Financial Accountability
Compliance Measures
The ministry may take measures to keep a board in compliance with all Acts administered by the Minister, and with all regulations, policies, guidelines, directives and similar instruments made under an Act administered by the Minister. These compliance measures can include the following:
- If the board does not spend its allocation in the prescribed manner, the board may be required, by legislation, to establish a reserve fund. The board may use the reserve only for the intended purpose.
- If the board does not establish a reserve fund, as required, the ministry may withhold grants payable to the board until the board demonstrates that it has established a reserve. All or part of a grant otherwise payable to a board could be withheld.
- The provision for withholding grants is general in nature. If a board contravenes any Act administered by the Minister or a regulation, policy, guideline, directive or similar instrument made under an Act administered by the Minister, the Minister may withhold all or part of a grant otherwise payable to the board under the Act.
- Provisions in the Act, Part VIII-Compliance with Board Obligations, section 230 and Division D-Supervision of Boards' Financial Affairs, section 257.30, allow the Minister, under circumstances set in the legislation, to appoint an investigator to review the financial and the administrative affairs of the board. The investigator would report in writing to the Minister and could make recommendations on specific actions that would ensure that a board's operation becomes compliant in a specific area. The Minister may then order the board to implement any action that the Minister deems necessary to address the situation.
- Upon the recommendation of the investigator, or if the board does not comply with the Minister's order, the Lieutenant Governor in Council may vest in the ministry control and charge over the administration of the affairs of the board. The Minister has the authority to take whatever action he or she considers necessary and appropriate to manage the affairs of the board in order to remedy the non-compliance.
- If a board has not submitted its financial information to the ministry by the date required by the ministry, the ministry may withhold cash flow payments to the board until the board files the necessary information.
- A directive or warning letter could be sent to advise the board that it is non-compliant in a specific area and request that a particular course of action is taken.
- A board may be directed to submit and present a formal action plan that outlines how the board intends to become compliant. Action plans serve to identify the commitment and level of responsibility of the board. They also help the ministry to monitor the board's progress.
- A team of internal or external advisors could be appointed to review the financial situation of a board. Based on the team's findings, the team may help the board to identify and develop strategies that would result in compliance.
|
