sector to public benefit sector (1) • 1992 statutory corporations; sector rationalisation • 2011 alternative legal structures; governance models (Schedule 4) • Question: how better to deliver purpose • Continuing prescription – standards; (political) policy; set ideas • Quasi-regulation - inspection (Ofsted) and funding conditions (SFA) 199999/0119

  3. “Freedoms and flexibilities”: public sector to public benefit sector (2) • No need to change/slow change/ideas for change • Good practice examples not systemic • What is possible/what is desirable/how can it be done • Association of Colleges; Gazelle Group; 157 Group • Model of charitable social enterprise emerging from public sector model

  4. Charity law: the regulatory base • Exempt charity status • “Clarity of purpose” (First Pillar of effective governance - Humphreys Report) • “Public benefit ownership” (Third Pillar of effective governance) • Regulation for charity law: BIS; MOU with Charity Commission • Charity law principles • exclusively charitable (advancement of education); • non-profit distributing; • for the public (not private) benefit • Duty of Governors (charity trustees) • best interests of (charitable objects of) college; • overarching governance responsibility; • delegation principle 199999/0119

  5. Governance: the essentials (1) • Professionalising Board of Governors model: compact; engaged; (collectively) expert; unitary; appointed for capability; sensitive to community needs (diverse) • “Scrutiny and accountability” (Fourth Pillar of effective governance) • New approaches: e.g. Carver “Policy Governance”; Co-operative • Mechanism and basis of appointment; duration in office • Roles/responsibilities/relationships – clarity; governance/management; delegation for purpose 199999/0119

  6. Governance: the essentials (2) • Chair/Principal/Clerk • Learner/staff appointees, not “representatives”; union issue • Governance: strategy; high level policy; delegation; scrutiny of management • Management: SMT: executive direction; advice and recommendations; implementation; reporting • Stakeholders: learners; staff; community; employers; alumni - aspect of “public ownership”; constitutional roles; consultation forum(s) • Payment: charity law general rule/exceptions; Principal on Board; Governor payment • Induction and training

  7. Social Enterprise: a business model • Legal structure secondary; necessarily charitable • Social enterprise principles – independent; sustainable; purpose driven; public benefit • “Capacity and effectiveness” (Second Pillar of effective governance) • Shared services/collaboration: within sector; across sectors; purpose alignment with public sector/public benefit sector • Income/surplus generation for purposes/development/reserves • Resource utilisation for income generation; premises; personnel; intellectual property 199999/0119

  8. Business development: responding to the challenge (1) • Commercial trading subsidiaries: charity law model; • Learner/staff enterprise, including social enterprise • Integrated education/vocational training/business model • Business diversification and commercialisation • Commissioning/procurement: purpose over process

  9. Business development: responding to the challenge (2) • Community/regional collaboration, leadership and funding (LEPs); • Public, including EU and public benefit sector funding • Social Finance, including social impact bond principle (payment by results) • Social Value and Impact Measurement • Mutual principle - productivity from employee participation

  10. Julian Blake Bates Wells & Braithwaite London LLP2-6 Cannon StreetLondon EC4M 6YHTel: 020 7551 7777Fax: 020 7551 7800Email: j.blake@bwbllp.com 199999/0119

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