This is page numbers 1089 - 1124 of the Hansard for the 14th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was chairman.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1122

Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Chairman. Mr. Chairman it has been indicated clearly that the problem in coming to a determination on the financial situations of the various boards has been the information and where it is right or wrong. So my question to the Minister is where does the information breakdown occur? Are the boards saying that these are apples and you are saying that these are oranges? Is the board saying that these are tomatoes and you are saying these are tomatoes?

It seems to me that after a year, you would have all the systems in place and the FAA and all these other myriad of procedures, protocols and regulations that you would be able to sort through the money for the various health boards. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you, Mr. Miltenberger. Madam Minister.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Chairman. Mr. Chairman, the reliability and the availability of information from the boards is the circumstances which contribute towards is probably as varying as the boards themselves. We are attempting to get a handle on this.

If we were expected to manage the expenditure of funds from the boards, the money that we devolve to them in such a way as to know the level of detail of every transaction, that would be really costly and really duplicating the function which the boards are responsible for at this time. I do not think that is the intent of anyone.

As to where the information actually breaks down, I will again ask Mr. St. Germaine if he could shed some light on that. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you. Mr. St. Germaine.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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St. Germaine

Thank you, Mr. Chairman. As the Minister mentions, the issues vary, but the breakdown of the information is not necessarily in the financial reporting, but is in the explanation and understanding of how the numbers arose in terms of what program activities or what cost drivers effected the negative variances. So the negative variances are fairly clearly defined, is the question I am getting a clear understanding that is supportable as to why they occurred. That is usually where the communication breakdown, if you will, for the information occurs. Thank you, Mr. Chairman.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you, Mr. Miltenberger.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Chairman. This once again speaks to the processes, the accountability, the monitoring, and evaluation systems that are in place between the department and health boards.

Is there is a standard financial accounting format, budget process that is in place for all the boards? Are there quarterly variance reports done as is the standard in most parts of government? And if those variances are not up to speed or if there is questions are they not checked? Is there not a common vocabulary or a common understanding of the definitions and terms of what constitutes acceptable expenses?

Mr. Chairman, these are fairly basic questions but it speaks to the issue before us with the budgets. That there seems to be some very basic flaws in the processing systems to the extent that the department cannot with any certainty come forward and tell us what the expenses of the boards are. After a year of trying, we are going to end the fiscal year still with no clarity on the issue of deficits. What is going to be done starting April 1st so that we are just not propagating this problem, but rectifying these accountabilities, processes and structures that may be missing? Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you, Mr. Miltenberger. Madam Minister.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Chairman. Mr. Chairman, we do have projected deficits for all the boards. The difficulty is in substantiating what has contributed to those operating deficits. Yes, there is a standard common financial reporting system. Yes, there are quarterly variance reports that are received.

The difficulty is in identifying what contributed to the discrepancies. I will again ask Mr. St. Germaine if he could elaborate on that. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you. Mr. St. Germaine.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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St. Germaine

Thank you, Mr. Chairman. There is a standard budgeting format and budgeting process. There is also a standard set of financial statements that the boards provide, as well as quarterly variance reports as the Minister mentioned. So there are standardized reporting formats. There is also a standardized chart of accounts, which a chart of accounts basically defines what transactions, how they are recorded, accumulated and rolled up.

So the accounting systems and structures are in place. The issue really evolves around getting a clear understanding for what transactions occurred, what contributed to variances in terms of program delivery details, what were the contributing factors as opposed to the nature of the transactions or the accuracy of the information that is reported to us. It is the underlying business situation that result in the deficits that becomes the problem. Thank you, Mr. Chairman.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you, Mr. Miltenberger.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Michael Miltenberger

Michael Miltenberger Thebacha

Thank you, Mr. Chairman. Mr. Chairman, that is a very interesting comment. It appears the information is provided, but the department does not accept it on face value and is trying to possibly understand what underlying issues are there, or is it in fact correct information. Is that what I understand the answer to be?

If that is the case, it speaks to a pretty fundamental problem in terms of trust. If in fact you are not confident you are getting accurate information and you have to go in and do all of the extra work yourself, the issue of the relationship between the department and the boards comes back up. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you, Mr. Miltenberger. Madam Minister.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Chairman. Mr. Chairman, the issue is not so much about trust as it appears to be. Again, these are the kinds of questions that will be answered when our esteemed Mr. Cuff comes forward with the results of his investigations. It seems to be more around the capacity of boards to be able to provide this kind of financial information. A lot of the financial management functions are very complex. Sometimes there are issues of staff turnover. When financial records begin to deteriorate, it becomes a really major exercise to try and go back and find out where there might have been a change in the expenditures and really look into those things.

In my estimation, it is not as big an issue of trust as it is of capacity. Thank you.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair Leon Lafferty

Thank you, Madam Minister. We will recognize the clock and report progress. I would like to thank the Minister and her staff and all of the Members.

Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Speaker

The Speaker Tony Whitford

The House will come back to order. Item 21, report of the committee of the whole. The honourable Member for North Slave, Mr. Lafferty.

Item 21: Report Of The Committee Of The Whole
Item 21: Report Of The Committee Of The Whole

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Leon Lafferty North Slave

Thank you, Mr. Speaker. Mr. Speaker, your committee has been considering Bill 19, Appropriation Act, 2001-2002 and would like to report progress. Mr. Speaker, I move the report of the committee of the whole be concurred with.

Item 21: Report Of The Committee Of The Whole
Item 21: Report Of The Committee Of The Whole

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The Speaker

The Speaker Tony Whitford

Thank you, Mr. Lafferty. Do we have a seconder for the motion? The Chair recognizes the honourable Member for Range Lake, Ms. Lee, who seconds the motion. The motion is in order. All those in favour? All those opposed? The motion is carried. Item 22, third reading of bills. Item 23, orders of the day. Mr. Clerk.

Item 23: Orders Of The Day
Item 23: Orders Of The Day

Page 1123

Clerk Of The House Mr. David Hamilton

Mr. Speaker, meetings for tomorrow at 9:00 a.m. for the Standing Committee on Accountability and Oversight, and at 10:30 a.m. for the Standing Committee on Social Programs and also for the Standing Committee on Governance and Economic Development.

Orders of the day for Wednesday, February 21, 2001:

  1. Prayer
  2. Ministers' Statements
  3. Members' Statements
  4. Returns to Oral Questions
  5. Recognition of Visitors in the Gallery
  6. Oral Questions
  7. Written Questions
  8. Returns to Written Questions
  9. Replies to Opening Address
  10. Replies to Budget Address (5th of 7 allotted days)
  11. Petitions
  12. Reports of Standing and Special Committees
  13. Reports of Committees on the Review of Bills
  14. Tabling of Documents
  15. Notices of Motion
  16. Notices of Motions for First Reading of Bills
  17. Motions
  18. First Reading of Bills
  19. Second Reading of Bills
  20. Consideration in Committee of the Whole of Bills and Other Matters
  21. - Bill 19, Appropriation Act, 2001-2002

    - Committee Report 5-14(3), Standing Committee on Accountability and Oversight Report on the 2001-2002 Main Estimates

    - Committee Report 6-14(3), Standing Committee on Governance and Economic Development Report on the 2001-2002 Main Estimates

    - Committee Report 7-14(3), Standing Committee on Social Programs Report on the 2001-2002 Main Estimates

  22. Report of Committee of the Whole
  23. Third Reading of Bills
  24. Orders of the Day

Item 23: Orders Of The Day
Item 23: Orders Of The Day

Page 1124

The Speaker

The Speaker Tony Whitford

Thank you, Mr. Clerk. Accordingly, the House stands adjourned until Wednesday, February 21st at 1:30 p.m.

-- ADJOURNMENT

The House adjourned at 6:15 p.m.