The performance of foundation trusts and of foundation trust boards has been under increasing scrutiny during 2009. Pressure on regulators to demonstrate improved standards has also increased. While the full impact of the recession is uncertain, business risks are sure to increase in scope and impact in the year ahead. Foundation trust boards will need to redouble efforts to ensure that risks are identified and where possible mitigated. The will need to ensure that the information they receive is relevant, timely and fit for purpose. They will need to review their assurance processes to guard against risks and ensure that these processes are rigorously applied throughout their organisations.
The Audit Commission has produced two useful reports on board assurance. 'Taking it on trust' looks at how boards assure themselves that internal controls are working effectively. 'Figures you can trust' provides a wide ranging analysis and proposals for improving data quality.
The FTN held a seminar of Risk Management in November 2009 as part of a range of work it will be undertaking to help boards to understand and manage risk and drive performance. Presentations from the event can be found on the Past Events pages of this website.
Board appraisal
Board evaluation and appraisal remains a priority for foundation trusts. The FTN carried out a survey of the types of appraisal tools used in the health and private sectors, and we hold inofrmation on the tools used. Information on board appraisal methods is also shared between FTs at network meetings. Details are available on request from John Coutts.
Non-executive directors' remuneration
Non-executive directors play a central role in the governance of foundation trusts. Foundation trusts will want to assure themselves that remuneration levels are fair, represent value for money and enable them to recruit and retain the best non-executive directors. The FTN carries out periodic surveys of non-executive directors' remuneration. A copy of the latest survey results is available: NED Remuneration Survey Results.