40th Parliament
December 12, 2013
Composition of the Committee (39th Parliament)
Assembly Response to Financial Records Audit, July 2012
Assembly Response to Financial Records Audit, July 2012
Disclosure of MLA Expense Information
Disclosure of Members’ Expenses
Appendix A: Committee Decisions by Subject, 2012-2013
Appendix B: Minutes of Proceedings, 2012-2013
Appendix C: Legislative Assembly Management Committee Act (RSBC 1996, c. 258)
December 12, 2013
To the Honourable
Legislative Assembly of the
Province of British Columbia
Honourable Members:
On behalf of my predecessor, Hon. Bill Barisoff, I have the honour to present the Legislative Assembly Management Committee’s Annual Report for the period, January 2012-2013. During the reporting period, the Committee met in public for the first time and implemented other significant changes to its practices in order to promote openness, public accountability and transparency.
Respectfully submitted on behalf of the Committee,
Honourable Linda Reid
Speaker of the Legislative Assembly of British Columbia
Composition of the Committee (39th Parliament) |
Speaker and Chair |
Penticton-Okanagan Valley |
| Government House Leader |
Abbotsford West |
Hon. Rich Coleman, MLA (to September 5, 2012) |
|
Government House Chair |
Surrey-White Rock |
Government Caucus Whip |
Vernon-Monashee |
Mr. Ben Stewart, MLA (to September 5, 2012) |
Westside-Kelowna |
Opposition House Leader |
Juan de Fuca |
Opposition Caucus Chair |
Surrey-Whalley |
Clerk to the Committee
Craig James
Clerk of the Legislative Assembly
Committee Process |
The Legislative Assembly Management Committee (LAMC) is a statutory all-party committee responsible for the overall management of the Legislative Assembly. It was established in 1992 with the enactment of the Legislative Assembly Management Committee Act (RSBC 1996, c. 258). Under the Act, LAMC is empowered to consider any matters necessary for the efficient and effective operation and management of the Legislative Assembly, including reviewing annual estimates of expenditure for the Legislative Assembly under Vote 1 – Legislation.
LAMC membership comprises the following Members of the Legislative Assembly: the Speaker and LAMC Chair, the Government House Leader, the Government Caucus Chair, the Chief Government Whip (in place of a minister), the Opposition House Leader, and the Opposition Caucus Chair.
This report summarizes the work of LAMC since its 2009-2011 Annual Report was tabled in the House by the Speaker on October 18, 2012. In line with previous LAMC reports, the Annual Report for 2012-2013 contains a record of the decisions made during the reporting period.
In one important respect, this Annual Report represents a turning point in the evolution of LAMC. For the first time, three of the four meetings that took place during the reporting period were conducted in public and attracted considerable media interest.
This significant change in committee practice was part of a commitment made by LAMC in 2012 to follow the principles of openness, public accountability and transparency in the way it operates. The efforts to strengthen its governance and oversight function were also a response to the Auditor General’s observations on the Legislative Assembly’s governance environment in his July 2012 report, Audit of the Legislative Assembly’s Financial Records (see pp. 14-15).
In the period from January 2012 to 2013, LAMC held four meetings on the following dates to consider various matters:
July 31, 2012 LAMC Meeting |
The Legislative Assembly Management Committee (LAMC) met in camera on July 31, 2012. Also in attendance were the Clerk of the House and the Deputy Clerk.
The Committee made two decisions, one regarding LAMC governance and the other on LAMC powers. Members also agreed to endorse the Auditor General’s audits of the Legislative Assembly’s financial records and to disclose MLA expenses:
July 31, 2012 LAMC Statement |
Following the in-camera meeting, LAMC took the unusual step of releasing a statement outlining its intentions going forward:
“The Legislative Assembly Management Committee is taking immediate action in response to Auditor General’s John Doyle’s recent legislative assembly audit.
“All actions will follow the principles of openness, public accountability and transparency and the committee will implement all recommendations made by the Auditor General since 2007. These recommendations have been referred to the clerk who will report back to LAMC on progress of the workplan at the next meeting.
“Future LAMC meetings will be open and structured in a manner similar to a select standing committee. Meetings will be recorded by Hansard and will only be in camera when needed. Guidelines concerning in camera consultations will be determined at the first open meeting. Meetings will be held quarterly or at the call of the chair should more discussions be required.
“The committee has full confidence that all MLAs have submitted receipts for their expenses as required. Annual expenses are released in the Public Accounts every July. However, to provide more openness to British Columbians, beginning in October, quarterly MLA expenses will be posted online starting with the expenses for the first two quarters of this current fiscal year.
“An Internal Audit and Risk Management sub‐committee, comprised of the Speaker and the two caucus chairs, has been created to review all audit reports and will report back to LAMC.
“Effective immediately, two people are being brought in to enhance financial controls at the legislature and both will work under the direction of the clerk to assist in restoring public confidence. Additionally, the position of an executive financial officer has been created. The names of the appointees will be made public in the following days.
“Since April, Deloitte has been retained to prepare an internal audit and risk management program.
“LAMC has spoken with the Auditor General to discuss the workplan and has invited him to appear in person and meet with the committee to discuss his report and LAMC’s response.
“The committee will consult with both the Auditor General and the Information and Privacy Commissioner to discuss how best to report and make public constituency office expenses.
“LAMC expects to hold its next meeting, in the new open format, at the end of August and will meet with the Auditor General in September, upon his return.”
August 28, 2012 LAMC Meeting |
The Legislative Assembly Management Committee (LAMC) held its first public meeting on August 28, 2012. The Committee heard presentations by the Clerk of the House and the Deputy Clerk. Also in attendance was the A/Executive Financial Officer.
The Deputy Clerk distributed the Legislative Assembly Management Committee Draft Governance Document, dated Aug. 27, 2012. She explained that it was developed to assist LAMC exercise oversight to ensure responsible management of the Legislative Assembly. The document describes the composition, powers and duties of LAMC; the powers and duties of the Speaker; proceedings and business; minutes of meetings; and the role of the Clerk of the House. The Deputy Clerk explained that LAMC has the authority to change any of the practices outlined in the draft document.
Several topics were discussed: the meaning of LAMC powers regarding “the conduct of the members of the Legislative Assembly” (section 3(1) of LAMC Act); budget estimates for Vote 1 - Legislation; membership substitutions; protocols for in-camera meeting minutes and for release of minutes; meeting schedule and quorum requirement; the exclusion of permanent officers from LAMC’s jurisdiction; and the respective roles of the Speaker, Clerk of the House and the Clerk Consultant.
Flowing from this review, Members suggested amendments and revisions to the draft governance document. They also requested that the Office of the Clerk prepare an overview of key statutory provisions in the Legislative Assembly Management Committee Act and Constitution Act, with respect to the matters raised during the review of the draft governance document.
The Committee made three decisions, two relating to minutes and the other to the meeting schedule:
LAMC received a progress report from the Clerk of the House on the Assembly response to the Auditor General’s report, Audit of the Legislative Assembly’s Financial Records, July 2012. The Clerk reported that a number of measures have been undertaken to address the Auditor General’s concerns. These initiatives included: conducting an operational and management review (including financial review) of the Assembly; developing a financial management action plan to improve the existing financial framework; enhancing budget development and monitoring processes; and conducting a constituency office expense review. Other steps taken were: implementing a functional reorganization of Assembly branches, creating a new Executive Financial Officer position, and establishing an internal audit working group to review financial practices. The Clerk also referred to capital projects and actions taken on emergency preparedness and disaster recovery response within the Assembly.
The Clerk explained the role of the A/Chief Financial Officer in implementing recommendations, and reviewed communications between the Legislative Assembly and the Office of the Auditor General. He invited the two caucus chairs to attend weekly meetings of the newly formed audit working group. In response to the Clerk’s briefing, one Member requested that the chronology of audit information from 2007 to 2012 be made available in time for the next LAMC meeting.
Members reviewed the draft report summarizing LAMC activities from March 3, 2009 to October 25, 2011. They agreed to defer the adoption of the report to have more time to review the document.
The Clerk explained that the current practice is to disclose information on MLA remuneration and travel in the annual Public Accounts. A briefing note prepared for LAMC indicated that a general theme throughout the Auditor General’s report is public disclosure through publishing a full set of financial statements for the Legislative Assembly, as well as details of payments made to current and former MLAs and more details of how constituency office allowances are spent. The Clerk also referenced the Information and Privacy Commissioner’s guidelines regarding the public reporting of MLA expenses, including constituency office expenses.
Members asked about the categorization, format and timeline for reporting on MLA expense information. They discussed options to address privacy concerns for constituency assistants, the status of constituency office staff at dissolution, and asked the Clerk to obtain a legal opinion on the matter.
A Member asked for details of the Clerk Consultant’s duties and compensation by the next meeting.
October 17, 2012 LAMC Meeting |
The Legislative Assembly Management Committee (LAMC) held its second public meeting on October 17, 2012. LAMC heard presentations by the Government House Leader, the Clerk of the House, the Deputy Clerk, and the A/Executive Financial Officer.
The Government House Leader referenced the practices used in other jurisdictions for disclosing constituency office expenses, and the BC guidelines provided by the Information and Privacy Commissioner. Members agreed to prepare a revised proposal regarding disclosure of constituency office expenses and seek the input and advice of the Information and Privacy Commissioner to make further progress on this matter. As well, they agreed to ensure that all Members have an opportunity to review the proposed constituency office disclosure report planned for public release in early 2013.
With regard to MLA travel expenses, LAMC confirmed its commitment to planned disclosure.
The Clerk distributed the audit chronology covering the 2006 to 2012 period, which was requested at the previous meeting. He also presented the Legislative Assembly’s draft response to the Auditor General’s recommendations for consideration by LAMC. He explained that the draft response described actions taken since the 2007 audit of the Assembly’s financial records. In addition, the Clerk provided the Committee with a progress report on the extensive administrative and financial work underway, including an update on the internal audit and risk management program. Members discussed the timeline for the Assembly response and the work of the audit working group.
The Deputy Clerk reviewed the revisions to the Legislative Assembly Management Committee Draft Governance Document, dated October 2012, which had been made since the previous meeting. In particular, changes to the meeting schedule and the section on minutes of meetings were referenced. The ensuing discussion focused on meeting minutes and in-camera practices with respect to the Vote 1 review process of the Assembly estimates.
The A/Executive Financial Officer provided financial information for fiscal 2012-2013: First Quarter (April 1-June 30, 2012), showing expenses by function, forecast expenses to March 31, 2013, and capital expenses. Members asked about the accounting treatment of unanticipated expenses.
Members endorsed the Clerk’s proposal to establish a committee to advise LAMC on how to exercise effective oversight of the Legislative Assembly finances. They learned that the new Finance and Audit Committee will undertake audit-related responsibilities to improve financial management controls at the Assembly.
The Deputy Clerk presented for review the revised draft of the LAMC report for 2009-2011, which included membership changes effective September 5, 2012. Members proposed additional text for the Speaker’s letter of transmittal for the draft report. They also suggested that the format of future reports could reflect new practices adopted by LAMC – for example, a summary on disclosure information could be included in the interests of promoting openness.
The Speaker read into the record a letter from the Clerk Consultant, dated October 3, 2012, disclosing his intention to donate to the Legislative Library of British Columbia the net remuneration received during his term of 24 months.
January 28, 2013 LAMC Meeting |
The Legislative Assembly Management Committee (LAMC) held its third public meeting on January 28, 2013. The Committee heard presentations by the Clerk and the A/Executive Financial Officer.
The Clerk of the House presented an overview of the internal audit plan, 2012/13 – 2014/15. He reported that for the current fiscal year, 2012/13, audits of capital development projects, constituency offices, and special investigations are planned. An assessment of internal controls over financial reporting and a review of the new governance structure are scheduled for 2013/14. This portion of the progress report prompted several questions from members on the internal audit plan.
The Clerk updated LAMC on preparations for the transition to the new parliament. He explained that activities include updates to existing resources and new initiatives to provide enhanced access to information for new and returning members, an end of parliament communiqué for current members, and an upcoming report by the information technology committee containing recommendations on equipment and technology for the new parliament. LAMC also received a report on the status of the barrier-free ramp project to provide unimpeded access to the buildings.
The Clerk distributed a vision document, Renewal of an Icon, which focuses on the need for maintenance, renovation and revitalization of the Legislative Precinct. He also reported on the development of a business continuity plan to address a major disruption in Assembly operations.
The Clerk provided an update in regard to the new Finance and Audit Committee. In response, members discussed the protocol for receiving its minutes.
The Clerk presented options for LAMC consideration related to disclosure of centrally paid expenses, including MLA travel expenses, and constituency office costs. He also reported that at the inaugural meeting of the Finance and Audit Committee (December 5, 2012), a proposal was made to change the structure of the MLA Travel Card from the current corporate liability travel card to a personal liability card.
Members discussed the options for further disclosure of Members’ expenses, such as the inclusion of Cabinet Minister expenses, Speaker-approved travel, and Parliamentary Committee travel. Members also considered the proposal to change the MLA Travel Card program.
The Committee made three decisions in regard to the format and scope of disclosure of MLA expense information, and another on the MLA Travel Card program:
The A/Executive Financial Officer provided financial information for the second quarter (April – Sept. 2012) and third quarter (April – Dec. 2012) of 2012/13, with each containing an expense report by function, a forecast report and a capital expenditure report. Members focused their questions on unallocated operating expenses and a contingency fund for unforeseen capital projects.
The Clerk provided the budget submission setting out the estimated resources required for 2013/14 to enable the Legislative Assembly to fulfil its legislative, financial and oversight responsibilities. To continue operating as a lean and efficient organization, the proposed budget for Vote 1 - Legislation provides for total operating expenses of $75,496,000 and a capital budget of $3,392,000.
© 2013 Legislative Assembly of British Columbia |
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