- Title page
- 1: Relationships, roles and responsibilities
- Roles and responsibilities - Ministers
- Roles and responsibilities - Crown entity boards
- Roles and responsibilities - Crown entity chief executives
- Roles and responsibilities - monitoring department
- The roles of the Minister of Finance and Minister of State Services
- The roles of the State Services Commission and the Treasury
- 2 : Appointing and maintaining an effective board
- 3: Participating in setting the expectations and direction for entities
- 4: How can your monitoring department assist you?
- Appendix 1: How Crown entities fit into the public sector
- Appendix 2: Information for Crown entity companies
Roles and responsibilities - Crown entity boards
As the responsible Minister, you should firmly place responsibility with the board for the setting and achievement of key performance indicators, for the monitoring of entity performance, and for high quality performance reporting.
The respective governance and management responsibilities need to be clear. The board governs the Crown entity and exercises its powers, carries out its functions and makes decisions about its operations (i.e. a governance role). It also makes decisions (either itself or through delegated powers) about the operation of the entity, and ensures that the entity's functions are performed efficiently and effectively. The entity itself is accountable to the House of Representatives for its own actions.
The legal mechanisms of board accountability include:
- the board members' collective and individual duties, including acting consistently with the entity's objectives, functions, SOI and SPE and collaborating with other public entities where practicable
- obligations to follow Ministerial policy directions (according to the category of entity and applicable legislation)
- an obligation to report on performance to Parliament, and
- an obligation to appear before a Select Committee if required. Board members who wish (or are invited) to make a submission to a Select Committee on a Bill are expected to discuss the matter with you before doing so.
Boards are accountable to you as their responsible Minister and you should expect them to engage constructively and professionally with you and your monitoring department.
: Further guidance is available at www.ssc.govt.nz/sites/all/files/officials-selectcommittees-guidelines07.pdf.