We expected the Department would make timely reports to the Legislative Assembly on meeting its program objectives, including the Drug Plan.
Program objectives would be well defined, measurable, and compatible with the law. The Department would report on essential aspects of its programs’performance, key risks, capacity, and future plan to show whether the Drug Plan achieves its objectives.
In 2003, the Department of Finance set guidelines, including a 4-year implementation schedule, for preparing performance reports for all departments. The guidelines do not require reporting of key risks, capacity, or performance targets until future years. The Department of Health is required to follow these guidelines in preparing its public performance plan and annual report.
The Department’s public performance plan6for 2003-04 provided an overview ofthe Department’s key actions to achieve its strategic goals.
The performance plan did notinclude the Department’s specific objectives for the Drug Plan.The Drug Plan’s 2003-04 budget was over
$150 million.
The Department has not set specific targets and performance measures related to its objectives for the Drug Plan. Without specific operational
6Saskatchewan Health (2003).Annual Report 2002-2003. http://www.health.gov.sk.ca.
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targets and performance information, the Department is not able to assess whether its activities achieve their intended purpose.
Each year, the Department reports its performance, including that of the Drug Plan, in its public annual report7and in various annual statistical reports.The Department‘s 2003-04 Annual Reportprovides limited information on the Drug Plan. The report describes key enhancements to the Drug Plan and lists the total amount spent through the program. The Minister gives a timely annual report to the Legislative Assembly.
The Drug Plan and Extended Benefits Branch Annual Statistical Report 2003-04includes the Drug Plan program objectives, benefits, and process. It highlights usage and cost trends for a number of years. The Department has publicly released the 2003-04 report in 2005.8
Reporting should be improved to include information specific to the Drug Plan’s performancemeasures and, in the future, key risks, capacity, and targets.
7Saskatchewan Health (2004).Annual Report 2003-2004. http://www.health.gov.sk.ca.
8Saskatchewan Health (2005).Drug Plan and Extended Benefits Branch Annual Statistical Report 2003-04. http://formulary.drugplan.health.gov.sk.ca
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Justice
Main points...60 Glossary ...61 Department of Justice ...63 Superintendent of Pensions...63 Regulatory framework ...63 Audit objective ...65 Criteria...65 Conclusion and recommendations...65 Key findings...66 Supervise based on risk...66 Require more information...67 Verify and examine ...67 Guide staff ...68 Direct and enforce...68 Future work ...69 Selected references ...70
Chapter 5–Justice
Provincial Auditor Saskatchewan 2005 Report–Volume 1
60
Main points
UnderThe Pension Benefits Act, 1992, the Superintendent of Pensions regulates and supervises pension plans in Saskatchewan. The
Superintendent does so to reduce the risk of financial loss or inequities to pension plan members.
In 2004, we assessed the adequacy of the processes the Superintendent of Pensions used to supervise pension plans. We found that the
Superintendent had adequate processes except as reflected in our
following four recommendations. We recommend that the Superintendent:
expand its analysis of pension plan risks to consider the key risks faced by all pension plans
prepare a risk-based work plan to supervise pension plans
provide staff with written guidance regarding information to document when registering and amending pension plans
develop alternative ways to obtain information from pension plan administrators or seek legislative changes to expand its
enforcement powers to obtain required information
Chapter 5–Justice
Glossary
Beneficiary–a person who receives or is entitled to receive benefits.
Defined benefit pension plan–a pension plan that specifies the pension that members of the plan receive on retirement or the method of determining the pension.
Defined contribution pension plan–a pension plan in which the members' contributions are fixed, usually as a percentage of pay (except for the Saskatchewan Pension Plan, whose members can contribute up to $600 each per year). A member's pension is based on the member's and the employer's contributions made on behalf of the member and investment earnings on those
contributions.
Fiduciary responsibility–duty of loyalty to those whose interest a person protects.
Pension liability–the present value of pension benefits earned by plan members as determined by an actuary using the pension plan’s best estimates about future events and an appropriate actuarial method as recommended by The Canadian Institute of Chartered Accountants for accounting purposes.
Pension plan administrator–employer or trustees or an agency that administer the pension plan, i.e., who arrange for pension payments and funding of the plan, etc.
Pension plan board–a group of individuals, identified in the pension plan’s actorplan document,thatis ultimately responsible for managing the plan. Some people refer to this group as committee, commission, or trustees.
Unfunded liability–the amount by which the pension liability exceeds the assets of the pension plan.
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Chapter 5–Justice