[37] Bill 5 As Amended by Standing Committee (PDF)

Bill 5 2002

An Act to amend the Audit Act to insure greater accountability of hospitals,
universities and colleges, municipalities
and other organizations which receive
grants or other transfer payments from the government or agencies of the Crown

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. (0.1) The definition of "Assistant Auditor" in section 1 of the Audit Act is repealed and the following substituted:

"Deputy Auditor" means the Deputy Auditor General; ("Sous-vérificateur")

(1) The definition of "inspection audit" in section 1 of the Act is repealed.

(2) Section 1 of the Act is amended by adding the following definitions:

"audit" includes an examination of the matters mentioned in clause 12 (2) (f); ("vérification")

"grant recipient" means an association, authority, board, commission, corporation, council, foundation, institution, organization or other body that receives, directly or indirectly, a payment in the form of a grant or other transfer payment from Ontario, an agency of the Crown or a Crown controlled corporation; ("bénéficiaire d'une subvention")

(3) The definitions of "Auditor" and "Office of the Auditor" in section 1 of the Act are repealed and the following substituted:

"Auditor" means the Auditor General; ("Vérificateur")

"Office of the Auditor" means the Office of the Auditor General; ("Bureau du Vérificateur")

1.1 The Act is amended by adding the following section:

References to former names

1.1 A reference in an Act, regulation, order in council or document to a person or office by the former title of that person or the former name of that office set out in Column 1 of the following Table or by a shortened version of that title or name shall be deemed, unless a contrary intention appears, to be a reference to the new title of that person or the new name of that office set out in Column 2:

Column 1

Former titles and names

Column 2

New titles and names

Assistant Provincial Auditor

Deputy Auditor
General

Office of the Provincial Auditor

Office of the Auditor General

Provincial Auditor

Auditor General

1.2 Section 2 of the Act is repealed and the following substituted:

Office of the Auditor

2. The Office of the Auditor General shall consist of the Auditor, the Deputy Auditor and such employees as the Auditor General may require for the proper conduct of the business of the Office.

1.3 The following provisions of the Act are amended by striking out "Assistant Auditor" wherever that expression occurs and substituting in each case "Deputy Auditor":

1. Section 6.

2. Section 7.

3. Section 8.

2. Section 10 of the Act is repealed and the following substituted:

Duty to furnish information

10. (1) Every ministry of the public service, every agency of the Crown, every Crown controlled corporation and every grant recipient shall furnish the Auditor with the information regarding its powers, duties, activities, organization, financial transactions and methods of business that the Auditor requires.

Access to records

(2) The Auditor shall have free access to all books, accounts, financial records, electronic data processing records, reports, files and all other papers, things or property belonging to or used by the ministry, agency of the Crown, Crown controlled corporation or grant recipient, as the case may be, that the Auditor considers necessary to perform duties under this Act.

No obstruction of Auditor

(3) No person shall obstruct the Auditor or a member of the Office of the Auditor in the performance of an audit or conceal or destroy any books, papers, documents or things relevant to the subject-matter of the audit.

Offence

(4) Every grant recipient who knowingly contravenes subsection (3) and, if the grant recipient is a corporation, every director and officer of the corporation who knowingly concurs in the contravention is guilty of an offence and on conviction is liable to,

(a) a fine of not more than $2,000 or imprisonment for a term of not more than one year, or both, if the person is not a corporation; or

(b) a fine of not more than $25,000, if the person is a corporation.

2.1 The Act is amended by adding the following section:

Accommodation in grant recipient

11.1 For the purposes of exercising powers or performing duties under this Act, the Auditor may station one or more members of the Office of the Auditor in a grant recipient and the grant recipient shall provide the accommodation required for the purposes of this section.

2.2 Clause 12 (2) (c) of the Act is repealed and the following substituted:

(c) the examination of the summary financial statements of Ontario as reported in the Public Accounts and shall express an opinion as to whether the summary financial statements of Ontario as reported in the Public Accounts are presented fairly in accordance with appropriate accounting principles as recommended for governments by the Canadian Institute of Chartered Accountants;

2.3 Clause 12 (2) (f) of the Act is amended by striking out "agencies of the Crown or Crown controlled corporations" in the portion before subclause (i) and substituting "agencies of the Crown, Crown controlled corporations or grant recipients".

3. Section 13 of the Act is repealed and the following substituted:

Audit of grant recipient

13. (1) The Auditor may audit a grant recipient to the extent that the Auditor considers necessary and may require the recipient to prepare and to submit to the Auditor a financial statement that sets out the details of the disposition that the recipient made of the grant or other transfer payment that it received.

Time of receiving payment

(2) The Auditor may audit a grant recipient under subsection (1) in respect of a grant or other transfer payment that the recipient has in its possession on or after the day subsection (1) comes into force, even if the recipient received the grant or other transfer payment before subsection (1) comes into force.

4. Section 14 of the Act is repealed and the following substituted:

Examination on oath

14. (1) The Auditor may examine any person on oath on any matter pertinent to the performance of the Auditor's duties under this Act.

Powers of Auditor

(2) For the purpose of the examination, the Auditor has the powers that Part II of the Public Inquiries Act confers on a commission, and that Part applies to the examination as if it were an inquiry under that Act.

4.1 Section 20 of the Act is repealed and the following substituted:

Staff

20. Subject to the approval of the Board and to sections 22, 25 and 26, the Auditor may,

(a) employ the professional staff and other persons that the Auditor considers necessary for the efficient operation of the Office of the Auditor; and

(b) determine the salaries and the terms and conditions of employment of the Deputy Auditor and the other employees of the Office of the Auditor.

4.2 Clause 21 (1) (a) of the Act is amended by striking out "Provincial Auditor" and substituting "Auditor General".

4.3 Subsections 22 (1) and (2) of the Act are amended by striking out "Assistant Auditor" wherever that expression occurs and substituting in each case "Deputy Auditor".

4.4 Section 26 of the Act is repealed and the following substituted:

Conduct and discipline

26. (1) The Auditor may make orders and rules for the conduct of the internal business of the Office of the Auditor and, subject to this section, may for cause suspend, demote or dismiss an employee of the Office of the Auditor or may release an employee of the Office of the Auditor.

Application of Public Service Act

(2) The provisions of the Public Service Act and the regulations made under it that apply where a deputy minister exercises powers under section 22 of that Act, except the requirement for a deputy minister to give notice to or to obtain the approval of the Civil Service Commission, apply with necessary modifications, as if the Auditor were a deputy minister, where the Auditor for cause suspends, demotes or dismisses an employee of the Office of the Auditor or releases an employee of the Office of the Auditor.

Grievances

(3) An employee whom the Auditor for cause suspends, demotes or dismisses may file a grievance with respect to the Auditor's decision.

Application of Public Service Act

(4) The provisions of the regulations made under the Public Service Act that apply in relation to a grievance mentioned in those regulations apply with necessary modifications to a grievance mentioned in subsection (3) as if the Auditor were a deputy minister.

5. (1) Subsection 27 (1) of the Act is amended by striking out "Assistant Auditor" and substituting "Deputy Auditor".

(2) Subsection 27 (2) of the Act is repealed.

6. The Act is amended by adding the following section:

Information confidential

27.1 (1) The Auditor, the Deputy Auditor and each person employed in the Office of the Auditor or appointed to assist the Auditor for a limited period of time or in respect of a particular matter shall preserve secrecy with respect to all matters that come into the person's knowledge in the course of employment or duties under this Act and shall not communicate the matters to any person, except as is required in connection with the administration of this Act or a proceeding under it or the Criminal Code (Canada).

Personal information

(2) No person shall collect or retain personal information on behalf of the Auditor unless the Auditor determines that it is necessary for the proper administration of this Act or a proceeding under it.

Retention of information

(3) If the Auditor retains information relating to the medical, psychiatric or physiological history of an individual or relating to an individual's health care or well-being, the Auditor shall,

(a) remove all references in the information to the name of the individual and any other identifying information;

(b) retain the information by using a system of identification at source that separates out personal and confidential identifiers from generic information by the user;

(c) ensure that the information is not,

(i) disclosed to any person who is not authorized to have access to the information,

(ii) used or disclosed for any purpose not directly related to the Auditor's duties under this Act,

(iii) published or distributed in any manner that would allow the identity of the individual to whom the information relates to be ascertained or inferred, and

(iv) combined, linked or matched with any other information if the result could be the identification of the individual to whom the information relates, unless the combining, linking or matching is necessary, in the opinion of the Auditor, in order for the Auditor to perform his or her duties under this Act.

Definition

(4) In this section,

"personal information" means personal information within the meaning of the Freedom of Information and Protection of Privacy Act.

Complementary Amendments

6.1 The Acts named in Column 1 of the Table are amended by striking out "Provincial Auditor" wherever that expression occurs in the provisions set out opposite them in Column 2 and substituting in each case "Auditor General".

TABLE

COLUMN 1

COLUMN 2

Act

Provision

AgriCorp Act, 1996

section 13

Agricultural Rehabilitation and Development Act (Ontario)

subsection 7 (1), section 8

Agricultural Research Institute of Ontario Act

section 6

Alcoholism and Drug Addiction Research Foundation Act

section 16

Algonquin Forestry Authority Act

section 18 in the portion before clause (a),

clause 18 (b)

Arts Council Act

section 11

Cancer Act

section 12

Capital Investment Plan Act, 1993

subsections 13 (1) and (2)

Centennial Centre of Science and Technology Act

section 9

Community Psychiatric Hospitals Act

subsection 4 (8)

Courts of Justice Act

subsection 89 (9)

Credit Unions and Caisses Populaires Act, 1994

subsection 257 (2)

Crown Foundations Act, 1996

subsection 16 (2)

Development Corporations Act

section 26

Education Quality and Accountability Office Act, 1996

subsection 24 (3)

Election Act

subsection 113 (6)

Election Finances Act

section 8

Electricity Act, 1998

section 80

Environmental Bill of Rights, 1993

section 56

Environmental Protection Act

section 120

Farm Products Payments Act

subsection 5 (7)

Financial Administration Act

subsection 11 (3) and paragraph 3 of subsection 11.4 (2)

Financial Services Commission of Ontario Act, 1997

section 14

Freedom of Information and Protection of Privacy Act

subsection 9 (2)

GO Transit Act, 2001

subsection 13 (2)

Legal Aid Services Act, 1998

subsection 65 (3)

Legislative Assembly Act

subsection 83 (3), sections 86 and 91

Liquor Control Act

section 6

Metropolitan Toronto Convention Centre Corporation Act

subsection 12 (3)

Ministry of Treasury and Economics Act

clause 13 (2) (c)

Niagara Parks Act

section 19

Northern Ontario Heritage Fund Act

section 8

Ombudsman Act

section 10

Ontario Agricultural Museum Act

section 13

Ontario Educational Communications Authority Act

section 11

Ontario Food Terminal Act

section 10

Ontario Heritage Act

section 16

Ontario Housing Corporation Act

section 12

Ontario Mental Health Foundation Act

sections 12 and 25

Ontario Northland Transportation Commission Act

section 39

Ontario Place Corporation Act

section 13

Ottawa Congress Centre Act

subsection 12 (3)

Pay Equity Act

Schedule, clause 1 (h)

Public Guardian and Trustee Act

section 17

Racing Commission Act, 2000

section 14

Securities Act

subsection 3.9 (4)

Social Contract Act, 1993

subsection 9 (2)

St. Clair Parks Commission Act, 2000

subsection 11 (3)

St. Lawrence Parks Commission Act

section 16

Toronto Area Transit Operating Authority Act

section 12

Toronto Islands Residential Community Stewardship Act, 1993

subsection 12 (12)

University Foundations Act, 1992

subsection 9 (2)

Waterfront Regeneration Trust Agency Act, 1992

subsection 13 (3)

Workplace Safety and Insurance Act, 1997

subsections 168 (3) and 169 (1)

6.2 (1) The amendments to the Agricultural Rehabilitation and Development Act (Ontario), set out in the Table to section 6.1, do not apply if subsection 1 (2) of Schedule J to the Ministry of Agriculture, Food and Rural Affairs Statute Law Amendment Act, 1996 has come into force.

(2) The amendment to the Environmental Protection Act, set out in the Table to section 6.1, does not apply if section 2 of the Environmental Approvals Improvement Act, 1997 has come into force.

Commencement

7. This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

8. The short title of this Act is the Audit Statute Law Amendment Act, 2002.

This reprint of the Bill is marked to indicate the changes that were made in Committee.

Marginal side bars in the outer margin indicate that either a provision has been replaced, a new provision has been added or that there has been a change within a provision in either or both the English and French version of the bill. The changes are indicated by underlines for new text and a strikethrough for deleted text.

______________

EXPLANATORY NOTE

The Bill changes the title of the Provincial Auditor to the Auditor General and the title of the Assistant Auditor to the Deputy Auditor.

The Auditor General is authorized to carry out audits of grant recipients and to have access to the financial records of Crown agencies, grant recipients and Crown controlled corporations in order to carry out his or her functions under the Audit Act. Other amendments to the Act make it an offence to obstruct the Auditor in the performance of his or her duties, allow the Auditor to examine people under oath and require information to be kept confidential.

[37] Bill 5 Original (PDF)

Bill 5 2001

An Act to amend the Audit Act to insure greater accountability of hospitals,
universities and colleges, municipalities
and other organizations which receive
grants or other transfer payments from the government or agencies of the Crown

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. (1) The definition of "inspection audit" in section 1 of the Audit Act is repealed.

(2) Section 1 of the Act is amended by adding the following definitions:

"audit" includes an examination of the matters mentioned in clause 12 (2) (f); ("vérification")

"grant recipient" means an association, authority, board, commission, corporation, council, foundation, institution, organization or other body that receives a payment in the form of a grant or other transfer payment from Ontario or an agency of the Crown; ("bénéficiaire d'une subvention")

2. Section 10 of the Act is repealed and the following substituted:

Duty to furnish information

10. (1) Every ministry of the public service, every agency of the Crown, every Crown controlled corporation and every grant recipient shall furnish the Auditor with the information regarding its powers, duties, activities, organization, financial transactions and methods of business that the Auditor requires.

Access to records

(2) The Auditor shall have free access to all books, accounts, financial records, electronic data processing records, reports, files and all other papers, things or property belonging to or used by the ministry, agency of the Crown, Crown controlled corporation or grant recipient, as the case may be, that the Auditor needs to perform duties under this Act.

3. Subsections 13 (1) and (2) of the Act are repealed and the following substituted:

Audit of grant recipient

(1) The Auditor may audit a grant recipient to the extent that the Auditor considers necessary and may require the recipient to prepare and to submit to the Auditor a financial statement that sets out the details of the disposition that the recipient made of the grant or other transfer payment that it received.

Obstruction of Auditor

(2) No person shall obstruct the Auditor or a member of the Office of the Auditor in the performance of an audit of a grant recipient or conceal or destroy any books, papers, documents or things relevant to the subject-matter of the audit.

4. Section 14 of the Act is repealed and the following substituted:

Examination on oath

14. (1) The Auditor may examine any person on oath on any matter pertinent to any account that the Auditor may audit.

Powers of Auditor

(2) For the purpose of the examination, the Auditor has the powers that Part II of the Public Inquiries Act confers on a commission, and that Part applies to the examination as if it were an inquiry under that Act.

5. Subsection 27 (2) of the Act is repealed.

6. The Act is amended by adding the following section:

Information confidential

27.1 (1) The Auditor, the Assistant Auditor and each person employed in the Office of the Auditor or appointed to assist the Auditor for a limited period of time or in respect of a particular matter shall preserve secrecy with respect to all matters that come into the person's knowledge in the course of employment or duties under this Act and shall not communicate the matters to any person, except as is required in connection with the administration of this Act or a proceeding under it or the Criminal Code (Canada).

Personal information

(2) No person shall collect or retain personal information within the meaning of the Freedom of Information and Protection of Privacy Act on behalf of the Auditor unless the Auditor determines that it is necessary for the proper administration of this Act or a proceeding under it.

Personal identifiers

(3) If the Auditor retains information relating to the medical, psychiatric or psychological history of an individual, the Auditor shall remove all references in the information to the name of the individual and shall retain the information by using a system of identification other than the name of the individual.

Commencement

7. This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

8. The short title of this Act is the Audit Amendment Act, 2001.

EXPLANATORY NOTE

The purpose of the Bill is to enable the Provincial Auditor to have access to the financial records of Crown agencies, grant recipients and Crown controlled corporations. The Auditor is authorized to audit the financial statements of grant recipients. Auxiliary provisions are included in this Bill to make it an offence to obstruct the Auditor's mandate, to allow the Auditor to examine people under oath and to require information to be kept confidential.