1. White Paper implications for governance - LASGB June 2016 Gillian Allcroft – Deputy Chief Executive National Governors’ Association

2. © NGA 2015 NGA is a membership organisation  NGA is an independent charity representing and supporting governors, trustees & clerks in maintained schools and academies in England  Our aim is to improve the effectiveness of governing boards by providing expert and tailored information, guidance and advice, and challenge when appropriate © NGA 2016

3. © NGA 2015 Educational Excellence Everywhere – White Paper  Great teachers  Great leaders –Governor competency –No requirement for elected parents on trust boards  School-led system –All schools to become academies –Preferably in multi-academy trusts  Preventing under-performance –Achieving excellence areas  High expectations and world leading curriculum  Accountability  National Funding Formula

4. © NGA 2015 A policy Z turn?  Friday 6 May Nicky Morgan announced compulsory academisation, as proposed in the white paper, will not go ahead  The Education Secretary said this was “about listening”, and added ministers understood that good and outstanding schools which are supported by strong LA’s should retain the choice as to whether to convert  The options for maintained schools are not limited to academies now  Federation first campaign – but will schools convert anyway?  However: the announcement included the statement - the government is committed to every school becoming an academy

5. © NGA 2015 What does this mean?  Continue to require underperforming schools to convert to academy status  The Education and Adoption Act now in force – 104 schools have been directed to convert since it came into force  Up to 400 expected to be directed – not including ‘coasting schools’ so likely to increase  Legislation will be put into force so that: –Schools can be forced to convert – where it is clear that the local authority (LA) can no longer viably support its remaining schools. LA will also be able to request the DfE converts all of its remaining schools –where the local authority consistently fails to meet a minimum performance threshold across its schools  In these cases good or better schools can still be forced to convert

6. © NGA 2015 What isn’t changing? : what makes good governance 8 elements of effective governance 1.The right people round the table 2.Understanding the role and responsibilities 3.Good chairing 4.Professional clerking 5.Good relationships based on trust 6.Knowing the school - the data, the staff, the parents, the children, the community - & ensuring engagement with stakeholders 7.Committed to asking challenging questions 8.Confident to have courageous conversations in the interests of the children and young people

7. © NGA 2015 The core functions of school governance In all types of schools, governing boards have three core functions: 1.Ensuring clarity of vision, ethos and strategic direction 2.Holding the headteacher to account for the educational performance of the school and its pupils, and performance management of staff 3.Overseeing the financial performance of the school and making sure its money is well spent. In an academy the governing board is the board of trustees. Big question: in a multi academy trust (MAT) how much is delegated to the academy level?

8. © NGA 2015 Discussion What does this mean for Lancashire?

9. © NGA 2015 The white paper and governance  The DfE will set even stronger expectations on governing boards to fill skills gaps  DfE is developing a new competency framework for governance  Establishing a database of all governors - and legislate to bar ‘unsuitable’ individuals from governing in maintained schools (this is already possible in academies).  DfE supports voluntary trusteeship but raises idea that in the future larger MATs may seek to remunerate the chair of their board  New duty on academies to ensure that they listen to the views and needs of all parents, informing the governing board’s decisions

10. © NGA 2015 The white paper and parent trustees/governors  a new duty on academies to ensure that they listen to the views and needs of all parents, informing the governing board’s decisions  There will be no requirement for governing boards of academies to have places for elected parent  A change that reinforces the concern that the governance of state schools is becoming a role for a small group of elite people from a particular background  The DfE recognises the need for parents to have clear pathways for raising concerns and so intends to issue new guidance on handling complaints, with a “clear route of escalation beyond the governing board” to the DfE and, beyond that, to a public service ombudsman

11. © NGA 2015 Discussion – parent trustees/governors 1.We need to recruit skills not stakeholders 2.Parenting skills are not important to governance 3.Parent governors are just not very good at this governance thing 4.It takes some time for parents to become good governors 5.Parent governors can be disruptive 6.You can’t get rid of elected governors 7.Parent governors think they are representative of the parent body 8.Parents are only interested in their own children 9.In multi-academy trusts (MATs), parents will only be interested in their own school 10.We find it hard to get parents to stand for election 11.If parents have skills, they can be appointed onto boards or committees anyway, so what’s the problem? 12.Academy trusts will still be able to have elected parent governors if they want

12. © NGA 2015 Parents – the arguments 1.We need to recruit skills – parents and skills not mutually exclusive 2.Parenting skills are not important to governance - whoever said they were? Skills are important but so is knowledge. Parents have knowledge and a perspective on the school which others without that experience do not 3.Parent governors are just not very good at this governance thing - made against other categories of governors too and any poor governor needs to be addressed. Make role clear, ensure proper induction, CPD, good chairing, performance review 4.It takes some time for parents to become good governors - Effort needs to be put into inducting all governors: intelligent, bespoke induction which takes into account the experience, knowledge and skills a newly appointed governor or trustee brings. 5.Parent governors can be disruptive – use a code of conduct and enforce it. 6.You can’t get rid of elected governors - discussed with DfE, looking at way to remove elected governors 7.Parent governors think they are representative of the parent body - a frequent misconception; once you are at the governing board table, everyone is governing in the interests of the pupils - not expected to give the majority view of the parent body

13. © NGA 2015 Parents – the arguments 8.Parents are only interested in their own children - This interest needs to be acknowledged and left at the door, like all other potential conflicts…if it is a problem the chair will need to intervene 9.In multi-academy trusts (MATs), parents will only be interested in their own school - an interest in one school may be the initial motivation to volunteer, but smart medium sized MATs will use the academy committees as places to talent spot and nurture future trustees 10.We find it hard to get parents to stand for election - the constant reference to professional governance has made some people feel it is not for them 11.If parents have skills, they can be appointed onto boards or committees anyway, so what’s the problem? – just drop the election idea - in the NGA’s summer poll, 72% of respondents agreed that parent governors should be elected with only 17% disagreeing. Elections ensure that not all members of a board are appointed by the oligarchy. 12.Academy trusts will still be able to have elected parent governors if they want - it is the ones who don’t want to have them that we need to worry about

14. © NGA 2015 Standalone or form/join a MAT?  Schools converting to academy status have been allowed to do so in the past as a MAT of one school (empty MATs), allowing for future expansion  NGA is now hearing reports of DfE officials saying they will no longer allow ‘empty’ MATs, although this is not set out in any published guidance  aware of schools recently being told by DfE officials that to be accepted as a MAT they need to have a strategic plans showing how they will grow to 10 academies within a 3-5 year strategic plan  appears to be at odds with the Secretary of State “I’m not going to say that small clusters of schools can’t work together and be extremely successful”.

15. © NGA 2015 Changing models of governance Governing a single school  A stand alone academy: a trust with members, a board of trustees and directors of a limited company  An interim executive board Governing a group of schools: one board responsible for more than one school i.e. one organisation, not just a collaboration:  A LA maintained federation  Multi academy trust (MAT) Chains’ of schools – not a legal term, often used for big groups, but they are almost always MATs. Some partnerships with an overarching trust

16. © NGA 2015 Multi academy trusts  A multi academy trust is a charitable company limited by guarantee which has responsibility for more than one academy  Exempt charity: regulated by DfE, accountable to SoS via EFA and Regional Schools Commissioners (RSC’s)  It may have a sponsor, but doesn’t have to  It is one organisation with one set of articles of association (AoA)  Culture change: it is not about one school but about all the pupils of all the schools in the trust

17. © NGA 2015 MATs - an update as at May 2016  Over one quarter of state funded schools in England are now academies  66% of secondary schools and 20% of primary schools are already academies.  End of March 2016: 65% of all academies including free schools (3611 out of 5549) are in MATs, up from 53% at the end of the 2013/14 academic year.  81% of academies that opened in the 2014/15 academic year did so as part of a MAT, 973 MATs in total  Only 13 MATs have 25+ schools,  70% (681) of MATs have between 1 and 3 academies (250 MATs of one school) FEDERATIONS: DfE data shows 6.2 % of maintained schools (4.7 % of all schools). NGA’s surveys have between 5.5% - 7% schools in federations  some new ones forming & some becoming MATs

18. © NGA 2015 The roles Members – Minimum of three, DfE prefer 5, usually original signatories to the memorandum, should be separation from the board – Must meet once a year – Usually approve articles of association and any changes – Receive audited accounts Trustees / directors – Number and how appointed or elected is described in articles of association Local/cluster governing committee members – Number and how appointed is described in scheme of delegation Chief Executive Officer / Chief Operating Officer – Appointed by the trust board to run the trust Executive HT/Principal – Appointed by the chief executive to run a group of schools

19. © NGA 2015 Company director and trustee responsibilities Company directors: Companies Act 2006 sets out the seven general statutory duties of a director As directors there are specific returns relating to companies which have to be submitted annually to Companies House, and you will need to ensure that there are systems in place for the submission of these returns as directors can be held personally liable if these returns are not submitted Charity trustees:  Have overall responsibility for governing a charity. They decide its strategy and direct its management.  Trustees accept responsibility for directing the affairs of the charity and that it delivers its charitable objects.  More information on role of trustees can be found via the Charity Commission website.Charity Commission

20. © NGA 2015 Local governing body responsibilities Local Governing Bodies/governing committees  Are committees of the board  Their responsibilities are described in the scheme of delegation or terms of reference  The trust determines the scheme of delegation  Not all schools in the trust have to have the same scheme of delegation Local Advisory Body / Academy Council  Often used when the body does not performance manage the HT Parent Council  A stakeholder group with a consultative role

21. © NGA 2015 Your decision Question for all: What are the drivers for considering becoming a MAT? Question 1: Are there any non negotiables? Question 2: What are your key concerns? Question 3: What are the barriers to becoming a MAT?

22. © NGA 2015 22 www.nga.org.uk Turning vision into reality Core function of the Governing Board: Setting vision, ethos and strategic direction But are we good at it? How do we do that? Published in January 2015

23. © NGA 2015 Discussion point - Questions to consider 1.What is the next step for our governing board? 2.Is there an optimum size for a MAT? 3.How important is locality? 4.What are best models for different phases? 5.Does there need to be a lead school in a MAT? 6.We are forming a MAT/we are an existing MAT – do we have to have an executive headteacher/chief executive officer? 7.Can a MAT close a school or have it removed from the trust? 8.How do we get out if we don't like our MAT? 9.Where is the evidence academies are better?

24. © NGA 2015 Key questions  What is the next step for our governing board? - Do not rush into any decisions. Governing bodies need to carefully consider their next steps  Is there an optimum size for a MAT? - currently no compelling evidence about the optimum size for a MAT. The white paper = 10-15 based on economies of scale not educational performance. It is the number of pupils the MAT is educating which is more relevant than the number of schools within it.  How important is locality? - the benefits for pupils are more likely to be achieved when schools are in reasonable geographical proximity to each other  What are best models for different phases - evidence is inconclusive but need to consider how it impacts benchmarking and sharing staff  Does there need to be a lead school in a MAT? - no statutory requirement but this will be inevitable where an existing single academy applies to become a MAT or where a maintained school converts to an academy in an ‘empty’ or ‘shadow’ MAT. Would still only be one overarching trust, the identification of a lead school wrongly suggests that is just one school which will be responsible for growing and developing the trust.

25. © NGA 2015 Key questions  We are forming a MAT/we are an existing MAT – do we have to have an executive headteacher/chief executive officer? - an expectation from the DfE that there will be a single person with overall responsibility for the day to day running of the trust whether that is an executive principal or chief executive – DfE won’t approve flat MATs/revolving structures  Can a MAT close a school or have it removed from the trust? some publicised cases where MATs have closed schools, either because they have been deemed to be financially unsustainable due to low pupil numbers. But a MAT board can’t simply decide to shut a school on its own accord and it is a complex process subject to consultation and investigation by the DfE. any decision to close a school or transfer a school to another MAT will ultimately rest with the DfE  How do we get out if we don't like our MAT? - an individual academy can request that the MAT releases them but it is complex. Even if MAT board agrees, it would have to be approved by DfE.  Where is the evidence academies are better? - the jury is still out. DfE have published questionable evidence for, others such as the LGA questionable evidence against. NGA will be publishing an article summarising our findings on the available evidence on structure and outcomes in our July/August edition of Governing Matters

26. © NGA 2016 Why clear delegation is so important  Clarity of roles & responsibilities  Vital that the decision to delegate a responsibility is made by the full board of and recorded - Promote a culture of honesty and accountability  Have a scheme or planner fit for purpose - which means it will demonstrate clearly the lines of accountability  Prevents confusion and misunderstandings which may lead to a loss of trust and damage to working relationships  Academy trusts must agree and publish a scheme of delegation (SoD)  If you are thinking of joining a MAT, ask to see their SoD before you decide BUT remember the board of trustees can change it  If you are growing your own MAT, develop the SoD with partners  If you are already part of a MAT, you might want to review the SoD as many are flawed, confusing & over complicated: e.g. they don’t include delegation to the executive, they duplicate functions; they are unclear what they are delegating, often may have many layers of governance We have published 4 model schemes of delegation so far…

27. © NGA 2016 Delegation in MATs - NGA models - format, structure and clarity NGA’s model schemes aim to clarify decision making and lines of accountability Each model includes:  A short paragraph of text which outlines the structure  A structure diagram which shows the layers of governance and lines of accountability  A grid format, with columns for each layer of governance which enables stakeholders to quickly determine who is responsible for each strategic decision within the trust –The grid is in four key areas to reflect both the governance framework and the three core functions of the governing board 1.The governance framework: People Systems and structures Reporting 2.Being strategic 3.Holding to account 4.Ensuring financial probity

28. © NGA 2016 Model 1: delegation to local governing committees (LGCs)

29. © NGA 2016 Model 2: Academy Councils

30. © NGA 2016 An effective scheme will:  Ensure the executive leadership is clear about which decisions the trustee board remains in control of  Ensure that the role of the executive leadership is fully understood throughout the MAT  Promote a culture of honesty and accountability  Identify responsibility for the appointment and performance management of the CEO/executive head and academy principals  Identify responsibility for HR policy and practice in each academy  Identify responsibility for oversight of each academy’s budget  Identify responsibility for assessment of risk in each academy  Identify responsibility for oversight of educational performance in each academy

31. © NGA 2015 Do we need local associations?  Yes!  All governing bodies facing challenging circumstances/decisions over the next five years the local association can provide forum for discussion and disseminating good practice/guidance  Forum for governors to discuss the issues and form relationships  Trustees/those governing at local school level will still have a need a forum for discussion –Even if schools are grouped in different Multi-academy trusts (MAT), which may cross traditional LA boundaries

32. © NGA 2016 www.nga.org.uk/growinggovernance Learn more at NGA’s summer conference 18 June

33. © NGA 2016 https://www.surveymonkey.co.uk/r/NGATES-2016