CIPFA and Ifac launch public sector governance code

2 Jul 14

CIPFA and the International Federation of Accountants have launched a good governance framework for the public sector.

The International Framework: Good Governance in the Public Sector, launched at CIPFA’s annual conference yesterday, sets out how to improve governance by ensuring there is robust scrutiny, oversight and accountability for public organisations. It is intended to provide guidance to all those specifically involved with governance, including governing body members, senior managers, and internal and external auditors, as well as giving the public a resource to challenge substandard governance practices in public sector entities.

According to the framework, governance in public entities has become a pressing issue over the past few years as a result of the financial and sovereign debt crises and a constant stream of governance failures, including nepotism, inefficiency, corruption, and poor financial management.

It sets out seven principles – based on behaving with integrity and respecting the rule of law and ensuring openness and comprehensive stakeholder engagement – that can be used to review and update national governance codes for the public sector.

CIPFA International chair Ian Ball said public sector governance must focus explicitly on sustainable economic, social, and environmental outcomes.

‘Our focus on sustainability is also especially important as public sector entities, from local councils to national governments, must consider the long term impact of their current decisions, especially in safeguarding the interests of future generations,’ he said.

Ifac chief executive Fayez Choudhury added that good governance in the public sector required an eye to the future, transparency, and accountability.

‘While adopting the International Public Sector Accounting Standards (IPSAS) is a critical step, improvement of other governance arrangements is essential if governments worldwide are to be successful in the sustainable development of our economies and societies.’


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