Appointing and renewing government boards

Tabled Report 17: 2021–22

Tabled date

2022-05-19

Report year

2021-22

State finances Whole of government

Entities audited

Not identified in the published HTML audit scope.

Recommendations

1. QAO's text Addressed to: the Department of the Premier and Cabinet

   collects consistent information on the diversity characteristics of all people appointed to boards to allow it to analyse the diversity of members and report publicly on how boards reflect the diversity in the broader community

2. QAO's text Addressed to: the Department of the Premier and Cabinet

   develops, in collaboration with Queensland Treasury and relevant departments, a whole-of-government, overarching framework (aligned to better practice as outlined by the ASX Corporate Governance Council and the Australian Institute of Company Directors) for the appointment process for large boards (see Appendix D) that includes:

   1. requiring departments to request boards complete a formal skills matrix (including qualifications) to inform performance evaluation, succession planning and to determine the skills needed for each vacancy
   2. requiring departments to request board members have a performance evaluation completed prior to reappointment
   3. providing advice to boards on how to determine if a member’s long tenure has affected their independence
   4. providing advice to ministers and departments on the benefits of improving transparency and the applicant pool, by publicly advertising vacancies
   5. requiring checks of the academic qualifications of candidates
   6. involving board chairs more closely in the appointment and renewal process, to allow candidates to conduct their own due diligence and discuss potential conflicts of interest and determine if they can be successfully managed
   7. proposing indicative time frames for each phase of the appointment process, including for approval
   8. setting timeliness performance targets to evaluate the effectiveness of the appointment process

3. QAO's text Addressed to: the Department of the Premier and Cabinet

   evaluates the effectiveness of the Queensland Register of Nominees database to readily identify people with the skills needed

4. QAO's text Addressed to: the Department of the Premier and Cabinet

   sets fair and competitive remuneration rates for board members, commensurate with size, complexity and responsibility.

5. QAO's text Addressed to: departments managing the recruitment process for ministers responsible for large government boards

   We recommend that departments managing the recruitment process for ministers responsible for large government boards implement the whole-of-government framework developed by the Department of the Premier and Cabinet in Recommendation 2.

Authoritative report — Queensland Audit Office

Report PDF on QAO