Audit overview

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.

Board Performance: Message

Ordered to be published

VICTORIAN GOVERNMENT PRINTER May 2017

 PP No 246, Session 2014-2017

The Hon Bruce Atkinson MLC

President

Legislative Council

Parliament House

Melbourne
 
The Hon Colin Brooks MP

Speaker

Legislative Assembly

Parliament House

Melbourne
 

Dear Presiding Officers

Board Performance

Body
In this audit, we examine whether boards are performing effectively and contributing to effective governance of public sector entities. Boards set the overall strategic direction for the entity, and monitor and manage the performance of senior management. In Victoria, around 3 400 public sector entities are governed by boards with, in total, about 33 000 board members.

Appendix A.Audit Act 1994 section 16—submissions and comments

We have professionally engaged with the Department of Premier and Cabinet, the Victorian Public Sector Commission, the Department of Environment, Land, Water and Planning, the Department of Health and Human Services and the Level Crossing Removal Authority 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.

3 Policies and support for public participation

Clear direction and support for public participation is necessary to ensure consistent understanding and effective public participation practice across the Victorian public sector. All agencies have different purposes and activities and it is important they set their own specific policies and guidance to complement any whole‑of-government framework. Agency-wide policies should set a consistent understanding, context and expectations across the agency.

2 Public participation as a strategic priority

Delivering consistent, high-quality public participation relies on both leadership at a whole-of-government level and effective prioritisation by agencies. This Part examines how the central agencies support better-practice principles in public participation across the whole of government and how the audited agencies support public participation as a priority.

2.1 Conclusion

The Department of Premier and Cabinet (DPC) has demonstrated leadership by example at a whole-of-government level by actively using public participation in its recent activities.

1 Audit context

In Australia and overseas, governments have increasingly recognised public participation as an essential part of planning projects and making decisions. This marks a shift in government culture from 'announce and defend' to 'debate and decide'. Transparent and well-managed public participation is now being seen as a critical input for informing government policies, strategies and programs, and as a key feature of good public administration and governance.

Audit overview

Public participation is the involvement of those affected by a decision in the decision‑making process. In Australia and overseas, there is growing recognition of the value of public participation as an essential part of planning projects and making decisions.

Increasingly, governments recognise the contribution the public can make in helping them to understand problems and risks, and to craft solutions that are more likely to work. The public perceive decisions that arise from open and collaborative processes to be more credible.