NEWS RELEASE

For Immediate Release 2009FIN0013-000396 September 24, 2009

Ministry of Finance

 

ENNS REPORT HIGHLIGHTS PROGRESS ON BUDGET PROCESS

 

VICTORIA – The level of transparency and accountability in the Province’s budget process has improved significantly over the past 10 years, and additional steps will build further on the credibility of the Province’s budgets, according to the report of the Budget Process Review Panel tabled in the Legislature today by Finance Minster Colin Hansen.

 

“We asked the panel to consider our progress in the 10 years since its first report and assess what further improvements could be made,” said Hansen. “Twenty-five of the original 26 recommendations have been fully or partially implemented, significantly enhancing the transparency of government’s planning, reporting and accountability processes, and we welcome the panel’s recommendations.”

 

The panel made 16 new recommendations, plus suggestions for further action on 19 of the 26 earlier recommendations.

 

            The new recommendations include:

·         Removing all exemptions for the school, university, college and hospital (SUCH) sector in the Budget Transparency and Accountability Act, so that they meet all government planning, reporting and accountability requirements.

·         Disclosing capital planning information for agencies with capital projects valued at greater than $50 million.

·         Continuing to follow Generally Accepted Accounting Practices (GAAP).

·         Government make whatever changes are necessary to the budget calendar, Estimates debate schedule and the fixed election date so that there is time in an election year to complete the budget debate and pass the Supply Act before the legislature is dissolved and time after the election to have an appropriate pre-budget consultation process and prepare a budget for the following year.

·         Furthering improvements to the pre-budget consultation process.

 

The panel recognized the Province’s substantial progress in making the budget transparent and accountable — particularly regarding public consultation prior to preparing the budget — providing clear reporting, establishing support for budget assumptions, reporting on the status of initiatives, implementation of GAAP, and the accountability of the SUCH sector.

 

 

“I’d like to thank Douglas Enns and the other panel members for their huge effort and commitment,” said Hansen. “Some of the recommendations would require changes in legislative procedure, requiring discussions among the members of the Legislature. This report is an important assessment of the Province’s transparency and public accountability. The processes are complex and government will need to consider carefully how best to implement the recommendations and to set an appropriate schedule to build on progress made so far. I expect to have a full response by the end of the fiscal year.”

 

The Report of the Budget Process Review Panel is online at www.fin.gov.bc.ca/tbs/enns_bprr09.pdf.

 

-30-

 

Contact:

Graham Currie Communications Director Ministry of Finance 250 356-2821

 

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.

 

 

BACKGROUNDER

 

Summary of 2009 Budget Process Review Panel Findings

1999 Panel Recommendation	Implemented?	Further Recommendations?	Page Reference
A More Transparent Process
1: Timing of pre‐budget document	Yes	No	16
2: Select standing committee for pre‐budget consultation	Yes	Yes	17
3: Fixed annual budget date	Yes	Yes	18
4: Sectoral legislative committees to review Estimates	No	Yes	18
5: Supplementary Estimates in place of Special Warrants	Yes	Yes	19
Reliable and Credible Budget Forecasts
6: Continuation of the Economic Forecast Council	Yes	Yes	20
7: Disclosure of material assumptions and policy decisions	Yes	Yes	21
8: Secretary to Treasury Board attestation of complete disclosure	Yes	No	21
9: Disclosure of factors that make fiscal forecast differ from likely result	Yes	Yes	22
Improved Accountability for Results
10: High level strategic plan published with budget	Yes	No	23
11: Ministry / public body three‐year business plans and reports	Partial	Yes	24
12: Development of standardized performance indicators	Yes	Yes	25
13: Summary business information incorporated into the Estimates/Budget	Yes	Yes	26
14: Reduce input controls	Yes	No	27
15: Increase use of performance management techniques	Yes	Yes	28
Improved Accounting
16: Conformity to GAAP	Yes	Yes	29
17: Statement reconciling surplus or deficit with change in debt	Yes	Yes	29
18: Provide Auditor General enhanced authority regarding accounting policies	Yes	Yes	30
19: Expansion of government reporting entity	Yes	Yes	31
20: Estimates and budget prepared according to province’s accounting policies	Yes	Yes	32
21: Focus on Expanded Reporting Entity, not consolidated revenue fund	Yes	No	33
22: Financial information presented on gross and net basis	Partial	No	34
Better Information
23: Application of principles of transparency, consistency and comparability	Yes	Yes	35
24: Document release‐by dates	Yes	No	36
25: Reform of capital budgeting	Yes	Yes	37
26: Annual reports to legislature on implementation of panel recommendations	Partial	Yes	38

 

Budget Review Process Panel Members

 

Douglas Enns, FCA (Chair)

President, Douglas J. Enns and Associates

Chair, 1999 Budget Process Review Panel

 

David Baxter

Economist, Urban Futures Institute

Member, Economic Forecast Council

 

Don Calder

Chairman, Radiant Communications

Member, 1999 Budget Process Review Panel

 

James Cutt

Professor Emeritus, University of Victoria

 

Colin Kinsley

Former Mayor of Prince George

President, Kinsley Consulting Services

 

Jill Leversage, FCA

Managing Director, TD Securities Inc.

Member, BC Innovation Council and BC Progress Board

 

Alison Morse, FCA

Councillor, Bowen Island Municipality and Municipal Trustee, Islands Trust

Vice Chair, 1999 Budget Process Review Panel

 

-30-

 

Contact:	Graham Currie Communications Director Ministry of Finance 250 356-2821

 

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.