Third Session – Forty-Second Legislature of the Legislative Assembly of Manitoba Standing Committee on Public Accounts Chairperson Mr. Jim Maloway Constituency of Elmwood Vol. LXXV No. 1 - 6 p.m., Wednesday, October 14, 2020 ISSN 0713-9462 MANITOBA LEGISLATIVE ASSEMBLY Forty-Second Legislature Member Constituency Political Affiliation ADAMS, Danielle Thompson NDP ALTOMARE, Nello Transcona NDP ASAGWARA, Uzoma Union Station NDP BRAR, Diljeet Burrows NDP BUSHIE, Ian Keewatinook NDP CLARKE, Eileen, Hon. Agassiz PC COX, Cathy, Hon. Kildonan-River East PC CULLEN, Cliff, Hon. Spruce Woods PC DRIEDGER, Myrna, Hon. Roblin PC EICHLER, Ralph, Hon. Lakeside PC EWASKO, Wayne Lac du Bonnet PC FIELDING, Scott, Hon. Kirkfield Park PC FONTAINE, Nahanni St. Johns NDP FRIESEN, Cameron, Hon. Morden-Winkler PC GERRARD, Jon, Hon. River Heights Lib. GOERTZEN, Kelvin, Hon. Steinbach PC GORDON, Audrey Southdale PC GUENTER, Josh Borderland PC GUILLEMARD, Sarah, Hon. Fort Richmond PC HELWER, Reg, Hon. Brandon West PC ISLEIFSON, Len Brandon East PC JOHNSON, Derek Interlake-Gimli PC JOHNSTON, Scott Assiniboia PC KINEW, Wab Fort Rouge NDP LAGASSÉ, Bob Dawson Trail PC LAGIMODIERE, Alan Selkirk PC LAMONT, Dougald St. Boniface Lib. LAMOUREUX, Cindy Tyndall Park Lib. LATHLIN, Amanda The Pas-Kameesak NDP LINDSEY, Tom Flin Flon NDP MALOWAY, Jim Elmwood NDP MARCELINO, Malaya Notre Dame NDP MARTIN, Shannon McPhillips PC MOSES, Jamie St. Vital NDP MICHALESKI, Brad Dauphin PC MICKLEFIELD, Andrew Rossmere PC MORLEY-LECOMTE, Janice Seine River PC NAYLOR, Lisa Wolseley NDP NESBITT, Greg Riding Mountain PC PALLISTER, Brian, Hon. Fort Whyte PC PEDERSEN, Blaine, Hon. Midland PC PIWNIUK, Doyle Turtle Mountain PC REYES, Jon Waverley PC SALA, Adrien St. James NDP SANDHU, Mintu The Maples NDP SCHULER, Ron, Hon. Springfield-Ritchot PC SMITH, Andrew Lagimodière PC SMITH, Bernadette Point Douglas NDP SMOOK, Dennis La Vérendrye PC SQUIRES, Rochelle, Hon. Riel PC STEFANSON, Heather, Hon. Tuxedo PC TEITSMA, James Radisson PC WASYLIW, Mark Fort Garry NDP WHARTON, Jeff, Hon. Red River North PC WIEBE, Matt Concordia NDP WISHART, Ian Portage la Prairie PC WOWCHUK, Rick Swan River PC 1 LEGISLATIVE ASSEMBLY OF MANITOBA THE STANDING COMMITTEE ON PUBLIC ACCOUNTS Wednesday, October 14, 2020 TIME – 6 p.m. Auditor General's Report – Follow-up of LOCATION – Winnipeg, Manitoba Recommendations, dated May 2016 Personal Injury Protection Plan CHAIRPERSON – Mr. Jim Maloway (Elmwood) Appointment Process to Agencies, Boards VICE-CHAIRPERSON – Mr. Andrew Smith and Commissions (Lagimodière) * * * ATTENDANCE – 11 QUORUM – 6 Members of the Committee present: Mr. Chairperson: Good evening. Will the Standing Committee on Public Accounts please come to order. Mr. Johnston, Ms. Lamoureux, Messrs. Lindsey, Maloway, Michaleski, Mses. Morley-Lecomte, This meeting has been called to consider the Naylor, Messrs. Smith, Teitsma, Wasyliw, following reports: No. 1, Auditor General's Report, Wishart Operations of the Office for the year ended March 31, 2017; Auditor General report, Operations of the Substitutions: Office for the fiscal year ending March 31, 2018; Ms. Lamoureux for Mr. Lamont Auditor General's Report, Operations of the Office for WITNESSES: the fiscal year ending March 31, 2019; Auditor Tyson Shtykalo, Auditor General General's Report, Operations of the Office for the fiscal year ending March 31, 2020; Auditor General's MATTERS UNDER CONSIDERATION: Report, Operations of the Office–Strategic Priorities Auditor General's Report–Operations of the Plan for 2019-20 and 2021-22; Auditor General's Office for the fiscal year ending March 31, 2017 Report, Follow-up of Previously Issued Recommendations, dated May 2014, Section 17– Auditor General's Report–Operations of the Personal Injury Protection Plan; Auditor General's Office for the fiscal year ending March 31, 2018 Report, Follow-up of Previously Issued Auditor General's Report–Operations of the Recommendations, dated May 2015, Section 4– Office for the fiscal year ending March 31, 2019 Appointment Process to Agencies, Boards and Auditor General's Report–Operations of the Commissions, Section 7–Personal Injury Protection Office for the fiscal year ending March 31, 2020 Plan, Section 15–Manitoba eHealth Procurement of Contractor; Auditor General report, follow-up Auditor General's Report–Operations of the recommendations–Follow-up of Recommendations, Office–Strategic Priorities Plan for 2019/20 and dated May 2016, Personal Injury Protection Plan, 2021/22 Appointment Process to Agencies, Boards and Auditor General's Report – Follow-up of Commissions. Previously Issued Recommendations, dated May 2014 Committee Substitution Section 17–Personal Injury Protection Plan Mr. Chairperson: Before we begin, I would like to inform the committee that the House has granted leave Auditor General's Report – Follow-up of for the substitution of Ms. Lamoureux for Mr. Lamont Previously Issued Recommendations, dated for tonight's meeting. May 2015 Section 4–Appointment Process to Agencies, * * * Boards and Commissions Mr. Chairperson: Are there any suggestions from Section 7–Personal Injury Protection Plan the committee as to how long we should sit this evening? Section 15–Manitoba eHealth Procurement of Contractor Ms. Lisa Naylor (Wolseley): Two hours. 2 LEGISLATIVE ASSEMBLY OF MANITOBA October 14, 2020 Mr. Chairperson: Two hours. That's 'til 8 o'clock administrative and performance issues discussed in then. our reports are properly resolved. Is there agreement, then, to sit 'til 8 o'clock? My office is dedicated to producing audits that Agreed? [Agreed] support the Legislative Assembly's efforts at ensuring I believe there was a prior agreement that this resources are properly accounted for and that public committee complete consideration of the following monies are spent with due regard to value for money. items without debate: Auditor General's Report, One of our strategic priorities is to focus our audit Follow-up of Previously Issued Recommendations, work to maximize its value to the Assembly. This dated May 2014, Section 17–Personal Injury includes ensuring our financial statement audit Protection Plan; Auditor General's Report, Follow-up resources are focused on a more strategic mix of of Previously Issued Recommendations, dated May entities. Many of the financial statements–audits that 2015, Section 4–Appointment Process to Agencies, we perform–are due to legislative requirement rather Boards and Commissions, Section 7–Personal Injury than importance or significance within the govern- Protection Plan, Section 15–Manitoba eHealth ment reporting entity. We are developing an action Procurement of Contractor; Auditor General's plan to move toward a more optimal mix of financial Report–Follow-up of Recommendations, dated May statement audits. 2016, Personal Injury Protection Plan, Appointment Another one of our priorities is to strengthen Process to Agencies, Boards and Commissions. office operations. In support of this, we've made a Does the committee agree to complete the number of enhancements in recent years. We've consideration of these sections? [Agreed] created a new organizational structure that includes three assistant auditor generals and new audit director Are there any suggestions as to the order in which positions; we've created and filled the positions of we should consider the remaining reports on today's director of corporate services and manager of agenda? communications; we've strengthened our security Mr. Mark Wasyliw (Fort Garry): Global. practices, including physical and cybersecurity controls. Mr. Chairperson: Global. We've also developed a secure portal to allow Does the Auditor General wish to make an internal and external individuals to securely share and opening statement? view sensitive documents; we have improved and Mr. Tyson Shtykalo (Auditor General): First I'd updated our website, making our reports easily like to introduce the staff members that I have with me accessible and searchable; and we've reviewed and today. updated our audit methodologies to ensure that they're consistent with professional standards and enhanced I have Stacey Wowchuk, who's the assistant our internal quality assurance practices. auditor general for Performance Audit; Frank Landry who is our manager of communications; and Maria Mr. Chair, it is a priority for me and my office to Capozzi, director of governance audit. support the Public Accounts Committee in its efforts to improve the performance of government Mr. Chair, as discussed in our recent Operations organizations. My office assists in providing of the Office reports, we continue to focus our orientation and development sessions for PAC attention on areas of strategic importance to the members. We also work with the Canadian Audit and Legislative Assembly through our audit work and our Accountability Foundation to provide sessions on reports. We believe that by providing quality products improving committee practices. and services to the Assembly, we are contributing towards the following desired outcomes: (1) high- To assist the Public Accounts Committee in its performing government organizations; (2) perform- efforts to modernize its practices, we updated a 2017 ance and accountability reports from government analysis that compares and contrasts the rules and organizations that are meaningful and user friendly; practices of Manitoba's PAC to those of other and (3) a well-informed Public Accounts Committee Canadian jurisdictions. This analysis highlights that endorses our recommendations and effectively