The Chartered Institute of Public Finances and Accountancy has called for an overhaul of public sector standards and governance, in response to consultation from the Committee on Standards in Public Life.
Driving this call is the need for ‘decisive action’ to improve accountability and public trust in the sector, with standards becoming a key concern for people across the UK. As part of this move to improve public sector governance standards, CIPFA has called on bodies across the sector to ensure stability, with a focus on four main areas; these are:
- Governance failures
- Ethical standards
- Data-driven risk management
- Trust, transparency and effective oversight
In order to address governance failures, the root causes must be identified, with these including dysfunctional relationships between senior officers and elected representatives, as well as insufficient seniority among key officers and constraints placed on organisations by the political cycle. In order to drive improvement, CIPFA has placed an emphasis on the need for local authorities to confront these issues directly.
As organisations work to improve ethical standards across the sector, CIPFA has called for the integration of the Nolan Principles across all aspects of public sector governance. This will support improvement by providing a baseline for codes of conduct and professional standards.
The use of data in improving standards is also vital, with CIPFA outlining that it will enable them to analyse risks, model scenarios, alongside informing their decisions. In the call for improved standards it was outlined, however, that ongoing challenges such as legacy IT systems and data privacy must be overcome if organisations across the sector are to implement data further.
The final focus, centring around trust and transparency, is likely to be achieved through further support and training for senior officers as they look to introduce cultures where concerns can be raised safely. According to CIPFA, a vital part of continuous improvement is a strong standards regime, which can be combined with peer support and mentoring.
Diana Melville, Governance Advisor at CIPFA, said:
“At a time when public trust in service delivery is fragile, compounded by budget constraints and rising demand, a targeted focus on governance and accountability is essential. Through our guidance, CIPFA encourages a culture of transparency, integrity and accountability.
“Ensuring good governance and harnessing data-driving risk management is needed now more than ever. Backed by public sector finance experts, these initiatives provide the stability that local government needs to guide itself through the incoming period of political change.”
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