Yes, Mr. Chairman. Mr. Chairman, I am pleased to be before the committee today to present the Financial Management Board Secretariat's 2001-2002 main estimates.
The 2001-2002 main estimates propose expenditures of $26,961,000. This provides for total net expenditures growth from the 2000-2001 fiscal year of $1,370,000. The expenditure increases proposed for the FMB Secretariat include:
- $623,000 associated with the compensation changes resulting from the successful completion of negotiations with the Union of Northern Workers;
- $1,314,000 related to the interim financing arrangement with the federal government that provides funds for the increased costs to the Government of the Northwest Territories associated with changes to the Public Service Superannuation Act. This arrangement runs until the 2003-2004 fiscal year;
- $1,100,000 to provide for additional costs to the power subsidy program associated with fuel rate rider increases.
These increases are partially offset by funding reductions associated with the conclusion of one-time projects including tangible capital assets implementation, the external evaluation of public/private partnership pilot initiative, and collective bargaining with the Union of Northern Workers.
For 2001-2002, the FMB Secretariat's main estimates provide funding for 139 of its 146 current and term positions. This provides for a total net reduction of two positions for the 2000-2001 fiscal year. This is comprised of a reduction of three term positions in headquarters associated with projects that have been successfully completed, and is partially offset by the re-establishment of one position in the Fort Simpson area office.
The Standing Committee on Governance and Economic Development has made an observation that there has been significant growth in the FMBS funding, responsibilities and human resources over the past few years.
Since 1999-2000, the FMB Secretariat budget does show a 46 percent increase in funding and a 25 percent increase in human resources. However, only nine percent of the funding growth and five percent of the human resource growth have been ongoing base increases. These ongoing funding increases are primarily associated with the power subsidy program, amortization expense, and collective agreement revisions.
The balance of the funding increase, 37 percent, and human resource increase, 20 percent, is associated with term projects: the equal pay project, the pension reform project, self-government related activity, and the four-year federal superannuation contribution.
The standing committee is correct in observing that over the past few years, there have been many significant responsibility areas that have been assigned to the FMB Secretariat. These additional responsibility areas have been high-profile short-term projects and have been assigned to the FMB Secretariat primarily due to the significant government-wide financial impacts associated with them. All the projects have been undertaken by the FMB Secretariat without the requirement for additional funding, including:
- The division of the assets and liabilities of the Northwest Territories;
- The division of the Northwest Territories Power Corporation;
- The reporting of GNWT geographic expenditure data from an expenditure beneficiary point of view -- geographic tracking of expenditures;
- The coordination of the Non-Renewable Resource Development Strategy; and
- The review of electrical power generation, distribution, regulation and subsidization in the NWT.
Many of the strategies the FMB Secretariat is involved with are multi-year in nature. However, the FMB Secretariat has undertaken numerous initiatives that speak specifically to the Towards a Better Tomorrow strategies.
Public expectations concerning probity and accountability continue to rise with more demands for greater transparency, disclosure and rules designed to protect the public interest. Accountability expectations mean more consultations, clearer plans with specific goals and objectives and public results reporting on accomplishments. Accountability and efficiency demands also extend to how government does business with respect to such things as competitive tendering, preference policies, adherence to trade agreements, debriefing of unsuccessful bidders, public appeal processes and many more.
The FMB Secretariat has undertaken specific initiatives in this regard:
- A review of government procurement and contracting vis-à-vis best practices;
- With RWED, initiated the Business Incentive Policy review;
- The development of a code of conduct for the public service;
- Major efforts to improve government results reporting, including the development of government-wide performance measures and improvements to department performance measures; and
- Initiation of the development of a third-party accountability framework.
Public sector management is becoming more complex as governments strive to meet increasing expectations with fewer dollars. Conditions change rapidly and public sector managers must adapt while adhering to best practices. Recent trends to partnership arrangements, delegation, client focused "one-window" service access, e-commerce, and operational streamlining constantly require re-evaluation of how business is conducted and the role of the government. All of these issues are impacted by how government manages and uses information and knowledge.
The FMB Secretariat is leading the development of a knowledge management strategy. The strategy will provide direction regarding information and knowledge management and will provide a policy framework by which the Government of the Northwest Territories can structure its related activities. These are some of the major ways that the FMB Secretariat is working to meet the goals outlined in Towards a Better Tomorrow. Thank you, Mr. Chairman.