A $67,000 renovation to an MLA constituency office and an “unusual” compensation agreement indicate persistent financial management problems at B.C.’s Legislative Assembly, according to a just-released report by B.C.’s Auditor General (AG).
Eight months ago, AG John Doyle lambasted the Legislative Assembly for its accounting practices.
In a follow-up report released yesterday, Doyle said that while progress has been made, problems persist.
Among other things, Doyle’s report stressed the need for the Legislative Assembly to commit to releasing audited financial statements.
“Financial transparency is a cornerstone of public accountability, and the Legislative Assembly should aspire to be a leader in this area,” Doyle said.
The report raised concerns about a pricey renovation to an MLA constituency office.
“The improvements made to the property, which cost $67,000, appeared to be above and beyond the type of renovation needed to customize the space for use as a constituency office,” Doyle said.
The report also flagged what it termed an “unusual” compensation arrangement with senior Legislative Assembly management, under which payments totalling $660,000 were made in early January and February 2012 under a program not used since 1988 – with none of the payments publicly disclosed.
“We also discovered that under a long-standing agreement, two senior officials were being paid without having any payroll taxes withheld,” Doyle said. “There is a risk that this may be in violation of Canada Revenue Agency rules and the Legislative Assembly could be liable for interest and penalties on amounts owed.”
Doyle said the Legislative Assembly’s financial management problems could be solved by now.
“If the Legislative Assembly had acted on the office’s earlier recommendations, some of which were brought to light as far back as 2007, these issues could have been prevented, or at least detected and addressed internally.”
Doyle said his office will continue to monitor financial management at the Legislative Assembly.
