Holyrood committee calls for public sector body improvements after ‘significant failings’

A Holyrood committee has called for improvements to the way boards of public sector bodies are run following a “steady stream of critical reports''.

The Public Audit Committee set out its concerns in a letter to the Finance Secretary Derek Mackay, highlighting the example of “significant

governance failings'' at the Scottish Police Authority (SPA) which eventually resulted in its chairman Andrew Flanagan announcing he will resign.

It also cited reports from current and previous auditors general on problems of governance and financial management at various public bodies over many years.

Meanwhile, many of the criticisms of the structure and operation of public bodies' boards set out in a 2010 audit report on the role of boards are still valid today, the committee said.

Concerns highlighted by the committee included board members feeling inhibited from challenging board chairs or chief executives, a lack of redress for members if the chief executive or chair is performing poorly, and the lack of an effective and transparent means of assessing performance.

The committee set out several measures to address these problems, including the involvement of a senior independent director on a board as a “check and balance'' on the performance of the chair or chief executive.

Its letter also pointed to issues around appointments, and called for a simple and streamlined process to attract the well-qualified people with a successful track record in the public, private and third sectors rather than “those who are most adept at repeating public sector jargon''.

Acting Convener, Jackie Baillie MSP, said: “Our committee wants to be reassured that Scotland's public bodies are spending public money wisely and delivering the best possible outcomes for the people they serve.

“In order to do so, they must be led by a well-functioning board with clear lines of responsibility and accountability.

“However, there's been a steady stream of critical reports for many years now, highlighting often serious governance failings in public bodies.''

“It is not in anyone's interest for there to be constant critical reports about our public bodies.

“This is why we've suggested several ways in which boards could be made more effective and have also called on the Scottish Government to demonstrate leadership by explaining how it tries to bring about improvements in governance and performance.''

A Scottish Government spokesman said: “Public bodies are important to the delivery and transformation of public services, therefore, they need to be led by highly effective Boards.

“As the Committee notes, the proportion of organisations subject to critical audit reports is very small, however, public bodies must continue to improve performance in order to deliver a service that is high quality, efficient and responsive to local people's needs. We will consider the committee's letter and its recommendations carefully and respond in due course.'