03 October 2008
The overhaul of governance at the National Audit Office has begun, with advertisements issued this week for the comptroller and auditor general and the new post of non-executive chair.
The shake-up follows recommendations made by the Public Accounts Commission in July, based on a review of the watchdog by former Financial Services Authority chief executive John Tiner. The review was ordered in the wake of controversy over the expenses claimed by Sir John Bourn, then auditor general.
The commission noted that the C&AG had 'complete discretion in the discharge of his functions'.
Its recommendations aimed to preserve the NAO chief's independence in making audit judgements, while strengthening the organisation's corporate governance by introducing a board with a majority of non-executive directors.
As a first stage, a chair will be appointed on a salary of £50,000 – although legislation to establish the post on a statutory basis is yet to go before Parliament.
According to recruitment information for the post: 'The chair will focus on nominating four further non-executives for a shadow board, setting the direction and style of the NAO, concentrating on governance, and, with the board, agreeing the non-statutory functions that the NAO is to carry out.'
The chair will oversee 'systems of governance and internal controls and ensure they are consistent with best practice' and will act as a 'critical friend' to the new comptroller and auditor general.
The C&AG post offers a salary in line with those of Whitehall permanent secretaries. The position will be for a fixed, non-renewable ten-year term and will face restrictions on future employment, to avoid conflicts of interest, in line with the commission's recommendations.
Clauses to establish a statutory framework for the reformed NAO are expected to be included in the Constitutional Renewal Bill, which is due to go before Parliament next year.
Auditor general Tim Burr declined to comment on the changes.
PFoct2008
