Back to page 211, Executive Offices, program summary, operations and maintenance, $8.168 million. Agreed?

Total expenditures, $8.168 million. Agreed?

That is the end of the Executive Offices so I would like to thank the Premier and his department colleagues. Thank you. Does the committee agree that we proceed with FMBS, the Financial Management Board? Agreed?

Mr. Dent, you have a statement, opening remarks.

Thank you, Mr. Chairman. Yes, I have some opening comments. Mr. Chairman, I am pleased to have the opportunity to review with you the Financial Management Board Secretariat's 1999-2000 Main Estimates.

The Financial Management Board Secretariat is a central agency of the government. It is responsible for providing advice to the Financial Management Board on the efficient, effective, and economic use of the government's financial, human and information technology resources. The Financial Management Board Secretariat provides this advice and service through five core business units:

- the directorate;

- labour relations and compensation services

- government accounting;

- audit bureau; and

- budgeting and evaluation

In reviewing the Estimates, Members will note the resource reductions from 1998-1999 to 1999-2000. These reflect the funding requirements of the Financial Management Board Secretariat to provide its programs and services to a reduced jurisdiction and a smaller government workforce. However, division of the Northwest Territories has not changed the Financial Management Board Secretariat's responsibility to provide the same core business functions it did prior to the creation of Nunavut. These core business functions include:

1. Providing advice and assistance related to compensation, job evaluation, benefits and maintaining the payroll and human resource information systems.

2. Providing external financial reporting for the GNWT, developing corporate accounting proceduresand policies, paying power subsidies and maintaining the government's accounting system.

3. Providing an internal audit service.

4. Coordinating the government business planning and budgeting process and providing advisory services and assistance in the areas of budget management, program and evaluation and performance measurement.

5. Coordinating the government-wide informatics planning initiative.

6. Providing support for the community empowerment, self-government and claims implementation initiatives.

7. Managing the disposal of the remaining staff housing units.

In addition to its core business responsibilities, the Financial Management Board Secretariat continues to aggressively implement a number of key government-wide initiatives, including:

1. Public/private partnerships.

2. The development and implementation of a new People Soft payroll and human resource management system.

3. The implementation of a framework for the division of the GNWT's assets and liabilities as at March 31, 1999.

4. The geographic reporting of expenditures at the western community level.

The Financial Management Board Secretariat has also developed an Internet web page that provides the public with regular updates on the status of these and other initiatives.

That concludes my opening remarks, Mr. Chairman. I am open to questions.

Thank you, Mr. Minister. Are there any comments from the committee? Mr. Ootes.

Thank you, Mr. Chairman. I would like to present the committee's report on the Financial Management Board Secretariat and the review of the 1999-2002 business plans. General comments first.

The Financial Management Board Secretariat and the Chairman of the Financial Management Board have the mandate for managing and controlling the financial, human and information resources of the government, and for providing information to the FMB and ensuring that the government's financial, human and information resources are managed in an effective, efficient and economical manner.

The Standing Committee on Resource Management and Infrastructure reviewed the FMBS business plan on November 20, 1998, and the draft 1999-2000 Main Estimates presented by FMBS on March 24, 1999. The Committee noted a $71,000 or 0.38 percent decrease in total operations and maintenance expenditures. Projected decreases in operations and maintenance for the Directorate, Labour Relations & Compensation and Budgeting and Evaluation, were partly offset by minor increases in Government Accounting and the Audit Bureau. Operations and maintenance revenues are projected to increase $63,000 or 1.46 percent.

Throughout the committee's reviews, Members were primarily concerned with the incorporation of full cost recovery and a cost-plus factor in all service contracts with Nunavut, existing staff housing and potential spinoffs from Aurora Fund loan disbursements. Accountability and the efficient use of resources are an ongoing concern. As a result, the Aurora Fund issue remains at the forefront of committee concerns.

Aurora Funds. During the reviews of the business plans and draft Main Estimates, the committee expressed its concern regarding the effectiveness of the Aurora immigrant investor funds in delivering direct economic benefits to the northern economy. Committee Members were also concerned that funding based on a balanced and an equitable approach must be directed towards all corporations alike.

The committee reiterates its request made during the business plan review for employment statistics that specifically identify jobs created as the direct result of capital transfers made to territorial companies from the Aurora Funds, and for the final list of Aurora Fund clients and respective loan amounts.

A similar information item was provided by FMBS to the committee for the preliminary set of monies disbursed by the Aurora Fund, and these requests were agreed to by the Minister during review of both business plans and Main Estimates.

Service Fees to Nunavut Government. The Nunavut government has contracted and is anticipated to contract additional services from the future NWT government in the short to medium term. The current rate or >cost-plus' factor charged by the government to the federal government for a service performed is 6.5 percent.

During the business plan review, the committee recommended the incorporation of a >cost-plus' factor (or a service fee) in all service agreements with the Nunavut Government. This would be in addition to full recovery costs of services and programs delivered. The committee requested a copy of the government-wide template for service and program delivery agreement for work done on behalf of the Nunavut government. Committee Members were pleased to find that the template incorporated full recovery costs and a cost-plus factor as per the committee's recommendation.

Pay Equity. Committee Members continue to be concerned about the progress of the pay equity issue. Pay equity represents an unknown risk that may significantly affect the overall fiscal outlook for the Government of the Northwest Territories.

Informatics. Committee Members are concerned about year 2000 compliance for government-wide systems, and especially those systems that manage and operate essential services such as power and fire suppression. Further, committee Members pointed out that it may be incumbent upon the GNWT to ensure municipalities are Year 2000 compliant. Many municipalities may not have the qualified staff or resources to ensure timely compliance.

The department assured the committee that a government-wide review has been undertaken to ensure the government's computer systems are Year 2000 compliant.

Mr. Chairman, I would like to turn the report over to my colleague, Mr. Rabesca, to complete the report on the Financial Management Board Secretariat.

Thank you Mr. Ootes. Mr. Rabesca.

Thank you, Mr. Rabesca. Does the Minister want to call witnesses? Mr. Dent.

Thank you, Mr. Chairman. Yes please.

Does the committee agree?

Can the Sergeant-at-Arms escort the witnesses in? Would the Minister introduce the witnesses?

Thank you, Mr. Chairman. On my right I have the Secretary of the Financial Management Board, Mr. Lew Voytilla.

Thank you, Mr. Minister. Welcome, Mr. Voytilla. General comments, Mr. Erasmus.

Thank you, Mr. Erasmus. Mr. Minister.

Thank you, Mr. Chairman. Let me break the response to the question into two parts. First of all, in terms of nurses' housing, typically nurses' accommodations are dedicated units in a community and there has not really been a problem to date with accommodating nurses. On the teachers' side, the Secretariat works with the Divisional Education Council if a problem is identified in a community. On an overall basis we have taken a number of different approaches in some of the smallest communities where there is, typically, one housing unit that is occupied by the teacher. In five such communities, we have turned the housing unit over to the Divisional Education Council along with operations and maintenance funding so that the Education Council themselves can administer the housing that is available. We have embarked on discussions with communities, to further devolve directly to them. With this devolution, we will include operations and maintenance funding so that communities will be able to set the rents outside of operations and maintenance funding and, perhaps, make some money on the housing while keeping rents at an attractive level. The bottom line, Mr. Chairman, is that as a Divisional Education Council identifies a particular problem, the Secretariat works with that council to try to deal with the situation on a one-on-one basis.

Thank you, Mr. Minister. Mr. Erasmus.