Revised Code Of Practice For The Governance Of State Bodies

A revised and updated Code of Practice for the Governance of State Bodies has been published by the Minister of Public Expenditure and Reform.

The document is designed to ensure that both commercial and non-commercial State bodies meet the highest standards of corporate governance, and provides a framework for the application of best practice. It is intended to take account of developments in respect of oversight, reporting requirements and the appointment of Board members.

The Code is based on the underlying principles of good governance: accountability, transparency, probity, and a focus on the sustainable success of the organisation over the longer term.

The updated Code is based on four key pillars. They are:

• Values – Good governance supports a culture of behaviour with integrity and ethical values

• Purpose – Each body should be clear about its mandate with clearly defined roles and responsibilities

• Performance – Defined priorities and outcomes to achieve efficient use of resources resulting in the delivery of effective public services

• Developing Capacity – Appropriate balance of skills and knowledge within the organisation, to be updated as required.

It is also split into a suite of documents comprising the main code, as well as more detailed documents setting out its requirements –

• Business and Financial Reporting Requirements

• Audit and Risk Committee Guidance

• Remuneration and Superannuation

• Board Self-Assessment Evaluation Questionnaire.

Publishing the Code, the Minister for Public Expenditure and Reform, Paschal Donohoe TD, said: "The key benefit of the updated Code of Practice for the Governance of State Bodies is that it provides greater clarity regarding the roles and responsibilities of the Board of a State body.

"There is a greater emphasis on accountability and transparency, which is underpinned by effective relationships between the Minister/parent Department and the Chairperson of the State body to ensure that the body is effective in achieving its objectives, uses its resources efficiently and operates in a manner which secures the longer-term sustainability of the State body.

"In light of the scale and diversity of roles carried out by State bodies, the Code is not a 'one size fits all' document, but rather acts as a framework to ensure that both commercial and non-commercial State bodies meet the highest standards of corporate governance commensurate with their significant public roles and responsibilities."

(MH)