Thank you, Mr. McLeod. Mr. Bell.

That's correct, Mr. Chairman.

Thank you, Mr. Bell. Next on the list, Mr. Villeneuve.

Thank you, Mr. Chairman. Just a quick question on the Canol Heritage Trail, the $1.8 million that's slated over the next two years. With $810,000 last year or prior year's total, if my memory serves me right, this government has been throwing money into that trail there for the past number of years, anyway, and I don't know if it's going to be a trail anymore. It's going to be an all-season road pretty soon. Paved. I'm just wondering, what kind of upgrades are we doing to that trail that requires $2 million over the next three years in that project? Thank you.

Mahsi, Mr. Villeneuve. Mr. Bell.

Mr. Chairman, this project is a concern for us and because I would say that we've had pretty significant budgeted amounts of money in the past and really haven't managed to put together much in the way of a plan on the ground to see the spending take place. We've been challenged to deliver on this. I've met with the deputy minister and spoken to the regional staff about this as a priority, asked them to pull together the working group members who were involved in laying out the plan and move forward to quickly deliver on some of these initiatives there. We think this can be a world-class park, and we really haven't done much and I think we need to make this a priority and start moving forward with

it. So I know we've seen big budgets in the past, but we have not been spending that money, for the most part. Thank you.

Thank you, Mr. Bell. Anything further, Mr. Villeneuve?

Yes, thank you, Mr. Chairman. I just got a motion here, Mr. Chairman. I move that this committee recommends that the government record Taltson hydro project expenditures in the capital plan to show the amount of money being spent on this project. The committee further recommends that before spending any more money on this project, the responsible department will present the business case for this project, including guaranteed customers and total project costs, and confirm the Minister responsible for this project.

Thank you, Mr. Villeneuve. The motion is on the floor. The motion is in order. To the motion.

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

---Applause

Thank you, Mr. Villeneuve.

We are on page 9-8, 9-9, 9-10 and 9-11, economic development, total tangible capital assets, $2.233 million, total activity, $2.233 million, total department, $2.783 million.

Thank you. Does committee agree that the Department of ITI's main estimates are concluded?

Thank you, committee. I'd like to thank you, Mr. Bell, Ms. Magrum and Mr. Vician, for being with us this afternoon. Thank you.

Thank you, committee. What we'll do at this time is we'll take a short recess and come back here at about 6:00 with FMBS. Thank you.

---SHORT RECESS

Good evening, Members. We will start Committee of the Whole again. We are going to start on FMBS. At this time, I would like to ask the Minister of FMBS to provide opening comments. Thank you.

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:

1. a $342,000 increase for the 2006-2007 revisions associated with the Collective Agreement with the Union of Northern Workers;
2. a $223,000 increase associated with the addition of two financial reporting accountant positions, and one collections officer position;
3. a $56,000 increase associated with increases to Workers' Compensation Board premiums; and
4. 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:

1. 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;
2. 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,
3. 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.

Thank you, Mr. Roland. At this time, I would like to call on Mr. Hawkins.

Members of the Accountability and Oversight committee had an opportunity to meet with the Minister responsible for the Financial Management Board on September 28, 2005, to review the draft business plan for the secretariat.

Members also received a briefing from the Minister of Finance on January 17, 2006, outlining the changes to the budget for FMBS since the committee reviewed the draft business plan in September.

Committee members made note that the secretariat is proposing to spend $18.283 million in operations expense in fiscal year 2006-2007, and $500,000 on capital projects in fiscal year 2006-2007.

Members also note that FMBS has undergone a significant organizational change, with the creation of a stand-alone human resource department.

Committee members offer the following comments on issues arising out of the review of the 2006-2007 Draft Main Estimates and budget-planning cycle.

Contract Registry

During the review of FMBS's draft business plan, the committee had the opportunity to raise the possibility of moving the contract registry from the Department of Industry, Tourism and Investment to the Financial Management Board Secretariat.

The committee notes a number of reasons to support transferring the contract registry program. First, some Members note that the secretariat's establishment policy clearly states, "the chairman of the Financial Management Board shall have charge of and be responsible for developing financial and contract policies, systems and procedures required in support of government operations." The committee further remarked that the secretariat's 2006-2009 draft business plan notes that expenditure and procurement management is being considered for delivery through the 'service centre' concept. Finally, the committee points to a recent report on best practices for public procurement that recommends FMBS would be the better suited to oversee the contract registry.

Recommendation

The Standing Committee on Accountability and Oversight recommends that the Financial Management Board Secretariat work with Industry, Tourism and Investment to consider the option of moving the contract registry from ITI to FMBS and report back to the committee on the pros and cons of this move during the next business planning cycle.

Thank you very much, Mr. Chairman. That's all I have to report.

Thank you, Mr. Hawkins. At this time, I would like to ask the Minister if he would like to bring in any witnesses.

Yes, Mr. Chairman.

Does committee agree?

Can the Sergeant-at-Arms please bring in the witnesses for the Minister? Thank you.

Mr. Minister, can you please introduce your witnesses, please?