Amendments Tighten Financial Control on School Boards

Finance Minister Neil LeBlanc today introduced legislation that deals with reporting requirements for Nova Scotia's school boards. Changes to the Financial Measures Act will tighten financial controls and accountability for all boards, which spend more than three-quarters of a billion dollars every year.

All school boards will be required to have audit committees with financial expertise. These committees will ensure that appropriate accounting measures are used and that finances are fully reported. There is also a requirement to broaden board reporting as well as external audit functions to include review of all payments to board members and senior management.

"Board involvement in commercial enterprises outside of education will be restricted so that money meant for the classroom is not spent elsewhere," said Mr. LeBlanc. "Children must get the full benefit of every public education dollar. Our goal is to make the education system more accountable to parents, students and taxpayers, so children's classroom education cannot be compromised."

Changes to this act will also allow government to take over a board right away if it mismanages its finances.

"The way the current act reads is like saying money has to be squandered twice before government can take action," the minister said.

The changes are designed to get a system that is more responsible, accountable and focused on the needs of students, the minister added.

Some of the measures introduced in yesterday's provincial budget require changes to existing legislation, and these changes will be covered by amendments to the Financial Measures Act.