Mr. Chairman, the second area that the committee had concerns about was the overexpenditures. of departmental budgets. Two departments overexpanded their budgets: The Department of Personnel overexpended its budget by $4,234,999, and the Legislative Assembly overexpanded its budget by $436,900. In both cases, Mr. Chairman, the departments were unable to accurately forecast their actual requirements. This has been an ongoing problem for a number of years. A number of departments seem unable to accurately forecast how much money they are going to need to meet their obligations. At the end of the fiscal year, they ended up covering unpaid liabilities, money the government owes; and unrecovered revenues, money that the government is owed. Government must improve its ability to forecast what
its actual costs are going to be.
Motion To Accept Recommendation 2, Carried
Therefore, the committee makes their second recommendation. I move that government must develop and put in place procedures that will allow It to accurately predict the amount of money it is going to need in a given year. These procedures must allow It to forecast unpaid liabilities and unrecovered revenues, and these procedures must allow It to predict its financial requirements, not only at year end but on an ongoing basis throughout the year.