2022-07-12 - S&O Agenda - Item 3 - Attachment 1 - Governance Framework Report

PURPOSE
The Framework sets out the governance principles and the standard for accountability
that is expected of all elected members and employees of Council. Therefore, all
elected members and employees must demonstrate a commitment to applying the
governance principles when undertaking the duties of their roles.

The Framework aims to help build a better understanding of, promote and enhance
good governance in Council. Effective governance arrangements and practices can
contribute to strong, sustainable and accountable organisational performance whilst
building confidence in the organisation.[2]



WHAT IS GOVERNANCE?
Governance is an important concept and impacts on all sectors of the community.
Governance encompasses the systems by which Council is controlled and operates, and
the mechanisms by which it, and its people, are held to account.[3] Good governance
supports councils to make decisions and to act in the best interests of the community.

Furthermore, the practice and promotion of good governance is critical for ensuring that
an organisation:
 • has a legal and ethical basis to function,
 • makes decisions in the interest of its stakeholders and community, and,
 • is essentially a good corporate citizen.

The Australian Institute of Company Directors states that good governance underpins
good conduct and the good judgement of those who are charged with running an
organisation.[4] This is supported by the Queensland Audit Office who advise that good
governance is critical to ensuring an entity effectively manages its business operations,
programs, projects and risks.[5]

Furthermore, good governance depends on transparency, accountability and equality in
ways that are responsive to the present and future needs of the local government
community. It also assures that opportunities for fraud, corruption and conflicts of
interest, particularly in decision-making processes, are minimised.



[2] Australian National Audit Office, ‘Public Sector Governance – Strengthening Performance
Through Good Governance’ – June 2014.
[3] Governance Institute of Australia, What is governance?, available at:
https://www.governanceinstitute.com.au/resources/what-is-governance/
[4] Australian Institute of Company Directors, Guiding principles of good governance, 2017, p.1
[5] QAO, Effectiveness of audit committees in state government entities, 2020.



  NOOSA SHIRE COUNCIL                                                                     PAGE 06