Source: https://www.leg.bc.ca/content/legacy/Web/39th4th/3rd_read/gov20-3.htm
Timestamp: 2018-01-18 00:16:23
Document Index: 27627000

Matched Legal Cases: ['art 2', 'art 3', 'art 4', 'art 2', 'art 6', 'art 24', 'art 4', 'art 6']

Bill 20 — 2011: Auditor General for Local Government Act
Home > Documents and Proceedings > 4th Session, 39th Parliament > Bills > Bill 20 — 2011: Auditor General for Local Government Act
Certified correct as passed Third Reading on the 27th day of March, 2012
BILL 20 — 2011
Part 2 — Auditor General's Appointment, Mandate and Powers
3 Purpose and mandate
4 Selection of audits and limit on audits
5 Maintenance of qualification
6 Suspension, removal or resignation of auditor general
8 Remuneration and expenses of auditor general
10 Audit of financial statements of auditor general
11 Employees and other persons
13 Access to records, information and things
15 Contempt proceeding for uncooperative person
16 Restriction on disclosure of information by auditor general
17 Personal liability protection
Part 3 — Audit Council
18 Establishment and appointment of audit council
19 Role of audit council
20 Staff resources for audit council
21 Business and meetings of audit council
Part 4 — Annual Service Plan and Reports of the Auditor General
22 Annual service plan
23 Performance audit reports
24 Restriction on disclosure of performance audit information
26 Other reports
28 Offence Act
29 Review of Act
30 Transition — definition
31 Transition — annual service plan
32 Transition — preparation and audit of financial statements
33 Transition — annual report of the auditor general
34 Transition — meetings of audit council
35 Transition — regulations
36-40 Consequential Amendments
41 Commencement
"activities" includes the exercise of an authority, conferred under an enactment on a local government, to regulate, prohibit and impose requirements;
"annual report" means the report referred to in section 25;
"annual service plan" means the plan referred to in section 22;
"audit council" means the audit council established under section 18;
(b)	a regional district,
(c)	a greater board,
(d)	a board, a commission, a corporation or another organization that, under generally accepted accounting principles, is considered to be controlled by one or more municipalities, regional districts or greater boards, and
(e)	another local body prescribed by regulation;
"municipality" means the corporation into which the residents of an area are incorporated as a municipality under the Local Government Act or under any other Act, and the City of Vancouver;
"operations" means the design or implementation of the programs, services, policies or systems of a local government and related procedures;
"publish" means to make available to the general public in a reasonable manner, which may include by electronic means;
"qualified individual" means an individual authorized to be an auditor of a company under section 205 of the Business Corporations Act who is none of the following:
(a)	a candidate for elected public office of any type;
(b)	a holder of elected public office of any type;
(c)	an employee of the Province;
(d)	an employee of a local government;
"regional district" means a regional district incorporated under the Local Government Act;
"services" means activities, works or facilities undertaken or provided by or on behalf of a local government.
Part 2 — Auditor General's Appointment,
2 (1)	On the recommendation of the minister, the Lieutenant Governor in Council may appoint, for a term of 5 years, a qualified individual to be the Auditor General for Local Government.
(2)	Before making the recommendation referred to in subsection (1), the minister must consider the recommendation of the audit council under section 19 (1) (a).
(3)	The auditor general may be appointed under subsection (1) for a second term of 5 years.
(4)	A person must not be appointed under subsection (1) for a third consecutive term.
3 (1)	The purpose of the auditor general is to conduct performance audits of the operations of local governments in order to provide local governments with objective information and relevant advice that will assist them in their accountability to their communities for the stewardship of public assets and the achievement of value for money in their operations.
(2)	A performance audit conducted under this Act by the auditor general consists of
(a)	a review of the operations of a local government, as the operations relate to a matter or subject specified by the auditor general, to evaluate the extent to which
(i)	the operations are undertaken economically, efficiently and effectively,
(ii)	financial, human and other resources are used in relation to the operations with due regard to economy and efficiency,
(iii)	the operations are effective in achieving their intended results, or
(iv)	procedures established by the local government are sufficient for the local government to monitor the economy, efficiency and effectiveness of those operations, and
(b)	recommendations to the local government arising from the review referred to in paragraph (a).
(3)	The auditor general may identify and develop and publish or otherwise provide information about recommended practices, arising from a performance audit, that the auditor general considers may be applicable or useful to other local governments.
(4)	The auditor general, if permitted by regulation, may, on request of a local government and in accordance with the regulations, enter into an agreement to conduct a performance audit of the operations of the local government that relate to a matter or subject that is specified in the agreement.
(5)	In carrying out the powers and duties under this Act, the auditor general must not call into question the merits of policy decisions or objectives of a local government.
(6)	The auditor general may not act as an auditor under
(a)	Division 2 of Part 6 of the Community Charter or as that Division applies to a regional district under section 814 (3) of the Local Government Act,
(b)	section 60 (1) of the Greater Vancouver Sewerage and Drainage District Act,
(c)	section 24 of the Greater Vancouver Water District Act,
(d)	sections 230 to 235B of the Vancouver Charter, or
(e)	a prescribed enactment relating to the financial audit of a local government.
4 (1)	Subject to the annual service plan and within the limits established under this section, the auditor general, in his or her sole discretion, may select the performance audits to be conducted.
(2)	The auditor general must not initiate a performance audit until the annual service plan for that year has been published in accordance with section 22 (7).
(3)	Despite a regulation permitting the auditor general to enter into an agreement referred to in section 3 (4), the auditor general must not enter into an agreement unless the auditor general is satisfied that the agreement will not interfere with his or her capacity to conduct other performance audits.
Maintenance of qualification
5 (1)	The auditor general appointed under section 2 (1) must continue to be a qualified individual within the meaning of paragraphs (a), (b) and (d) of the definition of "qualified individual" throughout the term of his or her appointment.
(2)	The auditor general may not be an employee of the Province other than in his or her capacity as auditor general.
Suspension, removal or resignation of auditor general
6 (1)	On the recommendation of the minister, the Lieutenant Governor in Council may, for cause or because of incapacity, order that the auditor general be suspended with or without remuneration or be removed.
(2)	Before making the recommendation referred to in subsection (1), the minister must consider the recommendation of the audit council under section 19 (1) (c).
(3)	The auditor general may resign by giving written notice to the minister.
7 (1)	If the auditor general is suspended or there is no auditor general, the Lieutenant Governor in Council, on the recommendation of the minister, may appoint a person as acting auditor general to exercise the powers and perform the duties of the auditor general until an appointment is made under section 2 or the suspension ends.
(2)	The recommendation of the minister referred to in subsection (1) must be made as soon as is practicable after the minister has received the recommendation of the audit council under section 19 (1) (b).
Remuneration and expenses of auditor general
8 (1)	The auditor general must be paid out of the consolidated revenue fund a salary that is set by the Lieutenant Governor in Council.
(2)	The auditor general must be reimbursed for reasonable and necessary travelling and out of pocket expenses personally incurred in exercising the powers and performing the duties of the auditor general.
(3)	The public service plan as defined in section 1 of the Public Sector Pension Plans Act applies to the auditor general.
(4)	The Public Service Benefit Plan Act applies to the auditor general.
9 (1)	Before a date specified by the chair of Treasury Board, the auditor general must present for approval to the chair of Treasury Board an estimate, in a form acceptable to the chair, of the resources that will be required during the upcoming fiscal year to
(a)	exercise the powers and perform the duties of the auditor general, and
(b)	remunerate and reimburse members of the audit council.
(2)	The Treasury Board must review and may adjust the estimate as it considers appropriate before approving the estimate.
Audit of financial statements of auditor general
10 (1)	For each fiscal year, the auditor general must prepare financial statements in accordance with generally accepted accounting principles.
(2)	The minister must appoint an independent auditor who is authorized to be an auditor of a company under section 205 of the Business Corporations Act to audit the financial statements referred to in subsection (1) for each fiscal year.
(3)	On completing an audit for a fiscal year, the auditor appointed under subsection (2) must submit the results of the audit to the auditor general and to the minister.
Employees and other persons
11 (1)	The auditor general may appoint, in accordance with the Public Service Act, a deputy auditor general and the other employees necessary for the exercise of the powers and the performance of the duties of the auditor general.
(2)	For purposes of the application of the Public Service Act to subsection (1), the auditor general is a deputy minister.
(3)	The auditor general may
(a)	retain persons in capacities other than as employees who the auditor general considers necessary for the exercise of the powers and the performance of the duties of the auditor general, and
(b)	set the remuneration of, and other terms and conditions under which, a person referred to in paragraph (a) is retained.
12 (1)	The auditor general may delegate, in writing, to a person or class of persons a power or duty of the auditor general, subject to terms and conditions the auditor general considers appropriate, except the power
(a)	to delegate under this section,
(b)	to submit a proposed annual service plan to the audit council under section 22 (1), and
(c)	to make a report under this Act.
(2)	If the auditor general who makes a delegation ceases to hold office, the delegation continues in effect so long as the appointment or retainer of the delegate continues unless revoked by a succeeding auditor general.
(3)	A person purporting to exercise a power or perform a duty of the auditor general through a delegation under this section must produce, on request, evidence of the person's authority to exercise the power or perform the duty.
Access to records, information and things
13 (1)	In this section:
"participant" means a municipality, the geographic area of which, or a treaty first nation, the treaty lands of which, form all or part of an area in which a service is provided by or on behalf of a regional district;
"treaty first nation" means a treaty first nation to which the Local Government Act, as modified by Division 3.1 of Part 24 of that Act, applies.
(2)	A local government whose operations are the subject of a performance audit must give to the auditor general
(a)	access to records, information and things,
(b)	access to the local government's facilities and works, and
(c)	explanations
necessary for the auditor general to conduct the performance audit.
(3)	The following must give to the auditor general access to records, information, things, facilities and works and explanations necessary for the auditor general to conduct a performance audit:
(a)	in the case of a performance audit of the operations of a local government,
(i)	a person or an organization with whom the local government has entered into an agreement or arrangement that relates to the operations that are the subject of the performance audit, or
(ii)	a person or an organization who has been granted money by the local government in relation to the operations that are the subject of the performance audit;
(b)	in the case of a performance audit of the operations of a local government that is a performance audit of a regional district's services, a participant;
(c)	in the case of a performance audit of the operations of a local government that is a performance audit of a greater board's services, the municipalities and treaty first nations that are members of the greater board.
(4)	This section applies despite a claim of confidentiality or privilege other than a claim based on solicitor-client privilege.
14 (1)	For the purposes of section 13, the auditor general may make an order requiring a person to do either or both of the following:
(a)	attend, in person or by electronic means, before the auditor general to answer questions on oath or affirmation, or in any other manner;
(b)	produce for the auditor general a record or thing in the person's possession or control.
(2)	The auditor general may apply to the Supreme Court for an order
(b)	directing an officer or a governing member of a person to cause the person to comply with an order made under subsection (1).
15 The failure or refusal of a person subject to an order under section 14 to
(a)	attend before the auditor general,
makes the person, on application to the Supreme Court by the auditor general, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court.
Restrictions on disclosure of information by auditor general
16 (1)	The auditor general and a person appointed or retained under section 11 must not disclose a record or information obtained in the exercise of a power or the performance of a duty under this Act, except as provided in subsections (2) to (7) of this section.
(2)	The auditor general may disclose, or may authorize a person appointed or retained under section 11 to disclose, a record or information necessary for the following:
(a)	to conduct a performance audit under this Act;
(b)	to formulate the grounds for a recommendation contained in a performance audit report;
(c)	for the members of the audit council to carry out their responsibilities under this Act and for staff who, under section 20, provide assistance to the audit council to carry out its responsibilities;
(d)	to exercise the powers and perform the duties of the auditor general under sections 22, 23, 25 and 26.
(3)	The auditor general and a person appointed or retained under section 11 must not give or be compelled to give evidence in court or in other proceedings in respect of a record or information obtained in the exercise of a power or the performance of a duty under this Act except in a prosecution for perjury in respect of sworn testimony.
(4)	If a person discloses to the auditor general, at the request of the auditor general or under section 13 or 14, a record or information that is confidential or subject to solicitor-client privilege,
(a)	the solicitor-client privilege of the record or information is not affected by the disclosure, and
(b)	subject to subsection (2) of this section, the auditor general or the person appointed or retained under section 11 has the same obligation respecting the disclosure of the record or information as the person from whom the record or information was obtained.
(5)	If, under subsection (2), the auditor general discloses or authorizes disclosure of a record or information that is confidential or subject to solicitor-client privilege,
(b)	a person to whom the record or information is disclosed has the same obligation respecting the disclosure of the record or information as the person from whom the record or information was obtained.
(6)	If, in the conduct of a performance audit, the auditor general considers there is evidence of the use of money contrary to the Community Charter or the Local Government Act, the auditor general, as soon as is practicable, must notify the local government and must disclose to the local government the record or information, if any, that provides the evidence.
17 (1)	Subject to subsection (2), no legal proceeding for damages lies or may be commenced or maintained against the auditor general because of anything done or omitted in
(a)	the exercise or intended exercise of a power of the auditor general, or
(b)	the performance or intended performance of a duty of the auditor general.
(2)	Subsection (1) does not apply in relation to anything done or omitted by the auditor general in bad faith.
(3)	Subsection (1) does not absolve the government from vicarious liability arising out of anything done or omitted by the auditor general for which the government would be vicariously liable if this section were not in force.
(4)	The government must indemnify the auditor general for reasonable costs or expenses incurred by him or her in legal proceedings taken against him or her for anything done or omitted in good faith as described in subsection (1) (a) or (b).
Establishment and appointment of audit council
18 (1)	The audit council consists of the members appointed under subsection (2).
(2)	On the recommendation of the minister, the Lieutenant Governor in Council may appoint no fewer than 5 persons to be members of the audit council and must designate one of the members as chair of the council.
(3)	The chair designated under subsection (2) may designate a member as vice chair.
(4)	An appointment under subsection (2) may be made for a term of up to 3 years and different terms may be set for different members.
(5)	In order for a person to be appointed as a member of the audit council, the person must have knowledge, skills, education or experience in one or more of the following areas:
(a)	accounting;
(b)	auditing;
(c)	governance of the Province;
(d)	local and regional governance;
(e)	a subject area set out in the regulations.
(6)	Before making the recommendation referred to in subsection (2), the minister, in the manner and to the extent he or she considers advisable,
(a)	must consult with
(i)	the Union of British Columbia Municipalities, and
(ii)	persons or organizations that the minister considers are representative of business, taxpayers or local government professionals, and
(b)	may consult with other persons or organizations the minister considers should be consulted.
(7)	The members must be
(a)	remunerated in accordance with rates set by the regulations, and
(b)	reimbursed in accordance with the regulations for reasonable travelling and out of pocket expenses necessary to carry out the responsibilities of the audit council.
Role of audit council
19 (1)	The audit council is responsible for
(a)	recommending to the minister a qualified individual to be appointed as auditor general,
(b)	recommending to the minister a person to be appointed as acting auditor general,
(c)	recommending to the minister suspension or removal of the auditor general,
(d)	commenting on and recommending to the auditor general changes to the annual service plan,
(e)	commenting to the auditor general on a performance audit report,
(f)	commenting to the auditor general on the annual report and other reports prepared by the auditor general,
(g)	providing a statement for inclusion in the annual report,
(h)	considering matters requested by the auditor general,
(i)	disseminating information about
(i)	recommendations made in a performance audit report, and
(ii)	recommended practices identified or developed by the auditor general arising from a performance audit report,
(j)	reviewing and monitoring the performance of the auditor general, including, without limitation, the performance of the auditor general in respect of the annual service plan, and
(k)	other duties set out in the regulations.
(2)	Before making a recommendation to the minister under subsection (1) (a), the audit council must be satisfied that a person to be recommended as auditor general, in addition to being a qualified individual, is familiar with local and regional governance.
(3)	Before making a recommendation under subsection (1) (b), the audit council need only be satisfied that the person to be recommended as acting auditor general is authorized to be an auditor of a company under section 205 of the Business Corporations Act.
(4)	Subsection (2) does not apply to a recommendation of the audit council that an incumbent auditor general be appointed to a second term.
Staff resources for audit council
20 The minister may provide staff resources to assist the audit council to carry out its responsibilities.
Business and meetings of audit council
21 (1)	Subject to this section, the audit council may make rules governing the conduct of its own business as it considers advisable.
(2)	The audit council must meet at least 3 times each fiscal year.
(3)	A meeting of the audit council
(a)	may be convened by the chair or by 2 members of the council with prior notice to the chair, and
(b)	must be convened as soon as is practicable
(i)	at the request of the auditor general for consideration by the audit council of a matter specified by the auditor general,
(ii)	if there is no auditor general or there will be no auditor general within 12 months, and
(iii)	at the request of the minister to consider suspension or removal of the auditor general.
(4)	At a meeting convened in accordance with subsection (3) (b) (ii) or (iii), the audit council must consider its recommendation concerning the appointment of the auditor general or an acting auditor general, or the suspension or removal of the auditor general, as the case may be.
(5)	The audit council must adopt a code of conduct and ethics.
(6)	In adopting a code of conduct and ethics in accordance with subsection (5), the audit council must be guided by the best practices guidelines on codes of conduct and ethics that are set out in the Governance and Disclosure Guidelines for Governing Boards of British Columbia Public Sector Organizations, published by the Government of British Columbia, as amended or replaced from time to time.
Part 4 — Annual Service Plan and Reports
22 (1)	The auditor general must prepare a proposed annual service plan and submit it to the audit council for review by the audit council.
(2)	The proposed annual service plan must include
(a)	the estimate as approved by Treasury Board under section 9, and
(b)	in respect of the auditor general's activities for the fiscal year addressed by the estimate referred to in paragraph (a) and for the following 2 fiscal years,
(i)	a statement of goals and objectives of the auditor general and the measures that will be used to determine progress respecting those goals and objectives,
(ii)	the general criteria that the auditor general will consider to determine the need for and priority of performance audits,
(iii)	themes on which some or all performance audits may be based, and
(iv)	other matters within the purpose and mandate of the auditor general that the auditor general considers should be included.
(3)	The proposed annual service plan must not specify the local governments whose operations will be the subject of a performance audit.
(4)	The audit council must review the proposed annual service plan and, subject to subsection (5), may provide comments and recommend changes to the plan as the audit council considers appropriate.
(5)	The audit council may not recommend changes to the proposed annual service plan that would
(a)	affect the estimate as approved by Treasury Board under section 9,
(b)	result in the omission of a matter referred to in subsection (2) (a) or (b) (i) to (iii), or
(c)	contravene subsection (3).
(6)	The auditor general must consider the comments and recommendations provided by the audit council under subsection (4).
(7)	After finalizing the annual service plan, the auditor general must,
(a)	as soon as is practicable, provide the annual service plan to the audit council and the minister, and
(b)	after having provided the annual service plan in accordance with paragraph (a), publish the plan.
(8)	Sections 13 and 16 of the Budget Transparency and Accountability Act do not apply in relation to the auditor general.
23 (1)	The auditor general must provide a proposed final performance audit report to the local government whose operations are the subject of the report.
(2)	The local government may provide comments to the auditor general on the proposed final performance audit report within the time given by the auditor general, which time may be no less than 45 days.
(3)	The auditor general must include in the proposed final performance audit report a summary of the comments given by the local government under subsection (2) and then submit the report to the audit council.
(4)	The audit council may provide comments to the auditor general on the proposed final performance audit report submitted under subsection (3).
(5)	After finalizing the performance audit report, including the summary referred to in subsection (3) of the comments given by the local government, the auditor general must,
(a)	as soon as is practicable, provide the report to the local government whose operations are the subject of the report and to the audit council, and
(b)	after having provided the report in accordance with paragraph (a), publish the report.
Restriction on disclosure of performance audit information
24 (1)	Subject to subsection (3) of this section, a local government must not disclose the following records or information contained in them:
(a)	a proposed final performance audit report provided by the auditor general to the local government for comment under section 23 (1);
(b)	comments prepared by the local government for the purposes of section 23 (2) and other records created by the local government to prepare the comments.
(2)	Subject to subsection (3) of this section, the audit council and the staff who, under section 20, provide assistance to the audit council to carry out its responsibilities, must not disclose the following records or information contained in them:
(a)	comments prepared by the local government for the purposes of section 23 (2);
(b)	a proposed final performance audit report submitted by the auditor general to the audit council under section 23 (3);
(c)	comments prepared by the audit council for the purposes of section 23 (4) and other records created by the audit council to prepare the comments.
(3)	Subject to section 16 (5), subsections (1) and (2) of this section do not apply after the performance audit report is published by the auditor general under section 23 (5).
(4)	If, under section 16 (2) (c), the auditor general discloses, for the purposes of the provision of comments by the audit council under section 23 (4), a record or a copy of a record obtained by the auditor general on his or her request or under section 13 or 14, the chair of the audit council must return the record or copy to the auditor general after the audit council has provided the comments.
25 (1)	The auditor general must prepare, in respect of the previous fiscal year, an annual report on
(a)	the activities of the auditor general,
(b)	progress in relation to the goals, objectives and measures established for that year in the annual service plan, and
(c)	other matters within the purpose and mandate of the auditor general that the auditor general considers should be included.
(2)	The annual report must include the audited financial statements referred to in section 10.
(3)	Before publishing the annual report, the auditor general must submit the proposed final annual report to the audit council and the audit council may provide
(a)	comments to the auditor general on the proposed report, and
(b)	a statement about the exercise of powers and the performance of duties under this Act by the auditor general, including the performance of the auditor general in respect of the annual service plan.
(4)	If the audit council provides a statement in accordance with subsection (3) (b), the auditor general must include the statement in the annual report.
(5)	After finalizing the annual report, the auditor general must,
(a)	as soon as is practicable, provide the report to the audit council and the minister, and
26 (1)	The auditor general may prepare and publish reports about
(a)	recommended practices identified or developed by the auditor general in accordance with section 3 (3), and
(b)	the interim progress of the auditor general in relation to the goals, objectives and measures established for that fiscal year in the annual service plan.
(2)	Before publishing a report referred to in subsection (1), the auditor general must submit the proposed final report to the audit council and the audit council may provide comments to the auditor general on the report.
(3)	After finalizing a report under this section, the auditor general must
(a)	as soon as is practicable, provide the report to the audit council, and
27 (1)	The Lieutenant Governor may make regulations as follows:
(a)	prescribing a local body for the purposes of the definition of "local government";
(b)	prescribing an enactment relating to the financial audit of a local government for the purposes of section 3 (6) (e);
(c)	setting out a subject area in which a person to be recommended as a member of the audit council is required to have knowledge, skills, education or experience for the purposes of section 18 (5) (e);
(d)	setting rates of remuneration for the chair and the members of the audit council;
(e)	governing travelling and out of pocket expenses for which members of the audit council must be reimbursed;
(f)	setting out other duties of the audit council for the purposes of section 19 (1) (k);
(g)	in accordance with section 3 (4), permitting the auditor general to enter into agreements with local governments to conduct performance audits of operations as the operations relate to a matter or subject specified in the agreements;
(h)	specifying a minimum period of time before the auditor general may publish the annual service plan after providing it to the audit council and the minister under section 22 (7);
(i)	requiring that the annual service plan be published each year by a specified date;
(j)	specifying a period of time within which the audit council may provide comments on a proposed final performance audit report under section 23 (4);
(k)	specifying a minimum period of time before the auditor general may publish a performance audit report after providing it to a local government and to the audit council under section 23 (5);
(l)	specifying a minimum period of time before the auditor general may publish the annual report after providing it to the audit council and the minister under section 25 (5);
(m)	requiring that the annual report be published
(i)	within a specified period of time after the end of each fiscal year, or
(ii)	by a specified date;
(n)	specifying a minimum period of time before the auditor general may publish a report referred to in section 26 (1) after providing it to the audit council under section 26 (3).
(2)	A regulation respecting remuneration under subsection (1) (d) may provide differently for the chair and the members.
(3)	If the Lieutenant Governor in Council makes a regulation under subsection (1) (g), the Lieutenant Governor in Council may also make regulations
(a)	imposing terms or conditions on the ability of the auditor general to enter into the agreements,
(b)	setting out the bases on which fees under the agreements may be set by the auditor general,
(c)	establishing maximum amounts of fees the auditor general may charge under the agreements,
(d)	setting out provisions or content that must be included in the agreements, and
(e)	providing that a provision of this Act does not apply to performance audits conducted under the agreements or varying a provision of this Act as it applies to performance audits conducted under the agreements.
(4)	A regulation under subsection (1) (g) or (3) may
(a)	establish different classes of agreements or local governments, and
(b)	provide differently for different classes of agreements and for different classes of local governments.
28 Section 5 of the Offence Act does not apply to this Act or the regulations.
29 After this Act has been in force for 5 years, the minister must begin a review, in respect of those 5 years, of
(a)	the effectiveness of this Act, and
(b)	the functioning of the office of the auditor general.
Part 6 — Transitional Provisions and
30 In sections 31 to 33, "first fiscal year" means the fiscal year beginning April 1, 2012 and ending March 31, 2013, or, if a subsequent fiscal year is specified by regulation under section 35 (1), the subsequent fiscal year specified in that regulation.
Transition — annual service plan
31 In respect of the annual service plan for the first fiscal year,
(a)	the estimate referred to in section 22 (2) (a) is that approved by Treasury Board for the first fiscal year, and
(b)	the auditor general need only make reasonable efforts to fulfill the requirements of section 22 (2) (b).
Transition — preparation and audit of financial statements
32 (1)	Section 10 (1) does not apply until the end of the first fiscal year.
(2)	In respect of the first fiscal year, "For each fiscal year" in section 10 (1) must be read as "For the first fiscal year".
(3)	Subject to subsection (4) of this section, section 10 (2) does not apply until financial statements in respect of the fiscal year after the first fiscal year are prepared by the auditor general.
(4)	An auditor appointed by the minister in accordance with subsection (3) of this section must, in addition to auditing the financial statements for the fiscal year after the first fiscal year, audit the financial statements prepared in respect of a year prior to that fiscal year.
(5)	The financial statements prepared for the first fiscal year must address the remaining portion, if any, on the coming into force of section 10, of the fiscal year beginning April 1, 2011 and ending March 31, 2012, or, if a subsequent fiscal year is specified by regulation under section 35 (1), the fiscal year or the remaining portion of the fiscal year prior to the fiscal year specified in that regulation.
Transition — annual report of the auditor general
33 (1)	Section 25 (1) does not apply until the end of the first fiscal year.
(2)	In respect of the first fiscal year, "the previous fiscal year" in section 25 (1) must be read as "the first fiscal year".
(3)	Despite section 25 (2), the financial statements included in the annual report in respect of the first fiscal year need not be audited financial statements.
(4)	The annual report prepared for the first fiscal year must address the remaining portion, if any, on the coming into force of section 25, of the fiscal year beginning April 1, 2011 and ending March 31, 2012, or, if a subsequent fiscal year is specified by regulation under section 35 (1), the remaining portion of the fiscal year prior to the fiscal year specified in that regulation.
Transition — meetings of audit council
34 Section 21 (2) does not apply until the first full fiscal year after section 21 comes into force.
35 (1)	The Lieutenant Governor in Council may specify, by regulation, a subsequent fiscal year to replace the fiscal year beginning April 1, 2012 and ending March 31, 2013 for the purposes of the definition of "first fiscal year" in section 30.
(2)	Despite this Act, the Lieutenant Governor in Council may make regulations
(a)	respecting a matter that the Lieutenant Governor in Council considers is not provided for, or is not sufficiently provided for, in this Act,
(b)	that the Lieutenant Governor in Council considers necessary or advisable for the purposes of more effectively bringing this Act into operation, and
(c)	resolving errors, inconsistencies or ambiguities in this Act that arise in bringing this Act into operation.
(3)	Without limiting subsection (2) and despite an Act referred to in this subsection, the Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers necessary or advisable for the purposes of preventing, minimizing or otherwise addressing transitional difficulties encountered in bringing this Act into operation, including provisions that provide an exception to or modification of a provision in this Act, the Community Charter, the Local Government Act, the Vancouver Charter, the Greater Vancouver Sewerage and Drainage District Act and the Greater Vancouver Water District Act.
(4)	A regulation made under subsection (2) or (3) may be made retroactive to a date on or after the date that this section comes into force, and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.
(5)	To the extent of a conflict or an inconsistency between a regulation under subsection (2) or (3) and another enactment, the regulation prevails.
(6)	A regulation under subsection (2) or (3) ceases to have effect at the end of the last day of the next session of the Legislative Assembly after the regulation is made.
(7)	Subsections (2) to (6) are repealed 2 years after this section comes into force.
36	Section 90 (2) of the Community Charter, S.B.C. 2003, c. 26, is amended by adding the following paragraph:
(e)	a review of a proposed final performance audit report for the purpose of providing comments to the auditor general on the proposed report under section 23 (2) of the Auditor General for Local Government Act.
37	Section 3 of the Freedom of Information and Protection of Privacy Act, R.S.B.C. 1996, c. 165, is amended
(c.2)	subject to subsection (4), a record that is created by or for, or is in the custody or control of, the auditor general appointed under the Auditor General for Local Government Act and that relates to the exercise of his or her functions under that Act; , and
(4)	The sections referred to in subsection (3) apply to the auditor general appointed under the Auditor General for Local Government Act, employees appointed under that Act and, in relation to service providers to the auditor general, the employees and associates of those service providers, as if the auditor general and his or her office were public bodies.
38	Schedule 2 is amended by adding the following:
Public Body: Audit Council (Auditor General for Local Government Act)
Public Body: Office of the Auditor General for Local Government
Head: Auditor General for Local Government .
39	Section 1 (1) of the Public Service Labour Relations Act, R.S.B.C. 1996, c. 388, is amended in the definition of "employee" by adding the following paragraph:
(hh)	a member of the staff of the Auditor General for Local Government under the Auditor General for Local Government Act.
40	Section 165.2 (2) of the Vancouver Charter, S.B.C. 1953, c. 55, is amended by adding the following paragraph:
41 This Act comes into force by regulation of the Lieutenant Governor in Council.