Debates of August 22, 2011 (day 15)

Date
August
22
2011
Session
16th Assembly, 6th Session
Day
15
Speaker
Members Present
Mr. Abernethy, Mr. Beaulieu, Ms. Bisaro, Mr. Bromley, Hon. Paul Delorey, Mrs. Groenewegen, Mr. Hawkins, Mr. Jacobson, Mr. Krutko, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Michael McLeod, Hon. Robert McLeod, Mr. Menicoche, Mr. Ramsay, Hon. Floyd Roland, Mr. Yakeleya
Topics
Statements

QUESTION 175-16(6): MANDATORY AUDIT REQUIREMENTS FOR CROWN CORPORATIONS

Thank you, Mr. Speaker. Today I talked in my Member’s statement about the Financial Administration Act and I took a look at the opportunity before us that is potentially to be reviewed. Right now we’re in the coming days that will enter into the new government. I highlighted the importance of value for money audits, which are also referred to as performance audits. If the review of the FAA is actually being considered at this time, it would be probably wise for the government to consider a comprehensive opportunity like this to include performance audits on our corporations to ensure that they’re done on a regular basis to ensure that we’re getting the best value for these corporations.

My question will be directed to the Premier today and my question specifically will be: if the FAA is being updated at this particular time with an eye to the future, would the Premier be willing to put down as part of the development opportunity of the FAA, to put in performance audits as a fundamental element on our corporations to be done, say, every five years, as it is done federally?

Speaker: MR. SPEAKER

Thank you, Mr. Hawkins. The honourable Premier, Mr. Roland.

Thank you, Mr. Speaker. On top of the process that we have in place where our corporations table their annual reports and business plans in this Assembly, that’s one method where Members have access and can measure how our corporations have done business. As for the ongoing work around the Financial Administration Act, I will have to speak to the Minister on that work and see what’s been incorporated and the timelines for that.

I appreciate the Premier’s answer about the corporations tabling their annual reports, but, quite frankly, most Members I would be surprised have an auditing or accounting background. Therefore we read them for what they are, to ensure that the ledger sheets are balanced.

Performance audits, as cited by the Auditor General of Canada, really look at assets, safeguards, controls, human, physical, and financial resource management, and ensure that operations are carried out efficiently. That’s not addressed in the table of the annual reports. That’s really what I’m getting down to. That type of work needs to be done on a regular basis, as cited by the Auditor General of Canada that she does do. I should say the former Auditor General of Canada. Can the Premier cite any occasion that he’s aware of where the Business Development Corporation, the NWT Power Corporation, or the Business Development Corporation have had performance audits of this nature that I have been referring to?

One of the things we’ve done in the life of this government is looking at how departments have been performing with budgets, and look at the growing demand for more resources, and have an internal look at it that way as we do the work around refocusing our government. The additional work of these types of audits has been done in the past on a number of our corporations. That is as the Auditor General of Canada’s office makes that request, we co-operate and they do that review. The other way is Members of this Assembly can call on that and we wait for a response from the Auditor General. That is one of the methods that we do use, and a number of our corporations have been called into this review process.

I appreciate the answer from the Premier. As the former Auditor General has clearly stated, they do not have the mandate to perform these performance audits on territorial corporations unless, of course, the House passes a direct motion that issues that request. At the same time, the former Auditor General has put into writing that they would be more than willing to do those types of audits if granted the authority to do that. In essence, if the FAA is up for debate and review, this would be a good opportunity to invoke that offer. As well, all Members know that there is little or no cost to the territorial government if the Auditor General of Canada actually does them. That’s the question I’m really asking the Premier, is would he encourage the Minister of Finance to look at this particular issue, seize the opportunity before us, whereas we can have the Auditor General ensure our corporations are running as efficiently as possible by doing regular performance audits.

That’s one of the wonderful things about our consensus style of government: Members are fully aware of the work that’s going on. The Minister updates the committee and he would be able to inform them as to what level of work is going on, and the future Assembly could also make recommendations as this work will have to continue on into the 17th Assembly.

Speaker: MR. SPEAKER

Thank you, Mr. Roland. Final supplementary, Mr. Hawkins.

Thank you, Mr. Speaker. I gave the Premier credit for the first three answers but certainly not the last one, because I’m still working and I think this Assembly should still be working on these particular issues. That’s why I’m thinking it’s quite important, if not critical, that we continue to work on these issues going forward, because we still have a mandate. Although technically it may end shortly, it’s still active. That’s why I’m asking for this.

Would the Premier inquire with the Finance Minister at the appropriate time to see if they could incorporate this opportunity again while the FAA is being reviewed? There is no better time to take these types of issues for consideration. We will let it be weighed, measured, and treated accordingly, if it’s seen to fit the business of the government going forward.

As I tried to respond to the Member earlier about the fact that the Minister brings that work, the review to committee for their input as to how that work is going, and their response and advice to our Ministers helps us guide in that work.

As we’re having this discussion here in this Assembly, I’m sure he will be able to pick up on it. I will speak to him on the work that is ongoing. Clearly, that work will not be completed in the life of this government and that’s why I say as that work continues and the 17th Assembly will have to make final discussions and give final direction as to the depth of that work that’s ongoing within the Financial Administration Act work.

Speaker: MR. SPEAKER

Thank you, Mr. Roland. The time for question period has expired. Before going to the next item on the orders of the day, I’d like to acknowledge the presence of Chief Clifford Daniels, who has joined us in the House.

Item 8, written questions. Item 9, returns to written questions. Item 10, replies to opening address. Item 11, petitions. Item 12, reports of standing and special committees. The honourable Member for Kam Lake, Mr. Ramsay.