MHAs Accountable
Statement Issued by the Commission of Internal Economy

The members of the Commission of Internal Economy are both surprised and disappointed by the report of the Auditor General with respect to her comments on the accountability of MHAs� Constituency Allowances.

The Auditor General stated that she is unable to fulfill her responsibility under the Auditor General Act to complete the audit of payments made to members from public monies. The Auditor General has left the impression that the Auditor General Act and the Financial Administration Act have in some way been violated and that there is no accountability for members�district allowances. This is simply not true. An audit must take place. The Auditor General Act has not been violated.

The Internal Economy Commission Act which governs the administration of the House of Assembly provides that the Commission of Internal Economy, composed of government and Opposition Members of the House, is charged with all matters relating to the financial and administrative policy affecting the House of Assembly, members, officers and staff.

Section 9 of that Act states the following:

"Notwithstanding another Act, the accounts of the House of Assembly shall, under the direction and control of the Commission, be audited annually by an auditor appointed by the Commission."

Also, the law provides the commission with authority to set policies with respect to the documents which may be supplied to the Comptroller General. This has been done in compliance with the Financial Administration Act.

The law reflects the opinion of all members of the House of Assembly when enacted in 2000 that it is inappropriate for the Auditor General, who is both a servant and an employee of the House of Assembly, to audit her employer, which is the House. Under another provision of the Internal Economy Commission Act, the Speaker each year tables the list of expenditures of members of the House plus the minutes of the commission and the rules relating to members� expenditures. The commission has, since 1990, followed this requirement so that its affairs have always been open, transparent and accountable.

It should be noted that, unless invited, the Auditor General of Canada does not audit the accounts of the House of Commons. In fact, Members of Parliament constituency allowances are not subject to an audit by the Auditor General of Canada. In some jurisdictions, the auditor general does not have the authority to audit members� allowances. Internal audits are performed in these jurisdictions.

Some time ago, the Commission of Internal Economy gave instruction that the accounts of the House of Assembly be audited by an auditor following the tabling of the Public Accounts. A public proposal of interest will soon be advertised for the audit of the House of Assembly accounts for the fiscal year 2000-2001.

The standard members hold for themselves is no different from the standard the Auditor General holds for her office. Section 32 of the Auditor General Act provides that the Commission of Internal Economy must appoint an auditor to audit the Office of the Auditor General. This has been done since 1991 when the Auditor General Act came into force. The report of the auditor is tabled in the House each year. The same system will apply to the accounts of the House of Assembly as mentioned above. It would be inappropriate for an employee of the Office of the Auditor General to audit the Auditor General�s Office, as it would be for the Auditor General to audit her employer, the House of Assembly. The auditor appointed to audit the House of Assembly will also audit the Office of the Chief Electoral Officer and Commissioner of Members� Interests and the offices of the newly appointed Citizens� Representative and the, as yet to be appointed, Child Advocate. As with Departments of the Executive Branch of Government, boards and agencies of the Crown, all offices of the House of Assembly will be subject to an audit.

Unfortunately, the Commission of Internal Economy was not afforded an opportunity to review the Auditor General�s remarks in time to have a published response in her report. Today�s statement is the commission�s means of setting the record straight and confirming the accountability of MHAs as set forth in legislation.

Media contact: Office of the Speaker, (709) 729-3404.

2002 02 04                          4:45 p.m.