Opening Statement to the Northwest Territories Legislative Assembly Standing Committee on Government Operations
Report of the Auditor General of Canada on the 2019–20 Consolidated Financial Statements of the Government of the Northwest Territories
18 June 2021
Sophie Miller, Chartered Professional AccountantCPA, Chartered AccountantCA
Assistant Auditor General
Madam Chair, thank you for this opportunity to discuss our audit of the consolidated financial statements of the Government of the Northwest Territories for the 2019–20 fiscal year. I am accompanied by David Irving, who was the principal responsible for the audit; Kelsey Hogg, who was the director; and Lana Dar, who is the principal responsible for the audit for the 2020–21 fiscal year.
Our primary responsibility as auditor for the Government of the Northwest Territories is to audit the government’s consolidated financial statements and express an opinion on them. As legislative auditors, we also report on the government’s compliance with specified authorities.
The consolidated financial statements within the Northwest Territories Public Accounts are a key government accountability document that can help legislative assembly members understand the results of the government’s financial transactions. Therefore, our audit of the consolidated financial statements supports the legislative assembly’s oversight of the government, promotes transparency, and encourages good financial management.
The committee’s review of the Public Accounts is an important step in ensuring accountability for how public funds are spent and how government finances are reported. I am pleased that the committee is holding this hearing to examine the government’s financial results.
The government carries out its accounting and financial reporting responsibilities through its Office of the Comptroller General within the Department of Finance. The Comptroller General will answer questions about the preparation of the financial statements. We will focus on our audit.
Our link opens a PDF fileindependent auditor’s report is on pages 1 to 4 in Part I of the Public Accounts. We have issued an unmodified audit opinion on the consolidated financial statements. They conform in all material respects with Canadian public sector accounting standards, which means that the information in the statements is reliable.
The consolidated financial statements, which include the accounts of the government and its controlled entities, show that the government had a net debt of $1.3 billion as at 31 March 2020. Net debt is the amount by which the government’s liabilities exceed its financial assets. It is a key financial indicator. Capital projects funded by the government have contributed significantly to the growth of the net debt.
The government makes estimates and assumptions that affect the amounts reported in the financial statements. The COVID‑19 pandemic emerged and evolved during the 2019–20 fiscal year. We assessed its effects and reviewed areas that are more sensitive to accounting estimates and market fluctuations. Overall, the pandemic did not significantly affect the consolidated financial statements.
I want to note that as a result of the pandemic, the majority of this audit was completed while our auditors were working remotely. We adapted our approach and maintained good communication with the government departments and territorial corporations. We have built a successful and collaborative relationship with these organizations and trust it will continue.
I would like to thank the Comptroller General, the Deputy Minister of Finance, and the staff of the departments and territorial corporations who were involved in preparing the government’s consolidated financial statements. We appreciate the efforts, cooperation, and help of all involved, especially given the pressures created by the pandemic.
Madam Chair, this concludes my opening remarks. We would be pleased to answer the committee’s questions.