Thank you, Mr. Speaker. This bill proposes a minor amendment to the Education Act to provide for better financial management in the school system. The amendment would provide a consistent fiscal year starting July 1 and ending June 30 for all education boards.
In the 1990 report to the Legislative Assembly, the Auditor General observed that education boards do not know the amount of their government contributions at the beginning of their current fiscal year. This is because the fiscal year of most divisional boards and the board of secondary education is not the same as the beginning of the Government of the NWT fiscal year, April 1. The Auditor General noted that education boards require this information further in advance of their fiscal year to manage well. A change to the fiscal year starting July 1 would facilitate this. Boards and the NWT Association of School Business Officials also requested that the change be made.
The Department of Education submitted a proposal for this amendment to the Financial Management Board. The board directed the department to prepare an amendment to the Education Act, identifying a fiscal year starting July 1 and ending June 30 in the act for boards and divisional boards of education, and changing the fiscal year identified in the act for the board of secondary education from the year of April 1 to March 31, also, to the proposed year of July I to June 30.
Mr. Chairman, there are many advantages to the proposed change in the fiscal year for education boards, such as increased efficiency and consistency in the preparation of education board budgets and financial statements. The annual programming, staffing, purchasing and other education board planning would coincide with the board's fiscal and budget year. There would be more lead time for the department to provide information to boards.
In summary, Mr. Chairman, the proposed amendment to the Education Act will provide for better financial management in the school system. In addition, procedures are in place to ensure that the education boards will provide sufficient information to the Government of the NWT, according to the reporting requirements of the Financial Administration Act. If the proposed amendment is approved, it will be effective for all boards as of July 1, 1992. Thank you, Mr. Chairman.