EdinburghNLP/nunavut-hansard-plusplus huggingface dataset:
The importance of undertaking realistic budget development exercises and producing realistic, timely, and accurate variance reports.
According to the government’s own employment statistics, the department had almost 300 vacancies as of September 30, 2009.
The department has a total of approximately 990 positions.
The department must address the practice of budgeting as though all of its positions were actually filled, only to reallocate salary dollars at a later point in the fiscal year to other areas, such as expenses for consultants and contractors to fulfill the functions of the vacant positions.
Budget adjustments of this nature should be made during the planning process instead of at a time when spending is well underway. The lack of realistic expenditure targets leads to unrealistic expenditures, which then exceed approved amounts.
The department’s unacceptable practice of spending money that has not been approved by the Legislative Assembly must end.
The importance of collecting accurate and detailed information for the purposes of billing, payment collection, and trend analysis.
Placing emphasis on compiling accurate and adequate levels of detail that can be used to complete transactions in a timely manner is important.
Although the department has initiated improvements in this area, such as the development of training programs and procedures manuals, high staff turnover requires constant attention to this issue.
In addition, the department’s new procedures manuals could be further improved to provide stronger guidance for managers in situations where significant variance has been noted or in how to address specific problems.
The importance of providing ongoing, formal reports to the Legislative Assembly on what specific actions are being taken to improve the financial management practices of the department and an accounting of how their effectiveness is being measured.
The standing committee recommends that the next report on the status of the department’s action plan be tabled in the Legislative Assembly on the first day of the fall 2010 sitting of the House.
Mr. Speaker, I will conclude the first part of the standing committee’s report by noting that the Legislative Assembly recently considered the proposed 2010-11 main estimates for the Department of Health and Social Services.
Although Members of the Legislative Assembly continue to have serious questions as to whether the department’s proposed budget for the coming fiscal year is realistic, the improved efforts on the part of departmental witnesses to be frank and forthcoming with members is welcomed.
Given the ongoing pressures facing the department and the uncertainty of future levels of federal support in respect to its fiduciary obligations to the north, it is more important than ever that the department’s financial management practices be strengthened.
I will now turn over to the delivery of the report to my colleague and co-chair, Mr. Schell. (interpretation) Thank you, Mr. Speaker.
I will now turn to the standing committee’s review of the Auditor General’s follow-up report on her 2005 report to the Legislative Assembly on the financial management practices of the Government of Nunavut.
The standing committee applauds the Auditor General for having undertaken this important follow-up work as it allowed for Members of the Legislative Assembly to measure the government’s progress in addressing the concerns and recommendations that were made in her 2005 report.
I would like to take this opportunity to express the committee’s enthusiasm for reviewing future reports of this nature, including, for example, a follow-up report on the status of the government’s actions to address the recommendations contained in the Auditor General’s 2007 report on the Nunavut Business Credit Corporation.
The standing committee noted with considerable concern that the Auditor General’s key finding in her follow-up report was that:
“The Government of Nunavut has made unsatisfactory progress since 2005 toward strengthening its financial management and controls. Despite the Government’s efforts at seeking qualified staff, initiating the update of financial directives, and engaging the services of consultants, we found little improvement in overall financial management.
Departments are still spending money before the Legislative Assembly has approved the spending.”
The standing committee’s hearings provided the government with the opportunity to account for its actions to date in addressing the Auditor General’s concerns and recommendations.
It is noteworthy that the Department of Finance’s 2010-13 business plan indicates that the government’s action plan to respond to the Auditor General’s report was “proposed, completed and then discussed at the Standing Committee in the fall of 2009.
Mr. Speaker, the standing committee will hold the government accountable for its progress in this area.
A basic measure of progress will be whether or not the government is able to improve its compliance with its own rules.
For example, the Auditor General’s report noted that:
“Overall we found that, on average, 19 percent of the transactions we tested contained authority violations.”
Mr. Speaker, the Auditor General’s report contained five specific recommendations.
I would, however, raise one cautionary note with respect to the Auditor General’s recommendation that the government should “continue contracting outside parties to perform the less routine, technical functions, such as the preparation of the financial statements, until qualified resources are in place.”
Although the standing committee does recognize that the government faces an acute shortage of accountants and other qualified financial professionals, it is important to be mindful that members have raised serious concerns with respect to the government’s use of consultants and contractors.
The standing committee’s position with respect to this specific recommendation of the Auditor General should in no way be interpreted by the government as constituting an endorsement of its record with respect to engaging consultants and contractors, especially in such areas as policy development.
Mr. Speaker, a key observation in the Auditor General’s report was that:
“In our view, the underlying cause of the Government’s lack of progress on our previous recommendations is its limited human resource capacity.
The standing committee’s hearings provided witnesses from the Government of Nunavut with the opportunity to account for their efforts to address human resources capacity issues.
I would also note that the Department of Finance’s proposed 2010-13 business plan indicates that two of its goals for the 2010-11 fiscal year are to “promote training and development across all financial groups in the GN, including the administrative, technical and professional levels” and to “establish and implement a professional training regime to enhance the financial expertise of the territory at all levels.”
The hearings also provided a valuable opportunity to engage in a broader dialogue with respect to such issues as the importance of clearly defining and distinguishing between the concepts of education and training.
Mr. Speaker, I would like to take this opportunity to note that the standing committee applauds the cooperation that is being undertaken by the Office of the Auditor General and the Department of Finance to undertake staff secondments.
This is a worthy initiative.
I would also like to take this opportunity to note that the standing committee looks forward to considering the Auditor General’s 2010 Report to the Legislative Assembly on Human Resources Capacity in the Government of Nunavut.
I am confident that these hearings will provide members with the opportunity to explore these issues in detail and I anticipate that the standing committee will present detailed recommendations concerning human resources capacity and development issues following its hearings.
The standing committee has also noted that the government announced on March 11, 2010 that the position of Deputy Minister of Human Resources will “be filled through a competitive executive search process over the coming months.”
Accordingly, the standing committee recommends that the Department of Finance address the following five critical areas for action:
The importance of providing ongoing, formal reports to the Legislative Assembly on what specific actions are being taken to improve the financial management practices of the government and an accounting of how their effectiveness is being measured.
The standing committee recommends that the next report on the status of its action plan be tabled in the Legislative Assembly on the first day of the fall 2010 sitting of the House.
The standing committee further recommends that the report account for what actions the government has taken in respect to such initiatives as the use of collections agencies to collect monies owing to the government, including those in relation to loans issued by the Nunavut Business Credit Corporation.
The standing committee further recommends that the report provide an accounting of the government’s actual expenditures, actions, and results to date in relation to the $23 million that the 2007 federal budget announced would be provided to the Government of Nunavut to “strengthen its financial management practices and systems.”
The importance of ensuring that the Public Agencies Council issues and enforces direction to Crown corporations and agencies to provide their annual corporate plans for tabling in the Legislative Assembly at the same time that the government’s main estimates are introduced.
This direction is particularly required in the case of the Qulliq Energy Corporation, the Nunavut Business Credit Corporation, and the Nunavut Development Corporation.
The standing committee notes that the plans for Nunavut Arctic College and the Nunavut Housing Corporation are presently included as part of the government’s annual business plan document.
The importance of ensuring that the Public Agencies Council issues and enforces direction to all Crown corporations and agencies to provide annual reports on their procurement, contracting and leasing activities for tabling in the Legislative Assembly.
The standing committee notes that on September 18, 2008, the Government of Nunavut’s response to a report by a committee of the previous Legislative Assembly was tabled in the House.
This document indicated that Crown corporations would be directed to “provide information for tabling in the Legislative Assembly on their procurement, contracting and leasing activities.”
However, the government has failed to act on this commitment.
The importance of ensuring that Memorandums of Understanding with all Crown corporations and agencies regarding governance, roles, and responsibilities are tabled in the Legislative Assembly on the first day of the fall 2010 sitting of the House.
The importance of ensuring that the government fully complies with the provisions of Financial Administration Manual Directive 302, which requires the Chairperson of the Financial Management Board to provide the standing committee, on a quarterly basis, with a report, by department, that indicates “all capital adjustments made in that quarter.”
To date, these reports have not been provided on a regular basis and it is important that the government comply with its own rules.
Mr. Speaker, I will conclude by noting that the standing committee, pursuant to Rule 91(5), formally requests that the government table a comprehensive response to this report in 120 days.
Mr. Speaker, I move that the report of the standing committee be received by the House.
The member has moved that the report of the standing committee be received by the House.
The report is received.
Tabled Document 136 – 3(2): Canadian Cooperatives Association’s News Release Titled “United Nations General Assembly Proclaimed 2012 the International Year of the Cooperatives (Ningark)
I wish to table today a copy of the Canadian Co-operatives Association’s news release titled, “United Nations General Assembly proclaims 2012 the International Year of the Co-operatives.”
Yesterday, in the House, I made a Member’s Statement on the importance that co-operatives have on a community’s ability to become self-reliant and how they not only improve the economy but also the social wellness of a community.
Tabled Document 137 – 3(2): Nunavut Impact Review Board’s Public Notice for the Public Participation in the Environmental Review of the Kiggavik Uranium Mine Project (Aupaluktuq)
I wish to table a copy of the Nunavut Impact Review Board’s public notice for the public participation on the environmental review of the proposed Kiggavik uranium mine near my home community of Baker Lake.
I encourage my constituents who may be interested in participating in the environmental review of the Kiggavik uranium mine to contact the Nunavut Impact Review Board no later than Monday, April 12, 2010.
Tabled Document 138 – 3(2): Transportation of Dangerous Goods Annual Report 2008-2009 (Taptuna)
I would like to table the following document: Transportation of Dangerous Goods Annual Report 2008-09.
Motion 017 – 3(2): Comprehensive Performance Audit of the Qulliq Energy Corporation – Notice (Okalik)
Mr. Okalik (interpretation): Thank you, Mr. Speaker. (interpretation ends) I give notice that on Friday, March 19, 2010, I will move the following motion:
NOW THEREFORE I MOVE, seconded by the Hon. Member for Tununiq, that the Legislative Assembly recommends that the Executive Council of Nunavut, pursuant to section 47 of the Nunavut Act, advise the Commissioner of Nunavut to request the Auditor General of Canada to undertake a comprehensive performance audit of the financial, billing, contracting, procurement, leasing, and human resources management practices of the Qulliq Energy Corporation and report therein to the Legislative Assembly as soon as practicable;
AND FURTHER I MOVE that the audit also examine the extent to which the Qulliq Energy Corporation has or has not addressed the recommendations contained in the 2004 Report of the Auditor General of Canada to the Legislative Assembly of Nunavut. (interpretation) Thank you, Mr. Speaker.
Bill 15 – Legal Treatment of Apologies Act – First Reading
I move, seconded by the Hon. Member for Rankin Inlet and Whale Cove, that Bill 15, Legal Treatment of Apologies Act, be read for the first time.
Bill 15 has received first reading.
First Reading of Bills. Mr. Peterson.
Bill 16 – An Act to Amend the Judicature Act – First Reading
I move, seconded by the Hon. Member for Rankin Inlet and Whale Cove, that Bill 16, An Act to Amend the Judicature Act, be read for the first time.
Speaker: Thank you, Minister. The motion is in order. To the motion.
Bill 16 has received first reading.
Bill 17 – Justice Statutes Amendment Act – First Reading
I move, seconded by the Hon. Member for Rankin Inlet and Whale Cove, that Bill 17, Justice Statutes Amendment Act, be read for the first time.
Bill 17 has received first reading.
First Reading of Bills. Mr. Tapardjuk.
Bill 20 – An Act to Amend Certain Acts Related to the Education Act – First Reading
I move, seconded by the Hon. Member for Rankin Inlet South and Whale Cove, that Bill 20, An Act to Amend Certain Acts Related to the Education Act, be read for the first time. Thank you, Mr. Speaker.
The motion is in order. To the motion. Question has been called.
Bill 20 has received first reading.
Bill 25 – Miscellaneous Statutes Amendment Act, 2010 – First Reading
Hon. Keith Peterson: Mr. Speaker, I move, seconded by the Hon. Member for Rankin Inlet and Whale Cove, that Bill 25, Miscellaneous Statutes Amendment Act, 2010, be read for the first time.
Bill 25 has received first reading.
Bill 26 – Securities Transfer Act – First Reading
Hon. Keith Peterson: Mr. Speaker, I move, seconded by the Hon. Member for Rankin Inlet and Whale Cove, that Bill 26, Securities Transfer Act, be read for the first time.
Bill 26 has received first reading.
Bill 27 – An Act to Amend the Workers’ Compensation Act – First Reading
I move, seconded by the Hon. Member for Amittuq, that Bill 27, An Act to Amend the Workers’ Compensation Act, be read for the first time.
Bill 27 has received first reading.
Bills 14, 21, and 22 with Mr. Ningeongan in the Chair.
Before we proceed to the Committee of the Whole, we will take a 20-minute break
>>House recessed at 15:33 and Committee resumed at 16:00
Chairman (Mr. Ningeongan): Thank you. I would like to call the committee meeting to order.
In Committee of the Whole, we have the following items to deal with: Bill 14, Bill 21, and Bill 22.
We would like continue with the review of Bill 22 and the main estimates for the fiscal year 2010-11.
This afternoon, we will continue with the review of the Department of Finance, followed by the Department of Economic Development and Transportation.
If time permits, we will proceed to the review of the Nunavut Arctic College.
Are we in agreement to continue with the main estimates for Department of Finance?
Do members agree that Mr. Peterson and his staff go to the witness table?
Chairman (interpretation): Sergeant-at-arms, if you would escort the witnesses in, please.  (interpretation ends) Thank you.
For the record, Minister Peterson, introduce your witness.
My witness is Peter Ma, Deputy Minister of Finance.
I understand that today is the Deputy Minister of Finance’s birthday. Happy birthday, Peter Ma.
Yesterday, we closed up the day by having comments from the minister and the chair of the committee.
I would like to ask members at this time if anybody has any general comments.
Mine is a very short, quick general comment and I would like to ask the minister a quick question.
As I noted in my opening comments yesterday, the department’s proposed business plan indicates that one of the priorities for 2011-12 is to “Improve forecasting and budgeting. Consideration will also be given to consolidation of the Main Estimates and Capital” expenditure.
I saw that in your business plan, but you did not mention it in your opening comments nor is it mentioned anywhere else.
Can the minister clarify whether the government plans to introduce the government’s annual main estimates and capital estimates at the same time during the annual budget cycle and if so, why?
The answer is no. What I think about these things is good planning.
Then you will be removing that from your business plan?
I don’t know why you are not solid about this but you sort of quietly mentioned it in your business plan that’s what you were thinking.
Will you completely remove that then?
Mr. Chairman, I don’t think we will be removing it, but it’s just something that we’re considering. It’s planning; it doesn’t mean we’re actually going to implement it.
My question is very quick to the hon. minister or the deputy minister.
In the opening comments, I believe that it might be the third last paragraph. Forgive me; I don’t have a copy of the opening comments.
But looking at the Hansard, it’s noted that there is a reduction of about $200,000 in contract services.
What specifically would that be?
I just want to ask that for clarification.
Hon. Keith Peterson: Thank you, Mr. Chairman. I thank Mr. Aupaluktuq for that question.
Mr. Chairman, in the past, we had a lot of contracts related to strengthening financial management.
They’re starting to wind down and thus the reduction.
We will now proceed to the page-by-page review of the departmental estimates starting with page C-4. Finance.
Branch Summary. Directorate. Total Operations and Maintenance. $1,227,000.
In the business plan on page C-2 under your priorities for 2010-11, it talks about promoting “training and development across all financial groups in the GN including the administrative, technical and professional levels.” I was wondering if the minister could expand on that in terms of how and what type of training will be done.
I’m just finding the right spot here.
The plan under that is we’re going to hire a consultant to finalize a work plan for training and development in 2010-11.
We’re going to standardize the position descriptions and pay ratings, and then we’re hoping to mentor three interns in financial positions.
So you guys are actually going to hire a consultant to tell you what training needs to be done in the department. Thanks.
Hon. Keith Peterson: Thank you, Mr. Chairman. The plan is to hire a consultant who is an expert in the implementation of the plan.
As you can appreciate, we’re mostly accountants and finance people, we’re not human resources people, so we need that expertise and that will expedite the process.
So it’s for the mentoring of three individuals within the Directorate department or the whole Department of Finance.
Chairman: Thank you, Mr. Elliot.
It’s throughout the entire department.
Are these three people earmarked as to who they are or will they wait for the consultant to come back to say what the human resources needs?
How did they come up with three people?
Within the department, we identified three individuals with high potential and they will be in policy, compensation, and accounts payable positions.
Are these Nunavut Land Claims beneficiaries?
When the Department of Education was in front of us, they talked for quite a while on the Income Support Case Management System, which their department is fine-tuning and has done work here in Iqaluit.
They’re hoping to roll it out in the next two years to all of the communities and it involves elders’ payments and writing of loan cheques.
I’m sure your department is quite aware of it.
But one of the things that the Department of Education said was that one of the things that might slow the process down is the qualifying or appraising of the system by your department.
I was just wondering if you could give us an update as to how that’s going and how long that will take.
I appreciate that I’m not involved in the day-to-day operations of the Department of Finance. In the Department of Finance, we’re a central agency department and we work with all of the departments throughout the government.
With respect to the specific question, our department would be working closely with that other department to make sure the process is working internally to the government.
To me, that program is something that needs to be pushed through and not done… I guess it has to be done properly.
The advantages in terms of what was explained to us from the Department of Education in terms of having that up and running in all of the communities is a great benefit because what it, in fact, does is allows the income support workers to work with people on social assistance and give them the time that they need to do more proactive activities and get people in training and working instead of just writing cheques.
We were told from the department, it’s something like 80,000 or 70,000 cheques a year.
Could one of your representatives maybe explain a little bit more? I wouldn’t want to come back in a year and have the Department of Education tell us that because of holdups within the Department of Finance, we weren’t able to move forward on this. So if someone could explain it a little bit more.
Hon. Keith Peterson: Certainly, Mr. Chairman.
As I indicated earlier, we are the central agency department supporting all departments.
This would fit in with the overall strengthening financial management throughout the government and throughout Nunavut.
If Mr. Elliott wishes for details, Mr. Ma is more than willing to provide them. Thank you, Mr. Chairman.
Mr. Elliott: Please, yes. Thank you.
I’ll try to keep it fairly high level, I guess, without getting too much into detail.
With any new system that you implement, you want to make sure that you have the proper internal controls.
Before I came over here, I heard Mr. Schell speak a bit about our appearance with you in September and it gets back to what the minister just said about strengthening financial management.
What good internal controls are, are such things as an appropriate approval process.
I think all members here are aware of this situation that happened recently in Sanikiluaq with the district education authority.