National Settlement Service and Standards Framework
Section 3
Agency Standards
The most discussed aspect of accountability in the settlement sector
has been performance measurement for programs (as described above).
However, it is equally important to set minimum standards for an agency
as a whole, to ensure that it is accountable as well as healthy, and
able to support effective programs over the long term.
Several categories of indicators are used to ensure that an agency
is accountable and achieving its intended purpose. At an organizational
level, there must be an appropriate, accountable governing body with
sound governance policies and practices. Secondly, there must be strong
management, with the necessary infrastructure and practices, and the
ability to anticipate emerging service trends. Thirdly, programs and
services must be designed and delivered in a professional manner that
meets the needs of the target groups. These accountability and performance
indicators need to be used in a balanced manner with numerical performance
indicators when reviewing the overall vitality, developmental phase,
and effectiveness of an organization.
These indicators should be viewed as guidelines or a checklist for
agencies as they grow and mature, and should be commensurate with resources
available to them. These indicators would be inappropriate as strict
requirements or criteria to be enforced regardless of the size, longevity,
and resources of an agency. Unique local conditions may also need to
be considered when assessing organizations, as one size does not fit
all across Canada.
The sustainability of existing funding practices to support organizational
infrastructure is one problem area in the voluntary sector. The current
method of contract funding typically covers only the incremental costs
directly related to the front line service staff and program-related
expenses, and some supervisory costs. (VSI Secretariat, 2002) In addition,
some contributions are also made toward administrative and management
costs. However, many agencies feel that there is insufficient support
for organizational infrastructure and management costs, both of which
are necessary parts of any healthy organization.
Vision, Mission, Goal and Objectives
In order to meet minimum standards, a settlement agency should be clear
about its vision, mission, goal, and objectives. An agency’s conduct,
programs, and activities should be consistent with its stated mission
or goals.
The vast majority of settlement organizations have planning processes,
from less structured to more formal and regular strategic planning processes
involving board and staff. Nevertheless, it is also imperative for organizations
to remain flexible, agile, and adaptable to any sudden changes. While
it is important to plan for the long term, a settlement organization
needs to retain the capacity and versatility to respond to client needs.
Competent Governance
The board of directors is ultimately accountable to its community via
its membership and funders. Therefore, governance is a critical and central
part of an agency’s accountability framework. The majority of agencies
that responded to the questionnaire have, to varying degrees, paid attention
to governance issues.
An organization should have a clearly stated mission and goals, which
evolved in strategic planning exercises involving board and staff. There
should be organizational infrastructure and processes in place to ensure
accountability and effectiveness - for example, transparency in the utilization
of resources to achieve stated goals.
There should be an open and fair board recruitment process, although
procedures may range from simple to more elaborate processes with a nomination
committee. In large organizations with mandates broader than settlement,
a settlement advisory committee with meaningful decision-making powers
should act as the governing body for settlement services. This committee
should ideally be represented on the board of directors.
The recruitment of board members normally begins with a skills inventory
and an analysis of the existing composition and the profile and skills
required. Important considerations by settlement agencies include the
following:
- The composition should reflect the community in terms of gender,
ethno-cultural backgrounds, and experience as immigrants or refugees.
- Skills should be sought to help the agency meet its strategic objectives
for the next several years, and should generally cover broad areas
such as finances, agency capacity building, resource development, management,
community relations, human resources, and legal expertise. Some fundamental
qualities, such as an ability to work in a team and interpersonal skills,
are required in all board members.
- The recruitment process must be transparent, with clearly defined
criteria and ideally with a brief job description for prospective board
nominees. An orientation session may be held with interested candidates
so that expectations are clarified, or agency literature can be made
available to them. The chair or the executive director can play an
active role in supporting the recruitment efforts and orientation to
the agency.
It is common for a nominating committee to be composed of respected
retiring board members, in addition to active members. A nominating committee
may be authorized to select a slate of nominees for ratification at the
membership meeting or present a slate of candidates for the membership
to elect. The appropriate approach will depend on the maturity, size,
and organizational culture of the agency.
For an agency to function properly, it is crucial for it to have a
clearly defined structure, as well as roles and responsibilities for
the board, the executive director, management and staff. A clear line
of communication between the board, management, and staff is also important.
A responsible board is ultimately accountable to both the funders and
community stakeholders. A new board member should be made to feel welcome
and integrated into the culture and activities of the organization.
A board orientation manual or development session is instrumental in
helping new board members to become productive, and should include the
following areas:
- Basic stewardship role and leadership responsibility of the board,
and duties in due diligence, loyalty, and ethical behaviour;
- Orientation to the organizational mandate or mission, strategic
plan, and agency services;
- Organizational structure;
- Past year’s Annual Report;
- Basic guidelines for meetings and decision-making;
- Conflict of interest policy;
- Confidentiality policy; and
- Board renewal and recruitment guidelines.
Additionally, it is advisable for board members to sign a pledge to
uphold the relevant policies and conduct themselves in a manner that
is beneficial to the agency.
For more information about governance, please refer to the Institute
of Governance Web site: www.iog.ca
Competent Management
A competently managed and adequately resourced agency should demonstrate
minimum standards in the following non-program areas: planning processes,
legal compliance, financial and risk management, human resources management,
information management, performance measurement and evaluation, and appropriate
agency structure and processes for communication and community involvement.
Financial management
One of the responsibilities of a board of directors is to ensure the
fiscal viability of the organization. Financial management is scrutinized
frequently by settlement agencies, either based on funder requirements
or internal mechanisms. While all agencies undergo annual audits by qualified
external auditors, many larger organizations have policies and procedures
governing financial operations, a board finance committee, and a dedicated
finance manager.
Many agencies also undertake resource development projects to supplement
their resources. When developing new financial resources, the board is
responsible for working with senior management, but small-scale or ad
hoc fundraising activities should be largely volunteer-based in order
to be cost-effective.
In general, the financial operations of a settlement agency must follow
generally accepted accounting principles. If it is a registered charity,
this will ensure that its financial operations comply with legislation
governing registered charities. Besides the minimum required budget,
a cash flow projection is required for internal purposes, particularly
for agencies with very limited financial resources. It is also a general
practice to review financial status at least on a quarterly basis.
Human resource management
Settlement agencies should base their human resource management practices
on provincial employment standards legislation, the Federal Labour Code,
and federal and provincial human rights legislation. A majority of agencies
surveyed do have a human resource policy, including such issues as work
hours, hiring, probation, disciplinary, complaints resolution and grievance,
termination procedures, benefits, and vacation.
Besides complying with all employment legislation, every employee should
have a current job description, specifying required qualifications, and,
ideally, the salary range. However, smaller or fledgling organizations
do not always have professional development funds or performance appraisal
tools in place, and a significant number of settlement agencies do not
have the financial ability to give salary increases to reward meritorious
performance.
Staff performance review is an important component of agency accountability,
and it will be discussed in greater depth in a later
section. A competent agency should have a written performance appraisal
process and format in place. Ideally, a performance appraisal is conducted
annually for every staff member, with an annual professional development
plan. Employees should also be aware of the salary structure for their
position, plus criteria and mechanisms for movement.
If practitioners in the settlement sector are to become professionals,
the issue of salary and benefits will require further attention.
Risk management
Another important consideration for larger agencies is risk management.
They need to be concerned with property insurance, liability for staff,
volunteers and board, third-party liability, client safety, workplace
health and safety, on-site emergency equipment, and procedures for dealing
with emergency or unusual situations. At best, agencies will also have
contingency operational funds in place to ensure that cash-flow problems
do not impede services.
Information management
The board of directors and management should have an appropriate information
management system in place so that they can make decisions, plan, and
monitor agency functions. They should also keep information for assessing
client needs, services trends, service efficiency, service impact, and
staff workload distribution, and reviewing programs.
Information management comprises data collection, compilation, analysis
and reports so that funders and settlement agencies can plan, manage,
and assess accountability and performance. In collecting client data,
it is imperative to comply with privacy legislation and to respect client
confidentiality.
Agencies can manage information more efficiently by taking greater
advantage of technology. They should have a basic competency in using
information technology for the management of information.
Appropriate Agency Structure and Processes
Competent management needs to address the issue of organizational structure.
This includes having a board and committee structure prepared to carry
out necessary functions, empowering supervisors or managers, establishing
effective internal communication, delegating appropriate authority, and
distributing workloads.
To maintain effective services, the agency needs to build broad networks
and communicate with stakeholders and other service providers. These
activities may include service development, non-partisan political advocacy,
policy development, and other incident-based activities. Not-for profit
agencies should hold annual general meetings to inform their members
about the activities, finances, and accomplishments of the past year.
Some larger organizations have newsletters that are sent regularly to
update members and other interested stakeholders.
In addition, a healthy agency should link with other social service
agencies, and link or collaborate with other sectors. It would also be
beneficial to participate in sector-wide activities and engage in joint
advocacy efforts to enhance services or act as the change agent to render
the larger environment more conducive to settlement.
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