Thank you, Mr. Speaker.

Mr. Speaker, the Standing Committee on Government Operations is pleased to present its report on the review of the 2017-2018 Public Accounts of the Government of the Northwest Territories, which took place in Yellowknife, Northwest Territories, from April 10 to 11, 2019.

Members of the standing committee would like to take the opportunity to thank Assistant Auditor General Mr. Terry DeJong, Mr. David Irving, principal, and Ms. Michelle Smith, director, from the Office of the Auditor General (OAG), who travelled from Ottawa and Edmonton to assist the standing committee with its review. The committee wishes to acknowledge the constant support of the OAG's staff, without whose able assistance, these reviews would not be possible.

The standing committee also wishes to thank Mr. Jamie Koe, Comptroller General, and officials from his office in the Department of Finance for their appearance before the committee. The committee takes this opportunity to commend the Comptroller General for his work over the course of the 18^th Legislative Assembly and wish him well in his future endeavours.

Summary of Committee Findings

One: Significance of a Clean Audit Opinion

The committee notes that the consolidated 2017-2018 Public Accounts of the Government of the Northwest Territories received a clean audit opinion from the Auditor General and commends the Government of the Northwest Territories for this achievement.

Two: Timeliness of the Public Accounts

Both the interim and consolidated 2017-2018 Public Accounts were completed in time to meet applicable statutory deadlines. In this final review of the public accounts for the 18^th Legislative Assembly, the standing committee would like to acknowledge the continued improvements made by the Government of the Northwest Territories, its boards, and other entities in the timely completion of the public accounts, under the leadership of the Department of Finance. The committee appreciates the commitment of Cabinet Ministers and the dedication of the public service that has resulted in this progress and commends the government for this achievement.

Three: Accountability and Transparency

The committee acknowledges the good work that has been done by the Department of Finance to improve its public financial reporting, including the production of An Overview of the Public Accounts and annual financial highlights. The committee encourages the GNWT to continue to strive to improve its public financial reporting. Accordingly, committee makes the following recommendations:

Recommendation 1

The Standing Committee on Government Operations recommends that the Department of Finance annually table a consolidated budget that shows anticipated revenues and expenditures for the larger government reporting entity, consistent with the information that will be reported at fiscal year-end in Section I of the Public Accounts: Consolidated Financial Statements.

Recommendation 2

The Standing Committee on Government Operations recommends that the Department of Finance undertake an analysis of best practices for public governments with respect to public financial reporting and table its findings in the 19^th Legislative Assembly prior to the review of the 2018-2019 Public Accounts. The committee further recommends that this report identify how the findings will inform any future changes to be made by the GNWT with respect to its public financial reporting.

Four: Public-Private Partnerships

Committee acknowledges the improvements that have been made in how public-private partnership projects are reported in the public accounts but believes there is room for further improvement. While awaiting the completion of national accounting standards for P3 projects, the committee encourages the Department of Finance to continue to work with the Office of the Auditor General to improve its financial reporting for P3 projects.

Five: Environmental Liabilities

The committee was advised that the Department of Finance is looking at ways to make its inventory of contaminated sites available online. The committee recommended last year that the department model its site on the Treasury Board of Canada's Federal Contaminated Sites Inventory. The committee makes the following recommendations as the committee's work proceeds:

Recommendation 3

The Standing Committee on Government Operations recommends that the Department of Finance provide the standing committee with the opportunity to review and provide comment on the platform and content used for the public disclosure of contaminated sites prior to the finalization of this work.

Six: Fiscal Responsibility Policy 15.03

The committee thanks the Department of Finance for its positive response to last year's recommendation requesting additional information indicating where, in the public accounts, the figures can be found that are used to report on the Fiscal Responsibility Policy. This information is important to the committee because it enables an interested reader to independently verify the government's calculations.

Seven: Borrowing and the "Debt Wall"

While the available borrowing capacity at the end of 2018 was greater than anticipated in the borrowing plan, the overall trend shows a decline, from $536.3 million in 2016 to $395.9 million in 2018. Continued fiscal vigilance, designed to ensure that the GNWT does not hit the debt wall, is likely to feature prominently in the Finance Minister's fiscal strategy during the upcoming 19^th Legislative Assembly.

Eight: Protection of Privacy and Disclosure of Information

The committee appreciates the steps taken by the Department of Finance to report Student Loan Remissions on a separate schedule in the Public Accounts from Bad Debt Write-offs and Forgiveness. The committee regrets that further agreement could not be reached to protect the personal information of students receiving student loan remissions. Further legislative amendments may be needed to resolve this outstanding matter.

In conclusion, the committee proposes Recommendation 4:

The Standing Committee on Government Operations recommends that the Government of the Northwest Territories provide a response to this report within 120 days.

The committee looks forward to this response. This concludes the Report of the Standing Committee on the Review of the 2017-2018 Public Accounts of the Government of the Northwest Territories.

Mr. Speaker, I move, seconded by the honourable Member for Tu Nedhe-Wiilideh that Committee Report 19-18(3) be deemed read and printed in Hansard in its entirety.

Thank you, Mr. Speaker.