Agencies are responsible for their own governance systems, structures and approaches, which must be consistent with any applicable legislation. Governance arrangements need to be fit for purpose, and consider the ‘type’ of public sector agency and its business context. Considerations may include its size, risk profile and type of business the agency conducts.
Agencies should have balanced processes that are efficient and enforce accountability.
This guide has 9 governance principles to help agencies:
- apply appropriate governance systems and structures
- meet accountability obligations
- achieve a high level of organisational performance.
Principle 1: Government and public sector relationship
Show moreClear and transparent relationships between the elected government and the public sector is essential. This prevents any undue influence and allows government policies and strategies to be put in place quickly and efficiently.
| Operational element | Requirements | Additional resources |
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What is required to achieve accountability and performance? |
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| 1.1 A document defines responsibilities and accountabilities between the chief executive officer and the minister |
Agency specific legislation Financial Management Act 2006 (sections 78 and 79) Public Sector Management Act 1994 Statutory Corporations (Liability of Directors) Act 1996 (Part 2, Div 3; Part 3 Div 4) |
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How do you achieve it? |
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| 1.2 Processes exist to manage communication and other interaction between ministers and other parliamentary representatives and the agency |
Public Sector Management Act 1994 (section 74 and section 105) Financial Management Act 2006 (sections 81 and 82) |
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How do you monitor progress towards good governance? |
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| 1.3 Communication and other interactions are recorded and monitored | Public Sector Management Act 1994 (section 74) | |
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Reporting |
Public Sector Management Act 1994 (section 31) |
Annual report guidelines |
Principle 2: Management and oversight
Show moreFoundations of good governance include:
- clear management responsibilities and accountabilities
- meaningful strategic plans and work programs
- independent oversight.
| Operational element | Requirements | Additional resources |
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What is required to achieve accountability and performance? |
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| 2.1 A document defines roles, responsibilities and accountability for all relevant levels of management (e.g. those involved in setting the organisation’s key strategic goals and outcomes and monitoring organisational performance) |
Public Sector Management Act 1994 (Part 2) Statutory Corporations (Liability of Directors) Act 1996 (Part 2, Divisions 1 and 2, Part 3) |
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| 2.2 Where boards and committees exist, the relationship between the parties must be clearly defined |
Public Sector Management Act 1994 (Sections 3 and 5) |
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How do you achieve it? |
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| 2.3 A strategic plan outlines the agency’s key strategic goals and outcomes and outputs | ||
| 2.4 Operational plans and programs of work exist that define critical success factors and outline how key strategic goals and outcomes will be accomplished at all levels of the agency | Public Sector Management Act 1994 (section 29 (1)(a) and (c)) | |
| 2.5 A delegations framework defines authority levels |
Public Sector Management Act 1994 (section 33) |
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How do you monitor progress towards good governance? |
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| 2.6 Performance measures are defined and monitored for the agency’s strategic goals | ||
Principle 3: Organisational structure
Show moreGood governance highly depends on an organisational structure that helps the agency achieve what it was set up to do. It should reflect operational objectives, and be flexible enough to respond to changes to the agency's strategy or mission.
| Operational element | Requirements | Additional resources |
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What is required to achieve accountability and performance? |
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| 3.1 Policies ensure that the agency’s structure serves its key strategic goals and outcomes |
Public Sector Management Act 1994 (sections 7(b) to (f), 8 and 29(1)(c) to (f) ) |
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How do you achieve it? |
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| 3.2 Processes exist to manage structural change and the relationships between business units |
Public Sector Management Act 1994 (section 36) |
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How do you monitor progress towards good governance? |
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| 3.3 Performance measures identify how well the structure delivers against strategic plans |
Financial Management Act 2006 (Part 3, Division 4 and 5) Treasury Instruction 902: Statement of compliance |
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Reporting |
Public Sector Management Act 1994 (section 31) Financial Management Act 2006 (Part 5, Division 2) |
Annual report guidelines |
Principle 4: Operations
Show moreOperational planning is key to managing and using resources effectively, increasing compliance and improving accountability.
| Operational element | Requirements | Additional resources |
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What is required to achieve accountability and performance? |
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| 4.1 Policies enable operations to deliver against the agency’s key strategic goals and outcomes |
Agency specific legislation Western Australian Procurement Rules , Directions and Policies |
Western Australian Procurement Guidelines |
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How do you achieve it? |
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| 4.2 The agency’s operational plans and programs of work support the organisation’s key strategic goals and outcomes and are regularly adjusted to changes in strategic and environmental imperatives |
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ISO 21500:2021 – Project, Programme and Portfolio Management |
| 4.3 Infrastructure is in place to enable the agency to implement its operational plans | ||
| 4.4 A proper and adequate record is maintained of the performance of the agency’s operations as aligned with its key strategic goals and outcomes | ||
| 4.5 Business process and outcome specific key performance indicators track the agency’s performance against its strategic and operational plans | ||
| 4.6 Performance evaluation and audits are conducted |
WA Public Sector Audit Committees - Better Practice Guide (Program) Evaluation Guide |
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Reporting |
Public Sector Management Act 1994 Model Annual Reports |
Annual report guidelines |
Principle 5: Ethics and integrity
Show moreMaintaining a workplace culture with strong integrity is part of the governance framework and is essential to organisational performance.
| Operational element | Requirements | Additional resources |
|---|---|---|
What is required to achieve accountability and performance? | ||
| 5.1 The agency’s values and code of conduct reflect the WA Code of Ethics and define the standards of official conduct and professional behaviour expected of all employees | Public Sector Management Act 1994 (Section 9) Commissioner's Instruction 40: Ethical Foundations Agency’s code of conduct | |
How do you achieve it? | ||
| 5.2 The agency’s ethics and integrity risks are identified and policies and operational processes address them (e.g. procurement, conflict of interest) | ||
| 5.3 People management frameworks define the response to unethical behaviours | Equal Opportunity Act 1984 Parts II to IVB , Section 67 , Part VI and Part VIII Division 2) Commissioner's Instruction 40: Ethical Foundations Agency specific policies | |
| 5.4 Processes are in place to provide supervision and assistance and enable follow up of non-compliance (e.g. through public interest disclosure) | Public Sector Management Act 1994 (Part 5 Division 3) | |
How do you monitor progress towards good governance? | ||
| 5.5 A structured process is in place to monitor official conduct and professional behaviour (e.g. compliance audit, performance management) |
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Reporting | Financial Management Act 2006 (Part 5 Division 2) Electoral Act 1907 (s175ZE) expenditure on advertising, market research, polling and direct mail) | |
Principle 6: People
Show moreAgencies need effective systems for managing its workforce and individual employees. These systems should include:
- fair, transparent and equal treatment of employees
- strong strategies to motivate and lead people, and promote personal development.
| Operational element | Requirements | Additional resources |
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What is required to achieve accountability and performance? | ||
| 6.1 Policies enable the attraction, retention and management of people | Commissioner's Instruction No.1: Employment Standard Commissioner's Instruction No 2: Filling a public sector vacancy Agency’s human resource management policies | Equal Opportunity Commission: Resources for substantive equality Premier’s Circular 2014/03 – Government Advertising and Communications Policy |
How do you achieve it? | ||
| 6.2 Plans ensure that processes, decisions and actions are based on the principles of fairness, equity and diversity, and are consistent, transparent, impartial and open for review | Diversity and inclusion in the public sector | |
| 6.3 People management frameworks cover the whole employment continuum | Industrial Relations Act 1979 (Part II, Divisions 2A and 2B) Occupational Safety and Health Act 1984 | |
How do you monitor progress towards good governance? | ||
| 6.4 Structured procedures are in place to monitor adherence to human resource policies and processes | Public Sector Management Act 1994 (section 9 and 21) Public Sector Management (Breaches of Public Sector Standards) Regulations 2005 | |
| 6.5 Feedback processes identify issues in people management practices | Public sector standards in human resource management – Performance management standard | Australian Public Service Commission: Sharpening the focus: Managing performance in the APS |
Reporting | Public Interest Disclosure Act 2003 Commissioner's Instruction No. 6 – Workforce data reporting obligations | |
Principle 7: Finance
Show moreAgencies should have comprehensive financial management processes in place. They are essential for the accountable and effective delivery of programs and services, and efficient management of public resources.
| Operational element | Requirements | Additional resources |
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What is required to achieve accountability and performance? |
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| 7.1 Finance policies define the key strategic goals and outcomes for which the agency’s finances must be employed |
Constitution Act 1889 (Sections 68 and 72) Treasurer’s Instructions |
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| 7.2 A formal internal audit charter specifies roles and responsibilities, composition and structure of all internal audit functions |
Financial Management Act 2006 (Part 4 section 53(1)(d)) Treasurer’s Instruction 1201: Internal audit |
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How do you achieve it? |
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| 7.3 Processes ensure the proper recording of financial transactions consistent with applicable accounting standards |
Public Sector Management Act 1994 (Sections 7(g) and (h), 29(1)(c) and (n) and 30(c)) Treasurer’s Instructions (Part IX and XI) |
Financial Administration Bookcase |
| 7.4 Financial operations contribute towards the agency’s key strategic goals and outcomes and uphold the highest level of integrity |
Financial Management Act 2006 (Part 4 section 53) |
Strengthening integrity in financial management |
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How do you monitor progress towards good governance? |
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| 7.5 Structured procedures are in place to monitor and audit financial performance against budget and key strategic goals, both at executive level as well as by an independent audit committee | Treasurer’s Instructions IX, XI, XII | |
Principle 8: Communication
Show moreAgencies should have open, accurate and responsive communication with all stakeholders to promote public trust.
| Operational element | Requirements | Additional resources |
|---|---|---|
What is required to achieve accountability and performance? | ||
| 8.1 Communication policies ensure the agency's communication is open, accessible and responsive | Public Sector Management Act 1994 (Section 31) Freedom of Information Act 1992 (Section 4; Part 2; Part 3; Part 5) | |
| 8.2 Policies ensure information is disseminated through correct channels, in a timely manner and to the right target group | Public Sector Management Act 1994 (Section 74(1)) Premier’s Circular 2014/03 – Government Advertising and Communications Policy | State Records Office: Recordkeeping Plans and Templates State Records Office publications |
How do you achieve it? | ||
| 8.3 Processes ensure proactive, transparent and responsive internal and external communication | Agency’s customer service charter | |
| 8.4 Processes assist in complying with legislation on record keeping, public interest disclosure and freedom of information, in safeguarding the confidentiality and integrity of information, and in preventing unauthorised, false or premature disclosure | Public Interest Disclosure Act 2003 Premier’s Circular 2019/05 – Cabinet Confidentiality State Records Commission Standards Agency’s complaint resolution policies | Public Sector Commissioner's Circular: 2010-05 Computer Information and Internet Security State Records Office: Recordkeeping Plans and Templates ISO 27002:2013 (Code of Practice for Information Security Controls) State Records Office: Recordkeeping Plans and Templates State Records Office publications AS/NZS 10002-2014: Guidelines for complaints management in organizations |
| 8.5 An audit strategy exists to monitor compliance with communication policies and strategies | ||
Reporting | Public Sector Management Act 1994 (Section 31) Financial Management Act 2006 (Part 5, Division 2) | Annual reporting guidelines for 2020-21 |
Principle 9: Risk management
Show moreTo achieve goals, an agency should be able to identify, detect, manage, treat and prevent risks.
