ORGANIZATIONAL STRUCTURES AND PROCESSES

 Statutory Accountability
Governing bodies of public sector entities need to establish effective arrangements to ensure
compliance with all applicable statutes and regulations, and other relevant statements of best
practice.
 Accountability for Public Money
Governing bodies of public sector entities need to establish appropriate arrangements to ensure
that public funds and resources are properly safeguarded and are used economically, efficiently,
effectively, with due propriety, and in accordance with the statutory or other authorities that govern
their use.
 Communication with Stakeholders
1. Governing bodies of public sector entities need to establish:
 clear channels of communication with their stakeholders on the entity’s mission, roles,
objectives and performance;
 appropriate procedures to ensure that such channels operate effectively in practice.
2. Governing bodies of public sector entities need to make an explicit commitment to openness
and transparency in all of the activities of the entity, subject only to the need to preserve
confidentiality in those specific circumstances where it is proper and appropriate to do so.
3. Governing bodies of public sector entities need to report publicly the processes for making
appointments to the governing body, and need to make publicly available the names of all
governing body members, together with their relevant other interests.

Roles and Responsibilities

 Balance of Power and Authority
There needs to be a clearly defined division of responsibilities at the head of public sector entities
to ensure a balance of power and authority.
 The Governing Body of a Public Sector Entity
1. Every public sector entity needs to be headed by an effective governing body to lead and
control the entity, and monitor the executive management.
2. Members of the governing body need to receive appropriate induction training on the first
occasion of appointment to the governing body, and subsequently as necessary.
3. Governing bodies of public sector entities need to establish appropriate arrangements to ensure
that they have access to all such relevant information, advice and resources as are necessary to
enable them to carry out their role effectively.
4. To ensure that the direction and control of the entity is firmly in their hands, governing bodies
of public sector entities need to establish and maintain an up-to-date framework of delegated
or reserved powers that includes a formal schedule of those matters specifically reserved for
the collective decision of the governing body.
5. To support them in carrying out their duties, governing bodies of public sector entities need to
establish clearly documented and understood management processes for policy development,
implementation and review; decision-making, monitoring, control and reporting; and formal
procedural and financial regulations to govern the conduct of the governing body’s operations.
6. There needs to be a formal and transparent process to ensure that appointments to the governing
body are made in accordance with specified criteria of competence and on the basis of merit
and the individual’s ability to carry out a defined role within the organization.
 The Chairperson of the Governing Body
The role of the Chairperson needs to be formally defined in writing, to include responsibility for
providing effective strategic leadership to the governing body and to ensure the holder successfully
discharges the overall responsibility for the activities of the entity as a whole.
 Non-Executive Members of the Governing Body
Non-executive members of public sector governing bodies need to provide an independent
judgment on issues of strategy, performance, resources and standards of conduct. Apart from
directors’ fees they may receive, it is appropriate that they are independent of management and
free from any other relationships that may materially interfere with their role. Their duties, terms
of office, remuneration and the review thereof, need to be defined clearly.