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Auditor General Issues Report on SAGC Remuneration
The report “Key Management and Board Remuneration in Statutory Authorities and Government Companies,” has been issued by the Office of the Auditor General (OAG). The public interest report provides an analysis of the remuneration of key management personnel in Statutory Authorities and Government Companies (SAGCs) as well as compensation paid or benefits provided to members of SAGC Boards of directors for the 18-month period from 1 July 2016 to 31 December 2017.
The report states that SAGCs employed a total of 2,743 staff at 31 December 2017 (40 per cent of the entire public sector workforce) and paid a total of $249 million in remuneration to these staff for the 18-month period to 31 December 2017. For the same period, SAGCs employed a total of 154 key management personnel who were paid around $23.5 million.
“The remuneration paid to key management personnel varies significantly across the SAGCs.” Ms. Winspear notes. “There is currently no standardised job evaluation system or salary and allowances scale for SAGCs. The Public Authorities Law intends to deliver a standardised pay system but the implementation date for this particular clause in the law has been pushed back to June 2019.”
The report highlights that the 24 SAGCs reviewed had a total of 99 board members who were compensated. These board members were paid around $788,000 in the 18-month period to 31 December 2017.
“Compensation for board members varies across SAGCs with some providing their services for free while others are paid up to $4,500 a month,” Ms. Winspear explains. “Where board members are compensated, the basis differs across SAGCs with some board members paid a monthly sum while others are paid for each meeting attended.”
The Auditor General adds. “As a public interest report this merely puts factual information in to the public domain and I make no recommendations to the respective entities or civil service.”
More information about the report can be obtained by contacting Sue Winspear at (345) 244-3201 or Patrick Smith, Director of Financial Audit at (345) 244-3204.
This report and the original OAG reports on which this report is based are available at www.auditorgeneral.gov.ky.
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