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UBCM POLICY PAPER MUNICIPAL AUDITOR

GENERAL

GARY MACISAAC EXECUTIVE DIRECTOR SEPTEMBER 27, 2011

PRESENTATION PURPOSE

•  Introduce the Policy Paper

•  Prepare for and inform Debate

•  Consider “Municipal Auditor General” to be inclusive of regional districts

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GOVERNMENT’S INTENTIONS

•  Executive raised concerns –  What problem is being addressed? –  How broad are the powers to be?

•  Premier responded –  Typical powers –  Focus on performance audit –  Local government policy exclusion –  Recommendations only –  Province will pay

POLICY PAPER CONTENT

•  Research –  Accountability system –  Auditors General; MAG within Canada

•  Considerations –  Powers duties and limitations –  Financial –  Governance structures

•  Principles •  Recommendation

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MULTIPLE GOVERNMENT JURISDICTIONS

•  No Canadian AG/MAG with multiple jurisdictions

•  Few MAG examples: All in big cities, and all single jurisdictions

•  Multiple jurisdictions create a need for customized governance structure and legislative framework

INDEPENDENCE AND ACCOUNTABILITY

•  Auditor must be independent in order to undertake work free from political or other interference

•  Auditor must also be accountable for the performance of the MAG Office and compliance with its legislative framework

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BALANCING INDEPENDENCE AND ACCOUNTABILITY

•  Legislative independence provisions –  Defined goals/objectives and

performance expectations of MAG Office –  Limiting governing body roles –  MAG independence within framework

•  Governing body responsibilities –  Ensure auditor working within the

legislative framework –  Review auditor performance –  Administrative, technical or budget

matters

POTENTIAL GOVERNANCE MODELS

•  Legislative Assembly

•  Minister

•  Stand-alone Board or Committee

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BOARD COMPOSITION •  All AGs and MAGs are accountable to

the elected body of the governments within audit mandate –  Parliament –  Legislative Assembly –  City Council

•  BC MAG Board should be local

government elected officials

LEGISLATIVE FRAMEWORK •  Goals and objectives of the MAG •  Powers, duties and limitations of MAG

•  Governance structure and responsibilities •  Other independence mechanisms

•  Budget and financial provisions

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PRINCIPLES •  Effective inter-governmental consultation •  Build on existing systems, avoid duplication

and define objectives in relation to the system •  Maximize public accountability benefits;

respect local autonomy; recognize capacity •  Don’t exceed power of federal or provincial

Auditors General; prohibit review of local government policy

•  Balance auditor independence with auditor accountability; local government board

RECOMMENDATION

A cooperative approach between UBCM and the Province, to: –  identify gaps in the accountability

system; and –  implement solutions to those gaps –  in keeping with the principles/

framework statements

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DEBATE

Thursday, September 29 8:55 am