The Charity Commission has revised its governance framework, after an independent review warned of a risk of disconnection between its board and the rest of the organisation.

The review into the charity regulator’s governance was commissioned following recommendations by the National Audit Office in March and published yesterday.

It noted that although the board received “better information on organisational performance” than it did two years ago, there remained a risk of a “disconnect between the board and the rest of the organisation”.

“For reasons of accountability and transparency, it is important to maintain a distinction between the exercise of delegated functions and the oversight and scrutiny of how they are carried out,” it said. “It should always be clear whether the board is exercising a function itself or overseeing the conduct of a delegated function.”

In response, the review recommended that the Commission clarify the role of the board and its functions in its governance framework, and “strengthen practical, day-to-day support to the board”.

Board concerns

The review noted that that chair William Shawcross was “working harder than envisaged at the time of appointment”.

“It may be possible for his time commitment to reduce closer to the 2-3 day norm for chairs of major public bodies when the transformation programme is more advanced,” the review said.

The review’s author, Alan Downey, former KPMG partner and head of public sector practice, also expressed concerns that the terms of six board members will end simultaneously in 2016.

“It would be damaging to the Commission to lose he experience of all six at once,” he said in the review. “Careful consideration [should be] be given by the Cabinet Office to the staggering of future appointments.

‘Complimentary relationship’

In a statement yesterday, Shawcross said the resulting revised governance framework is a more effective setting out of the regulator’s purpose. He also praised the current board.

“The board brings huge experience across a range of issues. It strengthens the Commission immeasurably and I am grateful for their support. I would also like to thank the executive team for their heard work in delivering the strategic aims set out by the board,” he said.

Shawcross said the review and revised framework confirmed the way the board and executive interacted.

“The complimentary relationship enables the Commission to be an effective regulator. As we continue to transform the Commission into a modern regulator, I look forward to the continued support provided by the board,” he said.

Further recommendations by the review, included a rebalancing of internal audit activities to place greater emphasis on strategic assurance; a tightening of financial discipline; and implementation of the Commission’s updated risk framework.