How Prioritizing Governance, Risk, and Compliance Builds Trust in Your Government

Key Takeaways:

• Governance frameworks shape government operations, providing the foundation for public trust through transparency, accountability, and engagement.
• Trust-building strategies, such as open meetings, diverse boards, and regular audits, foster stronger connections with constituents and protect public resources.
• Internal audit plays a critical role in risk management, offering insights to address issues, strengthen controls, and enhance credibility.

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In today’s complex public sector environment, public trust isn’t just important — it’s essential for effective government. Trust is built by demonstrating accountability, compliance with policies and regulatory requirements, implementation of new initiatives, and effective service delivery to constituents.

As you work to strengthen community trust, focusing on governance, risk management, and compliance (GRC) can play a pivotal role.

Understand Your Governance Framework

As a government entity, you operate within a unique governance framework. This framework, shaped by fundamental elements like your constitution, amendments, and federal system structure, guides every aspect of your operations.

Your organization is specifically shaped by:

• Governing documents: These include your agency’s charter or legislative mandate.

• Governing bodies and committees: Boards, councils, and their committees provide oversight and strategic guidance in meetings open to the public.

• Strategic plan: Organization-wide and department-specific strategies, goals, and objectives.

• Organizational policies: Policies, such as procurement guidelines, set consistent standards for activities.

• Organizational structure: Clear chains of command, span of control, reporting lines, and definition of roles and responsibilities to drive organizational performance.

This framework isn’t just bureaucratic structure — it’s the foundation upon which public trust is built.

Building a Foundation of Trust

In our interpersonal relationships, trust is built by exhibiting certain characteristics — such as being authentic and transparent, demonstrating interest and empathy, and taking responsibility and being accountable. Trust in the public sector is built on similar pillars:

1. Transparency: Make important decision-making and strategy setting processes visible to the public.

2. Accountability: Drive positive outcomes and promptly address issues.

3. Responsiveness: Actively engage with community concerns and adapt to evolving needs.

4. Engagement: Maintain open communication with constituents.

These pillars provide a foundation for a trust-driven approach in both governance and daily interactions with citizens. Building upon this foundation, public sector entities should make efforts to build public trust through trust-building strategies such as:

• Boards and committees: Elect/appoint qualified, diverse members with relevant expertise.

• Administrative policies: Strengthen policies on procurement and budgeting to prevent resource misuse.

• Open meetings and public comments: Encourage public participation and a culture of inclusion.

• Transparency initiatives: Go beyond the basics of public records laws and make financial performance, budget decisions, and large procurement decisions in a transparent manner.

• Citizen engagement: Set up advisory committees and oversight groups to maintain open dialogue on important matters.

• Internal audits: Conduct regular audits to reinforce confidence in your organization’s accountability and fiscal responsibility.

By fostering transparency and engagement, you create a foundation of trust that supports both governance and public relations.

Leverage Internal Audit to Build Trust

Internal audit plays a critical role in sustaining public trust. By offering an independent, objective view into the operations and fiscal management of your government entity, internal audit can help you detect and address issues before they escalate. This function also demonstrates accountability and transparency, directly enhancing the credibility and trust constituents have in your government and its leaders.

To maximize the impact of your internal audit function, focus your audit team on these areas:

• Offer strategic advice: Guide the board and audit committee with insights into key risks.

• Prioritize risk assessment: Focus on areas with the highest impact.

• Tackle complex issues: Engage as an advisor in major projects and initiatives.

• Strengthen internal controls: Identify and reinforce controls to protect public resources.

• Address reputational risks: Mitigate risks that could damage public confidence.

By proactively managing these areas, your audit team can help prevent significant risks and support your government’s commitment to public service.

How MGO Can Help

Our dedicated State and Local Government team has decades of experience working alongside governments large and small. We can help you implement effective internal audit and GRC practices that build public trust and drive your mission forward. Reach out to our team today to learn more.