AUDITOR OFFERS SOUND ADVICE ON SPENDING ACCOUNTABLITY

Government Accepts Recommendations, Including Call for Review

The government of Saskatchewan today announced it has received the Provincial Auditor's advice on Bills 31 and 32, and will begin the process that has been outlined.

Bills 31 and 32 deal with the criteria for approval of payments under Orders in Council.

"I would like to thank the Provincial Auditor for looking into this issue and providing his advice to the Government of Saskatchewan," Justice Minister Don Morgan said. "Mr. Wendell suggests we begin with a formal risk assessment, and I think that's a good suggestion. So, I've asked KPMG to assist us with this task."

The Auditor's memorandum notes that while government is accountable for all spending, Cabinet by itself cannot possibly examine and approve all payments. In surveying other Western provinces and Ontario, the Auditor found that Saskatchewan is alone in requiring Cabinet approval for grants and non-routine contracts greater than a specified threshold.

The Auditor's memorandum recommends that:

• Government do a formal risk assessment to set the thresholds for Order in Council approval for payments;
• Government amend Bills 31 and 32 to require a Minister's Order for all payments related to contracts and grants that currently require Order in Council approval (i.e., payments between $50,000 and $350,000); and
• Government make Minister's Orders for contracts and grants public promptly by, for example, publishing them in the Saskatchewan Gazette or making them available to the public at the Ministry of the Executive Council, similar to the current process for OCs.

Morgan indicated that the government is reviewing the Auditor's report but is proceeding with the first recommendation to undertake a formal financial risk assessment for Order in Council approval for payments report. This risk assessment will allow the government to determine the threshold at which transactions are significant enough to require the prior approval of Cabinet.

"We want our decision making process to strike the right balance between efficiency and complete transparency as to the expenditure of tax dollars," Morgan said.

A copy of the report is available online at http://www.gov.sk.ca/adx/aspx/adxGetMedia.aspx?mediaId=569&PN=Shared.

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For more information, contact:

Kathy Young
Executive Council
Regina
Phone: 306-787-0425
Email: kathy.young@gov.sk.ca
Cell: 306-526-8927