Debates of October 17, 2017 (day 1)

Mahsi, Mr. Speaker. Mr. Speaker, your Standing Committee on Rules and Procedures is pleased to provide its Report on the Review of the Chief Electoral Officer's Report on the Administration of the 2015 Territorial General Election, Supplementary Recommendations, and the White Paper on the Independence and Accountability of Election Administration in the Northwest Territories.

The Chief Electoral Officer (CEO) of the Northwest Territories issued three reports, tabled by the Speaker on May 31, 2016, February 28, 2017, and June 1, 2017. These reports contain 107 recommendations for changes related to election administration, including many legislative amendments. The first report, the only one required of the CEO under the act, is entitled "Modernizing Election Administration in the Northwest Territories." It stems from the conduct of the 2015 general election and sets the theme for all three reports.

It is the Standing Committee on Rules and Procedures' responsibility to review the reports and make recommendations to the Legislative Assembly. Because the CEO's two reports and the White Paper are closely related, the committee opted to carry out a coordinated and comprehensive review. The committee now offers its findings and recommendations as a platform for a coordinated response from the Legislative Assembly.

The committee notified former candidates, interested stakeholders, and media prior to the publicly advertised hearings with the Chief Electoral Officer in Yellowknife on September 9, 2016, and June 12, 2017. Public submissions were also received from Norman Snowshoe and David Wasylciw (personally, and as chair of OpenNWT). Additional submissions were sought following the tabling of the White Paper from stakeholders and via the committee's website. The committee thanks the CEO and her staff, and all who provided their comments and attended the hearings.

The CEO's report, "Modernizing Election Administration in the Northwest Territories," includes 42 recommendations to amend the Elections and Plebiscites Act (the act), and one recommendation to repeal the act and replace it with a new one.

The Committee notes that the current act is relatively modern, having come into force in 2007 with the addition of provisions for plebiscites. The act has been strengthened by each assembly since that time, assisted by many thoughtful recommendations from previous CEOs and the public. While prescriptive where necessary, the act is broadly enabling and flexible, allowing the CEO great latitude in conducting elections and managing Elections NWT.

Committee members believe that many of the amendments proposed by the CEO will further improve the act, and represent by far the most efficient means of regulating and adapting the territory's electoral process to current needs.

Another very significant change was proposed by OpenNWT at the committee's first public hearing a year ago, to move to a ranked system of voting for candidates. Such a system would ensure that to win, a candidate must have the support of the majority of voters. It is currently possible for a candidate to win despite a significant majority voting for others. By contrast, ranked voting can result in a candidate with fewer first choice votes than another to win the election based on strong second choice support. However, requiring voters to rank their preferences also necessitates a more elaborate balloting and vote-counting system.

Ranked voting is not widely used in Canada, but there are notable examples: the federal Conservative Party and the New Democratic Party use it to elect their leaders, and the City of London, Ontario, has adopted ranked voting for its 2018 civic election. To date, ranked voting has received very little attention in the Northwest Territories. At minimum, such a fundamental change should be widely and publicly debated prior to a decision being made to adopt this system in the NWT. The necessary public discussion has not taken place.

The CEO's first recommendation is to approximately double the length of the term of office, which at four years matches the shortest of any province or territory. While there are advantages to a longer term, the committee notes that the CEO may be reappointed, and the term extended up to six months after its expiry. The four-year term is also consistent with those of all other statutory officers of the Assembly except the Information and Privacy Commissioner, whose term is five years. The committee is satisfied that the four-year term and options for continuity are sufficient.

Only the three northern territories have a 12-month residency requirement for citizens to qualify to vote. In seven provinces the requirement is six months, and less in all others. The CEO recommends adopting a residency requirement of six consecutive months. The committee received no public comment on this recommendation, and notes that previous CEOs suggested an even shorter, three-month residency requirement to enable as many residents as possible to vote. Committee members support the six-month compromise, which is in line with most of the provinces.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to establish an elector residency requirement of six consecutive months on or before polling day.

The CEO recommends a Saturday polling day to remove barriers to elector attendance, address security issues at polls located in schools, and expand the pool of returning officers and poll workers. Similar advice was given by the previous CEO after the 2011 election. However, no Canadian jurisdictions have weekend elections so there is no evidence of its potential impact. Members fear that a weekend election might either discourage traditional pursuits on the land or reduce voter turnout in small communities where turnout is typically very high.

Members are nevertheless convinced that our current Monday polling day is not ideal, due in part to reduced weekend media attention and the reluctance of candidates to campaign vigorously on Sundays. Eight other provinces and territories have polling days on other weekdays. British Columbia, Manitoba and Newfoundland/Labrador have Tuesday polls, and Members feel this option is the best fit with the rhythm of life in the Northwest Territories.

Since 2007, when the timing of federal elections was nominally fixed, two of three elections have been held in October (with the other in May). In the event of overlap of the normal, fixed territorial election period with the federal election, the act requires that the territorial election "must be the third Monday in November of that year." This was the case for the 2015 election. The CEO points to weather-related complications and recommends a spring or summer alternative. The committee agrees that winter weather posed challenges for candidates' campaigns as well, and that late November is not a suitable alternative. One option is to move the alternate date forward somewhat, as was suggested during our public hearing.

Another option is to hold our territorial election on a fixed date regardless of the date of a federal election. In 2015, the federal election was held on October 19th and the NWT's followed on November 23 instead of the first Monday in October, which would have resulted in holding the territorial election on October 5th. In retrospect, this earlier date would have been preferable despite the overlapping campaign periods; November weather proved too disruptive, as noted by the CEO on page 65 of her report.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to set the first Tuesday in October as polling day, and that the November alternative polling day be eliminated.

The CEO pointed out that in some communities there is a substantial difference between the voting-age population and the number of registered voters. The greatest discrepancies are in Yellowknife, Inuvik, and Behchoko. The committee agrees with the CEO's Recommendation 10 to codify current practices and improve maintenance of a permanent list of electors. It may also be beneficial to extend the deadline for revisions of the list, as was suggested during our public hearing. This would provide more time for electors to register in advance, and for names to be struck from the list if they are no longer eligible to vote in the NWT.

The act currently provides that the list of electors may only include certain personal information, including the elector's full name, address, telephone number, gender, birth date, and date of NWT residence. The act also strictly limits how an elector's birth date and gender information may be used. The CEO recommends that the act be amended to permit Elections NWT to collect electors' email addresses as well.

The committee agrees that collection of electors' email addresses is potentially a useful tool in improving the list of electors, but cautions that internet service and use of email vary considerably from community to community. The use of electors' email addresses should be restricted under section 54(5) of the act, ensuring that they cannot be provided to candidates or used for general distribution of information. Committee members also note that sections 54(2)(d) and 54(5) refer to use of an elector's gender as a means of identification. This practice is no longer necessary or appropriate, and the committee recommends that references to identification by gender be removed from the act.

The CEO also recommended changing the act to further restrict inspection of the list of electors containing only names and addresses. This was the subject of much committee discussion. Inspection of the preliminary list of electors is a feature of almost all Canadian election legislation, ensuring some public scrutiny of the very basis of electing representatives. This measure is a safeguard of election integrity. In 2011, our previous CEO recommended that section 65 be amended to include authority for the CEO to communicate the contents of the list of electors by the best possible means. This change was not made, as our predecessor committee was content with the existing provision. It is also significant that the Local Authorities Election Act requires that the list of voters be posted in five conspicuous places in the electoral district at least 30 days before the vote. These local voters' lists are essentially components of the NWT's list of electors. It does not make sense that the list of electors is fully confidential at one level and fully public at another. The committee recommends that public access to the list be maintained at the territorial level.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended per Recommendation 10 of the CEO Report on the Administration of the 2015 Territorial General Election, to reflect current practices of maintaining a permanent list of electors; and that the act be amended to remove references to identification of electors by gender.

The CEO recommends amending the act to limit third-party advertising, as is done in most Canadian jurisdictions and echoing the advice of the previous CEO. Typically, regulation involves a spending limit, registration, and post-campaign reporting. Currently, third parties may advertise their support for or opposition to a candidate or candidates, or public policies, with no spending limit and no requirement to report to the CEO or the public. This has not been a significant problem in our elections, but our system is wide open to influence by people, corporations or organizations with ample resources and a political mission. The committee agrees that proactive change is necessary. We emphasize that the goal is to ensure fair elections, not to impede political discourse or freedom of expression.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to limit and regulate third-party election advertising related to candidates and/or policy.

Mr. Speaker, I'd like to hand over to the honourable Member for Yellowknife Centre. Mahsi.

Masi. Member for Yellowknife Centre.

Mahsi, Mr. Speaker.

Timeliness of mail-in ballots has been an issue in every election of this millennium, despite the low number of total ballots involved. However, use of absentee ballots has increased; 244 were requested for the 2015 election. Ballots were available for one month, but after allowing for return time the window is effectively shorter. Of 146 absentee ballots received by Elections NWT, 35 (or 24 per cent) arrived too late to be counted. While absent electors have some responsibility for timeliness, mailing times are not entirely within their control.

The CEO recommended amending the act to permit electronic voting and greater use of technology to manage and report the vote. The committee Chair and CEO witnessed Prince Edward Island's use of electronic voting for a plebiscite in 2016. The province's chief electoral officer reported that the vote was well-conducted and accurate, but also flagged significant risks in a detailed audit report tabled in the legislature. The associated Independent Technical Panel on Voting Integrity recommended that use of online and telephone voting for federal or provincial elections should be limited to absentee voters for "the immediate foreseeable future."

The Gwichya Gwich'in Band in Tsiigehtchic initiated electronic voting in a 2015 referendum to replace proxy voting and as an option for all electors, along with mail-in ballots and traditional polling stations. The system allowed for telephone voting and online voting. The method enabled greater participation by electors living away from the community. Following this successful trial run, the band is considering use of the technology for future council elections.

Electronic voting represents an opportunity to improve the timeliness of votes from absent electors, should they wish to cast their ballots electronically instead of on paper. It is important, however, that electors have the option of using a paper ballot or voting electronically. In the committee's opinion, technological change may most benefit the absentee ballot system and reduce the need for some special voting opportunities, which have not all been particularly effective. For those who choose a paper absentee ballot, Elections NWT should consider use of prepaid courier services or express mail. The committee supports amending the act to allow for the option of electronic voting for absentee ballots in the NWT when a reliable, practical system can be tested and implemented.

Extending the opportunity to vote in the Office of the Returning Officer from the close of the nomination and withdrawal period till the second day before polling day may also reduce the need for absentee ballots and special voting opportunities. Allowing voting from the close of the nomination and withdrawal period to election day certainly makes it more convenient for residents to vote, particularly those who work at remote mining camps. However, this convenience comes with a risk that early voters will be less informed than those who cast their ballots after campaigning is complete. Early voting may also be an advantage to incumbents who have been in the public eye due to their service in the legislature over the previous four or more years.

The committee therefore urges caution with respect to extending early voting opportunities too much. It may be wise to set a date that allows all candidates a chance to publicize the key elements of their campaigns before early voting begins. Additionally, the committee agrees with a public submission that in districts with public transit, polls should be easily accessible from a transit route. Polls should also be easily accessible on foot, clearly identified, and visible from a reasonable distance.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to:

Allow for the option of electronic voting for absentee ballots;

To provide an elector who has requested an absentee ballot to cancel his or her application in favour of an ordinary ballot on polling day; and,

The committee agrees with the CEO that the requirement for every candidate to establish an account at a bank or other institution for monetary campaign contributions may be a barrier to potential candidates who live in small communities lacking these services.

However, the CEO also informed the committee that financial reporting is the source of the most problems for candidates in meeting the requirements of the act. Candidates/official agents must provide financial reports to the CEO within 60 days of polling day. The requirement for candidates to file statements from a bank or other approved institution has only been in place for one election. It is the result of an amendment passed by the 17th Assembly in an effort to improve candidates' financial reporting.

Results in the 2015 election were not encouraging: only 31 of 60 candidate/official agents filed their financial reports on time, a remarkable decline from 2011 when 41 of 47 reports were timely and complete. The current CEO informed committee members that in 2015 many reports were initially incomplete, resulting in substantial expense and effort to ensure compliance with the act. The committee also heard several times that financial reporting instructions and forms could be improved by Elections NWT and we believe this will decrease the amount of time required for processing and ensuring compliance. None of these changes require legislative amendments.

The CEO also proposes amendments to the act to allow latitude for the CEO to grant extensions to elected candidates who miss the deadline for financial reports and must apply to the Supreme Court of the NWT for an order allowing an authorized excuse. The act currently requires compliance with these provisions before an elected candidate can sit in the legislature, a relatively strict measure that may also penalize the electorate of the district in question. For unelected candidates, the act already enables the CEO to extend the filing deadline.

While the committee agrees with the CEO's proposed amendments, discussed above and set out in Recommendations 33, 35 and 37 of her report on the 2015 election, they do not fully solve the problem of late and incomplete financial reporting. Election campaigns solicit money from trusting members of the public and there must be thorough and transparent accounting of these funds.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to replace the requirement for candidates to file statements from a bank or other financial institution with a practical, reliable requirement that ensures accountability and transparency; and

That the act be amended to provide the CEO with discretion to extend elected candidates' deadline for filing accurate and complete financial statements for up to 15 calendar days.

Most Canadian provinces reimburse election expenses of political parties or candidates, or both. All but Alberta, British Columbia, Yukon, Nunavut and the NWT reimburse part of a candidate's election expenses. Reimbursement from the public purse is based on the candidate receiving a certain percentage of the vote.

This aspect of campaign financing was addressed by the former CEO David Brock in his Auxiliary Report of the Chief Electoral Officer on the 2011 election. However, he made no recommendation to adopt a system of reimbursing a portion of candidates' campaign expenses.

The average campaign in 2015 cost about $8,000, down from almost $10,000 in 2007. However, there is great range in 2015 campaign spending from the $1,897 average for Mackenzie Delta candidates to the $19,945 average in Yellowknife Centre. The cost of campaigning in the NWT may deter potential candidates from running for election. This opinion was expressed in OpenNWT's submission to the committee, supporting partial reimbursement: "Financing of elections this way…would increase the viability of campaigning for those who would not normally consider putting their name forward. In line with the 18th Assembly's mandate commitment to improve access to elections for women, this would improve the ability of those candidates that might not have access to personal funds to enter NWT politics."

At the same time, there has been no great public outcry to subsidize the cost of campaigning in the NWT, and no hard evidence that the cost is a significant barrier to candidacy. This report may serve to begin public discussion of the issue, but it is premature to recommend that public funds be spent in this manner.

The CEO recommends expanding the mandate of Elections NWT to include the administration of the Local Authorities Elections Act, currently the responsibility of the Department of Municipal and Community Affairs. The CEO suggests that consolidating responsibility for all elections under Elections NWT would be fiscally efficient, build capacity, and improve the list of electors. Similar systems are used in about half of Canada's provinces and territories, where electoral management bodies administer smaller electoral events as well as general elections.

The NWT's Local Authorities Elections Act applies to municipal councils and District Education Authorities, including those in charter communities and authorities subject to the Tlicho Community Government Act. On the advice of Cabinet, the Commissioner appoints a member of the public service as Chief Municipal Electoral Officer. The appointments, along with two deputies, have been MACA employees who also advise communities on governance and serve other functions.

After the 2003 election, CEO David Hamilton recommended a review of potential benefits of Elections NWT administering the Local Authorities Elections Act. In 2005, the Standing Committee on Rules and Procedures recommended "that a review be undertaken to consider the efficiencies and sharing of resources that could occur with the Office of the Chief Electoral Officer assuming the administrative responsibility for elections of community governments under the Local Authorities Election Act." Preliminary research was done; CEO Saundra Arberry commented in 2007 that "much groundwork will be required" and "implementation will require…a transfer of resources and additional personnel" as well as legislative amendments.

During the course of the Committee's review of the current CEO's report, advice was received from the Minister of Municipal and Community Affairs that dialogue with her department, the NWT Association of Communities, and all community governments should precede any further interest in a consolidation of election responsibilities. Similar advice was received from the NWTAC. The committee cannot consider expansion of Elections NWT's mandate in the absence of appropriate research and evaluation of options.

The Standing Committee on Rules and Procedures recommends that the CEO consult with the Department of Municipal and Community Affairs, the NWT Association of Communities, and a broad range of community government representatives with respect to consolidation of responsibilities for the administration of general and local elections; and; that the results of this research, when complete, be included in the CEO's subsequent report to the Legislative Assembly.

Mr. Speaker, I would like to turn the reading of the report over to my colleague from Nahendeh. Mahsi.

Member for Nahendeh.

Mahsi, Mr. Speaker.

The committee agrees with a number of recommendations made by the CEO for the sake of efficiency and clarity of processes. These include such matters as voting compartments, materials, multi-district polling officers, multi-district ballots, advance polls by community, and various others.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended in accord with Recommendations 2, 10, 13, 16, 17, 22, 23, 24, 28, 29, 30, 31, 32, 34, 36, and 38 in the CEO Report on the Administration of the 2015 Territorial General Election.

Mr. Wasylciw suggested that nomination packages for candidates should be available for review before the writ is dropped. This would allow potential candidates to study the packages and identify questions or concerns before the election period begins. The committee agrees. The act does not establish when nomination forms are to be released. Forms are updated from time to time, as they were in 2015. It does not appear that a change of the act is necessary for Elections NWT to implement this.

In addition, the committee agrees with several of Mr. Wasylciw's housekeeping recommendations:

Eliminate duplication of information required in forms for financial reporting by candidates/official agents;

Investigate the possibility of issuing electronic tax receipts for campaign contributions;

Restore the categorization of campaign expenses used on financial information forms in previous elections;

Information for residents sworn in at the polls should be entered into the digital record system so it is immediately available, rather than on paper;

There must be opportunity for candidates or their designates to scrutinize the count of all ballots, including advance polls;

Elections NWT should consider providing open sessions for potential candidates and/or official agents in between elections to provide general information about the process and inform them about changes to the act; and

Elections NWT should solicit input from candidates and agents directly before preparing the CEO's post-election report.

These measures can be implemented by Elections NWT without changes to the act.

The CEO provided four additional recommendations to the Assembly on June 1, 2017. One was to remove the requirement in the act to establish bank accounts for campaign contributions. This issue is addressed in the committee's Recommendation 6, already discussed.

The CEO's proposal to require that candidates' financial reports be certified by a qualified third party is not an acceptable solution to the problem of incomplete and inaccurate reporting. Accountants and auditors are even scarcer in small communities than financial institutions. Neither is the committee convinced that the proposal to subsidize candidates' costs for certification of statements would be effective and efficient.

The committee agrees that the current $250 penalty is not a meaningful deterrent for failure to file financial reports, and that the cost of enforcement is typically much greater than the penalty. Raising the penalty to $5,000 or $10,000 as proposed, matching British Columbia's, seems unduly harsh and likely to result in some large, uncollected fines. Committee Members propose increasing the penalty to $500, with additional daily fines to a maximum of $1,000.

Experienced returning officers are a key factor in conducting NWT elections and they are a great resource to our electoral system. The committee shares the CEO's opinion that there is little logic in reappointing veteran returning officers for each election, and notes that three provinces and the Yukon appoint returning officers for life. Revocation provisions in the act already ensure that returning officers can be removed when necessary.

The Standing Committee on Rules and Procedures recommends that section 257.1(1) of the Elections and Plebiscites Act be amended to increase the penalty for non-compliance to $500, plus a daily fine of $50 to a maximum of $1,000; and that the act be amended to establish that the term of office for returning officers expires with resignation, change of permanent residency to outside the Northwest Territories, revocation, or death.

Thank you, Mr. Speaker. At this point, I would like to turn it over to the honourable Member from Thebacha.

Masi. Member for Thebacha.

The White Paper is the first document of its kind in the Northwest Territories to comprehensively review election administration. It was prepared by Lorne Gibson, an electoral management consultant and former CEO in Alberta. Mr. Gibson was commissioned by our CEO to provide an independent review of our legislation and the autonomy of Elections NWT. The report includes 60 recommendations that lead our CEO, Ms. Nicole Latour, to conclude that Elections NWT is "an agency bound to government and not truly independent as intended." In her opening remarks at the committee's public hearing in September, 2016, Ms. Latour stressed that "the overarching requirement…is allowing Elections NWT to make its own decisions and act in its best interest, free from government policies, systems and administrative interference."

After further research and much discussion, the committee does not share that view. Some of the White Paper's recommendations and comparisons with other jurisdictions overlook important conventions of the NWT's Assembly, our system of approval for appropriations, the role of the Commissioner, other legislation, and practical operation of our consensus government. Other recommendations address authorities already present in the current Elections and Plebiscites Act.

However, the committee considered the implications of all the recommendations and found that many would codify or clarify current practices and potentially improve our legislation.

The CEO is one of several officers of the Legislative Assembly who are appointed to provide an independent service, oversight and/or advice, free of political influence. This independence is critical to the integrity of their work, which is also subject to considerable public scrutiny. The various statutory officers of the Assembly are established by respective legislation setting out their terms and authorities. Their funding is provided by the Legislative Assembly; administrative support is provided by staff in the Office of the Clerk. These arrangements are reviewed by the Board of Management and ultimately included in the public review and vote on the Legislative Assembly's budget.

This system clearly meets Mr. Gibson's standards that "independence exists when there is no political consequence for the actions of a Legislative Officer who is fulfilling the mandate of his or her office," and that "independence is usually less complete with respect to such administrative matters as budgeting and staffing, where an election management body is often required to negotiate with other parts of the governmental system and follow established merit-based hiring practices, classification systems, and compensation formulas applicable to other public servants." These comments assisted the committee in assessing the appropriate degree of independence and accountability to recommend for the CEO and Elections NWT.

The committee was also mindful of the Elections and Plebiscites Act's flexibility and adaptability to circumstances. It is not desirable to shift the balance toward a prescriptive act, an outcome that could be the result of over-codification of current practices. In short, the committee is reluctant to fix things that are not broken.

To start, it is essential that the establishment of the CEO's position, office and major duties are clear in their intent and practice. As mentioned earlier, the act provides the CEO with great latitude in conducting elections and managing Elections NWT. Over time, previous CEOs have developed sound practices. Conventions have evolved under the broad umbrella of what is permitted under the act. The White Paper includes recommendations that many of these practices be codified or clarified, for the benefit of both consistent election management and public understanding of the CEO's role. The committee agrees to the extent outlined in the following recommendation.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended as needed to provide that:

The CEO is an independent officer of the Legislative Assembly;

That the CEO shall take an oath affirming that she or he will impartially and faithfully exercise the powers of the CEO and perform all duties fairly, objectively, and with due care;

That no proceeding may be commenced against the CEO, or a person acting for or under the direction of the CEO, for anything done or omitted in good faith in the exercise, intended exercise, or performance of a duty, responsibility or power under the act;

The Office of the CEO (OCEO or Elections NWT) is established to ensure impartial administration and conduct of elections and plebiscites;

The CEO administers and manages the business of Elections NWT;

The CEO shall examine all statements, reports, forms and other information filed with the CEO;

The CEO shall publish reports filed pursuant to this act on Elections NWT's website, or in such a manner determined to be effective by the CEO;

The CEO shall formulate policies regarding the conduct of elections;

The CEO may prescribe forms for use under this act;

The CEO may engage the services of professionals or experts such as counsel or accountants as necessary to carry out the CEO's duties under this act, within the appropriation for Elections NWT; and,

The CEO shall submit annual estimates of the funds required to operate Elections NWT to the Board of Management via the Speaker.

The White Paper proposes a significant increase of the powers of the CEO and autonomy of Elections NWT. This includes elevating the CEO to the classification, authority, salary and benefits of a senior deputy minister; the power to establish human resource policies, job classifications, and pay scales; and an exemption from the Human Resources job evaluation process. Implementation of these recommendations would require expansion of staff, duplication of available services, and increase the operating costs of Elections NWT. The committee considers these measures ultimately counter-productive, with high risk of unintended consequences. In some cases, these are powers the Legislative Assembly itself has not exercised, due in part to the lack of scale required for efficiency. Not only is Elections NWT very much smaller, but its operation is strongly cyclical, with needs that are often short in duration.

Several recommendations (including some referred to previously) address the relationship of the CEO to the Assembly's Board of Management (BOM), chaired by the Speaker. This relationship is established by the act and BOM's mandate. The committee wishes to be clear that the views it expresses should not be interpreted as infringements of BOM's jurisdiction or decision-making processes. Such views will therefore not be accompanied by official recommendations to the Assembly.

The White Paper suggests that the act should require the Board of Management to consult with the CEO respecting Election NWT's annual budget, and, should BOM recommend a lower appropriation than requested, the act should enable the CEO to submit a written objection to the Speaker. It is normal practice for the Board of Management to meet with the CEO to discuss Elections NWT's annual budget. This is BOM's practice, and control of its own practice should not be fettered by the Elections and Plebiscites Act. The act is silent on the issue of a written objection to the Speaker; it is not prohibited. Anecdotally, the committee has heard that such objections have occurred in the past. It is common sense that the CEO may correspond with the Speaker or BOM about Election NWT's annual budget. Moreover, this budget is reviewed by the Assembly Chamber, in public, as part of the Legislative Assembly's proposed appropriation. Members may question any item. The committee is satisfied that the current system is effective. Similarly, the White Paper recommends that the act be amended to require the CEO to submit an annual business plan and subsequent performance report to BOM. This office is part of the Legislative Assembly's annual business plan development, and a budget proposal is submitted to BOM annually, in preparation for the budget discussed above. The committee is not convinced that this proposed amendment is necessary, but the Board of Management may determine otherwise. In the same category is the White Paper's recommendation that BOM conduct an annual performance review of the CEO, with constructive feedback concerning expectations and achievements. We repeat our caution against creating an overly prescriptive act.

The act provides that the CEO is appointed by the Commissioner of the Northwest Territories, on the recommendation of the Legislative Assembly (as is the case for other Assembly officers). The Board of Management is responsible for the selection process, and ultimately recommends a candidate for the Assembly's consideration. The White Paper recommends that the act be amended to require that another selection committee be established to conduct a merit-based competition for candidates it would recommend to the Board of Management. Such a decision rests with the Board of Management, which currently employs the same practice to recruit and recommend all officers of the Assembly for appointment.

It is also proposed that the ultimate appointment of the CEO be made directly by the Assembly, without the Commissioner's involvement. It should be noted that the Commissioner's role is not political and should not be confused with executive government. In the case of the CEO's appointment, the Commissioner acts on the Assembly's recommendation and lends the prestige of her or his office to the occasion. The committee sees no need to remove the Commissioner from the traditional appointment process, which is in legislation for all statutory officers of the Assembly.

Mr. Speaker, I would like to turn this over to the Member from Tu Nedhe-Wiilideh. Thank you.

Masi. Member Tu Nedhe-Wiilideh.

Marsi cho, Mr. Speaker.

The White Paper includes several recommendations to improve the CEO's reporting to the Legislative Assembly and to ensure the timeliness of the CEO's advice, which is particularly important when legislative amendments might be needed. Clear and timely reporting requirements have the added benefit of increasing accountability and the information available to the public.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to:

Require the CEO to submit an annual report to the Legislative Assembly describing work done under the direction of the CEO pursuant to the act;

Require the CEO to submit a report to the Legislative Assembly after each election or plebiscite about the conduct of the election or plebiscite;

Provide the CEO with the option of combining his or her reports into one in the year of an election or plebiscite;

Provide that the CEO may report to the Legislative Assembly at any other time, on any matter that the CEO considers necessary; and

Provide that any of the CEO's reports to the Legislative Assembly may include recommendations for legislative amendments to improve the administration of elections under this or any other related act.

The CEO's powers of investigation and enforcement under the act were considerably enhanced by the 17th Assembly. The trend to sharpen the CEO's authorities in this area continues with ten recommendations in the White Paper.

Section 279 of the act gives the CEO broad authority to investigate any matter that comes to her/his attention that may be an offence under the act. Similarly, the CEO has great latitude to investigate to the extent he or she considers warranted. Although the CEO may begin an investigation without a complaint, complaints have historically driven the need for investigations. Complaints may be made to the CEO by anyone, within a year after polling day. However, section 284 of the act prevents commencement of the prosecution of any offence more than one year after the date of the offence. This could result in the inability to properly investigate and prosecute an offence stemming from a complaint registered shortly before the one-year anniversary date.

The White Paper recommends that the act be amended to set the deadline for prosecution at one year after the date the CEO has reasonable and probable grounds to believe an offence has been committed. This proposal could result in an extended investigation followed by up to a year's consideration before a decision to proceed with a prosecution. This is not timely by Canadian standards, and the Supreme Court of Canada has stressed the need for timely prosecutions of offenses. Further, the limbo created in such circumstances is not in the public interest.

The committee notes that the deadline for complaints, within a year after polling day, effectively provides for less time for any offense that occurs after polling day, such as those related to filing financial reports. To resolve this issue and to improve timeliness, the committee recommends that complaints should be made to the CEO within six months of the alleged offence.

With respect to prosecution of an offense, the committee recommends that the CEO should have authority to begin a prosecution up to one year from the date of the alleged offence. The CEO has the power to compel witnesses to appear, give evidence, and produce documents in the course of an investigation. However, the act falls short of making it an offence to obstruct an investigation authorized by the CEO. This omission should be remedied.

It has been the general practice of CEOs to make public the results of investigations of potential offences under the act. The White Paper suggests that the act provide some guidelines for publication of the outcomes of investigations; the committee agrees.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to:

Require the CEO to notify the complainant in writing, with reasons, if the CEO decides not to conduct an investigation of a complaint;

Make it an offence to obstruct the CEO or her/his designate in carrying out an inspection or investigation under this act, or to withhold, conceal, or destroy any records, documents, or things relevant to the investigation;

Provide that when the CEO believes it is in the public interest, the outcome of investigations may be published on Election NWT's website or by other means the CEO considers appropriate, and information provided may include the name of the person investigated and the nature of the matter;

Provide that complaints respecting omissions or offences under the act may be made within six months of the alleged omission or offence; and

Provide that the deadline for the CEO to commence a prosecution under the act is one year from the date of the alleged offence.

Section 8 of the act directs the CEO to implement a program to inform electors about elections. This might be interpreted as an impediment to informing students, as some would not yet be of voting age. The White Paper recommends revising the act to specifically enable outreach to schools and students. Statistics in the CEO Report on the Administration of the 2015 Territorial General Election show that approximately 2,800 people aged 18 to 25 are not registered electors, a number equivalent to about 10 percent of all registered electors in the NWT. A very significant number of our young people are not exercising their right to vote. The committee agrees that building our young people's knowledge of basic civic rights might improve the turnout of young voters.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to enable the CEO to develop and make materials available to schools for distribution to students who have reached voting age or will soon do so, including information on the NWT's electoral process, the right to vote, how to have one's name added to the register of electors, and any other matter that the CEO considers useful to electors and prospective electors.

New voting technology has significantly changed voting methods around the world. With these changes have come new challenges in ensuring the integrity and security of the vote. The White Paper recommends that for by-elections the CEO should have greater flexibility to deploy different technology than is required by the act for general elections. The committee agrees that by-elections represent an opportunity to put election-ready technology to use and gain valuable experience, or to use potentially more efficient methods in a smaller election and/or plebiscites.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to enable the CEO, at a by-election, to direct use of voting equipment, vote-counting equipment, or alternative voting methods that differ from those required elsewhere in the act.

Elections NWT's register of electors is created from data acquired from various sources through information-sharing agreements. These sources include Elections Canada, agencies of three GNWT departments, and the City of Yellowknife. In her report on the 2015 election, the CEO notes it may also be useful to obtain information collected under the Motor Vehicles Act, and to enter agreements with Aboriginal governments and more municipalities. This practice has been in place for some time, but is not specifically described in the act.

The White Paper recommends codification of this current practice, enabling agreements with "any person, government agency, or institution." In addition, Elections NWT seeks authority to make agreements to provide address, mapping, demographic, geographic or geospatial information to these parties.

The committee believes that the register of electors could be much improved. As full enumeration is becoming a last resort, usage of resident data from other reliable sources is necessary and should be specifically sanctioned in the act.

The Standing Committee on Rules and Procedures recommends that the Elections and Plebiscites Act be amended to:

authorize the CEO to enter agreements with any person or government department or institution to obtain information, including personal information, to update the register of electors; and

permit the CEO to enter agreements with any person or government department or institution to provide address, mapping, demographic or geographic information, including geospatial information; and

ensure appropriate protection of the privacy of personal information.

Thank you, Mr. Speaker. I would like to turn it back over to the Member for Frame Lake. Thank you.

Masi. Member for Frame Lake.

Merci, Monsieur le President.

The three reports from Elections NWT and reviewed by the committee contain more recommendations to the Legislative Assembly than from any CEO in the history of the Northwest Territories. However this fact is not an indicator that our election administration is in crisis, or even in need of substantial overhaul. Elections in the NWT are very well-organized, reliable, and firmly based on competent legislation. The committee is confident that the recommendations in this report will help ensure continuity in that regard, provide additional flexibility to adapt to new technology and methods, and improve the CEO's ability to enforce the act. The committee is also confident that these changes can be made in time for the next general election.

Considerable work will be necessary if the Assembly accepts the committee's recommendations. Many amendments to the act will have to be drafted, considered by the Assembly, and implemented well before the next election. In addition, consultation and research on the consolidation of responsibilities for administration of general and local elections is a very substantial task for Elections NWT and relevant stakeholders.

Public comment and feedback confirms the committee's view that NWT elections are on a very solid footing. The input we received was very thoughtful and helpful, but only a handful of citizens felt the need to provide advice despite several available occasions and means of doing so. The committee very much appreciates all the suggestions received, as well as the assistance of the Chief Electoral Officer and her staff. Mahsi, Mr. Speaker.

Masi. Member for Frame Lake.

Merci, Monsieur le President. I move, seconded by the honourable Member for Yellowknife Centre, that Committee Report 1-18(3): Standing Committee on Rules and Procedures, Report on the Review of the Chief Electoral Officer's Report on the Administration of the 2015 Territorial General Election, Supplementary Recommendations, and the White Paper on the Independence and Accountability, be received by the Assembly and moved into Committee of the Whole for consideration. Mahsi, Mr. Speaker.

The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed?

---Carried

Motion carried. Masi. Reports of standing and special committees. Member for Kam Lake.

Thank you, Mr. Speaker. Mr. Speaker, I am prepared to read an executive summary for the committee review into the public accounts.

The Standing Committee on Government Operations is pleased to present its report on the review of the 2015-2016 public accounts of the government of the Northwest Territories.

The review took place in Yellowknife, Northwest Territories, from April 3, 2017, to April 5, 2017. The committee notes that the consolidated 2015-2016 Public Accounts of the Government of the Northwest Territories received a clean audit opinion from the Auditor General and commends the Government of the Northwest Territories for this achievement.

Members of the standing committee would like to take the opportunity to thank officials from the Office of the Auditor General who travelled from Ottawa and Edmonton to assist the standing committee with its review. The standing committee also wishes to thank officials from the Office of the Comptroller General in the GNWT'S Department of Finance for their appearance before the committee on April 4, 2017.

As a result of this year's review of the 2015-2016 public accounts, the Standing Committee on Government Operations makes the following recommendations to the Government of the Northwest Territories:

The Standing Committee on Government Operations recommends that the table titled "Completion of Entities Consolidated within the Public Accounts" be included annually in the unaudited financial statement discussion and analysis section of the public accounts.

The Standing Committee on Government Operations recommends that the Office of the Comptroller General in the Department of Finance work with all GNWT public agencies to assist them to complete their audited financial statements to meet statutory reporting deadlines and to seek the necessary extensions where those deadlines cannot be met.

The Standing Committee on Government Operations recommends that the Government of the Northwest Territories continue to include information in the Financial Statement Discussion and Analysis section of the public accounts, indicating how the GNWT has met the provisions related to debt servicing and infrastructure financing in the Fiscal Responsibility Policy.

The Standing Committee on Government Operations recommends that the Minister of Finance work with the Minister responsible for Public Engagement and Transparency to develop plain language materials that summarize the public accounts for a given year, in a manner that is understandable for an interested, non-professional reader, focusing on the key financial highlights and significant audit issues arising for that year.

The Standing Committee on Government Operations recommends that the Department of Finance, after consultation with the Information and Privacy Commissioner for the Northwest Territories, reconsider amending the non-consolidated schedule of bad debt write-offs, forgiveness, and student loan remissions to protect the privacy of individuals by removing the names of those who have received student loan remissions and reporting only the amount of the remissions.

The Standing Committee on Government Operations recommends that the Government of the Northwest Territories provide a response to this report within 120 days.

Thank you, Mr. Speaker.

Masi. Member for Kam Lake.

Thank you, Mr. Speaker. Mr. Speaker, I move, seconded by the honourable Member for Hay River North, that Committee Report 2-18(3), be deemed read and printed in Hansard in its entirety. Thank you, Mr. Speaker.

The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed?

---Carried

The Legislative Assembly of the Northwest Territories’ Standing Committee on Government Operations (the committee) has a mandate to review and report on the Government of the Northwest Territories’ public accounts. This review helps ensure that the GNWT’s fiscal management practices and issues are publicly examined and scrutinized to promote government accountability.

In the course of its review, the committee makes recommendations to the Government to improve financial management reporting and practices. The Standing Committee on Government Operations is pleased to present this report on its review and looks forward to receiving the Government’s response.

The public accounts are the financial statements of the Government of the Northwest Territories (GNWT), which are prepared according to public sector accounting standards adopted across Canada.

The public accounts of the GNWT are also prepared in accordance with requirements contained in the federal Northwest Territories Act [S.C. 2014, c. 2, s. 2] and the GNWT’s Financial Administration Act (FAA) [S.N.W.T. 2015, c.13]. The FAA requires that the public accounts be prepared in two phases: first, the unaudited interim (non-consolidated) public accounts and later, the final (consolidated) public accounts, which are audited.

The public accounts disclose the GNWT’s financial position and results of operations as at March 31st of a given fiscal year. The GNWT’s financial position is revealed through information on assets, liabilities, net debt and accumulated surplus. This information assists the reader in evaluating the GNWT’s ability to finance its activities, to meet its liabilities and contractual obligations, and to provide future services.

The results of operations show the revenues and expenses of the GNWT for the fiscal year. This allows the GNWT to account for the resources it received and to demonstrate how those resources were budgeted for and expended. The consolidated public accounts are produced in four sections:

Section I contains the consolidated financial statements and combined results of operations for all GNWT departments, revolving funds, public agencies, territorial corporations and other related entities that are considered part of the government reporting entity. This section provides a high-level, aggregated (combined) look at the financial position of the government and its various departments and agencies, so that the reader is able to gauge the overall financial health of the government, as opposed to the stand-alone position of any single department or agency. It discloses the full nature and extent of the financial affairs and resources for which the GNWT is responsible.

In Section I, the notes to the consolidated financial statements are an integral part of the public accounts and should be read in conjunction with the financial statements. This section also contains an unaudited Financial Statement Discussion and Analysis by the Minister of Finance, which provides further insight from the GNWT’s perspective into the information reported in the public accounts.

Section II presents the non-consolidated, unaudited financial statements for GNWT departments, the Legislative Assembly, and Statutory Offices. Section II is comprised of the financial position and results of operations for GNWT departments only, including the revolving funds and special purpose funds they administer. Providing this information separately allows the reader to assess the collective financial position of the GNWT’s departments, as separate and distinct from that of its larger operations, which include public boards, agencies and territorial corporations. This section also includes important notes to the financial statements.

Section III contains the supplementary financial statements of other entities and revolving and special purpose funds.

Section IV contains the supplementary financial statements of education boards and health and social services authorities.

It should be noted that the public accounts are based on historical information. They are, therefore, backwards looking and pertain to actual spending for the given fiscal year in question.

With respect to the examination of the public accounts, the federal Northwest Territories Act conveys to the Auditor General all powers contained in the Auditor General Act (R.S.C., 1985, c. A-17). The Auditor General of Canada audits the GNWT’s consolidated financial statements on an annual basis. The Auditor General also annually audits the public accounts of some the GNWT’s larger public agencies, such the Northwest Territories Hydro Corporation, the Northwest Territories Power Corporation, the Northwest Territories Housing Corporation, Aurora College and the Northwest Territories Business Development and Investment Corporation.

Smaller public agencies, such as regional health authorities and education boards, are audited by independent certified public accountants, upon whose work the Office of the Auditor General (OAG) relies in carrying out its audit of the GNWT’s consolidated financial statements. The OAG reviews the audits of these smaller entities on a rotational basis (i.e. once every three years).

Regardless of who prepares it, the purpose of an audit remains the same. As specified in legislation, the purpose of an audit is twofold:

To allow the auditor to express an expert opinion as to whether the financial statements present the financial position of the government body fairly, in all material respects. This includes the financial position of the government body, the results of its operations, changes in its net debt and its cash flows for the fiscal year being examined.

To examine financial transactions to ensure they have been carried out in accordance with the powers provided to the government body under law. It is important to note that the audit of the public accounts is a financial audit, as opposed to a performance audit. Although a financial audit and a performance audit share procedural similarities, they are not the same.

A performance audit focuses on efficiency measurements by identifying operational problems related to management, and resourcing and identifying their causes. In this sense, a performance audit is focused primarily on people and on the quality of performance of a government department, board or agency as defined in its legislative and policy mandate.

A financial audit, on the other hand, focuses on the accuracy and correctness of financial accounts. It does not explore the quality of management decisions. In a financial audit, the attention is directed towards finances and on determining if a government’s figures have been recorded as required by national standards.

In conducting a financial audit, the auditor undertakes a risk-based audit approach that focuses on significant risks of material misstatement and non-compliance with significant authorities. Materiality is an important concept in auditing, related to the importance or significance of an amount, transaction or discrepancy. Based on professional judgment, the auditor determines what errors are considered material in the public accounts.

For each department, board or agency whose books are audited, the independent auditor prepares an audit report that addresses each of the audit objectives. These reports are included in the public accounts along with the financial statements for each entity.

This is the second review of the public accounts by the Standing Committee on Government Operations of the 18th Legislative Assembly. The review took place in Yellowknife, Northwest Territories, from April 3-4, 2017.

Members of the standing committee would like to take the opportunity to thank the officials from the Office of the Auditor General who participated in this year’s review. The standing committee would also like to thank the officials from the office of the comptroller general in the GNWT’s Department of Finance for their appearance before the standing committee on April 4, 2017.

In an unqualified or “clean” report, the auditor concludes that the government’s financial statements present its financial affairs fairly in all material respects. This indicates that the government observed compliance with Canadian public sector accounting standards and statutory requirements. This also demonstrates that any changes in the accounting policies, and the impact of these changes, have been adequately determined and revealed.

It is important to note that a clean opinion does not tell the reader that the government is in good economic health. It merely states that its financial report is complete and transparent and has not misstated any important facts. Nonetheless, achieving a clean audit opinion is an important objective and is to be commended.

The committee notes that the consolidated 2015-2016 Public Accounts received a clean audit opinion from the Auditor General and commends the Government of the Northwest Territories for this achievement.

Deadlines for the completion of the public accounts are set in the territorial Financial Administration Act (FAA). A new and modernized version of the FAA [S.N.W.T. 2015, c.13] came into force on April 1, 2016. The 2015-16 public accounts are the first to be prepared under this new legislation.

Under the new FAA, Section 36 requires that the interim public accounts be completed by September 30th after the end of the fiscal year and tabled in the Legislative Assembly at the first opportunity. The interim financial statements of the GNWT for the year ended March 31, 2016 were completed in accordance with the deadlines set in the legislation. They were provided to the standing committee on September 1, 2016, and tabled in the Legislative Assembly on November 3, 2016.

With respect to the consolidated public accounts, Section 35 of the FAA requires that, “the public accounts for a Government fiscal year must be laid before the Legislative Assembly (a) on or before December 31st following the end of that fiscal year; or (b) if the Legislative Assembly is not then in session, on or before the fifth day of the next sitting of the Legislative Assembly.” The consolidated Public Accounts for 2015-16 were completed in accordance with the deadlines set in legislation, having been signed on November 14, 2016, provided to the standing committee on January 27, 2017, and tabled in the House on February 6, 2017.

The committee takes note of the fact that this is the third year in a row that the Department of Finance has completed both the interim and consolidated public accounts in time to meet the deadlines set in legislation. The committee acknowledges the significance of this achievement, given the delays that were experienced in past Assemblies and commends the government. Given this much-improved track record, the committee has opted this year to dispense with recommendations related to the timely completion of the interim financial statements and consolidated public accounts, but intends to remain vigilant in monitoring the GNWT’s compliance with the deadlines noted in the FAA.

With respect to meeting statutory deadlines, the standing committee is interested in monitoring not only the compliance of the government reporting entity as a whole, but also that of the individual agencies which make up the reporting entity. The Department of Finance has been responsive, in previous years, to this request for information, providing it to the standing committee upon request. However, the standing committee has expressed a preference that this information be included in the public accounts, so that it becomes part of the public record when the public accounts are tabled.

The committee is pleased to see that the Department of Finance has included in the Financial Statement Discussion and Analysis in Section 1 of the 2015-2016 Public Accounts, a list of all departments, boards and agencies in the government reporting entity, their deadlines for the completion of financial statements, and whether or not those deadlines were met. With its inclusion, this information is now available to public scrutiny. The standing committee thanks the Minister of Finance for making this information readily available to the public.

The Standing Committee on Government Operations recommends that the table titled “Completion of Entities Consolidated within the Public Accounts” be included annually in the unaudited financial statement discussion and analysis section of the public accounts. Again this year, the committee reviewed the compliance of individual public agencies in the government reporting entity with their respective deadlines.

For the 2015-2016 fiscal year, the committee notes that the following agencies requested and received extensions of the due dates for completion of their audited financial statements, as provided for in Section 32 of the FAA and in accordance with any requirements contained in the respective acts establishing the public agency: the Beaufort Divisional Education Council; the Ndilo Divisional Education Council; Aurora College; the Northwest Territories Hydro Corporation; the Northwest Territories Business Development and Investment Corporation; and the Northwest Territories Housing Corporation.

The committee commends each of these agencies for seeking the appropriate extension and meeting their extended deadlines, giving particular acknowledgement to both the Northwest Territories Hydro Corporation and Aurora College for their improvement over the previous year, when they failed to seek the necessary extension to their respective deadlines.

For the 2015-2016 fiscal year, the following agencies failed to meet the statutory deadlines for completion of their audited financial statements: the Detah District Education Authority; the Northwest Territories Human Rights Commission; the Northwest Territories Sport and Recreation Council; and the Status of Women Council of the Northwest Territories.

As always, the committee recognizes the capacity challenges facing smaller agencies. Nonetheless, the committee urges any agency requiring additional time to seek out the extension provided for in law, to ensure compliance with the FAA. The standing committee makes the following recommendation with respect to timeliness of the public accounts:

The Standing Committee on Government Operations recommends that the Office of the Comptroller General in the Department of Finance work with all GNWT public agencies to assist them to complete their audited financial statements to meet statutory reporting deadlines, and to seek the necessary extensions where those deadlines cannot be met.

The following subjects have been identified by the standing committee as areas of particular interest to the committee, which also may be of interest to the public:

The accounting treatment of environmental liabilities by public sector bodies is set out in the Public Sector Accounting Board’s standard PS 3260 – Liability for Contaminated Sites. Under this standard, the GNWT is responsible for recording estimates in its financial statements for the further evaluation or remediation of all known contaminated sites for which it is legally responsible.

Environmental liabilities arise when contamination exceeds established environmental standards. Estimated remediation costs are recorded in the year in which they become known.

For the 2015-2016 fiscal year, the GNWT’s environmental liabilities are disclosed in note 11 to the consolidated financial statements:

The GNWT has identified 223 sites potentially requiring environmental remediation as at March 31, 2016. [2015 – 216]. Total remediation costs for these sites are estimated at $66.2 million ($59.4 total remediation costs + $6.9 million for NT Hydro asset retirement obligations). This down from the previous year’s total of $68.9 million.

Giant Mine has been formally designated as contaminated under the NWT’s Environmental Protection Act. The balance of the GNWT’s share of the above-ground remediation is $2.851 million [2015 - $2.994 million].

There are six other abandoned non-operating mine sites that the Government will be remediating in conjunction with the Government of Canada. Cost estimates for the remediation of these sites are in the same order of magnitude as the GNWT’s share of the remediation costs for Giant Mine.

There are 28 sewage lagoons and 40 landfill sites outside of incorporated communities. These are being remediated or monitored as appropriate.

Included in the 223 sites are 74 sites for which no liability has been recognized. Monitoring of these sites is on-going under the GNWT’s environmental protection program. There were two sites closed during the fiscal year [2015 – 0] that were either remediated or determined to no longer meet the criteria required to record a liability for accounting purposes.

During last year’s review, the committee requested that information on the status of sites with known or potential contamination be included annually in the public accounts. The committee acknowledges the response received from the Department of Finance indicating that the inclusion of information in the public accounts must follow public sector accounting standards. The committee is satisfied with this response, noting that the department is now posting a list of contaminated sites on its web site.

The Government of the Northwest Territories first established its Fiscal Responsibility Policy in 2005. It was formalized in February 2016, when it received approval by the commissioner-in-executive-council. The purpose of the policy is to promote on-going fiscal sustainability by guiding prudent borrowing and ensuring that government debt remains affordable.

The government reports annually on its performance in meeting the requirements of the Fiscal Responsibility Policy. The performance measures identified in the policy are: debt to revenue ratio; debt per capita ratio; debt servicing costs as a per cent of revenue; debt servicing payments as a per cent of revenue; debt servicing payments as a per cent of three-year moving GDP average; net debt per capita ratio; and credit rating. The policy requires that these performance measures be reported on a consolidated basis for the entire government reporting entity (ie. departments + public boards, agencies and territorial corporations). The Fiscal Responsibility Policy establishes specific numerical limits, expressed as percentages, restricting infrastructure financing and debt servicing as follows:

(3) Infrastructure Financing

The government will restrict infrastructure investments, excluding public-private partnership projects as follows:

A minimum of 50 per cent from the operating surpluses generated within the non-consolidated Public Accounts (emphasis added);

A maximum of 50 per cent from government debt.

(5) Affordable Debt (includes debt associated with Public-Private Partnership Projects)

Non-consolidated debt servicing payments shall not exceed 5 per cent of total non-consolidated annual revenues; and

Where non-consolidated debt servicing payments exceed 5 per cent of total non-consolidated annual revenues, operating surpluses shall be generated in the following two years sufficient to permit principal repayments that will decrease debt servicing payments to 5 per cent by the third subsequent year.

In previous reviews, the standing committee has expressed the view that, in addition to the performance measures reported on a consolidated basis, the GNWT should also be reporting specifically on its performance in meeting the policy provisions related to infrastructure financing and affordable debt using the relevant data from the non-consolidated public accounts. This will allow members of the public to determine whether or not the GNWT is in compliance with the threshold limits related to infrastructure financing and affordable debt, as set out in the policy.

The committee is very pleased that the government has responded positively to this recommendation and that, as a result, the 2015-2016 Public Accounts are the first to include a table, on page 35 of Section I, reporting on the GNWT’s compliance with the provisions on infrastructure financing and affordable debt contained in the Fiscal Responsibility Policy.

The committee commends the government for the inclusion of this information in the public accounts, and makes the following recommendation:

The Standing Committee on Government Operations recommends that the Government of the Northwest Territories continue to include information in the Financial Statement Discussion and Analysis section of the public accounts, indicating how the GNWT has met the provisions related to debt servicing and infrastructure financing in the Fiscal Responsibility Policy.

A commitment to improving accountability and transparency is one of the key priorities of the 18th Legislative Assembly, and a fundamental component of the Government of the Northwest Territories’ Mandate. Public information must be clear, concise, and easily understood by the average reader.

The public accounts are the definitive source of information for the public on the GNWT’s fiscal performance. However, they are prepared for a very specific purpose, according to federal and territorial legislation and following standards set by the Public Sector Accounting Board. As a result, these documents are not easily understood by non-expert readers.

In previous reviews, the standing committee has urged the Department of Finance to find ways to make the information contained in the public accounts as clear as possible for interested readers lacking expertise in finance or accounting.

During the review of the 2015-2016 Public Accounts, the committee was provided with a document titled The Public Accounts: An Overview, which was prepared by Finance and provides non-expert readers with an introduction to the public accounts and the information contained within them.

The standing committee thanks the Department of Finance for its positive response to the committee’s recommendation and commends the department for its work in this area. The committee notes that this document is now available to the public on the department’s web site.

The committee believes that, while this work is a good start, there is more work that remains to be done. The committee would like to see a summary document made available to the public to accompany the public accounts each year, which describes the financial highlights and key audit issues for the year and which is made available online at the same time the public accounts are released. The committee notes that the information contained in such a summary would not be dissimilar to that which the department already prepares for its opening presentation to the standing committee at the time of the annual public review. Accordingly, the committee makes the following recommendation:

The Standing Committee on Government Operations recommends that the Minister of Finance work with the Minister responsible for Public Engagement and Transparency to develop plain language materials that summarize the public accounts for a given year, in a manner that is understandable for an interested, non-professional reader, focusing on the key financial highlights and significant audit issues arising for that year.

The non-consolidated schedule of bad debt write-offs, forgiveness and student loan remissions contained in the public accounts identifies, by name, all individuals who have received a remission of their student loans and the amount of that remission.

The standing committee recognizes that government must strike a balance between protecting the privacy of an individual’s personal information and disclosing information that is in the public interest. However, Committee believes that the degree of disclosure related to this information may constitute a breach of privacy of those individuals named in the schedule.

In its review of the 2014-2015 Public Accounts, the standing committee recommended that the department consider amending this schedule by removing the names of individuals who have received remissions, and report only upon the dollar amount of the remissions. The GNWT responded that "This information will continue to be disclosed in the Public Accounts in accordance with the Financial Administration Act and to ensure transparency of these amounts to the public." Incidentally, it is worth noting that this is the only recommendation from that review to which the government did not respond favourably.

Section 65(1)(b) of the Financial Administration Act provides that the public accounts must contain information about the forgiveness of any debt or obligation owed to the GNWT. The committee understands the government to be of the view that this requirement necessarily obligates the government to disclose the names of students who receive any remission of their student loans. The committee remains unconvinced that this is the case.

In discussing this matter during the public hearing, the committee received a commitment from the Comptroller General that he would consult with the Information and Privacy Commissioner to hear the IPC’s views on the matter. Accordingly, the committee makes the following recommendation:

The Standing Committee on Government Operations recommends that the Department of Finance, after consultation with the Information and Privacy Commissioner for the Northwest Territories, reconsider amending the non-consolidated schedule of bad debt write-offs, forgiveness and student loan remissions to protect the privacy of individuals by removing the names of those who have received student loan remissions and reporting only the amount of the remissions.

The Comptroller General also indicated that he would consult with Education, Culture and Employment to learn what information is provided to student loan applicants about disclosure and whether or not consent is obtained when the loan is given. The committee expects that the response to this inquiry will be included in the government’s response to this report.

For the 2015-2016 fiscal year, the Office of the Auditor General identified the GNWT’s accounting treatment of public-private partnerships (P3s) as a significant audit area. As the GNWT moves forward with projects of this nature, they are working with the OAG to ensure that P3s are accurately reflected in the public accounts. It is also an area of notable interest to the standing committee.

The GNWT is currently involved in two P3 projects, the Mackenzie Valley Fibre Link Project and the Stanton Renewal Project. This is the first year that costs related to these projects are included in the public accounts:

On October 30, 2014, the GNWT entered into a 20-year agreement with Northern Lights General Partnership to design, build, operate and maintain 1,154 kilometres of high-speed fibre optic telecommunications cable from McGill Lake to Inuvik: term of agreement: 20 years (2017 – 2037); total construction cost: $90,900,000 plus interest; financing: 100% NLGP; total payments to NLGP to operate and maintain system: $64,000,000; additional costs: $5,120,000 to First Nations for land access.

On September 22, 2015, the GNWT entered into a 30-year agreement with Boreal Health Partnership to design, build, operate and maintain the new territorial hospital: Term of agreement: 30 years (2018 – 2048); total construction cost: $291,000,000; financing: $152,000,000 GNWT, $139,000,000 BHP; total payments to BHP to operate and maintain facility: $216,000,000.

The Standing Committee on Government Operations has a mandate to review the public accounts of the Government of the Northwest Territories so that GNWT financial management practices and decisions receive public scrutiny.

Committee members were grateful for the assistance provided by the Office of the Auditor General in support of this work. Committee members also appreciate the appearances before the Standing Committee by staff from the Office of the Comptroller General in the Department of Finance. The standing committee looks forward to the government’s response to this report.

The Standing Committee on Government Operations recommends that the Government of the Northwest Territories provide a response to this report within 120 days.

Masi. Reports of standing and special committees. Member for Kam Lake.

Thank you, Mr. Speaker. I move, seconded by the honourable Member for Hay River North, that Committee Report 2-18(3), Standing Committee Report on Government Operations on the Review of the 2014-2015 Public Accounts, be received by the Assembly and moved to Committee of the Whole for further consideration. Thank you, Mr. Speaker.

Masi. Motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed?

---Carried

Motion carried. Masi. Reports of standing and special committees. Item 6, recognition of visitors in the gallery. Item 7, Acknowledgements. Colleagues, at this time, I would like to request for a short recess.

---SHORT RECESS

Thank you, Mr. Speaker. Mr. Speaker, earlier I spoke about the KAIROS Blanket exercise and the importance of governance like ours at the Legislative Assembly and how important it is to understand the effects of residential schools, and my questions are for the Minister of Education, Culture and Employment. Mr. Speaker, can the Minister describe the cultural awareness training that the new NWT teachers participated in, in 2017? Thank you, Mr. Speaker.

Masi. Minister of Education, Culture and Employment.

Thank you, Mr. Speaker. About three years ago, the department started developing this conference called New to the North, and any teachers who are just beginning their career in teaching or come up from the south or outside the Northwest Territories, they go through a series of cultural awareness training and make sure that all our teachers that come from the south understand the legacy as well as the history of residential schools and the impact that it had on our communities or residents so our teachers that are going into these small communities are aware and well prepared for the situations that they will get in in terms of teaching in our schools. Also with that said, it is not only for our teachers but within our Department of Education, Culture and Employment, it is mandatory for all our staff to take cultural awareness training, and that includes one of the blanket exercises that is very well known throughout the Northwest Territories.

That is good to see, that the Minister is quite involved, especially in the education system. Mr. Speaker, my second question for the Minister is: what role does a Minister see in teacher training and classroom curriculum for something like the KAIROS blanket exercise?

In our Northern Studies 10 course, which is mandatory for all of our students across the Northwest Territories, one part of the Northern Studies 10 program is having the students participate in the blanket exercise. Just like our teachers, we want to make sure our next generation of youth understand the history and legacy of residential schools in the Northwest Territories, and as I mentioned earlier, the impact that it had on our residents or families in our communities, and to make sure that our students are well aware of that as well.

I appreciate the response. Mr. Speaker, we travel around Canada and we work with other Indigenous governments in other provinces and territories, and sometimes the lack of knowledge for Northerners in residential schools, whether it be in provinces in southern Canada or in the North, are sometimes not recognized with Indigenous groups that have gone through this, and especially families. Mr. Speaker, my final question is: would the Minister consider engaging facilitators to lead this exercise for senior staff in his department and also the Government of the Northwest Territories to better educate bureaucrats, MLAs, when dealing with Indigenous people and Indigenous governments?

Yes, we do engage with other departments in terms of cultural awareness training, as well as the blanket exercise. Myself, I participated in the blanket exercise when I first got elected and was given the portfolio of Education, Culture and Employment. When I did it, we had other jurisdictions: Saskatchewan, Alberta, and Yukon. Nunavut participated in this as well, and we do encourage other departments and other leadership in the Northwest Territories who want to participate in this type of cultural awareness training. We would be more than happy to facilitate it as well, as we do have the train the trainers programs as well, and actually even with the City of Yellowknife, working with them to get some cultural awareness training for their staff and employees as well.

Masi. Oral questions, Member for Yellowknife Centre.

Mahsi, Mr. Speaker. Mr. Speaker, my questions are for the Minister of Health and Social Services. As I said in my statement, it is time to provide secure funding tied to standards of service for the five family violence shelters that now exist in the NWT. Work has been under way for years on these standards, so my question is: when will the draft standards be finalized, and what is the delay? Thank you.

Minister of Health and Social Services.

Thank you. Thank you, Mr. Speaker. Mr. Speaker, I will have talk to the department to get the specifics on that detail. I am not exactly sure when those will be ready. Thank you, Mr. Speaker.

Thank you for one of the shortest ever answers from the Minister. My second question is: what progress has the Minister made on developing a funding formula for family violence shelters, and when is this work scheduled to be complete?

The Department of Health staff met with different individuals from the family shelters around the Northwest Territories on September 16th to start developing a work plan on how to work together to develop a funding formula. I do not know the exact timelines of that. They are working amongst themselves, something that will work on both sides. I will get some additional information to share with the Member.

Thanks to the Minister for that answer. As the Minister is aware, there are no family violence shelters in the Deh Cho and Sahtu regions. What plans does the Minister have to address this gap in service for women who are fleeing violence in those areas?

We do invest about $3.8 million annually towards family violence prevention and inter-prevention services in the Northwest Territories; $2.9 million of that goes to the different territorial family violence shelters. Where there aren't family violence shelters in communities or regions, we do have some dollars allocated that we can use to bring those families or those individuals to the regional centres where the family violence shelters do exist. On top of that, we are also contributing about $477,000 to a number of different campaigns to bring awareness and combat family violence in the Northwest Territories. Things like What Will It Take? We have non-shelter regional protocols and response teams. We have programming for children who witnessed violence. We do have the shelter network that's getting some additional funding as well as Family Violence Awareness Week. There are a number of things we are doing trying to support those individuals who are suffering from domestic violence.

Masi. Oral questions. Member for Yellowknife Centre.

Thank you Mr. Speaker. Mr. Speaker, I appreciate the run-down on the family violence, but it doesn't tell me when there will be shelters in the Deh Cho and the Sahtu. The other five shelters are often full and having these additional resources closer to home is important to the residents of that region, especially to women in that region. Will the Minister be looking at new investments such as in these shelters in the next budget? Thank you.