1996 Fall Report - Append VIII

Status report on recommendations of the Standing Committee on Public Accounts

We last reported on the status of the recommendations of the Standing Committee on Public Accounts (PAC) in March, 1994. From that date to the end of the twenty-second Legislature, the PAC tabled four more reports with the Legislative Assembly. The Government has acted on most of the PAC's recommendations.

This table provides a list of those recommendations from past Committees not yet fully acted on by the Government.

We have not included recommendations from the current PAC's first report to the twenty-third Legislature. PAC tabled the report in the Assembly on June 13, 1996. The Government has not had time to act on those recommendations.

DATE	RECOMMENDATION	STATUS - SEPTEMBER 1996
1987	The Committee recommended the Government prepare legislation to ensure duly audited financial statements for Crown Agencies established pursuant to The Business Corporations Act are tabled in the Legislative Assembly, providing that the competitive position of the Crown Corporation is not prejudiced.	Not implemented - The Government has not proposed legislation to the Assembly.
	First Report of PAC - 22nd Legislature
1992	The Government should consider the implementation of an annual capital budget in addition to the current annual operating budget as part of an overall review of its budgeting and accounting procedures.	Not implemented - The Government has not presented a study to the Committee for consideration. The Government has not formally indicated its intentions regarding implementing an annual capital budget as part of its overall review of budgeting procedures. The 1996-97 Estimates include a summary of the capital portion of budgetary estimates. As the Government moves towards developing a complete plan, a capital budget will be an important part of the process.
1992 (1st) 1993 (3rd) 1994 (6th)	In its reports of 1992, 1993, and 1994, PAC recommended "If the remission of natural gas royalties is to continue to be paid to NewGrade Energy Inc. (re: remissions granted to producers who supplied natural gas to NewGrade), the amount to be provided should be included in the Estimates and presented to the Legislative Assembly for its consideration.	Not implemented - We continue to report this matter in our Spring 1996 Report.
	Second Report of PAC - 22nd Legislature
1993	.08c) Monthly time reports for Ministerial assistants should be certified by Ministers and should show attendance and the Executive Government activity undertaken to support the payroll payments.	Partially implemented - We report in our Spring 1996 Report that in two departments the Minister is not signing Ministerial assistants time reports and the reports do not describe the Executive Government activities undertaken to support the payments.
1993	.12a,b) The Government should establish consistent policies for entertainment, employee recognition, advertising and donations for all organizations and the policies should be made public.	Not implemented - The government does not have consistent policies for entertainment, employee recognition, advertising and donations for all organizations.
1993	.12c) The Legislative Secretary Expense Regulations should be changed to specify conditions for assigning vehicles.	Not implemented - The Government has not changed these regulations.
	Third Report of PAC - 22nd Legislature
1993 (3rd) 1994 (6th) 1995 (7th)	In its reports of 1993, 1994, and 1995, PAC recommended: .03) The Government should study the implications and issues related to the preparation of a multi-year financial plan for the Government as a whole.	Not implemented - The Government has not presented a study to the Committee for consideration. In its response to the seventh report, the Government stated this recommendation "contains a number of issues that significantly impact Government processes, including governance and financial planning and reporting. The Government is in the process of studying these issues and assessing the implications. Until the Government has fully analysed the concerns, the basis for its current budget and its operating processes will be maintained." Our Office encourages discussion and debate on this issue. In previous Reports to the Assembly, our Office has reported on the Government's need for a complete financial plan.
1993 (3rd) 1994 (6th) 1995 (7th)	.04) As to the matter of annual financial plans showing proposed revenue-raising programs and spending programs of all government organizations, and the matter of a multi-year plan for all government organizations, this Committee recommends that the Office of the Provincial Auditor, the Crown Investments Corporation and the Department of Finance undertake discussions on this issue, and return to this Committee with a joint report. During these discussions, the Committee asks that the advice of the Institute of Chartered Accountants of Saskatchewan and the Provincial Audit Committee be sought.	Not implemented - As above.
1993 1994 (6th)	In its reports of 1993 and 1994, PAC recommended: 10) The Government should adopt the accounting principles and reporting standards established by the Public Sector Accounting and Auditing Board (PSAAB) of the Canadian Institute of Chartered Accountants (CICA) and is encouraged to move toward the use of these principles for the preparation of financial plans and budgets.	Partially implemented - The Government follows PSAAB recommendations in preparing the Summary Financial Statements that show the entire operations of the Government as required by PSAAB. However, the Government does not currently prepare a financial plan that shows the entire operations of the Government as contemplated by PSAAB.
1993	.12) With regard to strengthening the ability of legislators to hold Crown corporations accountable: Decisions to create Crown corporations should be properly reported to and debated by the Assembly; A (statement of) mandate for each Crown corporation should be prepared and provided to the Assembly, setting out the corporation's purpose and accountabilities; Crown corporations should have the same public reporting requirements as do Government departments unless otherwise stated in the mandate of the corporation; and Financial statements for each and every subsidiary within the purview of the Crown Investments Corporation of Saskatchewan should be provided to the Assembly on a timely basis.	Partially implemented - Legislation now exists for all corporations created under The Crown Corporations Act, 1993. The Act requires bodies incorporated by Crown corporations or designated subsidiary Crown corporations to table a report outlining the name and reasons for incorporation. If the corporation is not designated in regulations as a designated subsidiary corporation, or if it is incorporated under The Business Corporations Act, there is no requirement to report the creation to the Assembly nor for the Assembly to debate it. Crown corporations that table their annual reports in the Assembly do provide mandate statements setting out their purpose and accountabilities. Those corporations that do not table annual reports in the Assembly do not provide this information. The Government expects Treasury Board Crowns to follow reporting requirements similar to government departments. Other Crown corporations do not follow the same public reporting requirements as Government departments. We report in our Fall 1995 and Fall 1996 Reports, the Government did not table the financial statements of a number of CIC subsidiary corporations with the Assembly.
1993	.14) All Government corporations should table annual financial statements in the Assembly, including those where the Crown owns less than 100 per cent of the issued share capital.	Not implemented. The Government has not tabled all annual financial statements in the Assembly and has not tabled any of those where the Crown owns less than 100 per cent of the issued share capital.
1993	.15) All Government departments, agencies, and Crown corporations reporting to Treasury Board should provide a list of persons who have received money.	Partially implemented - Not all Government agencies and Crown corporations reporting to Treasury Board provide a list of persons who have received money. We report a number of organizations responsible to Treasury Board that do not provide such a list in our 1996 Fall Report.
1993	.17) The Provincial Auditor Act should be amended to require the Board of Internal Economy to approve the spending plans of the Provincial Auditor.	Not implemented - The current convention is our Office goes to the Board of Internal Economy for approval of our spending plan.
1993 1994 (6th)	In its reports of 1993 and 1994, PAC recommended: 18) (Crown) agencies should obtain proper authority for pay and expenses of directors.	Not implemented - In our 1996 Spring and 1996 Fall Reports, we continue to report that certain government organizations continue to pay board pay and expenses without proper authority.
1993	.19) Regarding Information Systems Controls: The Government should establish a policy on the timing and frequency of security audits of any service bureau in order to ensure the protection of data files and programs; Government organizations should improve their controls over the access of computer programmers to government records; and Government organizations should have adequate written and tested contingency plans.	Not implemented In 1993 the Government established a policy in the Financial Administration Manual recommending departments should ensure independent security reviews of service bureaus be conducted once every three years. There is no policy for other Government organizations. We reported in our Spring 1996 Report that controls to protect the confidentiality and integrity of systems and data need strengthening. We reported in our Spring 1996 Report that approved and tested contingency plans are needed.
1993	.28) CIC should obtain proper authority for share purchases, advances, loans, assistance and loan guarantees before undertaking such transactions.	Partially implemented - The Government has agreed with this recommendation. However, our Fall 1995 and Fall 1996 Reports indicate CIC did purchase shares without proper authority.
1993	.68) With regard to the Agricultural and Food Products Development and Marketing Council: the Council should monitor the activities of the marketing boards it controls to ensure they comply with authorities and have adequate rules and procedures to safeguard and control their assets.	Not implemented - We continue to report this concern in our Spring 1996 Report.
1993	.69) With regard to the Saskatchewan Sheep Development Board (SSDB): SSDB should document its policies and procedures to safeguard and control its assets and comply with the law; SSDB should comply with the law and have an annual general meeting of producers; SSDB should keep minutes of its annual meetings; SSDB should establish proper systems to verify registration of breeding ewes and payment of required service fees as required by law or (seek to) change the law; SSDB should assess penalties to producers who are late in paying service fees and charges as required by law or (seek to) change the law; SSDB should buy insurance for the sheep and lamb it markets as required by law or (seek to) change the law; SSDB should include its audited financial statements in its annual report.	We do not know if the Government has implemented these recommendations. As indicated on VIII - 4 in recommendation .68), the Agricultural and Food Products Development and Marketing Council has not obtained the information necessary to know if SSDB's systems are adequate to safeguard and control its assets and to ensure compliance with authorities. We reported this concern in our Spring 1996 Report. Also, our Office has not been involved with the audit of SSDB since the December 1992 year end.
	Sixth Report of PAC - 22nd Legislature
1994	.03) Your Committee recommends that the Government should move towards disclosing, in the summary financial statements, information on its infrastructure investments.	Not implemented - In its response to the sixth report the Government stated they are "currently reviewing the issue". We are informed the Government has a Task Force looking at how to disclose infrastructure investments.
1994	.12) Your Committee recommends that the interim report issued by the Government reflect the financial results of the Government as a whole, show the financial results to the interim date compared to what was planned and show the forecast to the end of the year.	Not implemented- The Government's Mid-Year Financial Report does not reflect the financial results of the Government as a whole or, show the financial results to the interim date compared to what was planned.
1994	.15) Your Committee recommends that the Government give consideration to the advisability of introducing legislation to limit the amount of public money that can be committed by the Government to a new project or program without the specific prior approval of the Legislative Assembly.	Not implemented - The Government has not presented a study to the Committee for consideration. In its response to the sixth report, the Government said it believes The Crown Corporations Act, 1993 (the Act), addressed this issue for Part II Crown corporations. "Beyond the provisions made through the Act, the Government is not currently in a position to proceed with implementation of this recommendation. However, the Government believes the issue is worthy of study."
1994	.19) Your Committee recommends that the Government provide mandate statements to the Legislative Assembly for each government organization and that those statements be referred to a standing committee for regular review.	Partially implemented. Agencies that table their annual reports in the Assembly do provide mandate statements setting out their purpose and accountabilities. Those corporations that do not table annual reports in the Assembly do not provide this information.
1994	.30) Your Committee recommends that policies established to deal with Committee recommendations should be documented in the Treasury Board Accounting and Reporting Manual or in a comprehensive manual with similar authority.	Not implemented - In its response to the sixth report the Government stated the Treasury Board Accounting Manual includes a majority of recommendations. They added a "manual is not maintained to document any other types of recommendations."
1994	.38) Your Committee recommends that appropriate legislative amendments be made to require reports to be released when the Legislative Assembly is not in session in the same manner as pursuant to Section 35 of The Crown Corporations Act where documents are required to be tabled.	Not implemented - The Government has not made amendments. In its 1994 response to the sixth report, the Government stated they are currently considering the recommendation.
	Seventh Report of PAC - 22nd Legislature
1995	(Brought forward from PAC review of the Government's response to recommendation .31) in the sixth report). PAC accepted the Government's response to the sixth report that "to the extent (PAC) recommendations are applicable, CIC and each of its subsidiaries should be responsible for ensuring the accepted recommendations are added to established policy and procedures."	Not known. Our Office will be looking for compliance with this recommendation in future audits.
1995	.01) The government review whether forecasts of the cash required to meet existing pension liabilities should be provided to the Assembly and included in the Summary Financial Statements.	Not implemented. The Government has not provided a study to the Committee for consideration. In its response to the seventh report the Government stated it intends to assess who should receive this information and that due to the involvement of actuaries, it will take some time for the Government to make it available.
1995	.02) The government should examine how to disclose more fully, in departmental and Treasury Board agency annual reports, information to describe its investment in infrastructure.	Not implemented. The Government has not provided a study to the Committee for consideration. In its response to the seventh report the Government stated "more work is needed to determine what constitutes useful information respecting infrastructure investment."
1995	.04) The government should implement the Pension Review Task Force announced in the 1992/93 budget documents to study its full pension obligations to both those presently covered by Government plans and those presently having no pension coverage.	Not implemented. The Government has not created a Task Force. In its response to the seventh report the Government stated they "continue to work toward resolving issues respecting its pension obligations."

Appendix VIII