Queensland Audit Office Phone 07 3149 6000 Level 14, 53 Albert Street, Brisbane Qld 4000 Email qao@qao.qld.gov.au PO Box 15396, City East Qld 4002 Web www.qao.qld.gov.au

Queensland Audit Office (QAO)

Your ref:

Our ref: PR02716

Paul Christensen

OFFICIAL

29 July 2022

The Honourable C Pitt MP

Speaker of the Legislative Assembly

Parliament House

BRISBANE QLD 4000

Dear Mr Speaker

Erratum to the Auditor-General of Queensland: Report to Parliament No. 17 2021–22 Appointing

and renewing government boards

The purpose of this erratum is to correct information contained in 5 pages of Appointing and renewing government boards (Report 17: 2021–22), tabled 19th May 2022.

Within Appendix D, we have corrected financial information disclosed for the following entities:

• Board of the Queensland Museum

• Cairns and Hinterland Hospital and Health Service

• Central West Hospital and Health Service

• Queensland Curriculum and Assessment Authority

• Queensland Rail

• Queensland Treasury Corporation State Investment Advisory Board

• The Council of the Queensland Institute of Medical Research (trading as QIMR Berghofer)

We also corrected the amounts reported for total revenue and total assets included in Figure D2, and the combined assets on the Report on a page.

The correct pages are attached and should replace pages 1, 42, 43, 44 and 45 respectively.

In accordance with s.67 of the Act, would you please arrange for the erratum to be tabled in the Legislative Assembly.

Yours sincerely

Karen Johnson Acting Auditor-General

Queensland • • Audit Office

Better public services

1

Report on a page

There are 50 large Queensland government entities delivering energy, health, ports, water, and rail

services. They have combined assets of $266 billion, and their boards are intended to provide strategic

direction and ensure their organisations conduct themselves in an accountable and transparent manner.

The processes currently used to appoint and renew Queensland government board members are not

effectively identifying the skills needed or appointing people within a reasonable time frame.

The Department of the Premier and Cabinet provides guidance to ministers and to the departments

responsible for the boards. This guidance was developed 12 years ago and needs to be updated.

Boards benefit from having members with diverse qualifications and experience. While more than half of

the directors on government boards are women, data is not readily available on, for example, how many

members are Aboriginal and Torres Strait Islander peoples or are people with disability.

In this report, we have focused on the board recruitment processes of the 4 departments that are

responsible for the largest government boards. At present, several issues are making it difficult for them

to ensure suitable candidates are appointed to the boards in a timely way.

The right skills and fair remuneration

Some issues relate to attracting people with the right skills. For example, departments are generally not

systematically consulting their boards to identify skills gaps before recruiting. The Department of Health is

the exception, having worked with its boards to develop a matrix of necessary skills. Boards are well

aware of some of the skills they need – including board governance skills. At present, only one-third of

directors have completed a board governance course.

The widest field of applicants is not always sought. For example, Queensland Treasury does not broadly

advertise vacancies for its government owned corporation boards. This narrows the field of applicants, it

can give the impression that appointees are not independent, and it is not in line with better practice as

advised by the Australian Institute of Company Directors and others.

Also, there has been no change to remuneration rates for directors on government boards for 7 years,

which again narrows the field of skilled applicants.

A reasonable time frame

Other issues relate to long time frames. No guidance is currently available to departments on this, and it

often takes 12 months to fill board vacancies. Candidates wait an average of 6 months to find out if they

have been successful, and most find out only when the outcome is publicly announced. This risks

preferred candidates choosing to go elsewhere.

In some cases, vacancies on the boards of government owned corporations have gone unfilled for up to

2 years. At times, boards of statutory bodies have not had enough active members to make decisions.

Departments need to check the claims of candidates. This is an important step that must be done quickly

so as not to hold up the process. While all 4 departments conduct checks, only the Department of Health

confirms academic qualifications. This means there is a risk that unsuitable candidates are being

appointed. Also, candidates are not currently able to check for potential conflicts of interest until they join

a board, when it may be too late.

Recommendation

We recommend the Department of the Premier and Cabinet works with Queensland Treasury and

relevant departments to develop an overarching framework to bring the recruitment process for boards in

line with better practice. This will ensure recruitment is driven by the board, is timely, and fairly

remunerates members for their contribution.

• • ••

42

Figure D2

Boards of large government entities –

revenue and assets for the 2021 financial year

Body name Department

responsible

Revenue

($’000)

Net

operating

result

($’000)

Total

assets

($’000)

Government owned corporations

CleanCo Queensland Limited Queensland

Treasury

253,615 (15,917) 464,674

CS Energy Limited Queensland

Treasury

1,084,883 (266,135) 1,862,062

Energy Queensland Limited Queensland

Treasury

4,906,000 302,000 26,754,000

Far North Queensland Ports Corporation

Limited (trading as Ports North)

Queensland

Treasury

48,610 (6,179) 408,232

Gladstone Ports Corporation Limited Queensland

Treasury

516,592 93,462 2,480,954

North Queensland Bulk Ports Corporation

Limited

Queensland

Treasury

117,904 15,897 812,987

Port of Townsville Ltd Queensland

Treasury

77,171 14,327 883,143

QIC Limited Queensland

Treasury

532,302 71,560 501,742

Queensland Electricity Transmission

Corporation Limited (trading as Powerlink

Queensland)

Queensland

Treasury

985,208 86,969 8,307,647

Stanwell Corporation Limited Queensland

Treasury

2,735,632 375,437 3,555,278

Sunwater Limited Queensland

Treasury

475,073 39,026 1,115,277

Statutory bodies

Board of the Queensland Museum Department of

Communities,

Housing and

Digital Economy

52,858 (2,456) 731,022

Cairns and Hinterland Hospital and Health

Service

Queensland Health 1,110,558 28 922,964

Central Queensland Hospital and Health

Service

Queensland Health 698,395 (2,701) 469,714

Central West Hospital and Health Service Queensland Health 92,900 145 106,134

• •• •

43

Body name Department

responsible

Revenue

($’000)

Net

operating

result

($’000)

Total

assets

($’000)

Children's Health Queensland Hospital and

Health Service

Queensland Health 923,881 2,908 1,182,972

Darling Downs Hospital and Health Service Queensland Health 945,504 10,626 543,038

Gladstone Area Water Board Department of

Regional

Development,

Manufacturing and

Water

69,847 12,368 752,473

Gold Coast Hospital and Health Service Queensland Health 1,808,003 10,634 1,785,298

Gold Coast Waterways Authority Department of

Transport and

Main Roads

23,302 8,831 221,952

Legal Aid Queensland Department of

Justice and

Attorney-General

165,064 9,800 115,500

Library Board of Queensland Department of

Communities,

Housing and

Digital Economy

79,873 996 158,923

Mackay Hospital and Health Service Queensland Health 529,998 3,329 419,041

Metro North Hospital and Health Service Queensland Health 3,380,369 11,703 2,496,065

Metro South Hospital and Health Service Queensland Health 2,773,105 1,052 1,471,404

Mount Isa Water Board Department of

Regional

Development,

Manufacturing and

Water

27,224 6,109 174,291

North West Hospital and Health Service Queensland Health 206,702 366 130,861

Queensland Art Gallery Board of Trustees Department of

Communities,

Housing and

Digital Economy

75,116 12,998 632,327

Queensland Building and Construction

Commission

Department of

Energy and Public

Works

303,315 61,160 561,609

Queensland Bulk Water Supply Authority

(trading as Seqwater)

Queensland

Treasury

1,039,195 12,596 11,738,627

Queensland Curriculum and Assessment

Authority

Department of

Education

88,088 9,809 47,020

• • ••

44

Body name Department

responsible

Revenue

($’000)

Net

operating

result

($’000)

Total

assets

($’000)

Queensland Performing Arts Trust Department of

Communities,

Housing and

Digital Economy

53,531 2,347 35,292

Queensland Rail Queensland

Treasury

2,222,607 186,464 8,336,785

Queensland Reconstruction Authority Department of

State

Development,

Infrastructure,

Local Government

and Planning

704,337 (7,873) 42,489

Queensland Rural and Industry

Development Authority

Department of

Agriculture and

Fisheries

293,265 70,138 1,445,287

Queensland Treasury Corporation Capital

Markets Board

Queensland

Treasury

203,416 115,651 131,742,729

Queensland Treasury Corporation State

Investment Advisory Board

Queensland

Treasury

4,676,076 – 37,814,711

Residential Tenancies Authority Department of

Communities,

Housing and

Digital Economy

70,357 35,297 1,018,982

South Bank Corporation Department of

State

Development,

Infrastructure,

Local Government

and Planning

55,873 (10,983) 817,405

South West Hospital and Health Service Queensland Health 179,052 5,692 262,512

Stadiums Queensland Department of

Tourism,

Innovation and

Sport

118,998 (55,495) 1,589,912

Sunshine Coast Hospital and Health Service Queensland Health 1,355,175 (21,282) 1,979,926

TAFE Queensland Department of

Employment,

Small Business

and Training

668,102 2,225 434,816

The Council of the Queensland Institute of

Medical Research (trading as QIMR

Berghofer)

Queensland Health 151,070 32,190 516,954

• •• •

45

Body name Department

responsible

Revenue

($’000)

Net

operating

result

($’000)

Total

assets

($’000)

Torres and Cape Hospital and Health

Service

Queensland Health 262,248 2,329 261,155

Tourism and Events Queensland Department of

Tourism,

Innovation and

Sport

145,630 (1,242) 27,343

Townsville Hospital and Health Service Queensland Health 1,135,454 4,475 915,312

West Moreton Hospital and Health Service Queensland Health 747,544 1,005 315,627

Wide Bay Hospital and Health Service Queensland Health 716,898 3,083 367,416

Workcover Queensland Department of

Education

2,479,458 110,828 6,170,201

Total 42,365,378 1,355,597 265,902,085

Note: Revenue for the Queensland Treasury Corporation Capital Markets Board includes the net gain on financial instruments at fair value through profit or loss for consistency of presentation with other entities.

Source: Queensland Audit Office, from Tri-data – whole-of-government financial reporting information and the entities’ audited financial statements.

• • ••