The International Framework: Good Governance in the Public Sector is designed to encourage better governed and managed public sector entities by improving how they set and achieve their intended outcomes. Enhanced stakeholder engagement, robust scrutiny and oversight of those charged with primary responsibility for determining an entity’s strategic direction, operations and accountability leads to more effective interventions and better outcomes for the public at large.

The framework sets out good practice principles for the fundamental aspects of public sector governance. It also facilitates the review and update of national governance codes for the public sector and, where specific principles and guidance do not already exist, provides a basis for improvement.

Chair of CIPFA International Ian Ball said: ‘Public sector governance must focus explicitly on sustainable economic, social and environmental outcomes, and this publication is unprecedented in highlighting the central role that outcomes and the public interest should play in the processes and structures of public sector governance.

‘Our focus on sustainability is 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.’

Increased focus on the critical role that good governance plays in the public sector has been a recent development. Growing awareness of the substantial role of poor public sector governance in the sovereign debt crisis and other public sector failures has made the appropriate application of governance standards and arrangements increasingly important.

The ideas and insights outlined in the framework, which includes a foreword from Mervyn King, chairman of the International Integrated Reporting Council and author of the King Report on Governance for South Africa, were developed using a wide-ranging literature review and in consultation with IFAC and CIPFA.

The framework is useful for all those specifically involved with governance, including governing body members, senior managers, and internal and external auditors. Furthermore, this Framework provides the public with a resource to challenge substandard governance practices in public sector entities.

The report is available here http://www.cipfa.org/policy-and-guidance/standards/international-framework-good-governance-in-the-public-sector

To receive regular news and analysis on the key issues in tax, accounting and audit, sign up to our free newsletter here