Annual Report for 1997 Released

Auditor General Roy Salmon has released his annual report for 1997. As a result of an advancement in the deadline for tabling of the public accounts, the auditor general is now able to present his report on a more timely basis.

The report makes a number of positive comments on government initiatives to improve management processes and accountability reporting, particularly related to improvements in the financial statements and efforts to develop performance reporting. However, it also raises a number of issues that warrant action.

Controls over the procurement process continue to improve but there is a need for more formal reporting on procurement activities and exceptions.

Both the auditor general and the Finance Department have concerns regarding controls in the new Corporate Financial Management System, and they have contracted for an audit of it.

The report comments on the steps taken within government to address the year 2000 issue related to computerized systems but also identifies that much remains to be done if services are to be uninterrupted.

A number of concerns are raised regarding the implementation of public-private partnership (P3) arrangements for school construction. The government did not prepare a formal analysis of the advantages of P3 schools, in comparison with the traditional approach prior to making the decision to enter into these arrangements.

As well, the report notes that anticipated savings from school board amalgamation have not materialized and the deficits incurred by the Queen Elizabeth II Health Sciences Centre may have to be funded by the province.

Followups to previous audits identified that many recommendations had been addressed, particularly in debt management, the Department of Community Services and the Atlantic Lottery Corp.

However, agreement with the other Atlantic Lottery Corp. shareholders regarding a new profit-allocation methodology has not been achieved. As a result, Nova Scotia continues to receive less than its fair share.

Copies of the report are available at the Nova Scotia Government Bookstore, 1700 Granville St., Halifax, 1-800-526-6575 or 902-424-7580. Highlights are available on the Internet at http://www.gov.ns.ca/legi/audg/; the full report will also be at that website shortly.