La Trobe University Public Sector Governance and Accountability Research Centre2008 Annual Report

Public Sector Governance and Accountability Research Centre2008 Annual Report

FACULTY OF LAW AND MANAGEMENT 01

Participants in the 2008 Annual Summer Residency Program at the Beechworth Campus

Introduction

The Council of La Trobe University resolved to establish the Public Sector Governance and Accountability Research Centre (PSGARC) within the Faculty of Law and Management, on7 June, 2004. The centre was formally launched at a ‘signing’ ceremony at Parliament House, Melbourne, on 29 June 2004.

This Report, to 31 December 2008, relates to the fourth year of the Centre’s operation.

Aims

The aims of the Centre are:

1. To strengthen public accountability and governance by supporting and researching the role and function of public accounts committees or like committees: and the activities of independent Auditors-General.

2. To promote research, teaching and practice which contributes to accountability, openness and transparency of government in Australia and internationally.

3. To provide a research focus within the Faculty of Law and Management on issues of accountability and governance and thereby promote the teaching and research activities of members of staff of the University.

4. To significantly expand the opportunities for research in the field of public sector accountability and governance;

5. To promote the training of postgraduates in research in the field of public sector accountability and governance.

6. To enhance the international reputation of La Trobe University by taking a leading role in promoting public sector accountability internationally;

7. To establish links with academics, practitioners, politicians and institutions and enhance the networks which seek to promote public sector accountability

8. To provide research, development and academic support for parliament, parliamentary committees and parliamentary officers is issues of accountability and governance;

9. To co-ordinate and utilise the experience and knowledge in and related industries of a number of scientists and technologists.

10. To do all such things as are incidental or conducive to the attainment of the above aims.

Public Sector Governance and Accountability Research Centre

2008 Annual Report

Membership

Ordinary Members

Professor Raymond Harbridge, DeanFaculty of Law and Management, (ex officio)

Professor Zahirul Hoque, Professor of AccountingDepartment of Accounting

Professor John King, Professor of EconomicsDepartment of Economics

Associate Professor Ishaq BhatiDepartment of Economics and Finance

Ms Joanne Lye, LecturerDepartment of Accounting

Dr Ewen Michael, Senior LecturerSchool of Sport, Tourism and Hospitality Management

Mr Michael Schneider, Visiting FellowDepartment of Economics and Finance

Professor Gordon Walker, Professor of LawSchool of Law

Associate Members

Professor Max Aiken, Emeritus Professor of AccountingLa Trobe University

Professor Geoff HarrisSchool of Economics and Finance, University of KwaZulu-Natal, South Africa

Professor Kerry Jacobs, Professor of AccountingAustralian National University

Professor John Langmore, Professorial FellowPolitical Science, Sociology and Criminology Department, Melbourne University

Emeritus Professor Greg O’BrienGraduate School of Management, La Trobe University

Professor Themba Joseph Sono, Professor Extraordinary Graduate School of Management, University of Pretoria and Member of Gauteng Legislature (South Africa)

Dr Bill Stent, Honorary FellowFaculty of Law and Management, La Trobe University

Dr Peter Wilkins, Adjunct ProfessorBusiness School, Curtin University of Technology, WA and Director, Policy Branch, Office of the Auditor General WA

Dr Premasiri Yapa, Associate ProfessorAccounting and Law, RMIT University

Honorary Members

Hon Clayton Cosgrove MP (NZ), Cabinet MinisterNew Zealand Government

Dr Deb Foskey, Deputy ChairStanding Committee on Public Accounts, Legislative Assembly, ACT

Mr Michael Holford MPSouth Africa

Professor Mark McGillivray, Chief EconomistAustralian Agency for International Development (AusAID)

Dr Hunadi Mateme MPSouth Africa

Rt Hon. Mike Moore, Adjunct Professor in Law and ManagementLa Trobe University – former Prime Minister of NZ and Director General of theWorld Trade Organisation

Mr Repe Rambe, Secretary to the Public Accounts CommitteeNational Parliament, Papua New Guinea

Hon. Tony SheehanMember of La Trobe University Council and formerTreasurer of the State of Victoria

Staff

Adjunct Professor Peter Loney, Executive DirectorPublic Sector Governance and Accountability Research Centre, Faculty of Law and Management (Part-time)

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Management of Centre

Board of Management

• Adjunct Professor Peter Loney (Executive Director)• Dr Ewen Michael (Deputy Director)• Professor Raymond Harbridge (ex officio)• Dr Bill Stent• Professor Gordon Walker

Advisory Board

• Dr Bill Stent (Chair)• Adjunct Professor Peter Loney• Hon Clayton Cosgrove MP• Rt Hon Mike Moore• Hon Tony Sheehan• Professor Gordon Walker

Highlights of the Reporting Period

Staff Appointments/Changes

There were no staff changes in 2008.

Adjunct Professor Peter Loney continued in the position of AdjunctProfessor and Executive Director of the Centre from January throughout2008. The Centre is located within the Faculty of Law and Management, which has provided infrastructure support.

Meetings held with potential partners and donors

World Bank Institute

In July 2008 PSGARC was contacted by Mr Kenneth King Manager ofKnowledge and Learning, World Bank Institute requesting that he andDr Rakesh Nangia Acting Vice President World Bank, Head of WBI, meet with LTU during their visit to Australia in September 2008. The purpose was to discuss the opportunity to further the relationship between PSGARC and the WBI, in the area of parliamentary strengthening, and also to provide an opportunity to explore the potential for university-wide engagement with the World Bank Institute.

The discussions, organised by PSGARC, took place on 15 September 2008 and involved senior personnel of the university, including the Acting Vice Chancellor Professor Belinda Probert, Deputy Chancellor Tony Sheehan, Professor David Wilkinson and Dr Jillian Murray (Faculty of Law and Management), Professor David de Vaus and Professor Denis Altman (Faculty of Humanities and Social Sciences) and Adjunct Professor Adjunct Professor Peter Loney and Dr Bill Stent (PSGARC).

There were two central aspects to the discussions:

• the continuation and expansion of the annual Public Accounts Committee Summer Residency program that PSGARC hosts each February, and

• how the WBI can broaden and deepen its partnership with La Trobe University more generally.

Outcomes

Agreement was reached to pursue a possible WBI/LTU Partnership Proposal, and that preparatory work to that end should be commenced. Work was to be based on the following agreed principles:

• The proposal would be in the area of a five-year, $AUD10m program.

• The program would be based on a number of key pillars – Governance, Legal and Judicial, and Financial Management.

• LTU would accept contract management and governance responsibilities.

• The program would be cross-disciplinary and involve creating networks within each key pillar that extend beyond LTU.

• The program would involve the development of capacity building short courses in key pillar areas using as models the PSGARC Summer Residency for Public Accounts Committees and other WBI University partnerships such as the WBI/Harvard Health Studies short course.

• WBI will provide “hands on” technical assistance in scoping and designing the proposal including information from its Asia Pacific region country offices about the perceived capacity building needs of countries in the region.

• Courses developed would be available as “fee for service” in addition to the AusAID and WBI funded components.

Adjunct Professor Peter Loney (PSGARC) had follow up discussions withDr Rakesh Nangia and Mr Kenneth King in Washington DC on 25 November,2008. Both commented on the visit to Bundoora in September 2008, saying that they were impressed with the professional attitude of LTU. It was indicated that WBI remained keen to pursue collaboration, and believed that immediate thought could be given to some programs for East Asia/South Asia. In particular, the design and development of some short courses to address gaps in ‘social protection’ and the role of the legislature and public sector in providing social protection in developing countries. Such courses would focus on strengthening the institutional and technical capacities of Pacific and Asian legislatures. It was also indicated that WBI’s view is thatthe learning model developed by PSGARC for Public Accounts Committees training should serve as the model for training courses in this area.

Agreement was reached to begin work on course development immediately following a suggested a process involving:

• Design of a course rationale and content document by LTU (approx 4-5 pages)

• Exchange of ideas between LTU and WBI in response to the base document

• A technical videoconference between LTU and WBI

• Agreement

Work on this would commence in early 2009.

Hon Bob McMullin, Parliamentary Secretary forInternational Development

The Executive Director met with Mr McMullin in Canberra in early 2008 to discuss the growing international importance of PSGARC’s Annual Summer residency Program for Public Accounts Committees, and to request AusAID funding support for the program. The discussion was also attended by a representative of AusAID. Mr McMullin showed interest in PSGARC’s work, however advised that he had asked AusAID to review all Parliamentary Strengthening program and that all funding approvals were on hold until the completion of the review which was expected mid-2008. This initial review found that there was a need for a comprehensive review of the AusAID program, and an Independent Review Board was set up to do this. It had not reported by the end of 2009, so our funding request was still on hold.

The AusAID Parliamentary Strengthening Review

The Parliamentary Secretary for International Development, Hon Bob McMullan, initiated a review of the Australian aid program’s support for organisations active in strengthening political governance in developing countries. PSGARC was invited to make a submission to the review team, and to meet with them. A written submission was submitted outlining PSGARC’s background, focus, current work, and views about effective legislative support. The Chair, Dr Bill Stent, and the Executive Directorthen met with members of the review team on December 15 at Bundoora, during which we outlined our views about the need for AusAID to support parliamentary strengthening programs, the most effective ways of doing this, and PSGARC’s role. PSGARC was congratulated on its written submission to the review and on its presentation at the meeting. The review is expected to report to the Minister in early March 2009.

Transparency International

Meetings were held with Greg Thomson, Acting Chairman, and David Mattiske to discuss areas of common interest, and potential areas of collaboration and mutual support. As a result, it was agreed that David Mattiske would present a session on Corruption at PSGARC Annual summer Residency Program in February, 2009. It was also agreed that TI (Australia) and PSGARC would work together to host a public lectureby TI International Managing Director, Cobus de Swardt during his visit toAustralia in early 2009.

Donor organisations

Throughout the year the Executive Director held a number of meetings with potential donors both in Australia and overseas. These included United Nations Development Program, World Bank Institute and theCommonwealth Parliamentary Association. As a result, strong relationships have been formed and active collaboration is being pursued in a numberof areas. It is expected that each of these organisations will support futurePSGARC programs.

PSGARC submitted proposals to the World Bank Institute, Commonwealth Parliamentary Association and the Centre for Democratic Institutions to conduct, in association with them, a residential training course in February2009 for Parliamentarians and Auditors-General. All agreed to be involved as partners.

Conducted Programs, research projects, and involvements with other organisations

Annual Summer Residency Program in Public Accounts

In February PSGARC conducted its third Annual Summer Residency Program for parliamentary Public Accounts Committees on the theme “Public Accounts Committees – Practices, Procedures and Relationships”. This was again held at La Trobe University’s Beechworth Campus, andwas financially supported by the World Bank Institute, the CommonwealthParliamentary Association, and the Centre for Democratic Institutions, and for the first time by the Parliamentary Centre (Canada). The Summer School was attended by 45 participants representing Public Accounts Committee members and staff, and Auditors General and Audit Office staff from Bangladesh, Bougainville, Ghana, Indonesia, Liberia, Nigeria, Papua New Guinea, Solomon Islands, and Timor-Leste. This annual program has become the centerpiece of PSGARC’s work.

Induction Program for Members of Parliament – Nauru

The Executive Director, Adjunct Professor Peter Loney, was requestedby the Parliament of Nauru to work with the United Nations Development Program Fiji Multi-Country Office to design and deliver a three-day workshop for Members of the Parliament of Nauru. The program was delivered in January 2008 and was well attended by MPs, including the Prime Minister and cabinet members.

Public Accounts Committee Workshop for Members of Parliament andPublic Sector Managers – Kiribati

The Executive Director, Adjunct Professor Peter Loney, worked with the United Nations Development Program and the Parliament of Kiribati to design and deliver a workshop program on the importance, role and functions of a parliamentary Public Accounts Committee. The workshop ran for five days and included public sector managers as well as MPs. An Action Plan for improving the effectiveness of the Kiribati PAC was a required outcome of the program. It is expected that as a result of this program the Kiribati Parliament will send a delegation to future Summer Residency Programs.

United Nations Development Program Legislative Needs Assessments– Pacific Region

The Executive Director, Adjunct Professor Peter Loney, was appointed by the UNDP as Lead Consultant for its program of Legislative Needs Assessments (LNA). These assessments are a significant part of UNDP programs as they form the basis of their funding support for legislatures in their five year funding cycles. The requirement was to assess the effective of the legislatures in carrying out its role, identifying constraints to that effectiveness, and making recommendations to guide UNDP involvement in the jurisdiction. Five Pacific Legislatures were assessed as a part ofthis program:

• Federated States of Micronesia (FSM) – National and State Legislatures• Kiribati• Palau• Tonga• Tuvalu

The LNAs for Kiribati, Palau, Tonga and Tuvalu were completed in 2008 and were to be presented to the respective legislatures for review and comment in early 2009. The FSM assessment which involves four legislatures at national and state level will be completed in early 2009.

Small Research Grants Fund

Dr Prem Yapa, who was granted the first research proposal funded under this fund, to conduct research into the use of summons by parliamentary committees in Sri Lanka, presented his report in December. It is likely that Dr Yapa’s research will be published on PSGARC’s website in 2009.

Despite PSGARC attempts to publicise this fund university wide, it has attracted little interest, and requires review.

Joint KPMG-PSGARC Research into Practice and Procedures of PublicAccounts Committees in Australasian Parliaments

In 2007 the Association of Public Accounts Committees (South Africa), (APAC), received our approval to use the template developed as a part of this research to study Public Accounts Committee practice among itsmember Parliaments. This research was reported to the APAC Conference in October 2008 with appropriate acknowledgements.

Guest Lecture by David Green, CEO, United Kingdom BusinessCouncil for Sustainable Energy

In conjunction with the Allen Consulting Group, PSGARC hosted a boardroom lunch and lecture by the visiting CEO of the UK Business Council for Sustainable Energy. The lecture was attended by around 25 senior representatives of Victoria’s energy related businesses, and was well received.

Guest Lecture by Professor Geoff Harris, University of KwaZulu-Natal(South Africa)

Professor Geoff Harris of the University of KwaZulu-Natal, who is an international Associate Member of PSGARC presented a paper on “What Drives Military Expenditure” to the Advisory Board meeting in December, during a visit to Australia.

Conferences and Seminars conducted by other organisations

Association of Public Accounts Committees Conference – Johannesburg, South Africa

Adjunct Professor Peter Loney attended the 2008 APAC Conference held in Johannesburg, South Africa in September 2008 as an invited Visiting Specialist. He was given specific time on the Conference agenda to present a paper on “Critical Success Factors” for Public Accounts Committees.

Australasian Study of Parliament Group Parliament of Victoria.

Adjunct Professor Peter Loney was invited to be the Guest Speaker at the Annual Meeting of the Victorian Parliament Branch of the Australasian Study of Parliament Group, at Parliament House. His presentation “Executive Accountability to Parliament – Reality or Rhetoric” was well received and he was invited to submit it as a potential article for ASPG’s Journal.

World Bank Institute Seminar on Public Accounts Committees – Helsinki, Finland.

PSGARC was invited to take part in a WBI Seminar on Accountability and Parliamentary Oversight, hosted by the Parliament of Finland in Helsinki in November 2008. The Seminar was attended by legislative delegations from Europe, Africa and Asia, and was aimed particularly at effective trainingfor PACs and co-operation, collaboration and information exchange between PACs. Adjunct Professor Peter Loney presented two papers at the Seminar – “Enhancing PAC Performance through Self evaluation” and “Regional associations of PACs”. The Seminar formed a small group, on which Adjunct Professor Loney was included, to look into an International Conference of Public Accounts Committees.

ASEAN Parliamentary Conference (AIPA Parliamentary TrainingNetwork), Ho Chi Minh City, Vietnam

Adjunct Professor Peter Loney was invited to present at this Conference as an International expert. The Conference was held in early December and attended by delegations from ASEAN region legislatures. The Conference themes were:

1. Best practice training and learning to support the capacity-strengthening of MPs and Parliament generally ( content, resources, methodology, modalities, innovations etc); and

2. Potential future measures to enhance parliamentary cooperation amongst AIPA member parliaments and their training organizations (facilitated discussions and recommendations for future measures)

Adjunct Professor Loney presented two papers at the Conference:

1. Case study in design and delivery of training to members and staff of a legislature using Kiribati.

2. Models of ongoing learning support for MPs in the CommonwealthParliamentary Association.

Publications

“Executive Accountability to Parliament – reality or rhetoric?” by Adjunct professor Peter Loney was published in the Spring 2008 edition of Australian Parliamentary Review as a double blind refereed article. Published by the Australasian Study of Parliament Group.

Publicity

Through 2008 PSGARC placed a greater emphasis than previously on publicising its activities. A DL size brochure about the Centre, its aims and programs was produced in conjunction with the faculty of Law and Management marketing department. This brochure has been used for promotional activities at conferences and seminars, and to send to interested people and organisations. The flyer is also in an electronic version, so that it can be emailed.

For the first time, the Annual Summer residency Program had a marketing program in an attempt to broaden participation, and to bring it to the attention of a wider audience. It was advertised in two editions of ‘The Parliamentarian’, the quarterly journal of the Commonwealth Parliamentary Association. This publication has a great reach, going to every individual Member of Parliament in the Commonwealth of Nations.

Future developments

PSGARC will conduct the Fourth Annual Summer Residency Programfor Parliamentary Public Accounts Committees at La Trobe’s Beechworth Campus in February 2009. It is expected that the School will be attended by up to 45 members of Public Accounts Committees and Auditors General from Asian and Pacific parliaments.

Collaboration discussions with the World Bank Institute will continue and work will begin on putting together a proposal for at least one modular short course for potential delivery latein 2009.

Summary

2008 was a year in which a number of exciting opportunities presented themselves. The challenge for PSGARC will be to capitalise on these opportunities in order to extend our programs. The focus on establishing appropriate administrative procedures and practices, has improvedthe Centre’s functioning. Regular meetings of the Advisory Board and Members have been of assistance in guiding the direction of the Centre. We have consolidated our relationships with existing partner organisations with similar interests, and have entered new relationships. It is anticipated that this will lead to enhanced opportunities for collaborative projects inthe future.

The initiative of establishing our own small research grants program has not produced the level of research interest that we had hoped for, and there will be a need to review this in 2009.

The Centre has taken a number of initiatives to increase its profile both within the University and externally. This includes the production of a brochure about PSGARC which can be provided to attendees at conferences, seminars, lectures and similar activities. Also, PSGARC was featured in the Faculty of Law and Management’s Keynote magazine during the year. Our role in leading the collaboration discussions with World Bank Institute has also assisted in increasing our profile. The Executive Director was sought by a number of media outlets throughout the year to comment on public sector governance issues.

The Summer School at the Beechworth campus is now strongly established and looks to have a secure future, and we look forward to a growing number of partner organisations for it. It is proposed that from 2009 onwards, it should be open to other than sponsor invited parliaments.

latrobe.edu.au/psgarc Public Sector Accountability and GovernanceResearch CentreFaculty of Law and Management3rd Floor, Martin BuildingLa Trobe University, Vic 3086