Bill 6, Audit Statute Law Amendment Act, 2003

Versions

Bill 6 2003

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

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 (1) The definition of "Assistant Auditor" in section 1 of the Audit Act is repealed and the following substituted:

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

(2) The definition of "inspection audit" in section 1 of the Act is repealed.

(3) 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); ("verification", "vérifier")

"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")

(4) The definitions of "Auditor" and "Office of the Auditor" in section 1 of the Act are repealed and the following substituted: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

2. 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	Column 2
Former titles and names	New titles and names
Assistant Provincial Auditor	Deputy Auditor General
Office of the Provincial Auditor	Office of the Auditor General
Provincial Auditor	Auditor General

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 Section 2 of the Act is repealed and the following substituted: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

4. 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.

5. 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.

6. 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.

7. (1) 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) 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".

8. 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.

9. 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 purposes 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.

10. 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.

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

12. 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".

13. 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.

14. (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.

15. 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 personal and confidential identifiers from generic information;

(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

16. 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 Municipal Economic Infrastructure Financing Authority Act, 2002	section 15
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)

TABLEAU

Colonne 1	Colonne 2
Loi	Disposition
Loi de 1996 sur AgriCorp	article 13
Loi sur la revalorisation et l'aménagement des régions agricoles (Ontario)	paragraphe 7 (1) et article 8
Loi sur l'Institut de recherche agricole de l'Ontario	article 6
Loi sur la Fondation de recherche sur l'alcoolisme et la toxicomanie	article 16
Loi sur l'Agence de foresterie du parc Algonquin	article 18 dans le passage qui précède l'alinéa a) et alinéa 18 b)
Loi sur le Conseil des arts	article 11
Loi sur le cancer	article 12
Loi de 1993 sur le plan d'investissement	paragraphes 13 (1) et (2)
Loi sur le Centre Centennial des sciences et de la technologie	article 9
Loi sur les hôpitaux psychiatriques communautaires	paragraphe 4 (8)
Loi sur les tribunaux judiciaires	paragraphe 89 (9)
Loi de 1994 sur les caisses populaires et les credit unions	paragraphe 257 (2)
Loi de 1996 sur les fondations de la Couronne	paragraphe 16 (2)
Loi sur les sociétés de développement	article 26
Loi de 1996 sur l'Office de la qualité et de la responsabilité en éducation	paragraphe 24 (3)
Loi électorale	paragraphe 113 (6)
Loi sur le financement des élections	article 8
Loi de 1998 sur l'électricité	article 80
Charte des droits environnementaux de 1993	article 56
Loi sur la protection de l'environnement	article 120
Loi sur le recouvrement du prix des produits agricoles	paragraphe 5 (7)
Loi sur l'administration financière	paragraphe 11 (3) et disposition 3 du paragraphe 11.4 (2)
Loi de 1997 sur la Commission des services financiers de l'Ontario	article 14
Loi sur l'accès à l'information et la protection de la vie privée	paragraphe 9 (2)
Loi de 2001 sur le Réseau GO	paragraphe 13 (2)
Loi de 1998 sur les services d'aide juridique	paragraphe 65 (3)
Loi sur l'Assemblée législative	paragraphe 83 (3) et articles 86 et 91
Loi sur les alcools	article 6
Loi sur la Société du palais des congrès de la communauté urbaine de Toronto	paragraphe 12 (3)
Loi sur le ministère du Trésor et de l'Économie	alinéa 13 (2) c)
Loi sur les parcs du Niagara	article 19
Loi sur le Fonds du patrimoine du Nord de l'Ontario	article 8
Loi sur l'ombudsman	article 10
Loi sur le Musée agricole de l'Ontario	article 13
Loi sur l'Office de la télécommunication éducative de l'Ontario	article 11
Loi sur le Marché des produits alimentaires de l'Ontario	article 10
Loi sur le patrimoine de l'Ontario	article 16
Loi sur la Société de logement de l'Ontario	article 12
Loi sur la Fondation ontarienne de la santé mentale	articles 12 et 25
Loi de 2002 sur l'Office ontarien de financement de l'infrastructure économique des municipalités	article 15
Loi sur la Commission de transport Ontario Northland	article 39
Loi sur la Société d'exploitation de la Place de l'Ontario	article 13
Loi sur le Centre des congrès d'Ottawa	paragraphe 12 (3)
Loi sur l'équité salariale	annexe, alinéa 1 h)
Loi sur le Tuteur et curateur public	article 17
Loi de 2000 sur la Commission des courses de chevaux	article 14
Loi sur les valeurs mobilières	paragraphe 3.9 (4)
Loi de 1993 sur le contrat social	paragraphe 9 (2)
Loi de 2000 sur la Commission des parcs de la Sainte-Claire	paragraphe 11 (3)
Loi sur la Commission des parcs du Saint-Laurent	article 16
Loi sur la Régie des transports en commun de la région de Toronto	article 12
Loi de 1993 sur l'administration de la zone résidentielle des îles de Toronto	paragraphe 12 (12)
Loi de 1992 sur les fondations universitaires	paragraphe 9 (2)
Loi de 1992 sur l'Agence fiduciaire de régénération du secteur riverain	paragraphe 13 (3)
Loi de 1997 sur la sécurité professionnelle et l'assurance contre les accidents du travail	paragraphes 168 (3) et 169 (1)

17. (1) The amendments to the Agricultural Rehabilitation and Development Act (Ontario) set out in the Table to section 16 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 16 does not apply if section 2 of the Environmental Approvals Improvement Act, 1997 has come into force.

Commencement

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

Short title

19. The short title of this Act is the Audit Statute Law Amendment Act, 2003.

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 all information and records of Ministries, 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.