Chapter 6
Accountability Information Required

Table of Contents

Provincial Auditor Saskatchewan
1996 Fall Report

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The Assembly requires financial statements from all government agencies

.04 Financial statements are key accountability documents. Financial statements help legislators and the public understand and assess the performance of government agencies.

.05 Generally, when the Assembly creates a government agency, the Assembly requires that agency to provide its financial statements to the Assembly. We note the Assembly has not specified the need for financial statements for some government agencies. As a result, the Assembly does not always receive the financial statements for those agencies. In these cases, the Assembly lacks information to hold the Government fully accountable for the activities it carries out in these agencies.

.06 Table 1 lists the government agencies that do not provide their financial statements to the Assembly. There are four types of government agencies that, generally, do not provide their financial statements to the Assembly. These are:

• agencies created under The Business Corporations Act by other government agencies.

For example, several government agencies might join forces to create an agency to carry out an activity for them (e.g., several government agencies created Greystone Capital Management Inc. to provide them investment advice).

Provincial Auditor Saskatchewan
1996 Fall Report

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Another example of this kind of agency is one created by another government agency to manage a particular line of its business. (e.g., SaskPower created Power Greenhouses Inc. to manage a greenhouse for SaskPower).

• agencies created under The Agri-Food Act.

The Assembly delegated to the Lieutenant Governor in Council (Cabinet) the authority to create marketing and development boards to promote, develop, and market agricultural products. For example, Cabinet created SPI Marketing Group and gave it a monopoly to buy and sell hogs in the Province.

• agencies created under The Health Districts Act.

The Assembly delegated to Cabinet the authority to create district health boards to deliver health services for the Government. Cabinet created 30 district health boards.

• other agencies such as those managing the Government's pension plans and agencies created under The Non-Profit Corporations Act.

For example, the Assembly created Saskatchewan Telecommunications Superannuation Board to manage a pension plan for some of SaskTel's staff. SaskPower created Northern Enterprise Fund Inc. to manage an economic development program in northern Saskatchewan.

.07 In past reports to the Assembly, we have recommended the Government should provide the Assembly with the financial statements of all government agencies. The Standing Committee on Public Accounts considered this matter and made three recommendations. The Committee recommended:

Provincial Auditor Saskatchewan
1996 Fall Report

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In 1987 - the Government should 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 the competitive position of the Crown Corporation is not prejudiced.

In 1993 - 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.

In 1993 - all government corporations should table annual financial statements in the Assembly, including those where the Crown owns less than 100% of the issued share capital.

We recommend

.08 The Government should provide the Assembly the financial statements of all government agencies.

 

List of persons who receive money from government agencies required

.09 As we stated in Chapter 5, the public and legislators want to know who gave money to candidates and political parties and who later receives money from government agencies.

.10 The Elections Act requires candidates and political parties to publicly report who gave them money.

.11 However, the Assembly has not enacted any laws requiring government agencies to provide a list of persons who received money from them. Most government agencies now make public a list of persons who received money from them. There are, however, still many agencies that do not do so.

.12 In past reports to the Assembly, we have recommended all government agencies should provide the Assembly a list of persons who received money from them. The Standing Committee on Public Accounts has considered the need for this information. The Committee has recommended to the Assembly:

• required details of disclosure for government agencies;
  
• all government organizations reporting to Treasury Board should provide a list of persons who have received money; and

• Crown corporations should have the same public reporting requirements as government departments unless otherwise stated in the mandate of the corporation.

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1996 Fall Report

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.13 Table 2 lists those government agencies that do not make public a list of persons who received money from them. There are four types of government agencies that generally do not make public a list of persons who received money from them. These are:

• Crown Investments Corporation of Saskatchewan and its subsidiaries;

• agencies created under The Agri-Food Act;

• agencies created under The Health Districts Act;

• and other agencies.

.14 Also, in our 1995 Spring Report to the Assembly, we state the Board of Internal Economy could improve public accountability if it made public a list of persons who received money from caucus offices and from members' special allowances.

.15 Public accountability is strengthened when all government agencies provide a list of persons that received money from them. This way, the Assembly can review the use of public money by government agencies. We think this is essential. Also, we think agencies make better spending decisions when they must answer for who received money from them.

We recommend

.16 All government agencies should make public a list of persons who have received money from them.

.17 Some government agencies feel they should not have to disclose this information for certain payments because they feel the information should be confidential. We think the Legislative Assembly should decide when this information should be confidential as it did for payments to doctors.

 

Provincial Auditor Saskatchewan
1996 Fall Report

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Comparison of planned to actual results required

.18 A comparison of planned to actual results is an essential component of good accountability. We think legislators and the public need to know an agency's planned results to understand and assess the agency's actual results.

.19 Most government agencies now provide their planned results as part of their financial statements. We commend these agencies for their efforts. However, several government agencies still do not provide information on their planned results as part of their financial statements.

.20 Table 3 provides a list of government agencies that do not provide a comparison of their planned results to their actual results as part of their financial statements. There are three types of government agencies that generally do not provide a comparison of their planned results to their actual results as part of their financial statements. These are:

• Crown Investments Corporation of Saskatchewan and its subsidiaries;

• agencies created under The Agri-Food Act; and

• other agencies.

We recommend

.21 All government agencies should ensure their annual reports include a comparison of their planned results to their actual results.

 

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1996 Fall Report

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Provincial Auditor Saskatchewan
1996 Fall Report

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Provincial Auditor Saskatchewan
1996 Fall Report

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Provincial Auditor Saskatchewan
1996 Fall Report

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