Thank you, Mr. Speaker.

Deemed Appropriations

The consultant’s report (p. 12) points out what may have been a drafting error in Bill 37, with respect to Section 77. This section, as drafted, provides for the comptroller general to charge an expenditure to an appropriation, even if that results in the appropriation being exceeded. Section 77 provides that the excess shall be a deemed appropriation. As the consultant notes: “This is a very significant departure from previous provisions in this area that restricted such authority to the recording of year-end expenditure accruals, and made provision that any overage was an interim appropriation, rather than a deemed one.” The consultant goes on to question whether or not this was the government’s intent, noting that “the new section 77 is not restricted to year-end accruals but would allow the comptroller general to exceed an appropriation at any time of the year and for any purpose and such excess would be a deemed appropriation.”

The standing committee discussed the consultant’s observation with the Minister and Department of Finance and learned that the intent of the bill was not to grant the comptroller general broad authority to exceed an appropriation at any time for any reason. Accordingly, a motion was passed during the clause-by-clause review restricting the authority of the comptroller general to book an expenditure that exceeds an appropriation and record the excess as a deemed appropriation so that it only extends to year-end accruals.

Authority of the Commissioner

Section 111 is another section in Bill 37 which contains what may be considered a drafting error. In this section, Bill 37 appears to grant broad authority to the Commissioner of the Northwest Territories to “do any act and exercise any power necessary for the purpose of fulfilling the obligations and enforcing the rights of Government.”

In discussions with the Minister and Department of Finance, the standing committee learned that this authority was intended to be specific to borrowing authority granted under Section 110 of Bill 37. A motion was subsequently approved limiting the Commissioner’s authority to the borrowing referenced in Section 110 of the bill.

Reporting Requirements under Bill 37

With its focus on modern financial management practices and increased accountability, Bill 37 changes a number of reporting practices that exist under the current Financial Administration Act. During the course of the review, the standing committee asked the Minister and Department of Finance to provide details on all reports that will be required under Bill 37. The standing committee reviewed this material and added to it additional reporting requirements revealed as a result of its

own research. This list is attached to this report as Appendix C.

Mr. Speaker, I will now pass it on to my colleague Mr. Dolynny.