ADVANCING LOCAL VOLUNTARY ACTION
Ashton House
1a Gatefield Street
Crewe
Cheshire
CW1 2JP
Tel/Fax 01270 211545
Registered Charity No. 506632
WRITTEN AGREEMENTS
The parties should agree clear written statements which are then recorded in the minutes of the board of the voluntary organisation and formally reported to the local authority. The precise format of the statements will depend on the process by which the member and/or officer becomes engaged with the voluntary organisation but such statements should address the following topics.
5.1. Relationship statement
The formal purpose status of the voluntary organisation (company, charity, unincorporated society etc. or a combination of these). The relationship between the local authority and the voluntary organisation (funder, partner, purchaser etc.).
5.2. Job descriptions and reciprocation
The formal role and responsibilities of the local authority member or officer (director, trustee, observer etc.).
The frequency of board meetings and minimum attendance requirements.
The period of service and procedure for re-election or reappointment.
A general statement about what is expected of the local authority member or officer, including that the person is chosen for specific skills and experience and is not disqualified by law from acting as a charity trustee.
The voluntary organisation should undertake to provide proper induction training for the local authority member or officer and to inform the local authority promptly if it is decided to change the governing instrument or wind up the organisation.
5.3. Reporting arrangements
The nature and frequency of any formal reports which are required by the local authority and whether these are addressed to a committee or to the executive management (accounts, activities, outputs etc.).
Monitoring arrangements between a local authority and a voluntary organisation which receives grant aid and/or is a party to contracts or service agreements should be described in separate documents but may be referred to under this heading.
It is not always necessary for a local authority to lay down extra reporting arrangements given what is already required of charities by statute and regulated by the Charity Commission. I
The nature and frequency of any reports or information which the voluntary organisation can expect to receive from the local authority.
A statement setting out any requirements for local authority members and officers to report back to the local authority on the conduct and performance of the voluntary organisation.
A statement indicating whether a local authority member has speaking and/or voting rights at Council committee meetings which touch on the affairs of the voluntary organisation.
5.4. Liability and responsibility statement
The responsibilities and liabilities of the members of the board in terms of charitable and public legislation, regulation and accounting standards.
Where the voluntary organisation is a charity the agreement must state that where the local authority member or officer is a trustee there is a duty to act in the interests of the charity rather than the local authority when serving on the board.
The role of observers including the receipt or withholding of confidential papers, attendance or exclusion from meetings, and speaking and voting rights.
Arrangements made by the voluntary organisation to indemnify board members against risks of personal liability.
Arrangements made by the local authority, if appropriate, to indemnify its members and/or officers who serve on the boards of voluntary organisations against risks of personal liability.
The LGA may issue separate advice, after discussion with the Audit Commission and others, on the wider issue of local authorities' capacity to indemnify members and officers who serve on external bodies. This should be communicated to voluntary organisations.
