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1999-2000 Issn 0228-314X

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1999-2000 Issn 0228-314X Annual Report of the Auditor General of Alberta 1999-2000 ISSN 0228-314X Mr. Paul Langevin, MLA Chair Standing Committee on Legislative Offices I have the honour to transmit herewith my Report to the Legislative Assembly for the fiscal year ended March 31, 2000, to be laid before the Legislative Assembly in accordance with the requirements of section 19(4) of the Auditor General Act. This is my sixth annual report to the Legislative Assembly and the twenty-second such report issued by the Auditor General of Alberta. [Original Signed by Peter Valentine] Peter Valentine, FCA Auditor General Edmonton, Alberta October 3, 2000 SECTION 1.................................................................................................................................... 1 Introductory Comments....................................................................................................................................... 1 SECTION 2.................................................................................................................................. 15 Cross-Government............................................................................................................................................. 15 Agriculture, Food and Rural Development ....................................................................................................... 31 Children’s Services............................................................................................................................................ 59 Community Development ................................................................................................................................. 77 Economic Development .................................................................................................................................... 85 Environment ...................................................................................................................................................... 89 Executive Council ........................................................................................................................................... 107 Gaming ............................................................................................................................................................ 111 Government Services....................................................................................................................................... 119 Health and Wellness........................................................................................................................................ 121 Human Resources and Employment................................................................................................................ 169 Infrastructure ................................................................................................................................................... 179 Innovation and Science.................................................................................................................................... 191 International and Intergovernmental Relations................................................................................................ 197 Justice .............................................................................................................................................................. 199 Learning .......................................................................................................................................................... 205 Legislative Assembly ...................................................................................................................................... 247 Municipal Affairs ............................................................................................................................................ 249 Resource Development.................................................................................................................................... 253 Treasury........................................................................................................................................................... 261 Section 12(b) Audits........................................................................................................................................ 287 SECTION 3................................................................................................................................ 289 Legislative Mandate ........................................................................................................................................ 289 Mission............................................................................................................................................................ 290 Reporting Process............................................................................................................................................ 292 Reservations in Audit Reports on Financial Statements.................................................................................. 293 Other Information Included in Audit Reports on Financial Statements .......................................................... 294 Report under Section 18 of the Auditor General Act....................................................................................... 295 Public Accounts............................................................................................................................................... 296 Accounting Principles and Auditing Standards............................................................................................... 296 APPENDICES ........................................................................................................................... 299 Office Operations ............................................................................................................................................ 299 Committees and Agents................................................................................................................................... 323 Staff ................................................................................................................................................................. 325 Explanation of Some Financial Terminology.................................................................................................. 327 Status Report of Recommendations ................................................................................................................ 331 Government’s response to 1998-99 recommendations.................................................................................... 335 Auditor General Act ........................................................................................................................................ 349 INDEX OF ENTITIES ............................................................................................................. 361 1999-2000 Report 1999-2000 Report Section 1 Introductory Comments Report For The Year Ended March 31, 2000 Purpose of Auditor General The purpose of the Annual Report of the Auditor General is to annual reports report on the scope and findings of the work carried out by the Office of the Auditor General. Annual Reports serve to assist legislators, in particular the Public Accounts Committee, in their work to hold the executive accountable for the management of public resources. For this reason, the Legislative Assembly provides resources to identify and report on those instances in which systems and business practices can be improved. By identifying opportunities and proposing solutions for the improved use of public resources, and by improving and adding credibility to performance reporting, including financial reporting, to Albertans, we assist government and public agencies in improving their performance. Scope of work The scope and extent of audit work completed for 1999-2000 and recommended improvements to the specific financial and management control systems examined by the Office are described in section 2 of this Report. For every financial statement audited, I have issued an Auditor’s Report. Section 3 provides information on those auditor’s reports that contained reservations or disclosed transactions that do not comply with legislation. As a consequence of our work, I am satisfied that those transactions and activities examined in financial statement audits complied, in all significant respects, with relevant legislative authorities, apart from the instances of non- compliance described in Section 3 of this Report. However, due to the test nature of our examinations, I must caution readers that it would be inappropriate to draw a conclusion with respect to the legislative compliance of all transactions entered into by government. Recommendations Recommendations are provided for the benefit of Public Accounts Committee members, ministers, other MLAs, the public, and management. When determining whether a matter is significant enough to bring to their attention, I consider the nature and materiality of the matter relative to the individual entity and to the government as a whole. 1999-2000 Report 1 Section 1 Introductory Comments This report contains 95 recommendations. Of these, the 49 recommendations that I consider particularly important and therefore warrant a formal government response are numbered.
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