Taxpayer Protection Act Introduced

first_imgMichael Baker, chair of Treasury and Policy Board, introducedamendments to the Public Service Act today, April 15, that willallow government to dismiss a CEO of a third-party agency whofails to meet government’s financial reporting requirements. “Some $2.5 billion in taxpayers funds will be spent this yearthrough the third-party entities in our consolidated financialstatements,” said Mr. Baker. “Taxpayers need to know that thoseentities follow the same accountability standards as are in placein the rest of government.” The Taxpayer Protection Act gives Executive Council the authorityto terminate a chief executive officer of any government entitycovered by the provincial Finance Act. This includes severaldozen organizations such as school boards, health boards, housingauthorities, Crown corporations and small agencies. The termination would be for failure to follow financialreporting requirements. Treasury and Policy Board has theauthority to set these requirements for both governmentdepartments and third-party agencies fully under the government’scontrol. The amendments, in essence, will hold chief executive officers ofthird-party government organizations to the same accountabilitystandards as deputy ministers of government departments. Financial results of these organizations have been part ofgovernment’s consolidated financial statements since 1999, aspart of the adoption of Generally Accepted Accounting Principles.Nova Scotia has among the highest accounting standards in thecountry. Treasury and Policy Board office will continue ongoing work withthird party agencies in 2004-05 to strengthen accountability andreporting processes as appropriate and applicable for eachentity. “We will balance the budget once again this year, and we intendto keep it that way in years to come,” said Mr. Baker. “Thischange ensures that leaders of third party entities understandtheir role in making that happen.”last_img read more

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