Taxpayers Federation responds to Auditor General's report for 2005 Public Accounts

WINNIPEG:The Canadian Taxpayers Federation (CTF) responded to Provincial Auditor Jon Singleton's Audit of the 2005 Public Accounts. In his report the auditor noted the province will completely implement generally accepted accounting principles (GAAP) by 2008, but raised concerns about reporting methods by school boards.

"For a number of years the CTF has been calling on the provincial government to adopt GAAP and we are certainly pleased they are finally moving in this direction," stated Manitoba Director Adrienne Batra. "Under the old accounting rules, Manitobans were not given a complete picture of the fiscal health of our province, now the summary financial statements will help the Legislature and the public understand what the government's financial plans are for publicly funded crowns, for example."

The auditor's report also raised concerns about the reporting methods of Manitoba's school boards by noting:

School divisions in Manitoba receive substantial monies from the Province and citizens (taxpayers, ratepayers and residents). To ensure that school divisions are held accountable for the funds they receive, citizens need to receive appropriate financial reporting and be confident that objective and recognized accounting standards are used. An understandable and accurate picture of a school division's financial position and operations enables both the Province and citizens, as well as the trustees and other stakeholders, to obtain assurance that public monies are being utilized in an appropriate and transparent manner.

In the past 13 years, school taxes have increased on average by 7 per cent a year, nearly triple the rate of inflation. In most municipalities, school taxes levied make up over 50 per cent of the property tax bill. "The CTF shares the auditor's concerns with respect to school boards spending, and would recommend that their 2008 deadline to move to GAAP, be accelerated to 2007." Batra added.

The timing of the province's move to GAAP is somewhat questionable, considering not only the CTF but the Provincial Auditor and the Opposition for years have been calling for the government to straighten out its accounting practices. "It appears somewhat convenient in the wake of some of Manitoba's crown corporations, most notably Manitoba Hydro, posting significant surpluses, that the province would finally want to include the crowns in the overall financial picture," Batra added, "but regardless of the motivation, adopting GAAP is a step in the right direction," she concluded.