10. Evaluating Board performance
The performance of Government Boards and individual Government Board members cannot generally be measured solely against conventional corporate benchmarks based on financial performance. However, public sector Government Board performance can, at least to some extent, be measured by the long term success of an organisation in properly fulfilling the purpose for which it was established. Measures for the assessment of Government Board performance include the development of broad financial and non-financial performance measures for statutory authorities (and hence their Government Boards) as well as more direct measures to appraise collective Government Board performance and individual Government Board member performance. Ministers are responsible for the performance and conduct of the Government Board and the members within their portfolio.
There are also certain legislative requirements outlined below.
The Auditor-General Act 2009 (the A-G Act) confers on the Queensland Auditor-General and the Queensland Audit Office the functions and powers necessary to carry out independent audits of the Queensland public sector and related entities. Such entities include statutory bodies and Government Owned Corporations.
A ‘statutory body’ is defined in Section 9 of the Financial Accountability Act 2009 (the FAA) as an entity that established under an Act, has control of funds and includes, or whose governing body includes at least one member:
- who is appointed under an Act by the Governor in Council or a Minister; or
- whose appointment is approved by the Governor in Council or a Minister.
Certain entities such as departments, local government and prescribed entities are excluded from the definition.1 An Act may prescribe an entity (including part of a department) to be a statutory body for the purpose of the FAA.2
Part 4 of the FAA deals with provisions applying to statutory bodies. Section 61 states that statutory bodies have the following functions:
- to ensure the operations of the body are carried out efficiently, effectively and economically
- to establish and maintain appropriate systems of internal control and risk management
- to establish and keep funds and accounts in compliance with the prescribed requirements
- to ensure annual financial statements are prepared, certified and tabled in Parliament in accordance with the prescribed requirements
- to undertake planning and budgeting for the body that is appropriate to its size
- to perform other functions conferred on the body under relevant legislation, including the Financial and Performance Management Standard 2009 (the FPMS).3
- Section 9(2) FAA
- Section 9(3) FAA
- Section 61 FAA