Revised May 2018
Governance in the community sector is concerned with the systems and processes that ensure the overall direction, effectiveness, supervision and accountability of an organisation. Appointed members of Valley FM’s Board take ultimate responsibility for its financial and legislative governance.
Governance is also concerned with the way the Valley FM Board works with its volunteer members and other stakeholders to ensure the organisation is effectively and properly managed and meets the needs for which it was originally created. This Policy is intended to clarify the content of the Valley FM Broadcasters Association Inc’s Constitution by making explicit the underlying principles of corporate governance as approved by Valley FM.
The following ten principles constitute good governance in Valley FM.
Roles and Responsibilities. Members appointed to the Valley FM Board have specific functions and responsibilities assigned to them at the commencement of each appointment period.
Board Composition. The Board must have the right group of people, having particular regard to each person’s background, skills and experience and how each contributes to the effective and collective functioning of the Board as a whole.
Purpose and Strategy. The Board sets the vision, purpose and strategies of the organisation, adapting the direction or plans as appropriate and helping members to understand them.
Risk Recognition and Management. By putting in place an appropriate system of risk oversight and internal controls, the Board aims to increase the likelihood that the organisation will deliver on its purpose.
Organisational Performance. The degree to which an organisation is delivering on its purpose is assessed by the Board defining and assessing relevant organisational performance categories and indicators.
Board Effectiveness. The Board’s effectiveness is greatly enhanced through:
- Board Effectiveness. The Board’s effectiveness is greatly enhanced through:
- Careful forward planning of Board-related activities
- Board meetings being run in an efficient manner
- Regular assessments of Board performance
- Creating a Board succession plan, and
- Creating and supporting targeted, effective committees, where appropriate.
Integrity and Accountability. It is important that the Board have in place a system whereby:
- There is a flow of information to the Board that aids decision-making
- There is transparency and accountability to external stakeholders, and
- The integrity of financial statements and other key information is safeguarded.
Organisation Building. The Board has a role to play in enhancing the capacity and capabilities of the organisation they serve.
Culture and Ethics. The Board sets the tone for ethical and responsible decision-making throughout the organisation.
Engagement. The Board helps the organisation to engage effectively with stakeholders.
The Board of Valley FM Broadcasters Association Inc. is an elective, representative and collective body.
It is elective in that the Valley FM Board Members are elected by financial Valley FM members through the election process stated in Valley FM’s Constitution.
It is representative in that all Board members are committed to acting selflessly and making decisions and voting on governance decisions solely in the best interests of Valley FM 89.5.
It is collective in that while each member has the right to argue for their own point-of-view and to vote for that position, once a collective decision has been taken Board members are expected to support that decision.
Valley FM’s Board Role Responsibility Statements are part of the suite of Board performance documents. Key office bearers (President, Vice President, Secretary and Treasurer) also have functions specified in the Valley FM Constitution. Valley FM’s specific Board roles are:
- Vice President
The function of the Valley FM Board is to collectively ensure the delivery of its Charter (Mission, Vision and Purpose) and to set its strategic direction and uphold its values. The Board is also collectively responsible and accountable for ensuring and monitoring that the organisation is performing well, is solvent and complies with all legal, financial and ethical obligations.
Responsibilities of the Board that cannot be delegated to any other person or body include:
- Compliance monitoring – ensuring compliance with the objectives, purposes and values of the organisation, and with the Valley FM constitution
- Organisational governance – setting and approving policies, plans and budgets to achieve Valley FM’s objectives and monitoring performance
- Strategic planning – reviewing and approving Valley FM’s strategic direction and initiatives
- Regulatory monitoring – ensuring that Valley FM complies with all relevant laws, regulations and regulatory requirements
- Financial monitoring – reviewing Valley FM’s budget, monitoring, management and financial performance to ensure the solvency, financial strength and good performance of Valley FM
- Financial reporting – considering and approving annual financial statements and required reports to government
- Organisational structure – setting and maintaining Valley FM’s delegation and internal control framework
- Risk management – reviewing and monitoring the effectiveness of risk management and compliance within Valley FM; agreeing or ratifying all policies and decisions on matters which might create significant risk to Valley FM, financial or otherwise
- Dispute management – dealing with and managing conflicts that may arise within Valley FM including conflicts arising between Board members and members
- Social responsibility – considering the social, ethical and environmental impact of Valley FM’s activities and operations and ensuring that these are acceptable, and
- Valley FM’s Board performance and composition; evaluating and improving its performance.
The Valley FM Board sets and maintains policies, procedures and systems of financial control, internal control and performance reporting. The Board aims to ensure that there is a system for the regular review of the effectiveness of its financial and internal controls, performance reporting and policies / procedures.
The Valley FM Board undertakes a full risk assessment (periodically and on a rolling basis) and takes appropriate steps to manage the organisation’s exposure to significant risks. The Board conducts six-monthly reviews of identified risks and risk mitigation/minimisation strategies.
The Valley FM Board will review its own effectiveness in meeting its key responsibilities regularly, including (but not limited to):
- Establishing and maintaining policies, procedures and systems of financial control, internal control and performance reporting
- Functions of sub-committees, where established, and
- Management of operational issues, including: strategic initiatives; staff (when applicable) e.g. terms of appointment, performance evaluation, entitlements and succession plans; finance e.g. annual budget, day-to-day operations within budget, audit and tax; risk management framework and risk register; information i.e. keeping the Board and regulators informed about any developments that may have a material impact on the Valley FM’s performance; and compliance through daily station operation in accordance with legal, social, ethical and environmental practice standards and obligations.
The Board is responsible for the development, implementation, operation and review of this policy. Compliance with the policy is also the responsibility of all Board Members.
Associations Incorporation Act (ACT 1991 )
Broadcasting Services Act (Cwth 1992)
Australian Institute of Company Directors, Good Governance Principles and Guidance for Not-for-profit Organisations (2013)
Community Broadcasting Association of Australia, Community Radio Broadcasting Codes of Practice (2016)
Community Broadcasting Association of Australia, CBAA Governance Self-assessment Checklist (2017)(