Thank you, Mr. Chairman. I am pleased to present the Financial Management Board Secretariat's main estimates or the fiscal year 2006-2007. Members will note for the 2006-2007 fiscal year, FMBS no longer contains human resource functions and that prior year funding has been appropriately adjusted to reflect this transfer. The functions of budget and evaluation, government accounting and internal audit remain in the secretariat, along with the office of the chief information officer.
The secretariat's 2006-2007 main estimates propose O and M expenditure levels of $18.283 million. This is a net increase of $387,000, or 2.2 percent, from the 2005-2006 restated main estimates of $17.896 million. The Territorial Power Support Program makes up $8.307 million or 45 percent of the total 2006-2007 budget for FMBS.
The increases to the secretariat's budget are related to the following developments:
- a $342,000 increase for the 2006-2007 revisions associated with the Collective Agreement with the Union of Northern Workers;
- a $223,000 increase associated with the addition of two financial reporting accountant positions, and one collections officer position;
- a $56,000 increase associated with increases to Workers' Compensation Board premiums; and
- a $14,000 increase in chargeback costs associated with the digital communications network.
The decreases to the secretariat's budget are primarily related to the following developments:
- a $404,000 reduction related to the elimination of the three FMBS regional superintendent positions, which were no longer required with the separation of the finance and human resource functions in the regions;
- a $14,000 reduction related to the grant-in-kind recorded for the foregone interest on the debt due from Deton' Cho Diamonds Inc.; and,
- a $78,000 reduction to amortization expenses associated with the existing financial information system.
The secretariat's proposed infrastructure acquisition plan includes an allocation of $500,000 in the 2006-2007 fiscal year for the completion of the systems selection phase of the government financial information system replacement project. This work was deferred in 2005-2006 pending an assessment of the GNWT's comptrollership capacity and the organizational and operational means by which financial transactions are processed.
For the 2006-2007 fiscal year, FMBS' main estimates include a total of 78 positions; 68 in headquarters and 10 in the regions. This is a net increase over the previous fiscal year of two positions, which is comprised of an increase of five positions, two consolidation accountants, two information systems analysts and one collections officer, that is partially offset by the reduction of the three regional superintendent positions.
Some of the initiatives the secretariat will be undertaking in 2006-2007 include:
- • continuing with implementation of the Knowledge Management System Strategy as it relates to
- • security, networks, enterprise architecture, software licensing and electronic records;
- • developing a strategy to quantify environmental liabilities;
- • continuing the project to reform the Financial Administration Act;
- • developing an approach and procedures to consolidate the financial statements of boards and agencies with those of the government in accordance with the new Public Sector Accounting Board's definition of reporting entity; and
- • undertaking the systems selection stage of the financial information system replacement project.
That concludes my opening remarks. I would be pleased to answer any questions Members may have. Thank you.