Building Financial Capability Sector Steering Group

Terms of Reference: 1 January 2017 to 30 June 2017

8 February 2017, Version 6.0

Page 2

Version Control

Version Author Comment

1 Sharon Shea Original

1.1 Sharon Shea Preliminary feedback from MSD

1.2 Sharon Shea Draft sent to SG

2 Sharon Shea Based on feedback from SG at two-day workshop held 18 & 19 January 2017 in Wellington

3 Sharon Shea Minor amendments made based on feedback from MSD

4 Sharon Shea Minor amendments made based on feedback from John Exton

5 Sharon Shea Minor amendments made based on SG feedback at teleconference on 3 February 2017. Updated Acronyms table.

6 Chriss Bull Minor amendments made based on SG feedback via email on 8 March 2017. Updated text regarding fees and costs clause.

Page 3

TABLE OF CONTENTS

1. INTRODUCTION ....................................................................................................................................... 5

2. BACKGROUND ......................................................................................................................................... 5

3. PRINCIPLES .............................................................................................................................................. 5

4. PURPOSE, FUNCTION & TERM ................................................................................................................. 6

PURPOSE ............................................................................................................................................................... 6

FUNCTIONS ............................................................................................................................................................ 6

TERM .................................................................................................................................................................... 6

5. STRUCTURE & ROLES ............................................................................................................................... 6

MEMBERS ............................................................................................................................................................. 6

ROLES AND RESPONSIBILITIES OF STEERING GROUP MEMBERS ......................................................................................... 7

Roles ............................................................................................................................................................... 7

Steering Group Member Skillsets ................................................................................................................... 7

Government Agency Steering Group Member Attributes .............................................................................. 7

Non-government Steering Group Member Attributes ................................................................................... 8

Appointing Members ..................................................................................................................................... 8

Nominees ....................................................................................................................................................... 8

Additional Attendees...................................................................................................................................... 8

Secretariat Support ........................................................................................................................................ 8

Form and function .......................................................................................................................................... 8

ENDING MEMBERSHIP.............................................................................................................................................. 9

Resignation .................................................................................................................................................... 9

Removal ......................................................................................................................................................... 9

6. REPORTING STRUCTURE .......................................................................................................................... 9

7. WORKING PROTOCOLS ............................................................................................................................ 9

MEETINGS ............................................................................................................................................................. 9

QUORUM .............................................................................................................................................................. 9

FEES AND COSTS .................................................................................................................................................... 10

CONFLICTS OF INTEREST .......................................................................................................................................... 10

CONFIDENTIALITY .................................................................................................................................................. 10

MEDIA POLICY ...................................................................................................................................................... 11

8. CULTURAL RESPONSIVENESS & HIGH NEED WHĀNAU/FAMILIES .......................................................... 11

APPENDIX 1: SOCIAL INVESTMENT DEFINITION ............................................................................................. 12

Page 4

Common Acronyms

Acronym Description

ABC Associated Budgeting Consultants

BACN Budget Advisers Collective Network

BFC SG Building Financial Capability Sector Steering Group

CBNZ Christian Budgeting New Zealand

CFFC Commission for Financial Capability

LGBTQI Lesbian, Gay, Bisexual, Transgender, Questioning and Intersex

MBIE Ministry of Business, Innovation and Employment

MSD Ministry of Social Development

NZFFBS New Zealand Federation of Family Budgeting Services

SG Building Financial Capability Sector Steering Group

TOR Terms of Reference

Common Definitions

Term Definition

BFC Sector Comprises many stakeholders. The highest priority stakeholders for the new Entity are the MSD BFC contracted providers who will receive services or supports from the Entity. In addition, other sector stakeholders may include:

Any family/whānau and individuals who require services or support to build their financial capability

Other NGOs or providers that seek to build their clients financial capability that are not contracted by MSD to deliver BFC services

Potential funders of the national Entity (government, private, philanthropic, community)

Organisations that deliver financial services, supports or products that may impact on MSD BFC contracted providers or their clients (e.g. Banks, Credit Companies, Creditors, Debtors)

Iwi and Urban Māori

Pacific Peoples

‘Vulnerable’ groups who are suffering from financial hardship

Other stakeholders (as agreed by the SG)

Entity The new national Entity to be established by the Sector Group.

Page 5

1. INTRODUCTION This Terms of Reference (TOR) supports the role, scope and function of the Building Financial

Capability Sector Steering Group (SG or the Group) from 1 January 2017 to 30 June 2017. This TOR

has been approved by the SG members.

2. BACKGROUND At a national and regional level, Building Financial Capability (BFC) providers are mainly supported by

four sector umbrella groups and the Ministry of Social Development (MSD). The sector groups are:

Associated Budgeting Consultants (ABC)

Budget Advisers Collective Network (BACN)

Christian Budgeting New Zealand (CBNZ)

New Zealand Federation of Family Budgeting Services (NZFFBS)

Since May 2016 the BFC sector umbrella groups have been meeting to look at how they could work

collaboratively to provide support to BFC providers in the new environment of social investment and

Budgeting Services re-design. As an outcome of the collaborative process, a Sector Steering Group

was formed on 1 December 2016. Along with the four umbrella groups, the Sector Steering Group

also has Māori and Pacific representation, representation from the Commission for Financial

Capability (CFFC) and MSD representation.

3. PRINCIPLES The following principles, adapted from the BFC Service Guidelines1, will guide how the SG operates:

Principle Description

Tika and pono To act honestly and in good faith To support the principles of Te Tiriti o Waitangi

Whakawhitiwhiti Kōrero To communicate openly and in a tiMelaniey manner

Paeheretanga To work in a collaborative and constructive manner

Rangatiratanga To recognise each other’s responsibilities and authority

Auahatanga To encourage quality and innovation to achieve positive outcomes

1 BFC Service Guidelines, October 2016, p.5.

Page 6

4. PURPOSE, FUNCTION & TERM

Purpose

The purpose of the BFC Sector Steering Group is to:

1. Lead the establishment of a new national entity that will support the BFC sector (primarily, the 117 MSD BFC contracted providers)

2. Provide consistent and unified advice (‘one voice’) to MSD about the BFC sector. 3. Provide BFC leadership to the sector and in partnership with the Ministry of Social

Development. 4. Support the sector through the transition to a new national entity that will provide support

and services to all MSD contracted BFC providers and other BFC sector stakeholders (as agreed).

Functions

The BFC Sector Steering Group will be supported to:

Guide the development and implementation of a project plan that is focused on establishing a new BFC national entity.

Provide constructive criticism and strategic advice to fulfil this TOR.

Provide a BFC sector voice to MSD, and other third parties to fulfil this TOR (as agreed).

Report regularly on progress to the BFC sector, MSD and other third parties (as referred to in this TOR, the Project Plan and as otherwise agreed).

Collaborate with each other and with Government to fulfil this TOR

Work with the BFC sector to support buy-in to agreed BFC strategy and approaches

Keep the ‘best of the best’ currently in the sector and engage in innovative development, as required

Term

The term of the SG, and this TOR, is from 1 January 2017 to 30 June 2017.

5. STRUCTURE & ROLES

Members The BFC Sector Steering Group originated from meetings between BFC Sector umbrella groups and

the Ministry of Social Development. With further discussion, the SG was broadened to include Māori

and Pacific representation, and representation from the Commission for Financial Capability.

The SG comprises the following membership.

Member Organisation

Darryl Evans Associated Budgeting Consultants (ABC)

John Exton Christian Budgeting New Zealand (CBNZ)

Page 7

Member Organisation

Linda Ngata Te Runanga O Nga Maata Waka

Lindy Cassidy, Justine Pivac-Solomon Ministry of Social Development

Rosalie Grant Budget Advisers Collective Network (BACN)

Melanie Turner Commission for Financial Capability

Raewyn Fox and CarMelanie Thompson New Zealand Federation of Family Budgeting

services

Tele’a Andrews Ministry of Business, Innovation and

Employment (MBIE)

Roles and Responsibilities of Steering Group Members

Roles

All members of the BFC Steering Group commit to:

work together with integrity to achieve the agreed work programme

support agreed building financial capability sector strategy

champion the BFC sector

act in accordance with the principles of the Treaty of Waitangi

support each other through the provision of sound advice based on their organisational knowledge and functional experience

identify risks and issues and engage in proactive risk management

prioritise attendance at BFC Steering Group meetings and maintain up-to-date knowledge of BFC Steering Group business

hold true to agreed decisions made at SG meetings

Steering Group Member Skillsets

The skill and experience set to be represented across the BFC Steering Group includes:

well informed and up to date on the current state of the BFC sector in New Zealand

understanding of, and established networks relevant to the BFC sector

knowledge of Kaupapa Māori and Mātauranga Māori - traditional and contemporary

knowledge of ki te whaiao (community-led change)

knowledge of working with Pacific communities

knowledge of community development and the activity that supports change at the community and individual level

expertise in social change and social marketing development and evaluation

understanding of social investment principles

Government Agency Steering Group Member Attributes

Agency representatives who are members will:

Page 8

have a mandate from their agency to participate in the SG on behalf of their agency

keep relevant people in their agency linked into SG activity, discussion and planning

articulate SG advice in ways and contexts that positively influence agency decision makers

engage with key agency players to build understanding of and support for the SG’s guidance and decision-making around the BFC sector and system.

Non-government Steering Group Member Attributes

Non-government representatives who are members will:

have a mandate from their organisations to participate in the SG on behalf of their agency

where able, contribute the ‘voice’ of the sector via their umbrella organisations and/or knowledge of sector views

ensure relevant people in their organisations and networks, who are associated with the BFC sector, are linked into SG activity, discussion and planning (using agreed SG messaging)

articulate SG advice in ways and contexts that positively influence BFC colleagues/associated organisations and decision makers

engage with key BFC players to build understanding of and support for the SG’s guidance and decision-making around the BFC sector and system.

provide their specialist knowledge of Kaupapa and Mātauranga Māori and/or knowledge of other over-represented populations who experience financial hardship.

Appointing Members

New members may be appointed for the purpose of filling any vacancies by majority agreement.

Nominees

If members are unavailable to attend meetings (physical or virtual), they may send along a nominee

from their sector umbrella group and/or nominating organisation. However, it is the member’s

responsibility to ensure that all nominees are:

up to date and ready to proceed with decision-making at the meeting.

mandated by the nominating organisation

can make decisions as if they were the original member

Additional Attendees

Other attendees may be requested to attend SG meetings based on their specialist knowledge and

their ability to represent specific agenda items.

Secretariat Support

Secretariat support will be provided by MSD2.

Form and function

The SG members can make final decisions about the form and function of the BFC Sector Steering

Group during its tenure, by majority.

2 A contractor has been engaged to provide support for project implementation, which includes

secretariat support for the SG.

Page 9

Ending Membership

Resignation

A member of the SG may at any time resign by advising all members in writing.

Removal

Any member of the SG may be removed from their role if it is determined to the satisfaction of the

majority of the Members that the member is unable to perform the functions of the role, has

neglected their duty, or has acted inappropriately (e.g. breach confidentiality).

6. REPORTING STRUCTURE The BFC Sector Steering Group will report to three key audiences:

The BFC sector

Government sponsors via MSD

Other agreed third parties

The SG’s main reporting requirements will be outlined in the project plan for establishing the new

national entity.

7. WORKING PROTOCOLS

Meetings The SG will hold a series of physical and virtual meetings, as needed. Meeting requirements will be

aligned with the roles and functions of the SG. A schedule of meetings will be agreed at the first

meeting in 2017 (or close to), and will be updated, as required. The Members will approve any ad

hoc meetings as required.

Face-to-face meetings will generally be held in Wellington. The duration of meetings will be

determined by the agenda content.

Quorum A minimum of five SG members are required as a quorum for decision-making purposes. It is

preferable if the composition of the quorum reflects the diversity of the representatives.

Minutes of the SG meetings will be distributed to members as soon as possible after the meeting.

The secretariat will to distribute papers to members at least five working days prior to meetings. The

documentation will comprise:

meeting agenda

advice papers

other documents or information as required.

Page 10

Key and anonymised discussion points, and agreed actions in meetings, are recorded in the meeting

minutes. Upon request, a member’s specific views may be recorded in the meeting minutes;

including dissenting views.

Papers containing SG advice and recommendations will be prepared by either SG members, or the

secretariat in consultation with SG members, and will be circulated for feedback and endorsement.

Fees and costs

In alignment with Cabinet Fees Framework (CO (12) 6, the secretariat will facilitate:

paying meeting fees to non-government members

paying reasonable administrative costs for non-government members’ participation in meetings (for example, travel or accommodation), which will be agreed by MSD in advance of costs of being incurred.

Non-government members will be paid a fee for attendance at each day meeting of the BFC Steering

Group. A half-day meeting fee will be paid for work outside of BFC Steering Group meetings. The

half-day fee will be paid as 50 per cent of the full-day fee.

Costs for government members are the responsibility of their respective agencies. The fees will be

reimbursed to the non-government member’s organisation upon receipt of a tax invoice, if required.

Conflicts of interest

Members will be required to complete a Conflict of Interest Register. A Declaration of Interests will

be established by or before the first SG meeting in 2017. A Collated Register of Interests will also be

maintained and discussed at each meeting, to share awareness of all interests (conflict and

otherwise) in the BFC sector. The Register of Interests will be maintained by the secretariat and

reviewed as an agenda item at each formal meeting.

Confidentiality

Members must ensure that where agreed, confidentiality of SG business is maintained. Members

will, as required, agree what SG matters are to be kept confidential and what SG matters are

permitted to be discussed with people outside the Steering Group. Agreement will be discussed and

agreed at SG meetings and as required.

All SG members will ensure they are familiar with the information that is publicly available about the

BFC sector and the SG’s work.

In principle, meetings of the SG, including agenda material and draft minutes, are confidential.

However, it is agreed that a summary version of approved SG meeting notes will be published on

MSD’s website to support transparency and openness about the SG’s work. It is also agreed that

anyone can request a full version of approved SG meeting notes and they will be supplied by MSD

upon request.

Members must keep SG documents secure to ensure that the confidentiality of the Group work is

maintained, as agreed. SG correspondence or SG papers can only be released with the approval of

the majority of the SG members.

Page 11

Members are free to express their own views within the context of SG meetings, or as part of the

general business of the SG.

Members may communicate general meeting discussions with other SG members who were not

present at the meeting.

All BFC Sector Steering Group documents are subject to the Official Information Act 1982 and the

Privacy Act 1993.

Media policy Only designated members are authorised to comment publicly on the affairs and policies of the

Group. The authority to comment will be agreed by the majority of the SG prior to any comment

being made.

Members and the secretariat will not support any action or public statement that is derogatory or in

any way damaging to the Group.

Members have the right to comment to the media on any matter in their professional capacity, if

they do not attribute the comment to the SG or imply that they are speaking on behalf of the SG.

8. CULTURAL RESPONSIVENESS & HIGH NEED

WHĀNAU/FAMILIES Māori, Pacific Peoples and other Vulnerable Groups are disproportionally represented in BFC

statistics in New Zealand. Investing in populations with the greatest burden of harm and risk is a

priority for BFC sector strategy.

In this context, the BFC Steering Group has a responsibility to:

ensure that BFC Steering Group membership appropriately reflects Māori expertise

ensure advice and recommendations are culturally appropriate

ensure a kaupapa Māori lens as well as a western science lens is applied to understanding evidence and reviewing activity3.

The considerations above reflect Māori as the population which is over-represented in the Building

Financial Capability sector. The SG will also give appropriate consideration to other over-represented

populations such as Pacific, refugee, migrant, elderly, disabled, and LGBTQI communities (based on

need).

3 For example, see Superu’s Families and Whānau Status Report 2016 Presentation Slides, page 3 at

http://www.superu.govt.nz/seminar_families_whānau_2016

Page 12

APPENDIX 1: SOCIAL INVESTMENT DEFINITION Office of the Minister of Finance – October 2015

Social Investment is about improving the lives of New Zealanders by applying rigorous and evidence-

based investment practices to social services.

It means using information and technology to better understand the people who need public

services and what works, and then adjusting services accordingly. What is learnt through this

process informs the next set of investment decisions.

Much of the focus is on early investment to achieve better long-term results for people and helping

them to become more independent. This reduces the number of New Zealanders relying on social

services and the overall costs for taxpayers.

Social Investment puts the needs of people who rely on public services at the centre of decisions on

planning, programmes and resourcing, by:

Setting clear, measurable goals for helping those people;

Using information and technology to better understand the needs of people who rely on social services and what services they are currently receiving;

Systematically measuring the effectiveness of services, so we know what works well and what doesn’t;

Purchasing results rather than specific inputs, and moving funding to the most effective services irrespective of whether they are provided by government or non-government agencies.

The way in which these principles are implemented will vary, and may include:

a particular focus on vulnerable or high-risk groups;

investing up-front to support people most at risk of poor outcomes later on in life;

greater input from outside the public sector in analysis, innovation and service provision;

working with local organisations to commission services within communities;

new citizen-centred services that cut across existing departmental service channels;

interacting with each household through a single trusted relationship.