Thank you, Mr. Speaker. Your Standing Committee on Government Operations is pleased to provide its Report on the Review of Bill 37: Financial Administration Act, and it commends it to the House.
Introduction
The Standing Committee on Government Operations (“the standing committee”) is pleased to report on its review of Bill 37, Financial Administration Act (FAA).
Bill 37, sponsored by the Department of Finance, is intended to provide a legislative framework for the effective and efficient stewardship of government resources. It also sets out reporting requirements designed to ensure government accountability and transparency in the management and use of those resources.
Bill 37 received second reading in the Legislative Assembly of the Northwest Territories and was referred to the Standing Committee on Government Operations on November 4, 2014. From the date of second reading, the Rules of the Legislative Assembly allow 120 calendar days for the standing committee to complete its review. Given the complexity of the bill, the standing committee requested an extension of the 120-day review period, as permitted by the rules.
Background
The last review of the FAA took place in 1987. Since that time there have been substantial changes in the operating environment of the Government of the Northwest Territories (GNWT). These include changes in technology, public expectations for accountability and transparency, management and accounting standards, and business relationships between the GNWT, other governments and third parties. Over the years many issues and suggestions for improvement to
the GNWT’s financial management legislative framework have been identified by MLAs, the Office of the Auditor General and GNWT staff. As well, most other Canadian jurisdictions have undertaken major reviews or made significant changes to modernize their financial administration legislation.
In 2005 and 2006 the government developed a discussion paper and undertook initial consultations with senior GNWT staff and MLAs, including the Standing Committee on Accountability and Oversight. This was followed by an initial legislative proposal for a new FAA in 2011 and a revised legislative proposal in 2012. Bill 37, based on this revised legislative proposal, was developed as a consultation draft in July 2014, which was used by the Department of Finance as the basis for consultations with GNWT departments, boards and public agencies and the Office of the Auditor General.
Review Process
When reviewing a bill, a standing committee has the latitude to structure the process so that it is conducive to ensuring the most effective review, given the nature of the bill, the subject matter and the degree of public interest. Bill 37 is a fairly complex and technical piece of legislation. For this reason, the standing committee made the decision to retain a consultant to provide technical advice on certain aspects of the bill.
Consultant’s Report
The standing committee retained the services of Mr. Lew Voytilla, FCGA, to provide advice to assist the committee in its deliberations on Bill 37. Mr. Voytilla has extensive experience with GNWT financial operations, and specifically with the Financial Administration Act, having served in a number of key senior management positions over a period of 30 years, including GNWT comptroller general, deputy minister of the Financial Management Board Secretariat and secretary to the Financial Management Board. As a management consultant and chairman of the board of directors of the NWT Power Corporation, Mr. Voytilla obtained direct experience regarding the impact of the FAA on public agencies. Mr. Voytilla’s knowledge and experience proved a valuable asset to the standing committee during the review and the committee thanks Mr. Voytilla for his input. A copy of the report that Mr. Voytilla submitted to the standing committee was shared with the Department of Finance during the course of the review and is attached to this report as Appendix A.
Through you, Mr. Speaker, I’d like to turn this over to my colleague Mr. Yakeleya to continue.