2005 Legislative Session: First Session, 38th Parliament
SELECT STANDING COMMITTEE ON FINANCE AND GOVERNMENT SERVICES
MINUTES AND HANSARD

MINUTES SELECT STANDING COMMITTEE ON FINANCE AND GOVERNMENT SERVICES Tuesday, October 18, 2005 8 a.m. Douglas Fir Committee Room Parliament Buildings, Victoria

1. The Chair called the meeting to order at 8:02 a.m.

2. Resolved, that the Committee meet in-camera to discuss evidence received to date and the preparation of its draft report. (Maurine Karagianis, MLA)

3. The Committee met in-camera from 8:04 a.m. to 9:20 a.m.

4. The Committee reviewed and adopted its draft meeting schedule as circulated.

5. The Committee reviewed the correspondence from the Office of the Auditor General regarding the appointment of an Auditor to audit the office. Resolved, the Committee agreed to have the Sub-Committee previously appointed (Chair, Deputy Chair and John Yap, MLA) review and assess this process and report back to the whole Committee at the earliest opportunity. (Jenny Wai Ching Kwan, MLA)

6. The Committee adjourned to the call of the Chair at 9:30 a.m. (Dave S. Hayer, MLA)
 

Blair Lekstrom, MLA  Chair

Kate Ryan-Lloyd Clerk Assistant and Committee Clerk

The following electronic version is for informational purposes only.
The printed version remains the official version.

REPORT OF PROCEEDINGS
(Hansard)

SELECT STANDING COMMITTEE ON 
FINANCE AND GOVERNMENT SERVICES

TUESDAY, OCTOBER 18, 2005

ISSN 1499-4178

[ Page 267 ]

TUESDAY, OCTOBER 18, 2005

           The committee met at 8:02 a.m.

           [B. Lekstrom in the chair.]

           B. Lekstrom (Chair): Good morning, committee members. I'd like to welcome you to our meeting here this morning. We are here to discuss a number of items. Certainly, what we have heard in the first seven public hearing meetings that we have held…. We have one yet to go, which is this Friday in Vancouver.

           We have extended that time frame. We were originally scheduled to end at 4 p.m. We have, with the interest being expressed, extended it until 9 p.m. on Friday evening. Our afternoon presentations following 4 p.m. will be given ten minutes, versus the 15 that are traditionally allotted. That's in order to get to as many presenters as possible. The committee members will forgo the question portion of the 15-minute forum to allow all of our presenters the opportunity to get their submission before us.

           We have five items on our agenda this morning. Our first two are going to be dealing with a review of the public hearing themes by members. We'll have that discussion and then a preliminary presentation of research summaries that are before us this morning.

           With that, I would look for a motion to go in camera.

           The committee met in camera from 8:04 a.m. to 9:20 a.m.

Committee Meeting Schedule

           B. Lekstrom (Chair): Moving on to item three on our agenda this morning, which is a committee meeting schedule. There is a handout. If we look, we will see that Wednesday, October 26, Tuesday, November 1, Wednesday, November 2, and Monday, November 7 are scheduled to review the draft. We will have a final meeting on the morning of the 14th, because we are slated to deliver our report to the Legislative Assembly by the 15th.

           Sorry. Tuesday the first we will have the report circulated to members versus having to come together for a meeting. Of note, the November 7 meeting is in Vancouver. For ease of members to get to — I think we were looking at that. Is there any discussion on this?

           We have a great deal of further work to do as well. We must meet with all of the statutory officers, sit down and put a report together on that as well. We will come with a far more detailed date and time schedule following the 15th of November in order to incorporate all we've been asked to do by the Legislative Assembly.

           Seeing that, I will take that as acceptable. We will begin the process of looking after accommodation and transportation for the members.

           As well, we do have a draft itinerary for the Vancouver hearing this Friday. I will again note that we have extended the time frame to 9 p.m. in order to accommodate as many presenters as possible.

           Joining us now for item four is Craig James, who is Clerk Assistant and Clerk of Committees. As part of our committee, as I indicated, we deal with the statutory officers of the Legislative Assembly of British Columbia. The Auditor General has requested that our committee appoint an auditor.

           With that, Craig, I'm going to ask you if you could just update us on where our committee is at, what the issues are that we must deal with and what authority we have in the process.

Auditor General Financial Statements Auditor

           C. James (Clerk Assistant and Clerk of Committees): Good morning. The Auditor General Act, which was revised in 2003, requests in section 23 that this committee appoint an auditor for the Auditor General. I'll briefly read section 23 to you:

23 (1) The committee must appoint an independent auditor to audit the financial statements of the Auditor General for each of the remaining fiscal years of the Thirty-seventh Parliament of British Columbia.

(2) During the First Session of the Thirty-eighth Parliament —

which is the one that we're currently in

— and during the First Session of each Parliament of British Columbia thereafter, the committee must appoint an independent auditor to audit the financial statements of the Auditor General for each of the fiscal years to be completed during the term of the Parliament.

In other words, you go through this exercise once every four years. If you appoint an auditor now, it lasts for four years, and in another four or five years you go through the same exercise again.

           In front of you is a request for proposal for audit services for the Office of the Auditor General. I asked the Auditor General if he would assist us in preparing this request for proposal for his office, given that they have the expertise and they know the issues at hand. The current auditor for the office has been the auditor for something like 25 or 27 years. The committee's predecessor struggled with this late in the last parliament, but there wasn't enough time available for the committee to actually get into a request for proposal and open it up to other candidates and other companies to embark upon this process.

           In front of you, you have the request for proposal. It works well, I think, depending upon how the committee feels about it, that a subcommittee be charged with the task of reviewing this and bringing back the information to the committee for it to ultimately approve in terms of the auditor for the Auditor General. The document, though lengthy and detailed, is fairly self-explanatory.

[0925]

           One issue that's quite interesting and distinct from its predecessor is that the auditor appointed under subsection (1) or (2) "may also audit the appropriateness and reliability of the performance information contained in the annual report of the Auditor General." This is a new initiative, and it widens the scope of the 

[ Page 268 ]

audit for the auditor of the Office of the Auditor General.

           That, in a nutshell, is it.

           B. Lekstrom (Chair): Thank you very much, Craig.

           Are there any questions about what we are discussing here and what Craig has presented? I think it's important. I personally support going to a request for proposals to allow people in British Columbia that are qualified to have the opportunity to endeavour on this. Are there any questions regarding what we've just brought forward?

           What I would like to do, then…. Certainly, it can be a subcommittee. There are two options, as Craig said: a subcommittee to review the request for proposals and bring a recommendation back to the committee, or the entire committee dealing with a full discussion on it. I think a subcommittee could do the work quite handily.

           I'm going to look to members of the committee. I see no objection to the formation of a subcommittee.

           J. Kwan: In fact, I would suggest that the Chair and the Deputy Chair perhaps be tasked with this work as part of the subcommittee and bring forward recommendations for the larger committee.

           B. Lekstrom (Chair): We do have a subcommittee already struck of this committee. Maurine, myself and John, I believe, were on the subcommittee. Would it be acceptable just to keep the same subcommittee?

           We will do that, and we will bring a recommendation back as quickly as possible. I know that the Auditor General is anxious to begin this process. As well, if it is acceptable to the committee, as I indicated, we will begin to put a schedule together for the statutory officers, and I will communicate that with the committee. Then we can let them know as well. They are always interested in coming before the committee to present and — I know I've had a couple of discussions already — are wondering when that opportunity will be availed to them.

           A motion to refer the request for proposals to a subcommittee for consideration.

           Motion approved.

           B. Lekstrom (Chair): Craig, I want to thank you for bringing that forward today.

           C. James (Clerk of Committees): You're welcome.

           B. Lekstrom (Chair): This subcommittee will report back as quickly as possible. I would anticipate, hopefully, as early as next meeting — which is the 26th, I believe — so we can begin this process.

           G. Hogg: Just so I'm sure what you're reporting back on, are you reporting back on the request for proposal?

           B. Lekstrom (Chair): What our subcommittee will do, to make it clear, is look at the request for proposals, review it, make sure that we're comfortable that this request for proposals is a good one, and come back and make a recommendation to the committee based on the subcommittee's findings — at which time, certainly, discussion can take place.

           G. Hogg: And then the RFP would go out.

           B. Lekstrom (Chair): Then the RFP will go out.

           N. Simons: In effect, Mr. Chair, is the effort of the subcommittee to ensure that the request for proposal for an auditor of the Auditor General is completely objective? Will it still be a request for proposal from the Auditor General for an auditor to audit his office?

           B. Lekstrom (Chair): Oh, I see. I mean, the development of the request for proposals came from the Auditor General himself, I believe in cooperation with the office.

           C. James (Clerk of Committees): The request for proposal was drafted by the Office of the Auditor General to assist the committee, but the request for proposal is a request by the committee itself — the entire committee — which is why you have copies of the documents. If you see something in there that's a little strange or unclear, then feel free to bring it to our attention, and we can correct it or clarify it.

           N. Simons: There's no better expert, I suppose.

           B. Lekstrom (Chair): We will move on to item five at this time. Is there any other business that must be brought before the committee here this morning?

           I am seeing no further business to be brought before the committee this morning. A motion to adjourn would be in order.

           Motion approved.

           The committee adjourned at 9:30 a.m.

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