Report of Auditor General Released to Public

The following is a statement released today by Auditor General Roy Salmon:

"My auditor's report on the province's March 31, 1999, financial statements is included as page nine of the Public Accounts, Volume I, released publicly today by government.

"Government's decision in September 1999 to move to generally accepted accounting principles as a basis of accounting was significant, and has or will remove a number of long-standing concerns relating to the completeness of the province's financial reporting. Improvements made to the province's financial statements for the year ended March 31, 1999, have resulted in the province's financial position and annual results being accounted for and reported more completely and appropriately than in the past.

"The implementation of many of the changes for the March 31, 1999, financial statements afforded staff at the Department of the Finance and at the Auditor General's office an interesting and at times complex challenge during the fall of 1999. The commitment and effort of the staff involved are acknowledged. The results of their contribution and sacrifice, especially in terms of additional hours and effort, should represent a lasting legacy in terms of improved financial reporting by government.

"Certain issues or concerns remain to be resolved during the preparation of the province's March 31, 2000, financial statements. For example, the accounting for post-employment benefits, including pension costs and obligations, is to be subject to more study or analysis. Further, standards and practices for accounting and financial reporting are not static. They have and will continue to change, and this will impact upon what constitutes appropriate financial accounting and reporting for provincial governments. In this regard, the Department of Finance recognizes the need to consider emerging issues, and it has a strategy in place to deal with such topics appropriately.

"As a result of amendments to the Provincial Finance Act and the Auditor General Act passed in June 1998, the auditor general audits and reports to the House of Assembly on the province's annual financial statements beginning with the year ended March 31, 1999."