The Commission provides limited information about the Group Life Insurance, Dental, and Disability Plans and does not provide complete financial statements for those plans to the Legislative Assembly. Also, the annual report does not describe the goals and objectives of the benefit plans, the cost of providing those benefits, and who pays for them.
Without this information legislators, plan members, and the public cannot assess the plans’ performance and the Commission’s effectiveness in administering these programs.
The Teachers Superannuation and Disability Benefits Actrequires the Commission to submit to the Minister a report on the activities of the Commission for the preceding year and financial statements showing the business of the Commission.
In our 2008 Report – Volume 1, we recommend the Teachers’
Superannuation Commission’s annual report include a report on the activities and the financial statements of each benefit plan the
Commission administers. PAC considered our recommendation in June 2008 and concurred with it.
The Commission provides to the Legislative Assembly in its annual report audited financial statements for the Teachers’ Superannuation Plan and limited financial and operational information on the other benefit plans the Commission administers.
We continue to recommend the Teachers’ Superannuation Commission’s annual report include a report on the activities and the financial
statements of each benefit plan the Commission administers.
Management has requested that we audit the financial statements of the Group Life Insurance Plan for the year ended August 31, 2008.
Management also told us it plans to prepare a separate report on the activities of the Group Life Insurance Plan and submit the report and the audited financial statements to the Legislative Assembly.
In addition, management has requested that we audit the financial statements of the Dental plan for the year ended December 31, 2008.
Management plans to include the Dental Plan’s audited financial statements and report along with the Teachers’ Superannuation Commission’s June 30, 2009 annual report.
Finance
Main points ... 66 Introduction ... 67 Special purpose funds and Crown agencies ... 67 Audit conclusions and findings ... 68 Employee benefit plans ... 69 Background... 69 Need adequate policies for bank reconciliations and journal entries... 69 Municipal Employees’ Pension Commission ... 70 Background... 70 Disaster recovery plan needed... 70 Saskatchewan Pension Plan ... 71 Background... 71 Security policies and procedures for information technology need
improvement... 71 Treasury management... 72 Background... 72 Setting investment expectations and measuring performance... 73 Agreements for investment services needed... 76 Documenting procedures ... 79
Main points
The Ministry of Finance manages almost $5 billion of investments for the General Revenue Fund, the Growth and Financial Security Fund, and several other agencies. Finance sets aside a significant amount of money in investments to repay the Government’s debt. The success of its
investing activities can have a significant impact on the Government’s financial position.
Finance has not sufficiently set out its investing expectations to enable it to evaluate its performance in managing investments. While it has investment guidelines, it does not report on its compliance with those guidelines. Also, the public does not receive reports on the performance of Finance’s investing activities.
Where Finance carries out investing activities for others, it has not agreed with them, in writing, on their roles and responsibilities. Also, because of low turnover of staff who carry out investing and borrowing activities, Finance has not sufficiently documented its procedures. To protect itself from a possible disruption of investing and debt management services in the event of staff turnover, it should document these procedures.
Finance is responsible for 25 special purpose funds and agencies. This report covers 17 of those funds and agencies with a December year-end.
These agencies have reliable financial statements, have complied with the law, and have adequate rules and procedures with the following exceptions.
For six employee benefit plans, the Public Employees Benefit Agency did not review or approve monthly bank reconciliations and journal entries on a timely basis. The Agency needs to set policies for the preparation and approval of bank reconciliations and journal entries.
Chapter 5 – Finance
Introduction
The Ministry of Finance (Finance) helps the Government manage and account for public money. As part of these duties, Finance administers and is responsible for several special purpose funds and agencies.
Special purpose funds and Crown agencies
Finance is responsible for the following special purpose funds and agencies.
Year ended December 31 Extended Health Care Plan
Extended Health Care Plan for Certain Other Employees
Extended Health Care Plan for Certain Other Retired Employees Extended Health Care Plan for Retired Employees
Municipal Employees’ Pension Commission Municipal Financing Corporation of Saskatchewan Public Employees Deferred Salary Leave Fund Public Employees Dental Fund
Public Employees Disability Income Fund Public Employees Group Life Insurance Fund
Saskatchewan Government Insurance Service Recognition Plan Saskatchewan Pension Plan
Saskatchewan Power Corporation Designated Employee Benefit Plan Saskatchewan Power Corporation Pre-1996 Severance Plan
Saskatchewan Water Corporation Retirement Allowance Plan SaskEnergy Retiring Allowance Plan
SaskPower Supplementary Superannuation Plan Year ended March 31
Growth and Financial Stability Fund General Revenue Fund
Judges of the Provincial Court Superannuation Plan Public Employees Benefits Agency Revolving Fund Public Employees Pension Plan
Public Service Superannuation Plan Saskatchewan Pension Annuity Fund
Saskatchewan Watershed Authority Retirement Allowance Plan
This chapter contains our audit conclusions and findings for the agencies with years ended December 31, 2008 and findings related to our audit work on the Ministry's treasury management activities. Our Office did this work at the request of the Deputy Minister of Finance and because of Finance’s increased amount of investing activity. Our 2008 Report -Volume 3 includes the results of our audits of the agencies with years ending March 31, 2008.
Audit conclusions and findings
To form our opinions, our Office worked with Meyers Norris PennyLLP, the appointed auditor for Municipal Employees’ Pension Commission and Deloitte & ToucheLLP, the appointed auditor for Saskatchewan Pension Plan (Plan). We used the framework recommended by theReport of the Task Force on Roles, Responsibilities and Duties of Auditors.1
We did not rely on Deloitte & Touche’s opinion on the adequacy of the Plan’s rules and procedures to safeguard public resources because it did not report the need to complete the documentation of the Plan’s
information technology processes.The Provincial Auditor Actrequires us to do additional work when we are unable to rely on the reports of an appointed auditor. Our additional work consisted of reviewing the Plan’s information technology security processes and discussions with
management.
In our opinion, for the year ended December 31, 2008:
Finance and its agencies with a December year-end had adequate rules and procedures to safeguard public resources except for matters reported in this chapter
Finance and its agencies with a December year-end complied with authorities governing their activities relating to financial reporting, safeguarding public resources, revenue raising, spending, borrowing, and investing
the financial statements of agencies with a December year-end are reliable
1To view a copy of this report, see our website at www.auditor.sk.ca/rrd.html.
Chapter 5 – Finance