Summary of Activities 2020/21

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Summary of Activities 2020/21 Select Standing Committee on Public Accounts SUMMARY OF ACTIVITIES 2020/21 June 2021 Second Session, 42nd Parliament June 3, 2021 To the Honourable Legislative Assembly of the Province of British Columbia Honourable Members: I have the honour to present herewith the First Report of the Select Standing Committee on Public Accounts for the Second Session of the 42nd Parliament titled, Summary of Activities 2020/21. This report summarizes the work of the Committee from December 16, 2020 to March 31, 2021. Respectfully submitted on behalf of the Committee, Mike Bernier, MLA Chair CONTENTS Composition of the Committee 4 Terms of Reference 5 The Work of the Committee 6 Financial Statement Audit Coverage Plan 8 Committee Review of the Auditor General’s Information and Audit Reports 11 Information Report: Summary of COVID-19 Pandemic Funding Allocations and Other Financial Relief Measures (September 2020) 11 Audit Report: Oversight of International Education Programs in Offshore and Group 4 Schools (January 2021) 13 Audit Report: IT Asset Management in B.C. Government (January 2021) 15 Appendix A: Work Completed by the Previous Committee 17 Select Standing Committee on Public Accounts, Summary of Activities 2020/21 3 COMPOSITION OF THE COMMITTEE Members Mike Bernier, MLA, Chair Andrew Mercier, MLA Peace River South Langley Rick Glumac, MLA, Deputy Chair Niki Sharma, MLA Port Moody-Coquitlam Vancouver-Hastings Brittny Anderson, MLA Mike Starchuk, MLA Nelson-Creston Surrey-Cloverdale Bruce Banman, MLA Jackie Tegart, MLA Abbotsford South Fraser-Nicola Dan Coulter, MLA Chilliwack Committee Staff Jennifer Arril, Clerk of Committees Ron Wall, Manager, Committee Research Services Lisa Hill, Committee Research Analyst Mary Newell, Administrative Coordinator Stephanie Raymond, Committees Assistant Select Standing Committee on Public Accounts, Summary of Activities 2020/21 4 TERMS OF REFERENCE On December 9, 2020, the Legislative Assembly agreed a. appoint of its number one or more subcommittees that all reports of the Auditor General of British Columbia and to refer to such subcommittees any of the transmitted to the Speaker of the Legislative Assembly be matters referred to the Committee and to delegate to deemed referred to the Select Standing Committee on Public the subcommittees all or any of its powers except the Accounts. For greater certainty, the following exceptions are power to report directly to the House; provided: b. sit during a period in which the House is adjourned, a. the report referred to in section 22 of the Auditor during the recess after prorogation until the next General Act (S.B.C. 2003, c. 2) shall be referred following Session and during any sitting of the to the Select Standing Committee on Finance and House; Government Services; and c. adjourn from place to place as may be convenient; b. reports of the Auditor General respecting the and Legislative Assembly prepared under the provisions d. retain personnel as required to assist the Committee of the Legislative Assembly Management Committee Act (R.S.B.C. 1996, c. 258) shall be referred to the and shall report to the House as soon as possible, or following Legislative Assembly Management Committee. any adjournment, or at the next following Session, as the case may be; to deposit the original of its reports with the Clerk of That the Select Standing Committee on Public Accounts be the Legislative Assembly during a period of adjournment, and the Committee referred to in sections 6, 7, 10, 13 and 14 of upon resumption of the sittings of the House, the Chair shall the Auditor General Act (S.B.C. 2003, c. 2). present all reports to the Legislative Assembly. That, in addition to the powers previously conferred upon the Select Standing Committees of the House, the Select Standing Committee on Public Accounts be empowered to: Select Standing Committee on Public Accounts, Summary of Activities 2020/21 5 THE WORK OF THE COMMITTEE The Select Standing Committee on Public Accounts (the programs. The Committee also considered and approved the Committee) is established by the Legislative Assembly and OAG’s Financial Statement Audit Coverage Plan for fiscal supports public sector oversight through its review and years ending in 2022, 2023 and 2024. OAG reports are consideration of the Office of the Auditor General’s (OAG) available at: http://www.bcauditor.com/ financial and performance audit reports. The Committee To support Members elected in the October 2020 provincial further promotes ongoing accountability and improvement general election, the Legislative Assembly organized a of public sector administration through its follow-up process series of orientation sessions, including briefings on the which requires audited organizations to submit an annual work of parliamentary committees and British Columbia’s status report to the Committee outlining progress made on nine statutory officers, such as the Auditor General. In implementing OAG report recommendations. The Committee January 2021, Committee Members held an informal is also required under the Auditor General Act to consider orientation session to receive briefings from the Clerk to and approve the OAG’s annual Financial Statement Audit the Committee and Parliamentary Committees Office staff, Coverage Plan for the upcoming three fiscal years. the Auditor General and staff, and the Comptroller General. This report summarizes the Committee’s activities from The orientation session included information on the role of December 16, 2020 to March 31, 2021. At the first meeting public accounts committees in parliamentary democracies of the First Session of the 42nd Parliament, the Committee and the unique role of the Committee in contributing to elected the Chair and Deputy Chair and established a the Legislative Assembly’s scrutiny of the administration of Subcommittee on Agenda and Procedure, consisting of the government programs and services, as well as government Chair, the Deputy Chair and two Members, representing the spending. government and official opposition caucuses. The Committee Minutes and transcripts of Committee meetings, OAG met a total of five times and reviewed three OAG information reports and other meeting documents are available on the and audit reports covering the government’s administration Committee’s website at: https://www.leg.bc.ca/cmt/pac of programs related to the COVID-19 pandemic, information technology asset management within select government ministries, and the oversight of international education Select Standing Committee on Public Accounts, Summary of Activities 2020/21 6 Meeting Schedule The Committee met on the dates noted below to conduct the following business: December 16, 2020 • Election of Chair and Deputy Chair • Appointment of Subcommittee on Agenda and Procedure January 21, 2021 • Informal Orientation Session February 8, 2021 • Review of Financial Statement Audit Coverage Plan • Financial Statement Audit Coverage Plan for fiscal years ending in 2022, 2023 and 2024 (February 2021) March 8, 2021 • Review of Auditor General Report • Summary of COVID-19 Pandemic Funding Allocations and Other Financial Relief Measures (September 2020) March 31, 2021 • Review of Auditor General Reports • IT Asset Management in B.C. Government (January 2021) • Oversight of International Education Programs in Offshore and Group 4 Schools (January 2021) Select Standing Committee on Public Accounts, Summary of Activities 2020/21 7 FINANCIAL STATEMENT AUDIT COVERAGE PLAN The Committee considered the Auditor General’s proposed work of the OAG and private sector auditors. The plan meets Financial Statement Audit Coverage Plan for fiscal years professional requirements for audit coverage under generally ending in 2022, 2023 and 2024 at its February 8, 2021 accepted auditing standards and allows the Auditor General meeting. Section 10 of the Auditor General Act requires to sign an audit opinion on the acceptability of the Summary that each year the Auditor General prepare and submit to Financial Statements. The plan typically involves the direct a parliamentary committee of the Legislative Assembly for audit by OAG officials of government ministries and a rotation approval a plan for the next three fiscal years for its audit of of in-depth OAG involvement across other public sector the provincial Summary Financial Statements, which cover organizations given the OAG’s limited audit resources. the financial statements of all government entities, including The plan provides for three levels of proposed OAG Crown corporations, school districts, universities, colleges, and involvement in audit coverage. The first level of low, or health organizations as well as trust funds. The plan sets out “limited,” OAG involvement is carried out by private sector how the Office of the Auditor General (OAG) will undertake auditors, and applies to 113 organizations in 2021/22, this work and identifies auditing that will be done directly by 110 organizations in 2022/23 and 109 organizations in OAG officials and areas where private sector contractors will 2023/24 – including most school boards, colleges, and be engaged to provide audit support services. The Assembly employer associations. The second level of moderate, or has designated the Select Standing Committee on Public “oversight,” OAG coverage involves private sector auditors Accounts as the Committee for this purpose. conducting audits with OAG oversight – this level covers 19 organizations for 2021/22, 22 organizations in 2022/23 and Summary of Proposed Plan 24 organizations
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