Canada: Proposed Amendments To The Auditor General For Local Government Act

On September 28, 2015, Bill 36, Auditor General for Local Government Amendment Act, 4th Sess, 40th Parl, 2015, was given first reading. In introducing the Bill, Hon. P. Fassbender noted that it reflects "learnings from the first two years of operations of the Office of the Auditor General for Local Government" and clarifies and enhances governance and accountability provisions in the Auditor General for Local Government Act ("AGLGA").

Local governments should review the proposed amendment and consider it against the concerns and recommendations set out in the Auditor General for Local Government: Perspectives on Operations report prepared by the Union of BC Municipalities ("UBCM") earlier this year.

A few points of note in the amendment:

1. The Auditor General ("AG") may disclose to a law enforcement agency information relating to the commission of an offence against an enactment of British Columbia or Canada. There is no requirement that the AG be qualified to identify and evaluate the multiplicity of potential offences set out under provincial and federal law.

2. The AG need not be qualified to act as an auditor within the meaning of s. 205 of the Business Corporations Act; however, the AG must appoint a deputy who meets the requirements of s. 205.  

3. The AG must consider comments of the Audit Council (established under the AGLGA), where provided, on draft audit reports, annual reports and other reports.

4. Before preparing an annual service plan, the AG must consult, to the extent that he or she considers advisable, with the UBCM respecting the themes on which some or all performance audits may be based.  Consultation on other aspects of the service plan is left to the discretion of the AG.

5. The Audit Council may prepare and provide to the minister a report on the performance of the AG. 

6. The minister must review the AGLGA and the AG's performance within 5 years, but may also carry out such review at any other time.

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