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ACCA Strategic Professional · Strategic Business Leader · Public sector governance

A state health agency reports to its Minister, who answers to the legislature, which in turn answers to voters at elections. The agency head argues that she is accountable only to the Minister because 'the public cannot judge clinical matters'. Which statement best describes the public sector accountability issue raised?

Public bodies are accountable through a chain that ends with citizens, who fund and use the services. The agency head cannot limit accountability to the Minister simply because clinical matters are complex. Accountability also covers service performance, not just finance, and there are no shareholders to substitute.

  1. APublic sector bodies have a chain of accountability ending with citizens, so limiting accountability to the Minister ignores the ultimate stakeholdersCorrect
  2. BAccountability in the public sector is owed only to the funder, so the agency head is correct
  3. CAccountability applies only to financial results, so clinical outcomes are outside its scope
  4. DAccountability to citizens is replaced by accountability to shareholders in state bodies

Explanation

In the public sector, accountability runs through a chain from officials to ministers, legislature and ultimately citizens as taxpayers and service users. The head's view truncates it. Public bodies have no shareholders, and accountability covers performance and service outcomes as well as finance.

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