Report Released to House of Assembly
Auditor General Jacques Lapointe made 29 recommendations to government with the release of his second report to the Nova Scotia House of Assembly today, Jan. 10.
The report includes eight chapters summarizing the audit work of his office during the second half of 2006.
The auditor general reports that he reviewed the government's revenue estimates included in the 2006-07 budget tabled on July 4, 2006, and included a reservation of opinion based on two factors: scope limitations from insufficient access to information; and a qualification for non-compliance with generally accepted accounting principles.
The auditor general's opinion on the province's March 31, 2006 consolidated financial statements was unqualified.
In his report, the auditor general notes that significant steps have been taken to move government's financial statements to full compliance with generally accepted accounting principles. However, he encourages the government to continue its efforts to achieve full compliance for both financial statements and the budget.
The auditor general noted two concerns about compliance with the Provincial Finance Act during his audit of the consolidated financial statements. One related to inconsistencies in the act affecting approvals for grant expenditures paid out during the final days of the 2005-06 year. The second related to government's undertaking to provide a financial commitment to the 2014 Commonwealth Games Bid Committee before the required review and approval. He also recommended that government work with his office to clarify the boundaries of access to information under the Auditor General Act.
During 2006, the auditor general, in partnership with the Department of Finance and the Public Service Commission, contracted a public accounting firm to audit the application controls in the human resources module of the government's corporate financial management (SAP) system. The auditors concluded that controls were not operating effectively during the audit period because of weaknesses in the level of access granted system users.
The Department of Health requested an examination of the support systems that report information to the department's wait times website. The auditor general reviewed three wait times with mixed results; some systems were adequate while others need improvement.
An audit of the correctional services division of the Department of Justice concluded that performance information is inadequate to assess the efficiency and effectiveness of the division's programs and services. It also identified a need to improve documentation and controls to improve compliance with policies in certain areas, including monitoring and enforcing community-based sentences and admittance and release procedures for intermittent sentences.
An audit of Department of Transportation and Public Works planning and management processes for highway projects identified a need to improve planning, information and management systems to support the effective selection of priority projects and to effectively manage road and bridge maintenance, construction and rehabilitation.
Chapter 7 reports the auditor general's follow up of government's progress on recommendations made by the previous auditor general in 2003. Of the 129 recommendations made in 2003, only 48 per cent had been implemented. Another 34 per cent are in progress.
The auditor general encourages the government to address the slow progress and implement the remaining recommendations as quickly as practical. To encourage timely implementation of recommendations, the auditor general will now follow up on progress after two years.
The final chapter includes comments on the annual review of financial statements and management letters of government entities. Some are audited by the auditor general and some by private-sector auditors.
The auditor general notes that some report findings may have broader application. For example, deficiencies were found in some areas in the quality of information used to measure and monitor operational performance. Good performance information is needed throughout government to ensure senior management and governing bodies are able to fulfill their governance responsibilities.
The full December 2006 Report of the Auditor General to the Nova Scotia House of Assembly is available on the auditor general's website at www.gov.ns.ca/audg/ or by contacting the Office of the Auditor General at 902-424-5907 or [email protected] .
The auditor general plans to issue his next report in June. It will include the results of audits completed during the first half of 2007.