How to be a Civil Servant

Accountability, Propriety and Audit

including

• propriety
• stewardship of public funds
• regularity
• value for money
• compliance, and
• the seven principles of public life

This note takes a look at what is meant by concepts such as accountabilty, regularity and propriety. I offer the following conclusions and, as ever, would be glad to be corrected (by email to martin@civilservant.org.uk) if I am wrong.

Accountability means being held to account, scrutinised, and being required to give an account or explanation. Civil Servants are accountable upwards through audit and Parliamentary scrutiny, and outwards through transparency and openness to stakeholders and to the public at large.

The main routes for upwards accountability are the Public Accounts Committee (the PAC) (assisted by the National Audit Office - the NAO), other Select Committees, Parliamentary Questions and debates, correspondence with MPs, and the Parliamentary Commissioner for Administration - the "Parliamentary Ombudsman".

The main routes for outwards accountability include annual reports, correspondence etc. with the public, consultation etc. processes, and Judicial Review. We can also choose to be accountable via media of our choice, and we should for this purpose choose media that will not use their relationship with us merely for entertainment or to boost circulation.

We are accountable for three things:-

• 1. Our stewardship of public funds etc. including:
  • regularity which means the requirement for all expenditure and receipts to be dealt with in accordance with the legislation authorising them, any delegated authority and the rules of Government accounting
  • propriety which is a further requirement that expenditure and receipts should be dealt with in accordance with Parliament's intentions and the principles of Parliamentary control, and in accordance with the values and behaviour appropriate to the public sector - see below.
  • value for money, and
  • effective management systems.

  • (The PAC takes a particular interest in our stewardship of public funds.)

• 2. Compliance
  • with the law
  • with Government policies and initiatives, and
  • with public expectations of proper conduct:- see "the Seven Principles" listed below.

• 3. Our Performance, including
  • against objectives and targets, and
  • in delivering acceptable levels of service to the public.

The following "Seven Principles of Public Life" were endorsed in the Nolan Report as encapsulating the values and behaviour appropriate to the public sector:

• Selflessness:- Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their families or their friends.
• Integrity:- Holders of public office should not place themsleves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties.
• Objectivity:- In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards or benefits, holders of public office should make choices on merit.
• Accountability:- Holders of public office are accountable for their decicions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.
• Openness:- Holders of public office should be as open as possible about the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.
• Honesty:- Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.
• Leadership:- Holders of public office should promote and support these principles by leadership and example.

A useful short version of all the above is as follows.

• Don't bend or break the rules
• Put in place and follow clear procedures
• If approval is needed, get it first
• Don't allow a conflict of interest to appear to affect a decision
• Don't use public money for private benefit
• Be even-handed
• Record the reasons for decisions

Comment

The extent and nature of the above lists no doubt contribute to the caution of senior civil servants. But it is worth pointing out that none of the bodies to whom we are accountable can actually discipline or dismiss us. Their power is merely to criticise and shame us, although the fear of this is quite enough to keep most of us in line.

It follows that this power is only effective if the audience that hears the criticism believes that blame has been fairly allocated. MPs very occasionally appear to cross-examine officials in unfair or unreasonable ways, or seek to criticise officials when they cannot get at responsible Ministers, or at responsible civil servants. Such behaviour certainly catches the attention of Whitehall - and the resultant video gets widely shown - but the victims usually receive considerable sympathy and their "accountability" leads neither to career detriment nor to any change in the behaviour of the victims or others.

The power of accountability is also ineffective when a civil servant simply does not care about the rules, and either believes that they will get away with it, or does not fear the consequences if they are caught out. The essential safeguard in these circumstances is the audit process backed up by effective management - backed up by careful selection processes when senior civil servants are appointed from outside the Service. The Civil Service itself, and the Civil Service Commissioners, are thus themselves an integral part of the structure of accountability.

Further Reading

There is good general guidance in "Propriety and Audit in the Public Sector" published by the NAO-chaired Public Audit Forum in August 2001. Copies available by ringing 020 7798 7529.

Detailed guidance is available in the following documents, all on the Cabinet Office or Treasury web sites.

Cabinet Office
• Civil Service Management Code:- addressed to central government departments and agencies and setting out the terms and conditions on which civil servants are to be employed
• Standards of Propriety:- also addressed to central government departments and agencies, this document covers subjects such as the requiremnt of staff to seek permission before accepting outside hospitality, and the sale of surplus property to civil servants.
• The Ministerial Code, and
• The Civil Service Code:- The official codes of behaviour for Ministers and civil servants respectively
• Guidance for Civil Servants: an interesting and readable two volume Directory of Civil Service Guidance

Treasury
• Government Accounting
• DAO letters: (Dear Accounting Officer letters)
• Regularity and Propriety Handbook:- a readable summary of what is and is not "proper" behaviour in the stewardship of poublic funds
• Procurement Guidance
• The Sharman Report: "The Review of Audit and Accountability for Central Government, February 2001. (The report deals with a wide range of subjects including the role of audit committees. The Government has not yet responded to the report but seems likely to accept most of the recommendations.)

Martin Stanley