Development of the Handbook
- INTRODUCTION
- DEVELOPMENT OF THE HANDBOOK
- INDUCTION OF MEMBERS
- ESTABLISHMENT OF BOARD OR COMMITTEE
- LEGISLATION
- CHARTER
- FUNCTIONS
- BUSINESS PLAN
- ROLE OF MEMBERS
- ROLE OF MINISTER
- RELATIONSHIP MANAGEMENT
- MINISTER’S EXPECTATIONS
- GOVERNANCE
- MINISTER’S DIRECTIONS
- PERFORMANCE MONITORING
- LEGAL ADVICE
CONTENTS
- MEMBERS
- SELECTION OF MEMBERS
- APPOINTMENTS
- TERMINATION OF APPOINTMENTS
- AUTHORITY OF MEMBERS
- FINANCE
- REMUNERATION
- RESOURCES
- CODE OF CONDUCT
- “on board”
- POLICY DOCUMENTS
INTRODUCTION
The Government Boards and Committees Handbook is designed to assist members of boards and committees to perform their role.
The idea for this Handbook comes from a recommendation of the Auditor-General’s performance audit report to the NSW Parliament on “Corporate Governance”. The Auditor-General recommended:
“A NSW Public Sector Board Members Handbook should be developed covering all boards to serve both as an induction manual and as an ongoing reference. The Handbook should include details of how legislation, policies, administrative arrangements and conventions affect board roles, responsibilities and duties.”
The Audit Office followed up the performance audit report with a publication “on board: guide to better practice for public sector governing and advisory boards”. This guide raises practical issues regarding governance of boards and committees as a reference source for members of boards and committees.
Important factors in considering the design and content of this Handbook are the many different types of boards and committees, and the different needs of members and other people with roles and responsibilities in this area of public administration. The approach taken is to pilot the Handbook as a set of section dividers for a loose-leaf binder that may be used to build collections of resource materials that are suited to the particular needs of the user. These materials may also be used as a guide for an electronic resource collection.
The Handbook might be used as a resource by the board or committee, the chairperson, individual members, the Minister’s office, and staff of public agencies who provide executive or administrative support in relation to board and committee matters.
It is intended that individual users should build their own collection of resources by inserting the appropriate documents in the various sections of the Handbook. Any requests for resources on particular issues, or suggestions for improvements to the pilot Handbook, may be referred to the Department of Premier and Cabinet.
We will provide all possible assistance to users in building a Handbook that best meets their individual needs. Inquiries and suggestions may be made by contacting the Department on telephone 02 9228 4199; facsimile 02 9228 4634; email: .
DirectorGeneral / INTRODUCTION
DEVELOPMENT OF THE HANDBOOK
This Handbook has been designed as a guide to the collection of resource materials that meet the needs of individual users.
The suggested names and order of the parts may not suit all users, and it is intended that they be rearranged as necessary to customise the Handbook for each user.
The primary source materials in respect of boards and committees will contain the information relevant to a number of different parts and individual users should decide how to organise these materials to best meet their needs.
Any issues on which information or advice would be helpful for Handbook users should be referred to the Department of Premier and Cabinet on telephone
02 9228 4199; facsimile 02 9228 4634; email: . / DEVELOPMENT OF THE HANDBOOK
INDUCTION OF MEMBERS
Insert in this part of the Handbook documents regarding the induction of members appointed to the board or committee.
Members of boards and committees might find that this part of the Handbook serves as a convenient place to hold material (not included elsewhere in the Handbook) issued at the time of their induction as a member.
Consideration might be given to an induction process designed to introduce members to the matters identified in the Handbook, and to include providing members with a “standard” Handbook for the board or committee. / INDUCTION OF MEMBERS
ESTABLISHMENT OF BOARD OR COMMITTEE
Insert in this part of the Handbook documents regarding the establishment of the board or committee, such as:
- Ministerial statement
- Media release
- Second Reading speech
- Extracts from Parliamentary debates
- Extracts from reports, submissions, etc.
Documents setting out the composition of the board or committee might be included in this part. / ESTABLISHMENT
LEGISLATION
Insert in this part of the Handbook the legislation establishing the board or committee, and any other legislation relevant to the establishment of the board or committee.
Where a board or committee is established by legislation, this is the primary source of information on the role, functions, membership and reporting and operational arrangements for the body.
Consideration of any issue by a board or committee should include an examination of the statutory basis for the body’s involvement and the source of authority for proposed actions. / LEGISLATION
CHARTER
Insert in this part of the Handbook the charter for the board or committee if it is not established by legislation.
If a board or committee is not established by legislation, a non-statutory charter is the primary source of information on the role, functions, membership and reporting and operational arrangements for the body.
A charter may take any form that suits the Minister or the Government.
Consideration of any issue by a board or committee should include an examination of the basis for the body’s involvement and the source of authority for proposed actions.
Depending on the terms of its charter, a board or committee established in this way may have wider discretions than a body established by legislation, but may also have less formal guidance about its role and functions.
An important role for a body established by charter may be to document its role, functions and operational arrangements through consultations with the responsible Minister. / CHARTER
FUNCTIONS
Insert in this part of the Handbook documents regarding the role of the board or committee, such as extracts from the documents regarding the establishment of the board or committee.
These documents set out the policy, operational and service objectives the Government seeks to achieve through the operations of the board or committee, and the role that the body is to perform.
The role of the board or committee in governance of an associated organisation should be specified clearly. / FUNCTIONS
BUSINESS PLAN
Insert in this part of the handbook the business plan for the board or committee. / BUSINESS PLANROLE OF MEMBERS
Insert in this part of the Handbook documents regarding the role to be performed by the chairperson and other members of the board or committee.
Information on roles may be provided in induction material and may also be contained in the following sources:
- Ministerial statement
- Media release
- Second Reading speech
- Extracts from Parliamentary debates
- Extracts from legislation
- Extracts from charter
- Extracts from reports, submissions, etc.
- Legal advice
- Directions from the Minister and/or Chairperson
ROLE OF MINISTER
Insert in this part of the Handbook documents regarding the role of the Minister in respect of the board or committee.
Fundamental to the role of Ministers in respect of boards and committees is the principle of Ministerial responsibility.
Ministers are responsible for securing the Crown’s interests in all aspects of their portfolios and are accountable through the Parliament to the community for their discharge of this responsibility.
The report of the performance audit undertaken by The Audit Office dealt with the need for clarity about the respective roles, powers, responsibilities and accountabilities of Ministers, boards and committees, and CEOs of associated organisations.
It is most important that boards and committees have a clear understanding of the roles and responsibilities of the Minister in relation to the board or committee. / ROLE OF MINISTER
RELATIONSHIP MANAGEMENT
Insert in this part of the Handbook documents regarding relationship management by the board or committee.Members of boards and committees should be aware of the complex structural and working relationships between Ministers, associated organisations and the board or committee.
Useful source materials include:
- Portfolio description
- Organisations charts for the principal agencies in the Minister’s portfolio
- Extracts from Government directory
- Chart of the board’s or committee’s location within the portfolio and formal relationships with other bodies.
The board’s or committee’s primary relationship is with the responsible Minister. / RELATIONSHIP MANAGEMENT
MINISTER’S EXPECTATIONS
Insert in this part of the Handbook documents regarding the Minister’s expectations of the board or committee.
The Minister’s expectations might be contained in documents collected in other parts of the Handbook.
The Minister’s expectations should be in accordance with the legislation or charter establishing the board or committee, and should respect any statutory or other duty of the board or committee to act in a quasi-judicial or independent manner in performing its role. / MINISTER’S EXPECTATIONS
GOVERNANCE
Insert in this part of the Handbook documents regarding governance of the board or committee.
The report of the performance audit undertaken by The Audit Office dealt with the need for boards and committees to conduct their affairs to the standards expected in a professional boardroom culture.
The Audit Office’s publication “on board” is a valuable reference for matters that members of boards and committees should take into consideration with respect to governance of their body. / GOVERNANCE
MINISTER’S DIRECTIONS
Insert in this part of the Handbook any directions from the Minister with respect to any aspect of the board or committee. / MINISTER’S DIRECTIONS
PERFORMANCE MONITORING
Insert in this part of the Handbook any documents regarding monitoring the performance of the board or committee.Governing boards or committees by their very nature have important responsibilities to monitor the performance of the organisation that they govern.
Other boards or committees are likely to be involved in monitoring performance of other bodies in the course of performing their advisory role.
Apart from these functional roles, the performance of boards and committees in their governing or advisory roles should be monitored.
This performance monitoring is a fundamental responsibility of every public body and the board or committee should have a clear program of activity and explicit criteria against which to assess its own performance.
Factors to consider include strategic direction, capacity, integrity, resource management and performance of statutory or charter responsibilities. / PERFORMANCE MONITORING
LEGAL ADVICE
Insert in this part of the Handbook any legal advice with respect to any aspect of the board or committee. / LEGAL ADVICE
MEMBERS
Insert in this part of the Handbook any documents regarding members of the board or committee.
A collection of official resumes, members’ profiles, photographs and terms of appointments of members might be valuable for all users of the Handbook. / MEMBERS
SELECTION OF MEMBERS
Insert in this part of the Handbook any documents regarding selection of members for appointment to the board or committee.Provisions regarding selection of members are usually set out in the legislation or charter establishing the board or committee.
Eligibility for many appointments depends on the person meeting certain criteria set by legislation.
Common provisions are that members are nominated by particular interest groups and that members are selected at the discretion of the responsible Minister.
Selection criteria set by legislation or charter might be included in this part.
Appointees may be selected following advertisement and a public sector selection process.
They may also be selected from the Department of Premier and Cabinet’s register of people who have notified the Government of their availability to serve on boards and committees.
The responsible Minister recommends to Cabinet the appointment of Chairpersons of boards and committees.
The appointment process is in accordance with the legislation or charter. / SELECTION OF MEMBERS
APPOINTMENTS
Insert in this part of the Handbook any documents regarding appointments of members to the board or committee.Provisions regarding appointment of members are usually set out in the legislation or charter establishing the board or committee.
It is Government policy that Cabinet approves all appointments to boards and committees on the recommendation of the responsible Minister.
Individual members might find this part of the Handbook provides a convenient place to store the documents dealing with their appointment to the board or committee.
The board or committee should inform itself about the process for filling vacancies and give priority to its role in the process. It is important that the selection process commences well before a member’s appointment comes to an end to maintain membership at full strength. / APPOINTMENTS
TERMINATION OF APPOINTMENTS
Insert in this part of the Handbook any documents regarding the termination of appointments of members to the board or committee.Depending on the precise terms of the legislation or charter establishing the board or committee, appointments may be terminated at the discretion of the Minister with the approval of Cabinet.
Appointments also terminate at the end of the period specified in the appointment, although members may be re-appointed.
Members might note that changes in the membership of boards and committees occur constantly for a variety of reasons, including changes in the Minister’s expectations of the body; availability of members; performance; and the provision of opportunities for other people to serve the community through membership of a board or committee. / TERMINATION OF APPOINTMENTS
AUTHORITY OF MEMBERS
Insert in this part of the Handbook any documents regarding the authority of members of the board or committee to act in relation to the affairs of the body, eg, expend funds, make commitments, give directions, issue media statements, claim to represent the body.The circumstances of every board or committee are different from others, and members of these bodies should be informed of their authority in respect of the affairs of the body before taking any actions that may prove to be unlawful.
Members should be aware of the strict rules that apply to the affairs of public bodies and their employees in terms of acting in accordance with the law or charter; expending public money and resources only with proper authority; using public powers appropriately; and accounting for the use of public resources and powers. / AUTHORITY OF MEMBERS
FINANCE
Insert in this part of the Handbook any documents regarding the finances of the board or committee. / FINANCE
REMUNERATION AND ALLOWANCES
Insert in this part of the Handbook any documents regarding remuneration for members of the board or committee.
It is Government policy that the Premier sets remuneration for members of boards and committees. / REMUNERATION AND ALLOWANCES
RESOURCES
Insert in this part of the Handbook any documents regarding the resources available to support the board or committee. / RESOURCES
ANNUAL REPORTS
Insert in this part of the Handbook any documents regarding annual reports by the board or committee.Each board or committee should comply with any requirements to issue annual reports set by legislation or charter.
Where there is not a formal requirement to issue annual reports, the board or committee should consider reporting annually on its activities and achievements, either in a separate report or in an associated organisation’s annual report.
Annual report formats and standards, if not prescribed, might be based on the statutory annual report requirements for public agencies that are required to issue annual reports. / ANNUAL REPORTS
CODE OF CONDUCT
Insert in this part of the Handbook the guidelines on ethics for members of boards and committees.
These guidelines have been developed by the Department of Premier and Cabinet in consultation with the Corruption Prevention Unit of the Independent Commission Against Corruption and other interested parties.
They are intended to assist boards and committees prepare their own Code of Conduct. / CODE OF CONDUCT
“on board”
Insert in this part of the Handbook The Audit Office publication “on board: guide to better practice for public sector governing and advisory boards”. / “on board”
POLICY DOCUMENTS
Insert in this part of the Handbook any policy documents relevant to the board or committee that do not fit appropriately into other parts. / POLICY DOCUMENTS