Thank you, Mr. Speaker. Mr. Speaker, earlier this year, the Auditor General for Canada, Mr. Denis Desautels, forwarded his Report of the Auditor General to the Legislative Assembly for the year ended March 31, 1994 to the Speaker, the Honourable Sam Gargan. This document, along with the Public Accounts 1993-94, Volumes I and II, became the focal point of two days of public hearings in early May 1995, and one day of follow-up work at the end of the month.
The Auditor General's report is divided into seven chapters: chapter 1, matters of special importance and interest; chapter 2, financial statement issues; chapter 3, compliance with authority issues; chapter 4, audit observations; chapter 5, student financial assistance; chapter 6, municipal loans; and finally, chapter 7, hidden subsidies.
The Process
The Report of the Auditor General to the Legislative Assembly for the year ended March 31, 1994 was tabled in the Legislative Assembly on April 6, 1995. The report was subsequently referred to the Standing Committee on Public Accounts for review.
The committee would like to thank the officials of the Office of the Auditor General of Canada and all of the Government of the Northwest Territories departments for their attendance and responsiveness at the public hearings in May. The cooperation of the deputy ministers and their staff was very much appreciated and contributed to a constructive and useful review process. The witnesses and the date they appeared before the committee are listed in appendix I.
This report of the Standing Committee on Public Accounts on the Report of the Auditor General to the Legislative Assembly for the year ended March 31, 1994 is presented by issue, in consideration of the fact that, in some instances, more than one department has responsibilities in an area noted in the report.
Issues And Concerns
During the public hearings in May 1995, the committee discussed various issues raised by the Auditor General with senior departmental officials. At these public hearings, the committee requested additional information to clarify points of interest and address their concerns. At the end of May, the committee reviewed the proceedings, discussed the issues further and completed the preparation of this report. This section of the report summarizes the issues and concerns raised and presents the committee's comments and recommendations.
Follow-Up On Previous Year's Recommendations
Forensic Audit Capabilities
In last year's report to the Legislative Assembly, the committee recommended that the government engage the services of a forensic auditor to address the increasing number of attempts to defraud the government, principally by employees.
The Comptroller General indicated that the personnel in the Audit Bureau have been trained in procedures and processes used in forensic auditing on a scale in keeping with the nature of frauds most commonly encountered. He felt that their qualifications are sufficient to address the needs of the Government of the Northwest Territories. He also mentioned that, should the need arise, forensic specialists can be contracted.
The committee was satisfied that the Comptroller General's Office was providing adequate audit services in this area with the resources available. The committee may wish to look at this issue again in the future to ensure the necessary level of expertise.
Listing Of Payments To Suppliers
Another recommendation from last year was specifically to the Department of Public Works and Services to provide a listing of payments over $5,000 made to suppliers and contractors as a control and accountability measure. The listing, provided to the committee on a quarterly basis, could then be tabled in the Legislative Assembly.
The Comptroller General indicated that the program to deliver this listing has been developed and tested and departments will now be asked to verify results. The first listing should be made available to the committee in June 1995. The Standing Committee on Public Accounts of the 13th Assembly will undoubtedly look forward to receiving these listings on a quarterly basis. They will provide a valuable mechanism toward achieving accountability and fiscal responsibility.
Mr. Speaker, I will now ask my colleague and deputy chairman of the committee, Mr. Ningark, to continue with the report. Thank you.