Recommendation No. 42 Defining performance measures
We recommend that the Ministry define and use performance measures that evaluate the success of the Ministry over time.
Unnumbered Improving the year end process
We recommend that the Ministry improve coordination of the year-end process for creating its performance measures.
Recommendation No. 43 Disclosing royalty reduction programs
We recommend that the Department disclose its royalty reduction programs in its financial statements.
Unnumbered Grant recognition policies
We recommend that the Department account for Rural Gas Co-op grants in accordance with Canadian generally accepted accounting principles.
Recommendation No. 44 Risk analysis and audit strategy for the Production Audit Group We recommend that the Board undertake a risk analysis to determine
expectations and requirements for its Production Audit Group. Further, the results of the risk analysis should form the basis for a documented audit strategy.
Treasury
Recommendation No. 45 Corporate government accounting policies
We again recommend the Department of Finance change the corporate government accounting policies in order to improve accountability.
Unnumbered Administered funds in ministries
We recommend the Department of Finance, with the Department of Community Development, deal with unauthorized funds at the Michener Centre Facility Board and coordinate, in conjunction with other ministries, a review of funds of all ministries to ensure compliance with statutory authority.
Recommendation No. 46 Strategies to improve reporting
We again recommend the Department of Finance promote the benefits of quality financial reporting throughout the fiscal year.
Recommendation No. 47 Results analysis in Measuring Up
We again recommend the Department of Finance enhance the results analysis in Measuring Up.
Auditor General of Alberta 24 2000-2001 Annual Report
Ministry Audits and Recommendations 2000-2001 recommendations
Recommendation No. 48 Accountability for foregone revenue
We again recommend the Department of Finance identify for the Legislative Assembly the expected and actual results from the social and economic development programs within the tax system.
Recommendation No. 49 Strengthening internal controls – Alberta Treasury Branches
We again recommend internal controls be improved and that all internal controls be documented, evaluated and monitored by management to ensure assets are properly protected and that financial information is accurate and complete.
Recommendation No. 50 Internal Audit Department – Alberta Treasury Branches
We recommend internal controls be subject to periodic independent review by the Internal Audit Department to confirm their existence and to verify their effectiveness.
Unnumbered General loan loss allowance – Alberta Treasury Branches
We recommend ATB provide further support for the subjective components of the general loan loss allowance and that further testing be conducted to assess the reliability of the methodology.
2000-2001 Annual Report 25 Auditor General of Alberta Ministry Audits and Recommendations Analysis of 2000-2001 numbered recommendations
Description of Categories:
Gov. Governance (the process that extracts the potential benefits of accountability)
1-2 Set measurable goals, and responsibilities, and plan how to achieve the goals (including arranging contracted work)
3 Do the work and monitor progress (including managing contracted work) 4 Report on results
CWA Compliance with authorities
Category
Rec. # Gov. 1-2 3 4 CWA
Cross-Government
1. Standards for business cases X
2. Service level agreements X
Agriculture, Food and Rural Development
3. Evaluating program success X
4. Evaluation of the Farm Income Disaster program X
Children’s Services
5. Information systems X
6. Improve business plans X
Environment
7. IRMD planning, monitoring, and reporting X
8. Financial security for land disturbances X
Executive Council
9 Governance and accountability of Academic Health Centres X
Gaming
10. Compensation to gaming operators X
11. Electronic racing terminals X
Government Services
12. Compliance with the Charitable Fund-Raising Act X
Health and Wellness
13. Business planning X
14. Measuring and reporting the performance of the health system X X
15. Basis of funding X
16. Physician billings X
17. System for paying physicians X
18. Contracting for services X X
19. Reporting financial results X
20. Surgical service contracting—conflict of interest X
Human Resources and Employment
21. Safeguarding client information X
22. Skills Development Program X
Infrastructure
23. Business case analyses X
24. Deferred maintenance X X
25. Capital plans X
Innovation and Science
26. Management of information technology X
27. Systems development X
Auditor General of Alberta 26 2000-2001 Annual Report Ministry Audits and Recommendations Analysis of 2000-2001 numbered recommendations
Category
Rec. # Gov. 1-2 3 4 CWA
Justice and Attorney General
28. Capital asset management X
29. Fines and costs X
Learning
30. Career and Technology Studies X
31. Long-term capital planning X
32. Charter School accountability X
33. Allowance for assessment appeals and adjustments X
34. Timeliness and reliability of data collection X
35. Capital Assets Policy Statement X
36. Deferred maintenance—critical health care and safety risks X
37. Internal control systems – University of Alberta X
38. Internal control systems – University of Calgary X
39. Financial processes – Grant MacEwan College X
40. Business case analysis and project management controls –
Southern Alberta Institute of Technology X X
Municipal Affairs
41. Municipal property tax assessments X
Resource Development
42. Defining performance measures X
43. Disclosing royalty reduction programs X
44. Risk analysis and audit strategy for the Production Audit
Group X
Treasury
45. Corporate government accounting policies X X
46. Strategies to improve reporting X X
47. Results analysis in Measuring Up X
48. Accountability for foregone revenue X X
49. Strengthening internal controls – Alberta Treasury Branches X 50. Internal Audit Department – Alberta Treasury Branches X
Total1 2 18 25 12
1 Adds up to more than 50 since some recommendations fall into two categories.
2000-2001 Annual Report 27 Auditor General of Alberta
Ministry Audits and Recommendations Cross-Government
Cross-Government
Overview
The success of government depends, in part, on the effectiveness of
accountability systems
The success of government depends, in part, on the effectiveness of the systems designed to assist the Legislative Assembly to hold the executive branch of government accountable. These systems require ministries to prepare business plans and report to the Legislative Assembly annually on the results achieved compared to these plans.
Central agencies establish and manage systems to support accountability
Under the current government structure, central agencies with broad corporate responsibilities establish and manage systems to support accountability. For example, the Ministry of Executive Council has responsibility for cross-government initiatives; the Department of Finance (formerly the Department of Treasury) has corporate responsibility for financial management and business planning;
while the Personnel Administration Office (PAO) has responsibility for human resource management. Central agencies develop
corporate policies, strategies and guidance that establish the range of practices that ministries operate within.
Working together across ministries is essential
In addition, the government has recognized that implementing solutions to complex problems requires ministries to work together.
It has set out a number of cross-ministry initiatives including, for example, the aboriginal policy, and the children and youth services initiatives. Working together is not limited to major policy issues;
working together includes solving administrative problems,
implementing multi-user computer systems, sharing knowledge and identifying best practices. Although, cross-ministry thinking is becoming a reality for many government employees, the long-standing tradition of each department and organization operating in virtual isolation of other parts of the government has not been eliminated. The operating alone mindset continues to exist in the government, particularly around budgets. I encourage deputy ministers, under the leadership of the Deputy Minister of Executive Council, to continue to emphasize the need to think and act in a way that recognizes the importance of working together.
Our cross-government audits focus on corporate
accountability systems.
The focus of our cross-government audits is on the operations of corporate accountability systems. This section highlights issues that, in my view, need to be addressed by a number of ministries or by the government as a whole. In this section, we refer to matters in other sections of the Report that will be of interest to all members of the Legislature and government managers.
Auditor General of Alberta 28 2000-2001 Annual Report
Ministry Audits and Recommendations Cross-Government