Auditor General #2

NS: Auditor blasts government for deficiencies, policy of secrecy
By Staff, Transcontinental Media

Source: The Daily Business Buzz, June 2, 2010

[HALIFAX, NS] — Today, auditor general Jacques Lapointe released a five-chapter report covering audits completed in the fall of 2009 and winter 2010. In it, he cited some serious deficiencies in the operations of government, but his harshest criticism was directed at what he called “government’s pervasive policy of secrecy — consistently hiding information from the Office of the Auditor General.”

The government withheld more than 200 documents related to business loans and other financial assistance provided through Nova Scotia Business Inc. (NSBI) and the Industrial Expansion Fund (IEF), citing cabinet confidentiality and solicitor-client privilege.

In response, Lapointe denied an opinion on his audit of the operations of NSBI and the IEF, and pointed out that denial of an audit opinion is the most severe audit sanction available to him.

“We have no way of knowing whether these two financial entities — responsible for the distribution of millions of dollars of loans and other financial aid and incentives — have appropriate financial or program controls in place to protect the public funds they disburse or are operating in compliance with legislation, regulations and policies.”

A second audit covered in the report was hampered by the same restrictions on information, Lapointe said. The Department of Health, under instruction from the Executive Council Office, refused to provide information on budget requests related to mental health services.

The auditor general also said the Health Department is failing its legislative responsibility to monitor and evaluate the quality of mental health services across the province and has no plan to achieve compliance with its own mental health service standards.

His report concludes that the lack of effective oversight and the failure to comply with standards significantly increase the risk of creating a disjointed mental health care system that fails the people who need it most.

The Department of Health accepted all 19 recommendations the auditor general made to improve mental health care services. However, Lapointe said the government has a poor record in implementing his recommendations.

Of 82 recommended efficiencies and service improvements the auditor general made in his June 2007 report, the government has implemented just 27 per cent.

“This is the worst performance since we began tracking government response to our recommendations in 2002.”

The Department of Health figured prominently in that June 2007 report and was the subject of 48 recommendations of which 13 have been implemented, leaving 34, or 71 per cent, outstanding.

The June 2010 report included the results of an audit of the Environment Department’s management of contaminated sites across the province, and concluded that the risks associated with these sites are not being adequately managed to protect the public interest.

“The department is aware of sites that may pose a risk, but has taken no action to deal with them and it is aware of sites that have not been cleaned up that may pose an unacceptable risk to third parties, health or the environment. We made 17 recommendations to correct flaws and improve the management of environmental and health risks.”

The complete report and related documents are available online at www.oag-ns.ca .

Auditor General #1

NS: Province agrees to give auditor general more access
By Staff, Transcontinental Media

Source: The Daily Business Buzz, June 2, 2010

[HALIFAX, NS] — In response to the auditor general’s report released today, Finance Minister Graham Steele says the province plans to introduce legislation this fall that will provide the auditor general with more access to government documents protected by cabinet and solicitor-client privilege.

“Clearly, the government and the auditor general both want the same thing,” said Steele. “This is a complex issue that will take time to resolve. Discussions with the auditor general will continue this summer with the goal of introducing legislation in the fall. That legislation will allow the auditor general to access the documents he requires to complete his audits.”

Steele said the government wants to provide the access sought by the auditor general while, at the same time, putting in place protections that ensure the auditor general cannot be compelled to release cabinet documents and information protected by solicitor-client privilege to outside parties.

“We will ensure that the auditor general can effectively and efficiently carry out his duties under the act while at the same time protecting the ability of cabinet, departments and government agencies, boards and commissions to receive the best advice.”

The government plans to adopt a similar approach to other jurisdictions to ensure the auditor general has access to information. This will be accomplished through a limited waiver that extends cabinet and solicitor client privilege to the auditor general. This approach will ensure the auditor general is not compelled to release privileged documents.