Impartiality, professionalism and integrity are important foundations for the public sector. Public sector staff must act with these values in mind, to ensure the use of public funds is as effective and efficient as possible, to meet community needs and to maintain public trust. Government and Parliament must be able to rely on the public sector to deliver effective services and provide robust advice to guide decision-making.

Ordered to be published

VICTORIAN GOVERNMENT PRINTER June 2017

PP No 255, Session 2014–17 

The survey we conducted as part of this audit was designed to gather information on governance practices and obtain feedback on the effectiveness of guidance issued by the Victorian Public Sector Commission (VPSC), the Department of Premier and Cabinet (DPC) and portfolio departments.

This appendix presents our methodology and the results of the survey.

Survey methodology

Selection of participant entities

There are about 3 400 Victorian public sector entities with boards.

During the conduct of this audit, we reviewed better practice guidance and frameworks to identify core principles in good board governance:

Introduction

We have professionally engaged with portfolio departments, the boards in the case studies (from Box Hill Institute and Centre for Adult Education, CenITex, Fed Square Pty Ltd and Peter MacCallum Cancer Institute), the Department of Premier and Cabinet and the Victorian Public Sector Commission throughout the course of the audit. In accordance with section 16(3) of the Audit Act 1994 we provided a copy of this report or relevant extracts to those agencies, and requested their submissions and comments.

Under the Public Administration Act 2004 (PAA), a public sector board is responsible for:

Under the Public Administration Act 2004 (PAA), portfolio departments and the Victorian Public Sector Commission (VPSC) support public entities and boards to fulfil their functions effectively.

In this Part of the report, we assess the guidance and support all public boards receive from their portfolio departments and from the VPSC.

The Department of Premier and Cabinet (DPC) administers the Appointment and Remuneration Guidelines (the Guidelines) for public sector boards. We assessed the Guidelines and how DPC administers them.

The Victorian public sector is made up of the Victorian public service (departments, offices and other designated bodies), and special bodies and public entities such as statutory authorities, state-owned corporations and advisory bodies that exercise a public function.

Public entities are generally legally distinct and established for a specific purpose. They have defined functions and operate with varying degrees of autonomy. Public entities are ultimately accountable to a minister for their performance.

Boards are the governing bodies of public sector entities. Board members set the overall strategic direction for the entity, and monitor and manage the performance of senior management. They also oversee operations and regulatory compliance, and have an important role in keeping responsible ministers and government departments aware of the major risks that their entities face. Effective boards set policies to mitigate these risks and promote transparent, accountable governance.