Third Session, Thirty-sixth Parliament

SELECT STANDING COMMITTEE ON PUBLIC ACCOUNTS
FIRST REPORT

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

Committee email: ClerkComm@leg.bc.ca

Select Standing Committee on Public Accounts

First Report

• Corporate Accounting System (CAS) •
• The Year 2000 •
• Retention and Disposal Applications •
• Public Accounts Electronic Format (Internet) •

June 5, 1998

Mr. Fred Gingell, MLA
Chair

June 4, 1998

To the Honourable,
The Legislative Assembly of
The Province of British Columbia,
Victoria, British Columbia

Honourable Members:

We have the honour to present the First Report of the Select Standing Committee on Public Accounts for the Third Session of the Thirty-sixth Parliament.

This First Report covers the Committee's inquiry into the Ministry of Finance and Corporate Relation's Corporate Accounting System, computer problems associated with the Year 2000, more commonly known as the millennium bug, retention and disposal applications by the Public Documents Committee and publishing certain components of the Public Accounts on the Internet.

Respectfully submitted on behalf of the Committee.

Table of Contents

Composition of the Committee
The Corporate Accounting System (CAS)
Government Financial and Other Information Systems
      and the Year 2000 Deadline
Records Retention and Disposal Authorities
Public Accounts Electronic Format (Internet)

The Corporate Accounting System (CAS)

The Auditor General reviewed progress made in developing and implementing CAS, and recommended that continued strategic planning and monitoring of the development phases of CAS be undertaken, and reiterated that this project should be adequately funded on a long term basis.

Your Committee was made aware that the new CAS generic interface (CGI) has replaced the old Central Batching System, and that as a result, the government's central accounting system is now capable of handling transactions dated after 1999. Development has started on Phase II of CAS, which includes

• project accounting,
• additional commitment management capability, and
• asset management.

Completion of all phases of CAS will require an additional 3 to 5 years.

Your Committee was also made aware that plans are in place to implement CAS in over 75% of the ministries of the provincial government by April 1, 1999. The introduction of CGI and planned changes to ministry systems will address the Year 2000 issue for those ministries which are not expected to adopt CAS by that date.

Your Committee learned that the financial accounting systems of neither the ministries of Forests and Transportation and Highways are Year 2000 compliant, and both are looking to CAS as the solution. A prototype of Phase II must be developed by June 30 in order for these ministries to decide whether to implement CAS rather than modifying their existing systems.

Your Committee continues to watch this project, and has asked that it be advised of the status of the Phase II prototype and decisions of Forests and Transportation and Highways at its July 10, 1998 meeting.

Recommendation #1

Your Committee recommends that in view of the importance of CAS and Phase II in particular, and the limited time left before the Year 2000, resourcing for this project be given a high priority.

Government Financial and Other Information Systems,
and the Year 2000 Deadline

The Auditor General had reviewed the progress of ministries in identifying and responding to the Year 2000 problem, especially as it relates to financial systems. The review was performed between September and November 1997, and did not include government funded agencies and Crown corporations.

All ministries were surveyed to gain a broad understanding of their progress. Main findings:

• Ministry plans to deal with the Year 2000 problem were still being revised, as more systems were identified and associated risks assessed.
• Many ministries had only completed the first phase of their plan. This meant that they had assessed the risks associated with each system identified as non-compliant, and decided on the most suitable course of action -- repair, replacement or retirement. They had developed, or were developing, testing plans and identified requirements for their test facilities.
• Not many ministries built contingency plans in case mission critical systems were not ready. Ministries were optimistic that they would achieve their plans.
• Ministries expressed concerns about:
  • the difficulty in acquiring and retaining technical staff with appropriate skills and experience;
  • the difficulty in securing the needed funds; and
  • the sufficiency of existing shared facilities and tools available for testing and validation when deadline pressures build up.

In addition, a close look was taken at the work in progress in six specific program areas.

The systems involved were:

• the Corporate Accounting System,
• the Corporate Human Resource Information and Payroll System,
• the Forest Harvest Database System,
• the Social Services Tax System,
• the B.C. Benefits Program System, and
• the Medical Services Claims System.

These systems are considered mission critical and all were Year 2000 non-compliant. At the time of the review initiatives were underway to deal with the Year 2000 problem. The Auditor General concluded that, as long as adequate staffing and funding is available, these initiatives should adequately address the problem.

In general, the government was found to be proactive and has a good, well-structured and well-organized approach to resolving the Year 2000 problem. But, there is still much to be done. The ministry concerns regarding staffing, funding, and adequate test facilities and tools must be addressed. The Auditor General also expressed concern that there is no monitoring function established to ensure Crown corporations and government-funded agencies are properly attending to the Year 2000 problem.

The Implementation Task Force provided an update to your Committee on the status of Year 2000 activities since the Auditor General's Report. They stated that the cost to fix the Year 2000 problem in ministries is rising and is now estimated at $72 million, with 910 systems identified as requiring Year 2000 compliance. About 35 percent of the effort of achieving compliance in the ministries is finished. Your Committee was made aware of a potential shortfall in human resources required to address the Year 2000 problem and of restrictions to the level of Year 2000 activities in some ministries due to budget constraints.

The Chief Information Officer is proposing to significantly upgrade his corporate-wide management of the Year 2000 issue, moving from promoting awareness to full involvement with the implementation phase. His Office will identify those mission-critical systems that could have fundamental impacts on the health and security of the public and the finances of the government. The focus will then be on project management for these systems to ensure that they will be Year 2000 compliant in time. The Chief Information Officer is also meeting with Crown corporations and will maintain formal communications with them regarding Year 2000 initiatives. Your Committee asks to be regularly updated on the status of Year 2000 initiatives across government by the Chief Information Office.

Recommendation #2

Your Committee recommends that:

• Staffing and funding demands be carefully reassessed now, as it may be more difficult and costly to secure the appropriate resources closer to the deadline.
• Ministries should ensure access to adequate testing tools and facilities to avoid delays when systems can be tested.
• When it appears possible that Year 2000 compliance may not be achieved in time, ministries should develop a contingency plan.
• The Chief Information Officer of the Province of British Columbia should ensure that the Year 2000 problem is properly and expeditiously being resolved within government including Crown corporations and government-funded agencies.
• Progress of Year 2000 activities within government (including Crown corporations and government-funded agencies) should be provided to your Committee.

Records Retention and Disposal Authorities

In accordance with Section 3 of the Document Disposal Act (RSBC 1996, c. 99), the Public Documents Committee (PDC) submits each year for consideration and approval by the members of the Select Standing Committee on Public Accounts (PAC) a copy of each of the records retention and disposal authorities it has recommended for the approval of the Legislative Assembly. Once approved, those authorities govern the retention and final disposition of the government records described therein.

The five-member Public Documents Committee established under the Document Disposal Act (RSBC 1996, c. 99, s. 3 (1)) is comprised of the Provincial Archivist (Chair), the Comptroller General, and three other persons appointed by order in council. No government record may be destroyed except upon the written recommendations of the PDC and the approval of the Executive Council or the Legislative Assembly.

Information Management Services, Information, Science and Technology Agency, is responsible for administration of the Document Disposal Act and provides administrative services to the PDC. Under Treasury Board's General Management Operating Policy (c.8), IMS is responsible for ensuring that the recorded information of government is properly managed, including its classification, retention and disposition. As the archives of the Government of British Columbia, IMS is responsible for identifying and preserving government records which have ongoing archival value to the Province.

Recommendation #3

Your Committee recommends:

• That the management of the retention and final disposition of the operational records of the Security Services Section of the Information Technology Services Division, Information Science and Technology Agency, be in accordance with the records schedules, standards, and guidelines described in Section 6 of the Information Technology Services Operational Records Classification System;
• That the management of the retention and final disposition of the operational records of the Liquor Distribution Branch, Ministry of Small Business, Tourism and Culture, be in accordance with the records schedules, standards, and guidelines described in the Liquor Distribution Operational Records Classification System;
• That the management of the retention and final disposition of the operational records of the Provincial Treasury, Ministry of Finance and Corporate Relations, be in accordance with the records schedules, standards, and guidelines described in the Provincial Treasury Operational Records Classification System; and
• That the retention and final disposition of Forest Renewal BC proposal/project files created prior to 1 January 1997 be managed in accordance with the one-time records retention and disposal authority for those records.

Public Accounts Electronic Format (Internet)

For the past two fiscal years, the Public Accounts have been published in a three volume printed version as well as being made available in an electronic version on the World Wide Web, also known as the Internet. There are 1200 complete sets published and distributed, primarily to Members of the Legislative Assembly and provincial government ministries.

With the growing use and popularity of the World Wide Web, consideration was given to saving printing costs by reducing the number of printed editions and making that information available only on the Internet.

Volume 3 and Section D of Volume 2 are appropriate candidates for publication on the Internet. Combined, they total more than 485 pages and cost more than $13,500 this fiscal year alone. Volume 3 contains a summary for government organizations and enterprises, a summary for trust funds held and administered, a summary for public bodies reporting under the Financial Information Act as well as the financial statements for specific trust funds. Section D of Volume 2 contains the detailed schedules of payments for the fiscal year including salary and travel, grants and contributions, and for other suppliers.

A certain number of printed copies would be available.

Recommendation #4

Your Committee recommends that Volume 3 and Section D of Volume 2 of the Public Accounts for the Province of British Columbia be made available on the Internet and that the number of printed copies be reduced.