Watchdog pushes for better pay and exit package reporting

Tuesday 08 November 2022

Reporting on staff pay, directors' interests, and exit packages by Government and other public entities continues to fall below best practice standards, according to a new report.

In her latest review examining the quality of States annual reports, Comptroller and Auditor General Lynn Pamment found that more than 40% of accountability reports were still "poor or very poor compared to best practice."

In particular, over 70% of remuneration and staff reporting, including disclosure of directors' pay and directors' interests, fell below best practice.

"Explanations for not disclosing information on remuneration include: for smaller entities, concerns that personal information could be identified; and for entities that are not funded by taxpayers, that it is not relevant to do so," Ms Pamment noted in her report.

"Some entities report information on directors', or equivalent, remuneration. However, it is not always clear whether all forms of remuneration, such as pensions contributions, compensation for loss of office and other benefits, have been included in the amounts reported."

Pictured: Comptroller and Auditor General Lynn Pamment.

The C&AG said that the majority of States reports failed to refer to staff-related matters.

"Where staff-related matters are discussed some entities refer to issues such as gender balance, diversity and mental health, but few discuss these issues in depth or provide any information on policies in respect of staff with disabilities.

"Many entities provide limited or no data on staff numbers and costs, remuneration, staff composition, sickness absence, consultancy costs, off-payroll spending and exit packages," she said.

"A small number of entities now provide some fair pay disclosures, such as comparing pay rates between higher and lower paid employees. However, there is inconsistency between the information provided by different entities and few entities include a meaningful discussion of the information provided," she added.

Mrs Pamment said she was "pleased" with the overall improvements in States reporting.

"The States have an opportunity to build on the progress made by individual entities by specifying the requirements for annual reporting.

In doing so, the States should pay particular attention to accountability reporting, especially staff and remuneration disclosures, and sustainability reporting, she added.

You can read the full report here.