In the public sector, a non-executive director sits on the board of central government departments, their arms-length bodies, and local, police and fire authorities.

These boards include audit committees which play a pivotal role across public bodies in providing independent oversight over governance, risk management, and internal control processes which underpin how organisations spend public money. They also reinforce public trust regarding public sector bodies and assist in meeting taxpayers’ demands for increased transparency and accountability.

It is estimated that the public sector spent more than £1.3tn in 2024-25, or £45,000 per household in the United Kingdom. Such levels of public spending means that good governance matters, especially in the current fiscal context of budgetary pressures and stretched public finances.

So, what makes a good non-executive director in the public sector?

In 2020 and 2021, ICAEW hosted a series of webinars with input from influential figures across the public sector on the role of a non-executive director and why the role is so important.

As part of these webinars, Adrian Crompton, the Auditor General for Wales, provided his insight into what personal qualities he believes to be essential for a strong non-executive director in the public sector to have.

Genuine commitment and enthusiasm

Adrian noted that individuals need to show ‘genuine commitment and enthusiasm’ to the role and that the role requires a ‘considerable investment of time and effort,’ going beyond the time demands suggested by the job description.

Successful NEDs do more than simply read papers and turn up to meetings, he adds. NEDs need to invest time in learning and really understanding the organisation first-hand, as well as establishing relationships with its key officers and executives.

An independent and inquiring mindset

Having an independent and inquiring mindset is a key personal quality for any non-executive director, according to Adrian. This involves always being open to questioning and alert to the need for further investigation or other action, and having the ability to critically evaluate information encountered, taking into account its source, relevance, and sufficiency.

Adrian adds that individuals should have a keen eye for detail, and the ability to ‘step up and step back’ to maintain focus on the strategic aims and business objectives of the organisation.

Recognising that the NED role is different

Adrian highlighted that the role of a non-executive director is part of the wider leadership of the organisation; therefore, a good non-executive is looking to contribute more widely than the immediate sphere of their experience and responsibility – although previous career experience and knowledge can greatly assist in the delivery of the NED role.

In the public sector, this means focusing on the strategic and operational issues affecting the organisation, scrutinising and challenging policies and the organisation’s overall performance, checking adherence to relevant standards and regulations, and ensuring the effective management of the organisation.

A non-executive director should also be looking to provide influence and support the executive, as well as providing critical challenge and offering advice where required.

Chartered accountants are therefore well placed to contribute to the governance of organisations across the public sector. They are able to act with integrity and objectivity, they possess intellectual curiosity and professional scepticism, and they have a level of financial expertise that supports effective decision-making.

Watch a short clip from the webinar: 

Further information

• For further information on the role of a NED in the public sector and how to become a NED, please read our previous article or attend our upcoming webinar.
• Watch our webinar on the purpose and importance of a public sector audit committee.