Public Agencies Council Activities Report, TABLED IN THE LEGISLATIVE ASSEMBLY BY THE HONOURABLE KEITH PETERSON, MLA MINISTER OF FINANCE

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1 Public Agencies Council Activities Report, TABLED IN THE LEGISLATIVE ASSEMBLY BY THE HONOURABLE KEITH PETERSON, MLA MINISTER OF FINANCE JUNE 2010

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3 Public Agencies Council Activities Report Introduction This is the fourth Activities Report that has been prepared since the Crown Agency Council was formed in 2003 and the first Activities Report under the new name of Public Agencies Council (Council). Report on Activities Public Agencies Council Terms of Reference The Crown Agency Council was renamed and new terms of reference were finalized in April The composition of the Council remains unchanged as do the objectives. The Council continues its primary role as an advisor to Cabinet and the Financial Management Board (FMB) regarding matters of governance for public agencies. This is primarily achieved because the respective Chairs have ex officio seats on the Council. In addition, the Ministers of Justice and of Human Resources are also members of the Council. The Council also continues to provide recommendations to the Ministers responsible for the public agencies and to Cabinet and the Financial Management Board regarding statutory requirements, budget impacts, financial management, human resource policies and legislative initiatives. In addition, through the Central Accountability Committee of Deputy Ministers, the Council provides support to, and enhances the governance capacity of, Board Members of public agencies in their work to carry out GN mandates in adherence to statutes, regulations, and policies. The supporting senior officials also are able to make access to expert advice and support available for public agencies. Letters of Expectation and Memorandums of Understanding In staff assigned to the Council was temporarily utilized to provide full time support to the Nunavut Business Credit Corporation (NBCC). This assignment significantly decreased the time available for finalizing Memorandums of Understanding (MOUs) with territorial corporations and other routine matters. The Council is now well placed to work closely with the corporations to finalize and sign the Memorandums of Understanding for and moving forward. The Council remains committed to working closely with the Ministers responsible and the territorial corporations to ensure that the MOUs clearly establish the relationship between the GN and each corporation. This will be achieved by clearly setting out the roles and responsibilities of the Minister responsible and the Chairs of each territorial corporation s governing boards. There will still be a need for Letters of Expectation which will continue to be the primary PUBLIC AGENCIES COUNCIL ACTIVITIES REPORT,

4 responsibility of the Ministers responsible for the public agencies with assistance from the Council to ensure that they are in line with each agency s enabling legislation while at the same time maintaining as much consistency across agencies as is possible. Conversion to International Financial Reporting Standards International Financial Reporting Standards (IFRS) will be introduced in 2011, requiring significant changes to the way the private sector reports its financial results. As public agencies in Nunavut currently follow private sector accounting guidelines, it was necessary to assess the impact of this important change. A request for proposals was awarded to Price Waterhouse Coopers to assess the need for public agencies to convert to IFRS. This included: a preliminary assessment of every public agency, an initial conference in Iqaluit to introduce and explain IFRS; subsequent in-depth analysis of each public agency, including District Education Authorities and Local Housing Organizations; one-on-one counseling sessions with each territorial corporation; several face-to-face meetings; and a final wrap-up conference. In cooperation with the Financial Reporting and Controls Division of the Department of Finance, and in close consultation with the Office of the Auditor General, it was ultimately determined that all public agencies, including the Qulliq Energy Corporation, would convert their financial statements to the Public Service Accounting Board (PSAB) standard for 2011, with comparative statements for Agency Support Supporting public agencies is one of the key mandates of the Council. It is fulfilling that mandate on an ongoing basis through a number of different ways which includes but goes far beyond policy, administrative and accounting support. The main objective in providing such support is to encourage open lines of communication with the agencies. By doing so the Council can ensure the flow of information stays active and pertinent, and thereby be in a position to mitigate potentially damaging situations and also take advantage of positive situations by sharing them as best practices amongst the agencies. The major points of communication revolve around ensuring agency statutory requirements, such as Annual Report filing and more technical tasks such as year-end planning are fulfilled. The majority of the Council s projected activities for revolved around the provision of specific support to agencies. The Financial Reporting and Controls Division of the Department of Finance provided support to improve control and reporting of timely yearend financial information to the Department of Finance and working to improve accountability by incorporating performance measures in the corporate plans of territorial corporations. In addition, quarterly meetings were held with several territorial corporations to discuss financial results and provide a forum for the discussion of general items. This is an important part of the continuing work to increase communication and the Council s responsiveness to the needs of public agencies. 4 PUBLIC AGENCIES COUNCIL ACTIVITIES REPORT,

5 From time to time, the Council is called upon to provide more specific assistance to individual agencies, especially to those agencies with fewer resources or faced with extraordinary circumstances. Activities for In , the Council and staff supporting its work will return its focus to its primary objective: to provide advice to Cabinet and FMB regarding matters of governance for public agencies and recommendations to Ministers responsible for public agencies. In order to accomplish this objective, the Council will: Review and finalize the terms of reference for the Central Accountability Committee as it relates to the Council; Coordinate the preparation of mandate letters for deputy heads of the Nunavut Housing Corporation, Qulliq Energy Corporation, and Nunavut Arctic College; Prepare a work plan that complements the three-year planning horizon of the GN and supports GN priorities; Review the mandate of the Public Agencies Council; Prepare a communications strategy for the Public Agencies Council to ensure that its mandate is clearly understood by the agencies and the public; Develop a forum for the Council and ministers responsible for public agencies in Nunavut to meet on a regular basis to discuss items of mutual interest; Develop and host the first Annual Public Agencies Council Conference to bring together the chairs of the boards of each public agency, Ministers responsible, and the Council to share best practices and report on priorities and activities; Prepare letters of direction to the territorial corporations for in advance of the finalization of memorandums of understanding; Finalize the memorandums of understanding with the territorial corporations; and Ensure a seamless and efficient migration from the current private sector financial accounting standards to the PSAB standards for all public agencies. Summary of Purpose Formed in September of 2003 and renamed as the Public Agencies Council with revised terms of reference in 2009, the objectives of the Government of Nunavut s (GN) Public Agencies Council (Council) are: To advise Cabinet and the Financial Management Board (FMB) through their respective Chairs regarding matters of governance for public agencies; To provide recommendations to Ministers responsible and to Cabinet and FMB, PUBLIC AGENCIES COUNCIL ACTIVITIES REPORT,

6 regarding matters including statutory requirements, budget impacts, financial management, human resource policies and legislative initiatives; To support and enhance the governance capacity of Board Members of public agencies in Nunavut to carry out GN mandates in adherence to statues, regulations, and policies; and To make access to expert advice and support available and affordable for public agencies. The Council is comprised of the Minister of Finance (Chair), the Premier, as Chair of the Executive Council (Vice-Chair), and the Ministers of Justice and Human Resources. The Central Accountability Committee, a sub-committee of Deputy Ministers Committee, provides support to the Council by reviewing matters relating to public agencies prior to bringing them to the Council for decision. The Department of Finance provides ongoing support to the Council because of the focus on strengthening corporate governance, reporting and the accountability of public agencies. In Nunavut, public agencies have been created using two distinct models, as defined in the Financial Administration Act (FAA). Statutory Bodies are listed in Schedule A of the FAA, while Territorial Corporations, a specialized subset of Public Agencies, are listed in Schedules B and C: Schedule A Statutory Bodies Schedules B & C Territorial Corporations District Education Authorities La Commission scolaires francophone The Human Rights Tribunal The Labour Standards Board The Legal Services Board The Liquor Licensing Board The Liquor Commission The Qulliit Nunavut Status of Women Council Schedule B: Nunavut Arctic College Nunavut Housing Corporation Nunavut Development Corporation Nunavut Business Credit Corporation Qulliq Energy Corporation Schedule C: The Workers Safety and Compensation Commission of the NWT and Nunavut Conclusion By working together with our agencies, their responsible Ministers and staff, and by providing the critical bridge to the Government of Nunavut, the Council will continue to work to fulfill its mandate. Respectfully submitted by, Hon. Keith Peterson, MLA Minister of Finance 6 PUBLIC AGENCIES COUNCIL ACTIVITIES REPORT,