1. The Good and the Governed 8 June 2016 Andrew Kauler Marina Stojanoski

2. Presenters Andrew Kauler, Microfinance Quality Analyst, GSM
Marina Stojanoski, Consultant, Community Finance & Development, NAB
Introductions – both
Andrew: all workshop material will be up on the portal in a week

3. Learning Outcomes Understand what Good Governance is
Identify the components within your own NILS program and know your role within this structure
Understand the impact of good and bad governance
Andrew

4. Key Topics What is Good Governance? Who is responsible?
How does it affect a program?
What can I do?
Andrew

5. “The most humble day of my life” - Rupert Murdoch
Marina:
Who remembers the News of the World phone hacking scandal in the UK in 2011?
People’s mobile phone voice messages were hacked into for news stories
An illegal invasion of privacy committed by the company affecting celebrities, politicians, murder victims’ families, royalty

6. What went wrong? Activity: 3 mins
Discuss with the people on your table
Andrew: Discuss what went wrong with the people on your table (3 mins)
Andrew: Call out one point from each table (2 mins)
Marina: Write up on whiteboard

7. What went wrong? Workplace culture Media culture Management practices
Financial practices
Andrew
Workplace culture:
Journalists had to give people’s phone numbers to sub-editors, the numbers would be hacked later
Staff didn’t ask questions
Media culture:
All newspapers do anything for a story
Management:
Deadline and story driven no gatekeeping
Financial:
Alleged bribes, PIs, hush money paid – no brakes on finances

8. Marina
The newspaper was forced to close after 168 years because of an advertising boycott
Rupert Murdoch gave the explanation the News of the World with 200 staff was only 1% of News Corp which had 50,000 staff, but said it was no excuse
Over $US500M paid in compensation to the victims and in legal fees
Forced the resignation of the top officials at News Corp

9. You’ve got 5 minutes to brainstorm!
What is good governance in a NILS program?
ACTIVITY TIME!
You’ve got 5 minutes to brainstorm!
Working on your tables
Using butcher’s paper brainstorm ideas
Pick spokesperson
Select 1 key point to feedback to the main group
Marina
1. Working on your tables, brainstorm what is good governance in a NILS program? (5 mins)
2. Give me one key point from each group (5 mins)
Andrew
2. Write key points on whiteboard

10. Good governance in a NILS program:
Accreditation/review
Program support
Accountability
Risk management
Succession plan
Key person risk
Best practice
Client consent
Privacy
Information sharing
Compliance
Legal structure
Management structure
LAC
Policies & Procedures
Workers/Volunteers
Data administration
Capital Management
Andrew:
These are some examples we came up with

11. Definition of Good Governance
Good Governance is about the process for making and applying decisions.
It’s not about the decision but about the decision making process allowing you to get to the best outcome and to be accountable.
Marina

12. NILS Worker/Interviewer
Activity time!
Who is responsible?
In each group, focus on:
What is it? (structure)
Who’s in it?
What are they responsible for?
NILS Worker/Interviewer
Legal Entity
Committee of Management
Loans Assessment
Committee (LAC)
Legal Structure
Andrew
Each table has been allocated 1 of 5 categories. Using butcher’s paper on your tables, answer the 3 questions. (5 mins)
Call for key point from each group (5 mins)
Legal entity: what is it?
Management: who’s in it?
NILS worker/interviewer: what are they responsible for?
LAC: who’s in it?
Data/admin: what are they responsible for?
2. Marina: write up on whiteboard
1. Legal entity
Has legal and financial authority for the NILS program
Personnel changes within an association (staff, board members, volunteers) but the legal entity remains the same
Responsible for signing the participation agreement
Accepts the terms and conditions of the NAB’s letter of offer for capital
Responsible for ensuring that all policies and procedures are available to staff
2. Committee of Management
Can include managers, LAC members, NILS administrators, Board member or perhaps the CEO
Accountable for the performance and compliance of the NILS program
Provides supervision and support to the LAC, interviewers, NILS’s administrators and finance
Make all staff aware of where the P&P are kept and ensure they are adhered to
NILS program performance, identifies trends, monitors CNPWO, puts measures in place to improve performance
Reviews policy and procedures (changes to loan purposes/amounts, documentation requirements, etc.) with GSM approval
3. NILS Worker/Interviewer
Budgeting experience
Relationship building with the client
Empathy and listening skills
Interviewing skills to understand what the customer is/isn’t saying
Ongoing relationship with the customer - staying connected, CNP follow up
Circular credit, preparedness to repay, budget, surplus, correct documents
4. LAC
Who’s in it
How often does it meet
What do they look for, what questions do they ask
How much surplus do they require
5. NILS Data/Admin
Bank reconciliations
Centrepay uploads
HYSR
NILS Data/Admin

13. What's the impact of not having Good Governance?
NILS Program
Funding
Client/ Community
Andrew: Get people to call out
Marina: Write up on whiteboard

14. What's the impact of not having Good Governance?
NILS Program
Funding
Client/ Community
Performance
Structure
Direction
Data
Growth
CNPWO
Risk increases
Access
Reduction in capital
No expansion
Less circular credit
Less loans
Limited assistance
Financial exclusion
Going without
Payday lenders
Financial stress
Andrew
Program :
May impact performance
No Structure
No direction
Out dated data – restricts program
Doesn’t allow for program growth
Possible increase in CNPWO
Risk increases
Funding:
Access to funds (reduction in capital)
No program expansion
Impact on the community
Not being able to assist those that are financially excluded in our community
Circular credit ceases
Customer may resort to having to go without
Customers resorting to pay day lenders causing more financial stress

15. What can I do? Take a minute to read the checklist
Pick 3 things that you weren't aware of or could improve on
What are you going to find out or do when you get back to your NILS program?
Record these in the action items form
Marina:
Read checklist
Pick 3 actions, record what you’re going to find out or do when you get back to your program
(Put next slide on in the background during the activity)
Andrew:
Hand out checklist
Hand out action items

16. DO WE HAVE A SUCCESSION PLAN? WHAT’S OUR LEGAL ENTITY?
What can I do?
WHERE ARE OUR POLICIES & PROCEDURES?
WHO’S IN OUR LAC?
DO WE HAVE A SUCCESSION PLAN?
WHAT’S OUR LEGAL ENTITY?
WHAT SOFTWARE DO WE USE?
DO WE BACK UP OUR DATA?
WHO’S OUR PRIMARY CONTACT?
DO WE NEED TO REVIEW, UPDATE, CHANGE OR ACKNOWLEDGE SOMETHING?
Marina:
Can 2 or 3 people share one of their action items?

17. The Good and the Governed
Marina:
Today we learnt:
- what Good Governance is
- your part in this
- the impact of good or bad governance
We will you in a week to remind you to about your action items
Thanks for coming, if you have any questions we’ll be around in the break
All material will be on the portal in a week.