BILL NO. 8

1st Session, 57th General Assembly
Nova Scotia
47 Elizabeth II, 1998

Private Member's Bill

Auditor General Act and
Provincial Finance Act
(amended)

John F. Hamm, M.D.
Pictou Centre

First Reading: June 2, 1998

(Explanatory Note)

Second Reading: June 10, 1998

Third Reading: June 26, 1998 (WITH COMMITTEE AMENDMENTS)

Royal Assent: June 29, 1998

This Bill transfers responsibility for the annual examination and audit of the accounts of the Province from a chartered accountant or accountants appointed by the Governor in Council to the Auditor General.

Be it enacted by the Governor and Assembly as follows:

1 Chapter 28 of the Revised Statutes, 1989, the Auditor General Act, is amended by repealing Section 9 and substituting the following Sections:

9 (1) The Auditor General shall report annually to the House of Assembly on the financial statements of the Government that are included in the public accounts required under Sections 9 and 10 of the Provincial Finance Act, respecting the fiscal year then ended.

(2) The report forms part of the public accounts and shall state

(a) whether the Auditor General has received all of the information and explanations required by the Auditor General; and

(b) whether in the opinion of the Auditor General, the financial statements present fairly the financial position, results of operations and changes in financial position of the Government in accordance with the stated accounting policies of the Government and as to whether they are on a basis consistent with that of the preceding year.

(3) Where the opinion of the Auditor General required by this Section is qualified, the Auditor General shall state the reasons for the qualified opinion.

9A (1) The Auditor General shall report annually to the House of Assembly and may make, in addition to any special report made pursuant to this Act, not more than two additional reports in any year to the House of Assembly on the work of the Auditor General's office and shall call attention to every case in which the Auditor General has observed that

(a) any officer or employee has wilfully or negligently omitted to collect or receive any public money belonging to the Province;

(b) any public money was not duly accounted for and paid into the Consolidated Fund of the Province;

(c) any appropriation was exceeded or was applied to a purpose or in a manner not authorized by the Legislature;

(d) an expenditure was not authorized or was not properly vouched or certified;

(e) there has been a deficiency or loss through fraud, default, or mistake of any person;

(f) a special warrant, made pursuant to the provision of the Provincial Finance Act, authorized the payment of money; or

(g) money that is authorized to be expended by the Legislature has not been expended with due regard to economy and efficiency.

(2) The annual report of the Auditor General shall be laid before the House of Assembly on or before December 31st of the calendar year in which the fiscal year to which the report relates ends or, if the House is not sitting, it shall be filed with the Clerk of the House.

(3) Where the Auditor General proposes to make an additional report, the Auditor General shall send written notice to the Speaker of the House of Assembly thirty days in advance of its tabling or filing pursuant to subsection (2).

(4) Whenever a case of the type described in clause (1)(a), (b) or (e) comes to the attention of the Auditor General, the Auditor General shall forthwith report the circumstances of the case to the Minister.

(5) The Auditor General shall, as soon as practical, advise the appropriate officers or employees of an agency of Government of any significant matter discovered in an audit.

(6) Notwithstanding subsection (1), the Auditor General is not required to report to the House of Assembly on any matter that the Auditor General considers immaterial or insignificant.

9B The Auditor General shall annually review the estimates of revenue used in the preparation of the annual budget address of the Minister of Finance to the House of Assembly and the opinion of the Minister of Finance on the reasonableness of the revenue estimates and the annual review shall be tabled on the day on which the Minister of Finance tables the annual estimates.

2 Sections 65 and 65A of Chapter 365 of the Revised Statutes, 1989, the Provincial Finance Act, are repealed.

3 This Act applies to the 1999-2000 and subsequent fiscal years.