Semi-annual Report Issued
The province can do a better job protecting members of private pension plans and people who ride buses, and providing home care to Nova Scotians, according to Auditor General Jacques Lapointe, who tabled his semi-annual report in the legislature today, Nov. 19.
Mr. Lapointe said his office's audit of the provincial pension regulation division concluded that its current processes are not a sufficiently effective safeguard for more than 102,000 Nova Scotian workers and retirees who are members of private sector, not-for-profit and municipal pension plans.
He said in order to fulfill its self-proclaimed mandate to safeguard employee entitlements to benefits promised under pension plans, the division needs to verify whether pension plan investment policies are prudent and to verify the value of plan assets, rather than rely on information provided by pension administrators, who are often the employers.
"In the current financial climate and in the context of waning investor confidence in markets, additional safeguards should be under active consideration," said Mr. Lapointe.
On the matter of bus safety, the auditor general said the Utility and Review Board's Motor Carrier Division is trying to keep track of inspection and safety information on an outdated computer system that dates back to the early 1990s.
In the past three years, 4,900 mechanical inspections on buses resulted in 3,100 vehicles being taken out of service until repairs were done.
"That's a 63 per cent fail rate which suggests a more robust system of safety enforcement is in the interest of bus travelling Nova Scotians," said Mr. Lapointe.
The province's home health care program also came under scrutiny, and the auditor general concluded that the Health Department does not know whether Nova Scotians receiving health care at home are getting the services they should.
He recommended that the government's plan to transfer home care to the district health authorities by April 1 be put on hold until the province can develop a plan of action to address the many deficiencies.
Mr. Lapointe said that the Health Department has no system to monitor compliance with the letters of understanding it signs with agencies that provide in-home health services.
"Various strategies and plans from the Health Department cite home care as part of the answer to relieve pressure on other areas of the health care system. Yet home support providers are already citing staff shortages and an inability to keep up with demand," he said. "Meanwhile, evidence suggests wait lists for in-home services continue to grow."
Deficiencies in information, information technology systems and in internal government controls, including financial controls, were recurring themes in the report.
"Those types of problems were found in every audit reported, and are pervasive in outside audits into other government entities, said Mr. Lapointe.
"The risk of error, fraud and financial loss is clearly increased as a result of a lack of action to correct these problems. More importantly perhaps, sound decisions and good management of programs are unlikely when based on unreliable and inaccurate information."
The report contains 75 recommendations for corrective action, most of which have been accepted by the various branches of government under review. Mr. Lapointe said while that response is hopeful, the government's past performance in fixing problems uncovered by the auditor general is poor.
The full report is available on the auditor general's website at www.oag-ns.ca or by contacting the office at 902-424-4108 or <[email protected].>