N. — -,- • “Property .1 Le!fislatiye Assembly Office’! Vol. 4 3rd Session 25th Legislature YUKON LEGISLATIVE ASSE11BLY REPORT of the STANDING COMM I TTEE on PUBLIC ACCOUNTS 31 together with :3 S. - EVIDENCE March 1983 I p. Legislative Assembly Office Wh i tehorse L L•••: _ L__L c_zj — —---, — C C = = = = = = ED -‘-—4 ,1 :.*t: •: •--• ! • - •-----• . - •- -: - • .7- - . • U1. • -c - ) U’ J - -S • ..- C -- n* :1’ . ‘uIon ±e3iiEaLLus cu1smLfy Ron. Don Taylor, Speaker Yukon Legislative Assembly Box 2703 Whitehorse, Yukon Dear Mr. Speaker: I am pleased to present the Fourth Report of the Standing Committee on Public Accounts and hope it meets with the Assemblys approval Sincerely, Cha i rman Public Accounts Committee March, 1983 Vol 4 3rd Session 25th Legislature YUKON LEGISLATIVE ASSEMBLY REPORT of the STANDING COMMITTEE on PUBLIC ACCOUNTS together with EVIDENCE March.. 1983 Legislative Assembly Office Whi tehorse STANDING COMMITTEE ON PUBLIC ACCOUNTS Yukon Legislative Assembly Third Session 25th Legislature MEMBERS Tony Penikett, M.L.A. Whitehorse West C h a i .r ma n Bill Brewster, M.L.A. Kluane Vice - Chairman Maurice Byblow, M.L.A. # Faro Al Falle, M.L.A. Hootalinqua Hon. Bea Firth, M.L.A. * Whitehorse Riverdale South Staff Clerk to Committee Missy Follwell # Margaret Joe substituted for Maurice Byblow on February 7 and 8, 1983. * Andy Philipsen substituted for Bea Firth on February 1 and 10, 1983. Table of Contents PREFACE DEPARTMENT OF GOVERNMENT SERVICES Departmental Objectives 1 Inadequate Statistical Information 3 Government Reservations Office 4 Inadequate Statistical Information — Public Affairs 4 Project Management Procedures 5 Accuracy of Information in Public Documents 6 MATTERS ARISING FROM FORMAL HEARINGS Construction Projects 8 Transfer of Responsibilities and Funds 9 DEPARTMENT OF JUSTICE Estimates and Statistical Information 11 Departmental Documents 13 YUKON HOUSING CORPORATION Program Accountability and Reporting 15 Contract By—Law 17 Maintenance 18 Purchase and Inventory of Chemicals 19 STATUS OF PAC (1980) RECOMMENDATIONS 21 STATUS OF PAC (1981) RECOMMENDATIONS 22 STATUS OF PAC (1982) RECOMMENDATIONS 26 STATUS REPORT Financial Management System Projects 31 Auditor General ‘s Report “on any other matter” for year ended March 31, 1982 32 STATEMENT ON WITNESSES 35 — Memorandum to Deputy Ministers 36 SUMMARY OF RECOMMENDATIONS 1983 40 WITNESSES 1983 44 FORMAL HEARINGS: EVIDENCE APPENDICES 1) Written departmental responses to outstanding PAC matters 2) Auditor General of Canada report on ‘!any other matter” for the year ended March 31, 1982 3) Memo, Fuller to Vantell re: EDP Policy Manual — Government Services 4) Memo to PAC re: Property Management — Additional Requirements — Government Services 5) Memo to PAC re: Chargebacks (Property Management) — Government Services 6) Memo to PAC re: Public Affairs Bureau — Government Services 7) Regulations Respecting Financial Signing Authorities - Finance 8) Purchase of Chemicals — Yukon Housing Corporation 9) Haines Junction housing contract - Yukon Housing Corporation 10) Letter re: Departmental Objectives - Consumer and Corporate Affairs 11) Post—employment guidelines - Federal Government ci) PREFACE The Standing Committee on Public Accounts has held fourteen meetings since being appointed in July, 1982. During the Formal Hearings, February 1 — 11, 1983, officials were called from the Department of Government Services, the Department of Justice, and the Yukon Housing Corporation to account for the- financial management of their departments. As well, witnesses were called from the Departments of Municipal and Community Affairs, Finance, Consumer and Corporate Affairs, Highways and Transportation and Renewable Resources to discuss progress in implementing recommendations and undertakings from previous years or to consider matters arising from the report of the Auditor General on “any other matter”. - Two themes emerged from the 1983 Formal Hearings: Delegation of financial authority and accuracy of public information. This year the Committee found that delegation of financial authority continues to be a problem. There appears to be a lack of understanding throughout the departments regarding financial and managerial control. With regard to the accuracy of information in public documents, the Committee found that statistics reporting final figures were different in various documents. It would appear that publications such as departmental annual reports are not being produced as expeditiously as they could be. - The Report contains a number of recommendations dealing with these areas of concern. The Committee has prepared a memorandum, included in the Report, which should provide helpful guidelines to those officials who are called to appear as witnesses. Finally, the members wish to thank Raymond Dubois, Deputy Auditor General, and Harold Hayes, Principal, of the Office of the Auditor General for their cooperation and invaluable assistance during the Formal Hearings. FORMAL ,.,,.. Jj. HEARINGS .-. .. NOTE: it it it it it * it it it it it * it it it * it it it * it * * 4 In- the following section it there are number indica- tors in the margin. These relate to the page reference in the appended “Formal Hearings: Evidence”. itit*itit*itit*ititititit****ititit*itit*****it it 6 DEPARTMENT OF GOVERNMENT SERVICES U PAC #2(a) 1981 — 82 fi IIINISTER U U ADMINISTRATION • U DEPUTY NINISTER - 16—001 •0 DEPARTh94TAI. ACMIHI5TPATOR SECRETARY 16-042 16—002 1 10 SUPPLY SERVICES SYSTEMS AND COMPUTING PUBLIC AFFAIRS PROPERTY MANAGENENT SERVICES BUREAU DIRECTOR DIRECTOR CHIEF SUILDTNG MD U RENTAtS HMAGER 16-010 16— 100 16—200 15—317 -U Adinistratlo 2 Administratia 2 Ad,Mnistration 2 Administration — 2 SSet Control 2 Processing Services 13 Infon’utlon Office 4 Building &lgineerim9 - 3 Service Centre ————————— Inquiry Centre ——————————— 2 Custodial Services — I —— 12 ‘ ————————————— Queen’s Printer 7 Systems Develcprne 10 Photography 2 Security S Safety and Securit 1 Tnn,portatton/ Ccirunicatio 10 U ..rehoutln S TOTALS U AOIIINISTRATION 3 SUPPLY SERV!CES 33 U SYSIENS AND COMPUTING SERVICES 25 PUBLIC AFFAIRS BUREAU 10 PROPERTY PANGEMENT 21 U GaVERN!ENT SERVICES TOTAL PERSON YEARS 93 U DEPARTMENT OF GOVERNMENT SERVICES The Department of Government Services was the first department selected for review by the Committee. Departmental witnesses were the Deputy Minister, Andy Vantell ; Director, Supply Services, Sam Cawley; Director, Systems and Computing Services, Rob Fuller; Director, Public Works, Art Christensen; and Manager, Public Affairs, Andrew Hume. 1. DEPARTMENTAL OBJECTIVES Background - The overall objective of the Department in the 1982—83 Estimates states that Government Services co-ordinates general service agencies for the various departments within the Yukon Government. The three main branches are: Systems and Computing Services, Supply Services, and Public Works. The overall objective of the Department in the 1981-82 Estimates stated that the Department was To provide a central resource of electronic data systems and computing services, supply services and information services to support the operations of all Departments and Agencies of the Government of Yukon. This objective was changed in the 1981-82 Supplementary Estimates No. 1 to include reference to Accommodation Services transferred from the Department of Highways and Public Works in July, 1981. These same Estimates provided funds for the implemen tation of a Handy Bus service but the objectives were not changed to reflect this. Building Maintenance was transferred from the Department of Highways and Public Works in the 1982—83 fiscal year. _________ U -2- fl Analysis the The overall objective for 1982-83 does not clearly state U objective of the Department which is to provide a central resource services to all departments and agencies of the Government of of fl Yukon. is an exception in that it provides a service 4:1 The Randy Bus U to the general public for use by handicapped persons, senior citizens or others who have difficulty using the regular transit fl service. The overall objectives of the Department for 1981—82 were not changed to include reference to operation of the Handy- Bus service. The Committee believes that this activity should U have been referred to in the overall objectives which form the legislative base for the Department. The Committee is of the opinion that the Department should not undertake activities beyond its objectives without reflecting appropriate changes in the objectives as soon as possible thereafter. 9:9 The Deputy Minister gave an undertaking that the 1983—84 Estimates would contain an accurate statement of objectives. [] 1. Recortunendntion The Department, when undertaking activities not falling within its stated objectives, should revise its objectives to include the new activities U as soon as possible thereafter. U 2. Reconunendation When a departmental objective is changed by a supplementary estimate, that U supplementary should include a narrative which describes the change in the objective. U -U U —3— 2. INADEQUATE STATISTICAL INFORMATION Background The Department of Government Services operates four programs to achieve its overall objective; Administration, Systems and Computing Services, Supply Services and Public Works. Public Affairs, which fell under the Department in 1981—82, was transferred to the Executive Council Office in 1982—83. The objective and amount required for each program is detailed in the Estimates, as well as supplemental information providing statistics