FOREWORD
Corporate governance is about the way organisations are directed and controlled. It is concerned with structures and processes for decision-making, accountability, control and behaviour at the upper levels of the organisation. Three fundamental principles of corporate governance apply equally to all public sector bodies - openness, integrity and accountability. However, for central government organisations, there is a separation of roles between the legislature (Parliaments) and the Crown (Ministers and the politically impartial role of civil servants).
Good practice in relation to corporate governance requires that an organisation should be independently advised by an audit committee. The organisational structure of the Scottish Government has led to the establishment of the overarching Scottish Government Audit Committee ( SGAC) with additional audit committees supporting Portfolio Accountable Officers. Taken together these audit committees cover the core Scottish Government. For the purpose of this guidance, Portfolio Audit Committees include the audit committee of the Crown Office and Procurator Fiscal Service.
This guidance is designed to provide - within the context of the Scottish Government Audit Committee Handbook* - the non-executive members of SGAC and Portfolio Audit Committees with relevant background information about the Scottish Government and detailed information and guidance on the role, membership and work of their committees.
Securing good governance is essential to the Government in Scotland and we commend this guidance
to you.
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Sir John Elvidge
Permanent Secretary for the Scottish Government | Alyson Stafford
Director of Finance for the Scottish Government |
* The Scottish Government Audit Committee Handbook draws on, and is consistent with, generally accepted principles concerning corporate governance and the role of audit committees. Relevant source publications include:
HM Treasury's Audit Committee Handbook (March 2007)
HM Treasury's Corporate Governance Code for Central Government Departments (July 2005)
Financial Reporting Council's Combined Code on Corporate Governance (June 2006)
Scottish Public Finance Manual
On Board: A Guide for Board Members of Public Bodies in Scotland (February 2003)