Corporate governance is the system by which an organisation is directed and controlled in order to achieve its objectives and meet the necessary standards of accountability and probity. Effective governance is essential for a Trust to achieve its objectives and fundamental to effective corporate governance is having a robust system of internal control.
Legislation such as the NHS Act 2006 and Health and Social Care Act 2012 set out the legal framework within which the Trust must operate.
It is a statutory requirement that the Trust Board specify their terms of reference, schedule of reservation and delegation of powers, and the financial framework within which the Trust operates. These key documents comprise the Corporate Governance Manual, which contains:
- The Standing Orders, as a framework for Board governance
- The Standing Financial Instructions, as a framework for financial governance
- The Scheme of Reservation and Delegation, as a framework for internal governance
It is essential that all employees know of the existence of these documents and are aware of their responsibilities as set out within as failure to comply with the Corporate Governance Manual could lead to disciplinary proceedings.
Any queries relating to the contents of these documents should be directed to the Company Secretary in the first instance who will be pleased to provide clarification.