Audit Scotland
An Audit Scotland report published today, The role of
boards, examines the governance arrangements of NHS bodies,
colleges, executive agencies, non-ministerial departments, non-departmental
public bodies and Scottish Water. The report covers 106 boards which oversee
£17 billion of spending a year, about half of the Scottish public budget.
Public bodies and their boards have evolved over time. There is great
variety in the size and make-up of boards and the roles that they have.
Accountability can be complex, with chief executives and boards reporting in
different ways to the Scottish Government, ministers and the Scottish
Parliament. This risks causing confusion about who leads an organisation and
is responsible for its decisions.
Auditor General for Scotland Robert Black said:
“The Scottish Government has made progress with its public sector reform
agenda but the public sector landscape remains complex with a variety of
accountability arrangements. The need for strong leadership and clearer
accountability in the public sector is crucial, now more than ever with budgets
reducing. Over the coming years boards will have to make tough choices
about public services. There will need to be clear and well understood
relationships between public bodies and the Scottish Government to agree
priorities and manage budget reductions.”
Mr Black emphasised the importance of strong leadership in public
bodies:
“Board members must scrutinise rigorously
their organisations’ risks, financial management and performance. Some
boards do this well but others need to exercise this central role more
effectively. The success of boards depends on having a mix of people with the
right skills and expertise, but the evidence is that the number of people
applying for posts as non-executives on boards is falling. The Scottish
Government should review the reasons for the falling interest in public
appointments and make sure that people with the right skills and experience
are encouraged to come forward.”
Between 2004/05 and 2008/09, the number of people applying to
become non-executives board members in the public sector more than
halved. By 2008/09, Scottish ministers had no choice of candidate for more
than a fifth of appointments. Audit Scotland says it is unclear why application
numbers have dropped, although reasons may include the lengthy
appointment process, public perceptions of public bodies, the pay and the
risk of damage to personal reputations.