Governance and accountability of independent bodies and office holders (Thinkpiece) (R.174/2022): executive response (R.174/2022 RES.) – comments.

STATES OF JERSEY

GOVERNANCE AND
ACCOUNTABILITY OF INDEPENDENT BODIES AND OFFICE HOLDERS
(THINKPIECE) (R.174/2022):
EXECUTIVE RESPONSE (R.174/2022 RES.) – COMMENTS

Presented to the States on 24th April 2023 by the Public Accounts Committee

STATES GREFFE

2022  R.174 Res. Com.

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REPORT

In accordance with paragraphs 69-71 of the Code of Practice for engagement between Scrutiny Panels and the Public Accounts Committee' and the Executive', the Public Accounts  Committee  (the  Committee')  presents  its  comments  on  the  Executive Response  to  the  Comptroller  and  Auditor  General's  (C&AG)  Report  entitled: Governance  and  Accountability  of  Independent  Bodies  and  Officer  Holders  (A Thinkpiece)) (R.174/2022 presented to the States on 23rd December 2022).

Comments

1. A substantial part of the Committee's role is to assess the use of public funds and  whether  sound  financial  practices  have  been  applied.  This  includes understanding whether good governance and best practices have been applied in  planning,  implementing  and  administrating  projects  undertaken  by  the Government of Jersey.
2. The C&AG published her report on 30th December 2022 and the Committee received and presented the Executive Response to the report on 13th March 2023.  The  review  considered  the  governance  and  accountability  of  16 independent entities (independent bodies and office holders) established by the States of Jersey with a view to stimulating thought and debate on:

• Setting out the key differences in arrangements for the governance and accountability of independent bodies and office holders

• Determining the extent to which there is evidence of clear justification for such differences; and

• Considering the extent to which it might be possible to establish an overarching  framework  for  the  governance  and  accountability  of independent bodies and office holders.

3. The  review  found  that  the  current  arrangements  for  the  governance  and accountability of independent office holders are fragmented. In some instances, there  are  identifiable  weaknesses  in  arrangements  that  compromise  the governance of independent bodies and office holders. As many of the elements of good governance and accountability are common to all or most independent bodies or office holders, the C&AG found that there was scope for development of arrangements that would apply to all independent bodies and office holders or to groups of them, except where there are compelling reasons that they should not apply. In total the C&AG made 22 observations on areas for consideration that the Government should take forward. It should be noted that the report did not make any formal recommendations.

General Comments on the Executive Response.  

4. In general, the PAC was disappointed with the response provided in relation to the report. The view of PAC is that the response is particularly non-committal and does not provide tangible action or timescales for some of the legislative amendments that have been highlighted in response to the C&AG's findings. Whilst the response does highlight developments that are in progress, the PAC

R.174/2022 Res. Com.

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would like to see a greater commitment from Government to taking forward the suggestions made by the C&AG. It is noted in the response that legislation will be reviewed on a case-by-case basis as part of the Government's legislative programme. The PAC would expect to see further clarity over timescales and action plans as to when these reviews will take place in order to give assurance that the matters will indeed be dealt with in a timely manner.

5. It is the view of the PAC that the manner of response appears to present an opportunity lost to clarify the governance and accountability arrangements for independent bodies and officer holders. The PAC note that several independent bodies have been established to regulate some Government of Jersey services (e.g., the Care Commission) and, as such, Government must ensure that there are proper accountability arrangements in place for these bodies. The bodies highlighted within the C&AG's report are very important to the Island and the PAC would have expected to see a greater acknowledgement of this within the response to the report. The PAC would again highlight that a clear commitment is required in relation to the timescale for addressing these issues with action plans in place to address them.
6. The PAC notes that the bodies covered within the Thinkpiece span a variety of policy areas and, as such, it will ensure that the response and its comments are raised with the other Scrutiny Panels where bodies fall under that remit. Noting that it is not the role of PAC to review policy, raising this matter with the other Scrutiny Panels will assist in identifying where legislative changes are being prioritised by Ministers.

Conclusion

7. In summary, the Committee is disappointed with the Executive Response and would expect to see further commitment from Government in relation to the timescales and action plans for implementing legislative changes governing independent bodies and office holders. Furthermore, the PAC believes that Government should embrace the areas for consideration highlighted by the C&AG in order, otherwise this could end up as an opportunity lost to address issues  in  relation  to  incredibly  important  entities  within  the  Island.  The Committee is hopeful that Government will consider its comments and intends to monitor progress.

R.174/2022 Res. Com.