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report of the AUDITOR GENERAL for the year ended 31 March 1979 British Columbia. Legislative Assembly 1980

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 Province of
British Columbia
AUDITOR
GENERAL
for the year ended
31 March 1979
  Province Of Office Of the 8 Bastion Square
British Columbia Auditor General victoria
Province of British Columbia British Co'""10'8
iara
V8V1X4
The Honourable Hugh A. Curtis
Minister of Finance
Province of British Columbia
Sir:
I have the honour to transmit herewith my Report to the
Legislative Assembly for the fiscal year ended 31 March 1979
for submission to the Assembly in accordance with the
provisions of Section 10(1) of the Auditor General Act,
S.B.C. 1976, chapter 3.
jS^ffS?7*^7'Ss^
Erma Morrison, C.A.
Auditor General
Victoria, British Columbia
13 March 1980
  REPORT OF THE AUDITOR GENERAL
TABLE OF CONTENTS
Parti
Section                                                                                                                   Paragraph Page
1. Highlights 7
2. Introduction
General  2.1 8
Comprehensive Auditing  2.11 9
3. Legislation   3.1 11
4. Report on the Financial Statements 12
5. Comments on the Financial Statements
Introduction   5.1 14
Stated Accounting Policies and Practices   5.3 14
Financial Statement Presentation  5.8 15
Accounts Receivable from Other Governments
and Agencies  5.9 15
Taxes and Other Accounts Receivable   5.10 15
Loans and Other Advances  5.13 16
Investment in, and Advances to, Crown Corporations   5.16 16
Investments, Other  5.21 17
Other Current Liabilities  5.22 17
Guaranteed Debt  5.23 18
6. Internal Control Systems
Introduction   6.1 19
Control Over Revenues  6.3 19
Control Over Expenditures  6.16 21
Conclusion   6.21 22
7. Comments on Ministries
Introduction   7.1 23
Ministry of Agriculture
Audit of Claim Payments  7.3 23
Ministry of the Attorney-General
Purchase and Expenditure Systems   7.6 23
Public Trustee  7.11 24
Ministry of Consumer and Corporate Affairs
Liquor Distribution Branch   7.17 25
Ministry of Finance
Treasury Section  7.20 26
Securities Section  7.23 26
Ministry of Forests
Unbilled Timber Royalties and Stumpage Fees   7.26 27
Ministry of Health
Introduction   7.28 27
Expenditure Controls   7.30 28
 REPORT OF THE AUDITOR GENERAL
Section Paragraph       Page
Revenue Controls  7.34 28
Patients'Trust Accounts  7.38 29
Control Accounts  7.39 29
Hospital Insurance Fund  7.40 30
Emergency Health Services Commission   7.42 30
Ministry of Human Resources
Canada Assistance Plan  7.47 31
Ministry of Municipal Affairs and Housing
Housing Fund  7.53 32
Grants to Housing Cooperatives and
Nonprofit Societies  7.56 33
Ministry of the Provincial Secretary
LotteryFund   7.58 33
8. PublicBodies    8.1 35
9. Public Accounts Committee    9.1 36
10. Organization and Activities of the Audit Office
Organization and Personnel  10.1 37
Audit Activities 10.6 38
Canadian Legislative Auditors' Conference   10.8 38
New Office Location  10.10 38
Accountsof the Office of the Auditor General   10.11 39
Advisory Council 10.12 39
11. Status of Findings and Recommendations Contained
in the 1978 Annual Report of the Auditor General 40
Part 2
12. Comprehensive Auditing   12.1 50
Part 3
13. Royal Commission on Financial Management and Accountability ....13.1 63
Appendices
I    Sections of the Auditor General Act Relevant to the
Responsibilities of the Auditor General    67
II Public Bodies of Which the Auditor General was the
Appointed Auditor as at 31 March 1979    70
III Public Bodies, of Which the Auditor General was not the
Appointed Auditor, Whose Financial Statements are Included
in Section F of the Public Accounts  71
IV Sections A (pages A1 to A9), B and C of the Public Accounts   72
 REPORT OF THE AUDITOR GENERAL
HIGHLIGHTS
Submission of this Report to the Legislative Assembly completes the second full cycle
of the work of my Office. It presents major concerns, significant or illustrative findings, and
recommendations arising from the work conducted by my staff relative to the 1979 fiscal
year.
My report and opinion on the financial statements for the 1979 fiscal year is made
without the qualifications or reservations necessary in my first reporting year. It is important
to recognize that this opinion, as specified by the Auditor General Act, consists of my
professional assessment as to whether the statements are presented fairly in accordance with
the stated accounting policies of the Government.
However, the stated accounting policies are so replete with anomalies and inconsistencies that I have had to question whether identifiable policies, as such, exist. It is hoped
that the comprehensive examination of accounting policies and practices referred to in the
notes to the financial statements will lead to a more meaningful presentation of the
Government's financial information.
The need for revised financial legislation continued throughout the year of my Report.
Recent information indicates that steps are being taken in this regard.
I noted in my 1978 Report that systems of internal control over expenditures needed
considerable improvement. In this year's audit we extended our tests in the area of
expenditures, and found that little progress had been made toward improvement. In
addition, we looked carefully at the control over revenues and found it to be less than
satisfactory in many areas.
I again refer, in the body of this Report, to the status of the debt of the British Columbia
Railway Company guaranteed by the Province.
My work in the past year has been involved mainly with the required examination of
the accounts of the Province leading to my report on the financial statements, and the annual
audits of the 27 public bodies of which I am the appointed auditor. As described in Part 2 of
this Report, my Office has begun a pilot project which introduces the concepts of comprehensive auditing. This approach to the work of my Office is intended to embody in future
audits all facets of my mandate, with particular regard to those relating to the economy and
efficiency of program administration.
A separate Section is included as to the current status of findings and recommendations
contained in my Report for the 1978 fiscal year. This will be a regular feature in future
reports and will be updated annually so that changes and improvements may be noted as
they occur.
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ERMA MORRISON, C. A.
Auditor General
Victoria, British Columbia
18 February 1980
 REPORT OF THE AUDITOR GENERAL
INTRODUCTION
General
2.1 My main duties and responsibilities as the Auditor General of British Columbia are set
out in the Auditor General Act, S.B.C. 1976, chapter 3. Relevant sections of the Act are
included as Appendix I to this Report. Sections 6,7, and 8 of the Act require that I examine
the accounts and records of the Government relating to the Consolidated Revenue Fund and
other funds, report annually to the Legislative Assembly on the financial statements of the
Government, and also report annually on other matters arising from my examination that
should be brought to the attention of the Legislative Assembly.
2.2 The financial statements of the Government of the Province of British Columbia are
prepared annually by the Comptroller-General in compliance with the Financial Control
Act, and are included in the Public Accounts. I have examined the accounts and records
relating to the Consolidated Revenue and other funds, and the report containing my opinion
on the financial statements is included in the Public Accounts for the fiscal year ended 31
March 1979. The report containing my opinion on the financial statements is reproduced in
Section 4 of this Report. The financial statements to which my opinion refers are shown in
Appendix IV.
2.3 Due to numerous and continuing revisions to the financial statements and to delays in
receiving the related notes, I experienced serious difficulties in completing my reports in
good time. The Financial Control Act requires the Comptroller-General to submit the
statements constituting the Public Accounts to the Minister of Finance on or before 30
September in each year. Although my audit field work was substantially completed by 30
September 1979, the financial statements and notes in final form were not delivered to me
until 15 February 1980. It was only by imposing extensive additional work on my staff in
order to examine and re-examine the effects of changes, at the expense of time scheduled for
the 1980 audit, that it was possible to meet the deadline for submission of my opinion to the
Legislative Assembly. In order that I may properly and efficiently carry out my statutory
obligations as Auditor General, I recommend that the financial statements and notes thereto
be finalized by 30 September of each year and that they be transmitted to me forthwith.
2.4 In my first Report I described the various conditions and circumstances which
influenced the nature and limited the extent of my initial examination of the financial
statements of the Province. Because of those scope limitations it was necessary for me to
qualify my audit opinion on the financial statements for the fiscal year ended 31 March
1978. There has been no need to qualify my opinion in this respect for the fiscal year ended
31 March 1979.
2.5 In my first Report I commented on numerous matters that came to my attention, and
made recommendations for corrective action. The current status of each of these items is set
out in Section 11 of this Report.
2.6 In the course of our review we carried out audit tests in all ministries and relevant
central agencies of the Government. My staff and I were afforded complete access to
records of account and administration, and were provided with all the information and
explanations required in the conduct of our examination. The audit findings, comments and
 REPORT OF THE AUDITOR GENERAL
recommendations contained in this Report have been reviewed and discussed with senior
officials of the various ministries directly involved. I wish to express my appreciation for
the cooperation received from all Government organizations, Crown agencies and public
bodies that we have dealt with.
2.7 Most matters described in this Report have come to light primarily as a result of the
required examination of the accounts of the Province leading to my report on the financial
statements. The Auditor General Act, in section 8, extends the Auditor General's mandate
to include assessments as to the appropriateness of accounting and financial reporting
policies, and whether ministry programs are being administered economically and efficiently. My objective is to extend the scope of our audit to include these other areas.
2.8 The Auditor General Act provides that the Auditor General may be appointed the
auditor, or a joint auditor, of a Crown corporation, Crown agency or public body. As at 31
March 1979 I was the appointed auditor of 27 public bodies, an increase of two during the
year. Comments regarding the audit of public bodies are contained in Section 8 of this
Report.
2.9 My first annual Report was tabled in the Legislative Assembly on 2 April 1979 and
was referred to the Public Accounts Committee of the Legislative Assembly, as required by
the Auditor General Act. Comments relating to this Committee appear in Section 9 of this
Report.
2.10 The report of the Royal Commission on Financial Management and Accountability
(the Lambert Report) contains many significant observations and recommendations of
interest to those concerned with management in government. My analysis of the Commission's report appears in Part 3 of this Report.
Comprehensive Auditing
2.11 In my first Report to the Legislative Assembly I said that I intended to conduct audits
of economy, efficiency and the way in which the Government reports the results of its
activities. The number of such audits to be performed would be based on the capacity of my
Office. Because of the newness of the Office, my priority objectives during its first two
years of existence were to fulfil my annual attest audit reponsibilities and to build a strong,
professional team. Since I issued my first Report, I have also considered it crucial that the
Office start to develop and carry out plans to ensure that it would fulfil all the requirements
of its mandate as quickly as possible.
2.12 During the past year, in line with my announced intention, I have devoted much time
to considering how the Office could best carry out all of the provisions of the Auditor
General Act. In considering the solutions to this problem, I have consulted with my
Provincial counterparts and with the Auditor General of Canada. During the last several
years, the Auditor General of Canada has devoted considerable effort and resources to
developing the approach and methodology to fulfil all the provisions of his mandate. In
addition, I have looked closely at how certain legislative auditors outside Canada have
applied "value-for-money" auditing mandates. These consultations have been of great
benefit in helping me to arrive at, and adopt, the most appropriate audit approach.
2.13 My Office has examined both the methods used elsewhere and the particular
requirements of this Province's Auditor General Act. On the basis of that examination, I
 10
REPORT OF THE AUDITOR GENERAL
have concluded that the most desirable means of implementing my full mandate, over a
number of years, is to begin adopting the comprehensive audit approach. Comprehensive
auditing is a new concept for legislative auditors which was conceived in the Office of the
Auditor General of Canada. It will continue to be further developed and refined over a
period of time. However, I consider that this approach has the greatest potential for helping
my Office to achieve its objectives of ensuring that all parts of the Auditor General's
mandate are acted upon in the most efficient way and that this Office serves the Legislative
Assembly in the most effective manner. The comprehensive audit approach is fully
compatible with my Office's attempts thus far to carry on a pattern of constructive auditing.
2.14 Part 2 of this Report explains the comprehensive audit process and implications in
greater detail.
 REPORT OF THE AUDITOR GENERAL 11
LEGISLATION
3.1 In my first Report to the Legislative Assembly a year ago I commented on the existing
financial legislation in this Province as being obsolete and failing to meet present and
anticipated needs. My recommendation as to urgent need for its revision reflected my
concern. Although my commentary was brief, I considered, and do so now, legislative
reform in this important area to be essential. The need continues to increase as government
grows and its management becomes more complex.
3.2 The need for such revision is acknowledged. Shortly after I took office in 19771 was
advised that the financial legislation was under review. Recently it has been indicated to me
that such statutory revision was under active consideration. I continue to emphasize the
imperative need for early action in this regard.
3.3 I do not think I can make any recommendation stronger or more important than that
contained in my 1978 Report, which I reiterate:
' 'Legislation to meet current and anticipated requirements in this critical area
is urgently needed, and I recommend that action be taken to provide it without
delay."
 12
REPORT OF THE AUDITOR GENERAL
REPORT ON THE FINANCIAL STATEMENTS
My report on the financial statements of the Government, required under section 7 of
the Auditor General Act, has been included in the Public Accounts for the year ended 31
March 1979 and is reproduced below:
REPORT OF THE AUDITOR GENERAL
ON THE FINANCIAL STATEMENTS
INCLUDED IN THE PUBLIC ACCOUNTS
OF THE PROVINCE OF BRITISH COLUMBIA
To the Legislative Assembly
of the Province of British Columbia
Parliament Buildings
Victoria, British Columbia
I have examined the financial statements of the Government of the Province of British
Columbia for the fiscal year ended March 31, 1979 as presented in the Public Accounts, and
the related schedules contained in Sections B and C of the Public Accounts. These
statements are:
Statement of assets and liabilities.
Statement of revenues and expenditures.
Summary of General Fund revenues.
Summary of General Fund expenditures.
Statement of net receipts and payments (combined funds).
Notes to financial statements.
These statements and schedules in my opinion constitute the statements of financial
position, the results of operations and changes in financial position referred to in section 7 of
the Auditor General Act, S.B.C. 1976, chapter 3.
I did not examine and do not express an opinion on the following statements contained
in Section A of the Public Accounts:
Statement of consolidated revenue by major sources for the fiscal years ended
March 31, 1974 through 1979.
Statement of consolidated expenditure by major functions for the fiscal years
ended March 31, 1974 through 1979.
Statement of consolidated expenditure by objects of expenditure classifications
(grouped) for the fiscal year ended March 31, 1979.
The information contained in these statements is supplementary in nature and not an integral
part of the financial statements on which I am required to report.
My examination was made in accordance with generally accepted auditing standards,
and accordingly included such tests and other procedures as I considered necessary in the
circumstances. I have received all the information and explanations I have required for the
purpose of my examination.
 REPORT OF THE AUDITOR GENERAL 13
I have relied upon information furnished by the Consulting Actuary for the Public
Service Superannuation Plan and the Teachers' Pensions Plan as to the accuracy of Note 6 to
the financial statements as presented in the Public Accounts.
I report in accordance with section 7 of the Auditor General Act. In my opinion,these
financial statements present fairly the financial position of the Government of the Province
of British Columbia as at March 31, 1979 and the results of operations and changes in
financial position for the year then ended in accordance with the stated accounting policies
as set out in Notes 1 and 2 to the financial statements applied on a basis consistent with that
of the preceding year.
I emphasize that this report is limited under section 7 of the Act to an opinion on
presentation of the financial statements in accordance with the stated accounting policies of
the Government. Under section 8 of the Act I report separately to the Legislative Assembly
on other matters. That report, dated 18 February 1980, contains comments on a number of
matters about which I am concerned, and should be read in conjunction with this report.
'>fr^%^///^
ERMA MORRISON, C. A.
Auditor General
Victoria, B.C.
18 February 1980
 14
REPORT OF THE AUDITOR GENERAL
COMMENTS ON THE FINANCIAL STATEMENTS
Introduction
5.1 This Section of the Report deals with the accounting treatment and presentation of
items in the financial statements. It is concerned with accounting policies and practices
followed in the maintenance of the central accounts and with legislative requirements for the
specific treatment of some accounts. It also comments on the accuracy of account balances
in the financial statements, and on instances where the stated accounting policies do not
appear to have been followed.
5.2 Throughout this Report references are made to sections and pages of the Public
Accounts. A reference to the Statement of Assets and Liabilities as at March 31, 1979 would
be, for example, (PA A2 and A3).
Stated Accounting Policies and Practices
5.3 In my 1978 Report I refened to deficiencies and ambiguities in the content and
application of stated accounting policies. I stated that as a result of these factors I
encountered difficulties in commenting on the fairness of presentation of the financial
statements of the Province.
5.4 Some attempt has been made in the 1979 financial statements to provide additional
information by expanding the notes concerning accounting policies beyond those supplied
for the 1978 year. Most of the notes and explanations have been framed to explain
exceptions, anomalies and inconsistencies in the treatment of the data presented. The extent
of the modifications and exceptions raises the question as to whether policies, as such, exist.
No attempt is evident to remove such anomalies and inconsistencies. More simply, the
treatment is directed to the symptoms rather than the disease.
5.5 A basic approach to the problems involved in presenting the financial position and
operations of the Government is necessary if there is to be meaningful accountability to the
people of the Province and others whose interests and concerns may be affected by the
information provided. The first step in such an approach must be the serious evaluation of
accounting policies to determine which alternatives appear to provide the most useful and
relevant information, both to those who are charged with the management of public
resources and those who provide them. The choice lies between a form of cash-based
accounting and accrual accounting. In either case, government accounting ordinarily
requires some degree of modification. Such modification requires clear definition and
consistent application if meaningful financial statements are to be presented as acceptable
accounting for the handling of public resources by Government.
5.6 The decisions taken in regard to the general basis of accounting to be used and the
adoption of accounting policies are matters which I consider should be made at the
government level. The necessity for this is supported by the fact that the financial statements
are the representations of government, and have implications reaching far beyond provincial boundaries and local finance. When the general bases of accounting for Provincial
purposes have been evaluated and a determination reached as to which basis appears to be
the most appropriate, a full and clear body of stated accounting policies should be
 REPORT OF THE AUDITOR GENERAL 15
formulated. These policies should be approved by the Treasury Board, and applied consistently in the government accounting process and in its financial statement presentation. In
my opinion these steps are minimum requirements to bring the financial accounts and
statements of the Government to an appropriate level of disclosure.
5.7 I also stated in my 1978 Report that a thorough study of the Government's accounting
policies and financial statement presentation was warranted. The Comptroller-General has
acknowledged this need. The notes to the 1979 financial statements refer to a comprehensive examination being undertaken which will take into account the suggestions of the study
on Canadian Government financial reporting principles and practices sponsored by the
Canadian Institute of Chartered Accountants. I am pleased that this decision has been taken,
and look forward to improved financial statement presentation in the coming fiscal years
and, hopefully, completely revised presentation in the 1982 fiscal year.
Financial Statement Presentation
5.8 Timber road offset credits. The presentation of timber royalties and stumpage fees
in the financial statements does not show that this revenue is net of allowances made to
producers for road building in timber lands. Allowances of $24 million were made in the
1979 fiscal year. Reporting the gross amount of royalties and stumpage fees, and the
amount of timber road offset credits applied to reduce those earnings, would provide a more
informative disclosure and would conform to the generally accepted practice of reporting
gross revenues and expenditures in government accounts. I suggest that these amounts be
stated separately in future.
Accounts Receivable From Other Governments and Agencies
5.9 Revenue accounting. In April 1979 the Ministry of Economic Development received $1.8 million from the Government of Canada under a cost-sharing program for
industrial parks. The receipt was included in 1979 revenue, although no related program
expenditures had been made in that period. According to stated accounting policies, the
amount should have been treated as 1980 revenue. Thus Revenue Surplus for the 1979 fiscal
period was overstated by $1.8 million.
Taxes and Other Accounts Receivable
5.10 Timber royalty and stumpage and grazing fees. The account balance of
$88,292,320 (PA B3) represents unpaid billings as at 31 March 1979. We estimate that an
additional $ 118 million, representing timber scalings made prior to 31 March 1979, had not
been billed as at that date. We also estimate that, had billings been kept cunent, $45 million
of the unbilled amount could have been collected and included in 1979 revenue. This matter
is reported on further in paragraphs 7.26 to 7.27 of this Report.
5.11 Old accounts. Included under this heading are two accounts receivable totalling
$51,000 for loans made for student-aid and teacher-training. These loans were made prior to
1958 and no record now exists as to whom the loans were made. Although this conforms to
stated accounting policy, it is unrealistic to continue to record such items as assets. They
should be recognized as being uncollectible and written off.
 16
REPORT OF THE AUDITOR GENERAL
5.12 Water licence fees. Under the authority of the Water Act, the Ministry of Environment issues licences and fees for water diverted or used from any waterway in the
Province. During the 1979 fiscal year licence fees collected by the Ministry amounted to
$15 million. As at 31 March 1979 there were accounts receivable of approximately
$600,000 for fees outstanding not recorded in the financial statements of the Province. To
be consistent with the treatment of other similar amounts, they should have been included in
Taxes and Other Accounts Receivable.
Loans and Other Advances
5.13 University Endowment Lands (UEL) accounts. The Province has made capital
advances from the Consolidated Revenue Fund for UEL buildings and land improvements.
Advances totalling $4,184,887, which amount is unchanged since 1958, are shown as
assets under General Fund, Loans and Other Advances (PA B4).
5.14 The UEL collects tax revenues and service fees. Accumulated net revenue and
credits of $3,046,158 from the administration of the UEL are shown in the schedule of
Special Purpose Funds, "University Endowment Lands Administration Account" (PA
Bll). Section 4 of the University Endowment Lands Administration Act provides that
available moneys in the University Endowment Lands Administration Account should be
used to repay the Consolidated Revenue Fund for moneys expended or advanced. I
recommend, therefore, that as moneys become available in this account they be used to
repay the General Fund advance account as required by the Act.
5.15 Recoverable advance not recorded. During the 1979 fiscal year $50,000 was
advanced to a transit company by the Ministry of Municipal Affairs and Housing, under the
Transit Management Services program. The company gave a promissory note to the
Province and has shown the liability in its financial statements. Although the payment was
clearly designated as a "recoverable advance" it was not recorded as an asset in the
accounts or financial statements of the Province.
Investment in, and Advances to, Crown Corporations
5.16 British Columbia Railway Company. In my 1978 Report I commented that,
based on the Company's financial results and the forecasts from various responsible sources
as to the financial future of the Company, the value of its shares had been completely
eroded. The situation continued to deteriorate in the past year. The Company's financial
statements for the year ended 29 December 1978 reported accumulated losses of $302.7
million, an increase of $46.8 million over that of the preceding year. They also showed an
overall deficiency of shareholder's equity of $55.9 million and a working capital deficit of
$10.3 million.
5.17 In addition, the Province has guaranteed the principal and interest of the funded debt
of the company which, at 31 March 1979, amounted to $650 million net of sinking funds.
Comments concerning this guarantee and my recommendation regarding it are contained in
paragraphs 5.23 to 5.25 of this Report.
 REPORT OF THE AUDITOR GENERAL 17
5.18 To enable the Company to continue operations and meet its debt obligations further
Provincial funding seems inevitable. Under such circumstances the shares are of questionable value. Therefore, in the absence of an identifiable remedy for this situation, I
recommend that, in compliance with good accounting practice, the Province's
$185,572,900 investment in the British Columbia Railway Company be written down to a
nominal value of$l.
5.19 T.S. Holdings Ltd. As at 31 March 1979 the Public Accounts reported an advance
of $2,850,538 to T.S. Holdings Ltd. The consolidated financial statements of T.S. Holdings Ltd. reported losses from operations in excess of $1 million for each of the fiscal years
1978 and 1979, which were offset by provincial and municipal subsidies. As at 31 March
1979 the deficiency of the shareholder's equity was $ 1,033,855. The Company's main asset
was $1,511,411 due from Pacific Coach Lines Limited, another Crown corporation. Since
T.S. Holdings Ltd. does not have sufficient assets to repay the advance, the value is
overstated in the accounts and should be written down to reflect the anticipated loss to the
Province.
Ministry officials advise us that they have concerns as to the viability of these companies as
self-supporting entities. I therefore suggest that the worth of these investments be
reappraised and that consideration be given to recognizing potential losses arising from the
advances or under the guarantees.
5.20 Ocean Falls Corporation As at 31 March 1979 the Public Accounts show an
investment of $789,952 in Ocean Falls Corporation, and advances to the Corporation of
$ 10,000,000 of which $4,000,000 was advanced during the 1979 fiscal year. The financial
statements of the Corporation for the year ended 31 December 1978 report a loss for the year
of $4,381,095, accumulated losses of $5,461,407 and a deficiency of shareholder's equity
amounting to $4,671,455. The Corporation has operated at a loss for the past two years and
substantial further capital investment appears to be required. The Corporation's ability to
repay the $10,000,000 advance is questionable and provision should be made for the
potential loss. In addition the value of the investment is doubtful and should be reduced to a
nominal value of $ 1.
Investments, Other
5.21 Investments, Other includes investments in three companies totalling $ 185,554. The
Province has also guaranteed loans for these three companies up to $1,949,500 and made
advances to two of them totalling $42,700.
Other Current Liabilities
5.22 Suspense accounts. Suspense accounts are used for transactions awaiting completion or clarification. At 31 March 1979 items of a revenue nature totalling $6.3 million
were still awaiting final disposition. Most of these items would have been cleared at the
year-end if regular analysis and reconciliation of the accounts were performed. I suggest
that such action be taken in future.
 18
REPORT OF THE AUDITOR GENERAL
Guaranteed Debt
5.23 British Columbia Railway Company. The Public Accounts show guaranteed
debt of the British Columbia Railway Company in the net amount of $650 million as at 31
March 1979 (PA B17).
5.24 In my last Report I commented on the inability of the Company to meet its debt
obligations, as described in the report of the Royal Commission enquiring into its status,
and as acknowledged by its management. During the last year that situation did not change.
Although the Railway made a small operating profit, before government grants, it experienced further erosion of working capital amounting to $53.4 million due primarily to the
cost of servicing long term debt. Its financial statements show that at 29 December 1978 the
Railway had no working capital, but rather a working capital deficit of $ 10.3 million.
5.25 A guarantor df debt is obligated to honour the terms of guarantee if the debtor is
unable to repay its debts from its own resources. Once this becomes apparent good financial
reporting requires that the obligation be recognized as a liability in the financial statements
of the guarantor. At present there is no stated accounting policy in this respect. / recommend
that such an accounting policy be established for the accounts of the Province. Application
of this policy would result in the net debt of the British Columbia Railway Company being
recorded as a direct debt of the Province unless other financial arrangements were made to
service this debt.
5.26 Canada Pension Plan Investment Fund. The debt of various entities which has
been guaranteed by the Province includes approximately $2,095 million owing to the
Canada Pension Plan Investment Fund. If funds are needed to meet the requirements of the
Canada Pension Plan, the Minister of Finance for Canada, on six months notice and subject
to certain conditions, may call for repayment of the debt before maturity. This early
redemption feature should be disclosed in the financial statements of the Province.
5.27 Financial statement presentation. Financial statements should present complete
information as concisely and clearly as possible. In my view the Schedule of Guaranteed
Debt does not meet these criteria. In addition to the subjects already dealt with, the Schedule
would have provided better disclosure if:
—all comparative figures of the prior year had been shown for the net outstanding debt,
so that the reader could ascertain the changes during the year;
—significant details such as maturity dates, interest rates and redemption features had
been disclosed;
—investments of $165.5 million held as assets of the General and Special Purpose
Funds and guaranteed by the Province had been shown as a deduction from the total
outstanding debt guaranteed by the Province, in order to disclose the Province's true
potential liability for guarantees; and
—the fair market value of investments held by sinking funds had been disclosed. We
estimate that the fair market value of sinking fund investments is approximately $58
million less than the reported value of $759 million.
 REPORT OF THE AUDITOR GENERAL 19
INTERNAL CONTROL SYSTEMS
Introduction
6.1 In this Section of the Report I comment on the methods and procedures which the
Government uses to safeguard the assets of the Province, control the collection of revenue
and the disbursement of funds, and ensure the reliability of its accounting records.
6.2 Control methods and procedures may vary from one ministry or branch to another
depending on type and magnitude of revenue or expenditure, method of revenue collection,
number of employees that can be used for control procedures, and other factors. However,
there are basic procedures that should be present in all internal control systems. In the
following paragraphs we comment on our findings, which indicate that these basic procedures generally were not used in the ministries.
Control Over Revenues
6.3 My 1978 examination included a general review of the systems of internal control
over the collection and recording of major Provincial revenues. In the 1979 fiscal year we
conducted further reviews to enable us to evaluate the effectiveness of controls in all
revenue areas.
6.4 Many of the deficiencies we encountered in the internal control over revenues were
common to all types of revenue and existed in the collection and recording practices of most
ministries.
6.5 My main concerns are summarized as follows:
—Insufficient controls exist to ensure that all revenue is billed, collected and accurately recorded, (paragraph 6.8)
—Adjustments to revenue accounts are not always properly supported and authorized,
(paragraph 6.9)
—Cash handling procedures are often inadequate to safeguard receipts, (paragraph
6.10)
—Duties of employees responsible for billing, collecting and recording revenue are not
always adequately segregated, (paragraph 6.11)
—There are few documented procedures for handling and recording revenue,
(paragraph 6.12)
—There is no provision in the central accounting system for responsibility centre
reporting of revenue, and no overall requirement to report budgeted revenue as a
comparison to actual, (paragraph 6.13)
—Detailed transaction reports from the Office of the Comptroller-General are seldom
used effectively by the ministries as a check on the accuracy and completeness of
transactions processed in the central accounts, (paragraph 6.14)
—The accounting records and filing systems for certain revenues do not provide
adequate audit trails, (paragraph 6.15)
 20
REPORT OF THE AUDITOR GENERAL
6.6 / consider that the above-noted deficiences in the collection and recording of revenue
are serious enough to warrant immediate study and corrective action.
6.7 Our audit findings are discussed in more detail in the following paragraphs of this
Section. Although certain ministries are mentioned in the comments on internal control
weaknesses, the references are made only to illustrate widespread weaknesses in revenue
controls throughout the Government.
6.8 Controls over billing, collection and recording of revenue. Revenues earned by
the Province are basically of four kinds; taxes, licence and service fees, income from Crown
corporations and other enterprises, and recoveries of joint costs from other governments.
The major tax revenues, income and sales taxes, are subject to relatively strong controls, but
we found that many types of licence and service fees and miscellaneous revenues are poorly
controlled. For example, sales of wildlife licences for hunting and angling are not reconciled to inventories of licences and cash receipts. The Ministry of Environment is responsible for the regulation of this revenue, but senior Ministry officials feel that they cannot be
held responsible for accounting for the revenue (approximately $6 million in 1979) since it
is collected and remitted to the Treasury Section by Government Agents, and the Ministry
of Finance controls the inventories of licences. The result is that no effective procedures are
in place to ensure that all licence fees that should be received are in fact collected. Similarly,
we noted instances in the Ministries of Eduction, Health, Human Resources, Municipal
Affairs and Housing, and Provincial Secretary in which the collection of amounts receivable from other governments and agencies was unduly delayed because of lack of a positive
process of billing and collection. The weaknesses observed in the above-noted cases were
the failure to anticipate revenue and to monitor its collection with follow-up procedures.
6.9 Adjustments to revenue accounts. From time to time adjustments are made to
correct previous entries, allocate revenue to various accounts and adjust accounts receivable. Such adjustments should be supported by back-up documents, the signature of the
employee originating the adjustment, and an independent approval signature. In most
revenue areas throughout the Government this does not always happen. Adjusting entries
are occasionally processed without supporting documents and often without an independent
approval signature.
6.10 Cash handling procedures. There are many departments and regional offices of
the Government that collect miscellaneous revenues from the sale of licences and services.
We observed that cash handling procedures were seldom formalized, with the result that
cash control is often weak for this type of revenue. Reconciliation of prenumbered tickets or
licences issued with cash deposited is an essential cash control that is not generally being
followed.
6.11 Division of duties. One of the strongest and most reliable revenue controls is the
requirement that billing, collecting, recording and depositing of revenue be separate
functions performed by different employees. We encountered instances in almost every
revenue area where one employee performed most, if not all, of these functions. With
careful planning and organization a satisfactory division of duties could have been
achieved.
6.12 Revenue procedures. There is no general revenue manual which states the
procedures to be followed in the collection of the Province's revenues. Most of the
 REPORT OF THE AUDITOR GENERAL 21
deficiencies mentioned in the preceding paragraphs could be corrected by documenting the
required procedures and ensuring that they are followed in all ministries.
6.13 Revenue reporting. Revenue is recorded in the central accounts by type and not,
as with expenditures, by responsibility centre.Recording and reporting revenue by responsibility centre would strengthen internal control over revenue since it would then be
possible for originating offices to compare the balances in the central accounts against their
own records. It would also provide the capability of reporting budgeted and actual revenues
by responsibility centre.
6.14 Detailed checking of transactions. The Office of the Comptroller-General produces detailed transaction reports which list revenue entries in the central accounts. These
entries are by type of revenue and it is sometimes difficult, if not impossible, for an
originating office to identify that part of a revenue entry for which it is responsible.
However, this applies only to a few accounts and relatively minor amounts of revenue. In
most cases the detailed transaction reports provide to the originating office an effective
means of ensuring that revenue collected and deposited has been accurately recorded in the
central accounts. With few exceptions the reports are not being used for this purpose by the
ministries, and an important internal control is thereby lost.
6.15 Accounting records and files. The revenue accounting records and filing systems
provide a most important control over the accuracy of the revenue accounts. We experienced considerable difficulty in locating supporting records in some revenue areas. This
resulted in extra audit work which would not have been necessary had records and files been
complete.
Control Over Expenditures
6.16 My 1978 Report contained a section dealing with internal control over expenditures.
During that year we evaluated internal controls over general disbursements and payrolls,
and I came to the opinion that the system of internal control over the disbursement of
Provincial funds failed to meet generally recognized standards. I recommended that
corrective measures to bring controls to an adequate level be given high priority.
6.17 This year we again evaluated internal controls over expenditures as part of our audit
of the accounts of the Province. The results did not vary significantly from those of last year.
Since my last Report the Comptroller-General has initiated action in a number of areas
where improvement could be made without major system changes, although in some cases
the controls implemented are still not as effective as they should be. He has also initiated
projects to design a completely revised expenditure processing system.
6.18 I will not restate in detail my concerns, as they remain basically unchanged from last
year. However in summary they are:
—Policies, directives, guidelines and procedures in the area of financial management
and control are not clearly defined, nor effectively communicated to individuals
concerned.
—Delegation of authority in the disbursement process lacks both definition and
regulation, and is inadequately documented.
 22 REPORT OF THE AUDITOR GENERAL
—Organizations have not adequately segregated duties of individuals for purposes of
control.
—Batch processing controls of documents and other key controls are seldom used.
—Financial reports from the Office of the Comptroller-General are not effectively used
by most ministries, thus negating the control feature inherent in such reports.
6.19 The urgent need for improved controls was evident throughout the majority of
ministries we audited and I therefore again recommend that the highest priority be given to
corrective actions required to bring controls to an adequate level.
6.20 In Section 7 of this Report I comment on the expenditure control systems of the
Ministry of the Attorney-General and the Ministry of Health. I emphasize that the problems
reported are not unique to these ministries, but have been included in considerable detail in
that Section because they typify the weaknesses observed in the review of most ministries.
Conclusion
6.21 I am disappointed that the corrective action to bring expenditure controls to an
adequate level, as recommended in my 1978 Report, has not yet produced more tangible
results. I acknowledge the long-term value of the system design project initiated by the
Comptroller-General, but am concerned that the use of basic controls such as regulation of
delegated authority, segregation of incompatible functions, and effective use of central
accounting system reports by the ministries has not been universally adopted throughout the
Government.
6.22 With respect to revenue controls I recommend that the Comptroller-General take
immediate steps to set standards that would establish an acceptable level of performance in
the collection, custody and recording of Provincial revenues. These standards should be
supported by clearly documented rules of procedure which would form a guide to revenue
accounting and a means of evaluating actual performance.
 REPORT OF THE AUDITOR GENERAL 23
COMMENTS ON MINISTRIES
Introduction
7.1 In this Section of my Report I comment on matters relating to particular activities of
various ministries. Each ministry is responsible for certain programs or funds, and is
accountable for related program and fund expenditures and, in some cases, revenues. It is
mainly this financial accountability of ministries that is addressed in the following
paragraphs.
7.2 The systems of control over revenues and expenditures throughout the Government
are discussed in Section 6 of the Report. Specific comments on those systems in the
Ministry of the Attorney-General and the Ministry of Health appear in this Section, and are
included as examples of typical internal control weaknesses which we encountered throughout the Government.
MINISTRY OF AGRICULTURE
Audit of Claim Payments
7.3 The Ministry operates two substantial programs which require the submission of
claims by farm producers. One is the Agricultural Credit Program under which the
producers are reimbursed for part of the interest they pay to commercial lenders on loans for
agricultural purposes. The other is the Farm Income Assurance Program which guarantees
an assured price for agricultural produce to farmers who pay premiums to the Farm Income
Assurance Fund.
7.4 Interest reimbursement claims under the Agricultural Credit Program are submitted
after the end of the calendar year. For the 1978 calendar year approximately 6,500
applications, totalling $8.2 million, were submitted and processed between 1 February and
15 July 1979. Indemnities are paid throughout the year under the Farm Income Assurance
Program. Total indemnities under this program were $14 million in the 1979 fiscal year.
7.5 Although a clerical check of claim payments is made at Ministry headquarters, there is
virtually no field audit work performed. To ensure that all of the Ministry's requirements are
met for payments under these two programs, I consider that field audit capability should be
established to continually monitor payments.
MINISTRY OF THE ATTORNEY-GENERAL
Purchase and Expenditure Systems
7.6 Our audit of the accounts of the Government included an examination of internal
controls over purchases of and payments for goods and services. The following comments
apply to the systems of commitment to purchase and approval for payment as we found them
in the Ministry of the Attorney-General.
7.7 The Ministry employs 4,700 people and is one of the larger decentralized ministries,
with many diverse functions such as correctional institutions, Provincial courts and land
registry offices. The purchase by the Ministry of virtually any type of goods or service can
 24
REPORT OF THE AUDITOR GENERAL
be expected. Consequently, formalized systems for purchase commitment and payment
approval are basic requirements to ensure that only legitimate expenditures, properly
authorized, are made.
7.8 There is no formally documented delegation of commitment authority. Purchase
requisitions are initiated with minimum evidence of approval throughout the Ministry and
then forwarded to the Ministry Head Office. After a brief review, they are approved and
submitted to the Purchasing Commission. Invoices can be approved for payment by any one
of approximately 350 employees, some at relatively junior responsibility levels. Approved
invoices and related cheque vouchers are processed at Head Office. Checks as to validity of
approval are minimal because there is no signature record of delegated approval, nor are
there any formally documented restrictions as to the dollar amounts of payments or specific
accounts that may be charged.
7.9 In an expenditure control system it is essential to have procedures to ensure that only
expenditures authorized by an entity are charged to it. It is Ministry policy that data
submitted to the Comptroller-General for payment must be subsequently checked by
Ministry personnel to the detailed transaction reports produced from the records of the
central accounting system. However this instruction is not always followed. Program
managers in the Ministry generally prefer to use internally generated reports to review
expenditures. As a result, they do not have complete assurance that expenditures charged to
their responsibility centres in the central accounting system are correct.
7.10 To improve overall controls over expenditures the Ministry should formally document procedures for making purchase commitments and approving payments, giving
careful consideration to the appropriate levels of authority. In addition, procedures already
established for the checking of transactions processed by the central accounting system
should be followed.
Public Trustee
7.11 The Public Trustee is responsible for the functions of the Official Committee, the
Official Guardian and the Official Administrator. In recent years the scope and case load of
these functions have increased substantially. Changes to the Public Trustee's trust accounting and management systems necessary to meet these increased demands have not been
made. As a result the present systems do not meet contemporary control standards or
provide adequate information for the effective management of estates and trusts.
7.12 The following sections deal with items which we believe warrant immediate attention. The first two items were noted in my 1978 Report and have not yet been satisfactorily
resolved.
7.13 Asset control accounts. In my 1978 Report I commented that, as at 31 March
1978, non-cash assets such as jewellery, real estate and automobiles were assigned values
totalling $27.1 million in the records of the Public Trustee while the control account
maintained by the Comptroller-General showed a balance of $59.7 million. I then recommended that steps be taken to reconcile these accounts. During the 1979 fiscal year the
Comptroller-General identified most of the difference and made correcting adjustments. An
unreconciled balance of $ 1.9 million remained as at 31 March 1979. Every attempt should
be made to resolve this remaining difference as soon as possible.
 REPORT OF THE AUDITOR GENERAL 25
7.14 Investigative teams. My 1978 Report noted that individual investigators rather
than investigative teams were being used to inventory and receipt trust assets. This fails to
provide adequate control and contravenes the procedures prescribed by the Ministry of the
Attorney-General. No improvement was made during the 1979 fiscal year. This practice is
unsatisfactory and should be rectified without further delay.
7.15 Securities held in trust. In July 1979 the internal audit staff of the Comptroller-
General provided the Public Trustee with a list of securities which could not be located. This
situation had arisen because the Public Trustee's records, due to poor survey documentation, did not in all cases adequately describe the location where securities were being held.
At the time of our review in October 1979 securities with a recorded value of $138,000 as
well as unvalued securities belonging to five trusts were still unaccounted for. We believe a
more vigorous follow-up should have been undertaken and suggest that immediate steps be
taken to locate and value any securities not yet accounted for. Procedures should be
established to prevent similar problems occurring in future surveys.
7.16 Revenue Under provisions of the Patients' Estates Act, the Official Guardian Act,
and the Administration Act, the Public Trustee may levy fees up to a maximum of 5 % of the
gross amount of an estate or trust administered by him. The Public Trustee does not charge
fees on Official Guardian accounts and in other cases waives fees where hardship would
result. We noted a lack of uniformity in the definition of hardship. Since fees are not
charged until an estate is finalized there are sometimes insufficient funds remaining to cover
the Public Trustee's fees, particularly where payments on account have been made to
beneficiaries. Fees collected in the 1979 fiscal year amounted to $738,000. Recent studies
have indicated that collections could be materially increased. In my opinion more emphasis
should be placed on developing uniform guidelines and improved procedures for fee
collection.
MINISTRY OF CONSUMER AND CORPORATE AFFAIRS
Liquor Distribution Branch
7.17 In my last Report I commented on the general inadequacy, in today's business
environment, of the Branch's accounting systems and procedures and their inability to
provide management with information necessary for purposes of operational control. I also
commented on the Branch's plans to resolve these problems by developing a new management information and accounting system. Recommendations made to the Branch included
the need to establish formal operating plans and budgets, and to expand the scope of its
internal audit activity.
7.18 In this year's audit of the Branch my staff noted that considerable progress had been
made in developing the management information system. Key parts of it were expected to
be in place on schedule in late 1979 and early 1980. Operating plans and budgets were
attempted for the 1980 fiscal year and the Branch plans to fully integrate these procedures
into its control process for the 1981 fiscal period.
 26
REPORT OF THE AUDITOR GENERAL
7.19 With respect to my recommendation to expand the scope of the Branch's internal
audit I was informed that the Comptroller-General's audit group has undertaken responsibility for the audit of the financial function and controls within the Branch, while the
Branch's internal audit group is responsible for store audits and reviews of an operational
nature. I am pleased to see that all operations of the Branch are to be subject to an internal
audit. However, I am concerned that this present division of responsibilities may not
provide the Branch, a large commercial entity which is dissimilar from other government
organizations, with the specialized knowledge and continuity required for a regular in-depth
audit of all its various operations. I will continue to evaluate this arrangement to satisfy
myself that it is appropriate to the needs of the Branch.
MINISTRY OF FINANCE
Treasury Section
7.20 Treasury Section is generally responsible for opening Government bank accounts,
distributing Government cheques, receiving moneys for deposit, and reconciling bank
accounts. Since our last examination there has been some improvement in the overall
control of bank accounts by the Section. However, significant banking transactions have
occasionally occurred, without the Section's knowledge, as illustrated in the following
paragraph.
7.21 Transfers between bank accounts are sometimes made on instructions given by
telephone. We noted instances where such instructions were given by persons who were not
authorized signing officers. Moreover, these instructions were not subsequently confirmed
by the written authorization of signing officers. On one occasion, to correct a deposit made
in error to a Superannuation Fund bank account, $4.3 million was transferred from the
Superannuation Fund account to the General Fund account without the knowledge of the
signing officers of the Superannuation bank account. On another occasion, following a sale
of securities, $300,000 was transferred without the Treasury Section's knowledge to a
Government bank account in the United States as a normal investment transaction, and it
remained as an unreconciled item on the bank reconciliation for six months. These
occurrences, although not resulting in losses to the Province, indicate a weakness in control
over banking transactions.
7.22 I recommend that guidelines and procedures be firmly established to ensure that
proper authorization is obtained for all banking transactions. Further, I recommend the
strengthening of controls by the Treasury Section in the exercise of its overall responsibility
for Government bank accounts.
Securities Section
7.23 Accounting deficiencies. The Securities Section acts as investment manager,
trustee and agent for the Province, and for various trust, pension and sinking funds. It
maintains a subsidiary accounting system which records all assets and fund balances for
which the Section has custodial responsibility. The central accounting system, maintained
by the Comptroller-General, records only those assets and fund balances which appear in
the Public Accounts. The central system does not record the ongoing transactions of all of
 REPORT OF THE AUDITOR GENERAL
27
these funds, with the result that balances in the two systems are brought into agreement only
at the fiscal year-end after intense analysis and many adjustments.
7.24 Basic deficiencies in the securities accounting system have resulted in records that
cannot be relied upon to produce accurate information. In the 1978 and 1979 fiscal years we
were able to satisfy our audit requirements only after extensive verification work beyond
that normally necessary for an unqualified audit opinion. Major improvements in the fund
accounting and reporting practices of the central accounting system and the Securities
Section system are urgently required, and I recommend that they be implemented without
delay.
7.25 Unrecorded investment. On 24 March 1975, an investment of $350,000 was
made from a Special Purpose Fund. Although this was an investment of the Special Purpose
Fund, the certificate of deposit was retained in the Ministry of the Provincial Secretary. It
was not recorded by the Securities Section, and therefore was not included in the Fund
assets. The disbursement of $350,000 was charged as a Fund expenditure. This occurrence
demonstrates the lack of coordination between the records of the Securities Section and the
central accounting system, referred to in paragraph 7.23, and illustrates the need for
frequent reconciliations and adjustments between the balances in the two systems.
MINISTRY OF FORESTS
Unbilled Timber Royalties and Stumpage Fees
7.26 InSection lOofmy 1978 Report I referred to abnormal delays in the billing of timber
royalties and stumpage fees. Some initial problems attributed to the new computerized
system have been overcome. However, billing delays continued throughout the 1979 fiscal
year and appear likely to continue for some time. The complicated and difficult timber
valuation and rate-setting process contributes to the delays in producing current billings.
7.27 Unbilled fees at 31 March 1979 were estimated as $118 million. Of this amount, we
estimate that $45 million would have been received and included in 1979 revenue had
billings been made on a current basis. This matter is also referred to in paragraph 5.10 of this
Report. I suggest that consideration be given to making interim billings until the timber
valuation and rate-setting process is improved, so that the cash flow from this revenue
source may not be unduly delayed.
MINISTRY OF HEALTH
Introduction
7.28 Expenditures of the Ministry in the 1979 fiscal year exceeded $920 million, excluding those of the Medical Services Commission which I audit separately. The Ministry also
collected $34 million in revenue. Over 5,700 employees are engaged with the many diverse
programs of the Ministry. Major programs such as Hospitals, Long-term Care, Government
institutions, and the Emergency Health Services Commission have their own financial and
accounting systems. Expenditures for these programs amounted to $809 million.
 28
REPORT OF THE AUDITOR GENERAL
7.29 During the year my staff performed audit work throughout the Ministry and noted
weaknesses in the systems of financial control. To a greater or lesser extent, weaknesses
identified apply to all systems examined, although examples given may relate to specific
programs. Our comments are summarized under the headings of Expenditure Controls,
Revenue Controls, Patients' Trust Accounts, and Control Accounts. Remarks with respect
to the Hospital Insurance Fund and the Emergency Health Services Commission are
included under separate headings.
Expenditure Controls
7.30 Weaknesses noted in our review of expenditures included problems concerning
inadequate segregation of responsibilities, delegations of authority, control over documents
in process, and verification of expenditures charged to the Ministry.
7.31 The problem of inadequate segregation of responsibilities in the expenditure process
was widespread throughout the Ministry both for the purchase of goods and services and for
payroll. Staff in many payroll departments could both initiate the data that generated a pay
cheque and then receive the cheques. In most Government institutions the same individual
was often responsible for both making purchases and receiving goods. Accounting department clerks, who had no direct knowledge of the receipt of goods, frequently signed as
receiving them.
7.32 Throughout the Ministry similar disbursements may require different levels of
approval and can be handled in different ways. This was particularly evident in the
procedures used for processing grants under the various programs. In many Government
institutions we noted instances where junior clerks had signing authority for significant
expenditures which, due to the volume of documents requiring approval, subsequently
received only a cursory review in the process of final Ministry approval for payment.
7.33 No controls exist over documents in process between various locations within the
Ministry or between the Ministry and the Comptroller-General. In addition, the detailed
records of expenditures provided to the Ministry by the Comptroller-General are generally
not reconciled to the source documents by the Ministry. Without such controls and checks
the validity of expenditures charged to the Ministry cannot be verified.
Revenue Controls
7.34 As a result of the audit of revenues collected by the Ministry, we concluded that
controls generally were inadequate to ensure that all revenues due were collected and
properly recorded.
7.35 Where billings are involved in the revenue process a system should be designed so
that all billings are made, recorded and followed up in order to ensure that the related
revenue is received. Normal controls would include: pre-numbered or otherwise controlled
invoices; accounts receivable subledgers and control accounts; regular review and collection procedures for outstanding items; and preparation of annual budgets for comparison
with actual results. Few such controls were found in the Ministry. Examples of major
sources of revenue for which some or all such controls were found to be missing included:
 REPORT OF THE AUDITOR GENERAL 29
—billings to the Medical Services Commission;
—billings for mental health maintenance; and
—sales of hearing aid equipment and supplies.
7.36 Where billings are not involved it is normal for anticipatory controls, such as budgets
or memo receivable records, to be set up. Few such controls were found within the Ministry.
Examples relating to this problem include:
—amounts received from insurance companies for hospitalization costs arising from
accident claims; and
—amounts which should have been received from a Regional Hospital District under a
contract for paving hospital parking lots; although the contract was entered into in
1975, it was not until 1978 that the Ministry staff noted that no payments had been
received.
7.37 When revenue is received, systems are normally established to ensure that the
amounts collected are correct, that they are properly and completely processed, and that
they are properly credited. Key elements in such systems include:
—the segregation of responsibilities so that no one individual is responsible for both the
receipt of funds and their subsequent recording; and
—the recording of funds immediately upon receipt, as well as controls over their
deposit and subsequent accounting.
Transactions were not being reconciled to the records provided by the Comptroller-General
in order to ensure that all funds received had been properly accounted for, while the
separation of responsibilities was generally unsatisfactory.
Patients' Trust Accounts
7.38 Our brief review of the systems in force in Government institutions to account for
patients' trust moneys, amounting to $375,000, showed that often the same employee is
involved in most transactions affecting the trust accounts. Since many patients cannot look
after their own affairs, it is essential that a good system be in force to protect both the patient
and the staff. The systems in place to administer and control patients' trust accounts should
be upgraded immediately, with particular attention being given to adequate segregation of
responsibilities.
Control Accounts
7.39 The Ministry is responsible for a number of accounts included in the balance sheet of
the Province. The accounts record either amounts due to or from the Ministry, or amounts
held in trust for third parties. We reviewed these accounts and found that control was
generally poor. Accounts were not regularly reconciled to the central control accounts
maintained by the Comptroller-General, and were infrequently analyzed and reviewed as to
correctness. Specific examples are:
—Employee Advances. At 31 March 1979 employee advances totalled $166,000.
The Ministry maintains subsidiary records for all advances and each month receives
a detailed statement of all Ministry advances from the Comptroller-General. In our
 30
REPORT OF THE AUDITOR GENERAL
tests of advances we found many discrepancies between the central listing and the
subsidiary records. Approximately 25% of those tested were found to be in error.
Examples include: unidentified advances; an advance to a hospital that the Ministry
ceased operating in April 1978; a temporary advance outstanding since February
1977; and an improperly authorized advance. In order to ensure that all advances are
correct, required and current, the Ministry should regularly review its records and
reconcile them to those records maintained by the Comptroller-General.
—Other Current Liabilities, Hospital Construction. Prior to 1971 an agreement
was in effect by which the Province and the Federal Government shared costs for
hospital and health unit construction. In 1971 the balance of federal funding was
transferred to the Province. As no outstanding commitments now remain the balance
of $ 151,000 should be credited to Revenue.
Hospital Insurance Fund
7.40 A Hospital Insurance Fund, from which grants are made to hospitals toward
operating expenses and capital costs, is required to be established under Section 17 of the
Hospital Insurance Act. No such Fund has existed since 1955 when the balance of the Fund
was credited to General Fund revenue. All expenditures and revenues now flow directly
through the General Fund of the Province. For the 1979 fiscal year we estimate that
expenditures in excess of $630 million and revenues of over $340 million, which should
have been accounted for through a separate Hospital Insurance Fund, were dealt with in the
General Fund.
7.41 We have found no legislative authority for the discontinuance of operation of this
Fund, and therefore I recommend that either the Fund be reestablished or the Act amended
to reflect current practice.
Emergency Health Services Commission
7.42 Legislative compliance. The Emergency Health Services Commission was set up
as a separate legal entity in 1974 pursuant to the Emergency Health Services Act to provide
emergency ambulance service throughout the Province. The Act requires that the Commission submit annually to the Minister and the Legislature a report respecting its operations,
and a financial statement showing the financial operations of the Commission. Financial
statements were prepared for the Commission for the fiscal years 1975 and 1976, and were
audited by the Comptroller-General. The Public Accounts for 1976 contained the Commission's financial statements in the Public Bodies section.
7.43 A memorandum from the Acting Comptroller-General dated 22 July 1977 addressed
to the Chairman of the Emergency Health Services Commission stated:
"Since the March 31, 1977 and subsequent Public Accounts will contain full details of
Commission expenditures and related revenue, the presentation of separate financial
statements on an accrual basis of accounting would be both redundant and confusing.
Accordingly, no such statements will be prepared in the future."
 REPORT OF THE AUDITOR GENERAL 31
Since that date the expenditures and revenues of the Commission have been included in the
budgetary expenditure and revenue of the General Fund and appear as such in the Public
Accounts. No financial statements have been prepared other than a statement of expenditures which appears as part of the annual report of the Ministry of Health.
7.44 I do not believe that the current method of reporting on the activities and the financial
operations of the Commission meets the requirements of the legislation and therefore I
recommend that either the Act be complied with or amended to reflect current practice.
7.45 Financial control weaknesses. While performing the audit of the financial statements of the Province we noted serious shortcomings in financial controls within the
Commission. These include:
—Billings and accounts receivable. Revenue for the 1979 fiscal year was $3.2
million and outstanding accounts receivable amounted to $1.2 million at 31 March
1979. Subsequent to 31 March 1979, $445,000 for uncollected accounts relating to
the 1978 fiscal year were written off. The potential write-off for billings of the 1979
fiscal year has not been determined but is expected to be substantial. The extent of
these write-offs indicates that a more vigorous collection effort should be pursued.
—Payroll. The Commission operates its own payroll system for both regular and
part-time staff. This system is completely separate from the Provincial payroll
system. The Commission's payroll costs, amounting to $15.7 million, are included
as Professional Services in the Public Accounts. Controls in this system are inadequate and immediate steps should be taken to bring controls over payroll to an
acceptable standard.
—Operating unit advances. The Commission makes advances to its 110 operating
units throughout the Province in order that they can pay local expenditures. Each
month the units request reimbursement from the Commission's head office by
submitting an invoice. At 31 March 1979 outstanding advances to operating units
totalled $316,200. Controls over both reimbursements and advances are very weak.
Steps should be taken to bring the advance accounts under control and to obtain
adequate support for all invoices submitted for reimbursement.
7.46 The Commission has recognized and agreed with the weaknesses identified and has
undertaken to carry out conective action.
MINISTRY OF HUMAN RESOURCES
Canada Assistance Plan (CAP)
7.47 The Canada Assistance Plan (CAP) provides for Canada to make contributions to the
Provinces toward the cost of programs for the provision of assistance and welfare services to
and in respect of persons in need. A wide variety of expenditures qualify for cost-sharing
under CAP. Cost-sharing claims are complex and often require considerable supporting
information, including some from third parties such as voluntary organizations partially
supported by grants from the Province.
7.48 The Ministry of Human Resources is responsible, on behalf of the Province, for
submitting CAP claims to Canada. In the 1979 fiscal year $204 million of the Ministry's
expenditures was recovered by the Province. Although claims were made for the majority of
 32
REPORT OF THE AUDITOR GENERAL
shareable expenditures, claims had not been made with respect to certain community and
capital grants which are eligible for cost-sharing. At the time of our review in July 1979
Ministry personnel estimated $ 18.5 million in claims relative to expenditures made prior to
31 March 1979 had not been made. These claims are described in the following paragraphs.
7.49 Community grant claims. Operating grants made by the Province to various
voluntary agencies providing assistance, as defined in CAP, to persons in need are
shareable with Canada. Grants can be made by both the Ministry of Human Resources and
other ministries. This Ministry alone estimated that claims totalling approximately $6
million could as at 31 March 1979 be made for expenditures of the Ministry dating back to
1974. They have identified further potential claims of approximately $500,000 arising from
grants made by the Ministry of the Provincial Secretary.
7.50 Capital grant claims. Capital and equipment grants made by the Ministry of
Human Resources and other ministries are also shareable with Canada. In the case of the
Ministry of Human Resources no claims had been made to 31 March 1979 regarding capital
grants since 1974. No claims had been made for grants made by other Ministries since the
inception of CAP in 1966. Officials of the Ministry of Human Resources believe that the
claims not made up to 31 March 1979 could amount to $ 12 million.
7.51 Other potential claims. During our audit of the Lottery Fund we noted that grants
amounting to $ 1.2 million had been paid during the 1979 fiscal year to organizations that are
qualified for cost-sharing under CAP. It is possible that these grants may be cost-shareable,
and we have referred the matter to Ministry of Human Resources staff.
7.52 Guidelines and procedures should be established by a central agency to ensure that
all ministries making expenditures shareable under the Canada Assistance Plan provide the
Ministry of Human Resources with the information necessary to make claims. This
information should be provided on a current basis and all claims should be made without
delay.
MINISTRY OF MUNICIPAL AFFAIRS AND HOUSING
Housing Fund
7.53 The Housing Fund was established in 1973, pursuant to the Ministry of Municipal
Affairs and Housing Act, for the purposes of supervising, acquiring, developing, maintaining, improving, and disposing of housing within the Province.
7.54 In Section 8D of my 1978 Report I noted deficiencies in the accounting records of
this Fund and also referred to improvements which, we were informed, were in progress.
Deficiencies in the Fund's record-keeping continued to exist throughout the 1979 fiscal
year. As a result some 1979 year-end balances were incorrectly stated. Others were not
supported by subsidiary records. Major items which we consider unsatisfactory are as
follows:
—An advance of $ 1.5 million to a municipality, originally to be repaid from appropriations of the Ministry of Environment, appears unlikely to be collected and should be
written off.
—The Fund does not maintain subsidiary records of Rural and Remote mortgages,
totalling $1.7 million.
 REPORT OF THE AUDITOR GENERAL 33
—There is no provision for loss on a $2.7 million mortgage given by a corporation
which subsequently went into receivership.
—Property with a book value of $ 1.9 million has been sold, but is still included in the
Real Estate account. Mortgages Receivable are understated by approximately the
same amount.
—The Fund's recorded cost of $ 15.4 million for federal/provincial partnership projects
still does not agree with the Central Mortgage and Housing Corporation (CMHC)
cost records.
7.55 I am concerned that the expected improvements in the records were not reflected in
the 1979 fiscal year accounts. The highest priority should be given to remedying the
deficiencies and inaccuracies in the accounts of the Fund, and bringing the balances in the
Housing Fund and CMHC into agreement.
Grants to Housing Cooperatives and Nonprofit Societies
7.56 The Province makes grants to cooperatives and nonprofit societies to subsidize
operations during the early years of housing projects. Recipients must accommodate a
number of low-income families at rentals which do not fully cover unit operating costs.
7.57 To enable the Ministry to determine the amounts of the subsidies, which are based on
the financial positions and operating results of the grant recipients, and in order to identify
the costs that are shareable with the Federal government, the cooperatives and societies are
required to submit:
—operating budgets;
—audited financial statements; and
—declarations of resident families' income and rental charges.
These reporting requirements have not been enforced. As a result, grants have been made to
cooperatives with operating surpluses in excess of the allowable amounts, and some
cost-sharing claims on the Federal government have been delayed. In my opinion the
reporting requirements should be enforced to achieve efficient financial management of the
program.
MINISTRY OF THE PROVINCIAL SECRETARY
Lottery Fund
7.58 The Lottery Fund was established under the Lotteries Act to receive all funds arising
from the participation of the Province in the operations of lotteries, either solely or jointly
with others. Proceeds from lotteries, afterpayment of costs of administration of the Act, are
to be used for: "... cultural or recreational purposes or for preserving the cultural heritage of
the Province or for any other purpose consistent with the objects of the Western Canada
Lottery Foundation." The Foundation provides that funds may be used for: "... objects of a
national, patriotic, religious, philanthropic, charitable, scientific, artistic, social, professional, sporting, recreational, social welfare, civic improvement, educational, environmental, or conservational nature, and to purchase, establish, develop, maintain and operate
facilities, programs and services used or useful in connection therewith.''
 34
REPORT OF THE AUDITOR GENERAL
7.59 We reviewed all, and examined a number of, grants made from the Fund during the
fiscal year ended 31 March 1979 and considered the grants to have been made for purposes
consistent with those described.
7.60 The Lotteries Branch is divided into two sections. One is concerned with the
licensing and regulation of lotteries within the Province, and the other is responsible for the
administration, distribution and accounting for tickets of the Western and Provincial
Lotteries as well as for receipts from Loto Canada. The Licensing Section revenue of
$248,000 arising from the issue of licences and permits was credited to General Fund
revenue, while its operating costs of $87,000 were charged to the Lottery Fund. As stated in
my 1978 Report it would be more appropriate for related revenues and expenditures to be
reported through the same fund.
7.61 The Act states, in part, that the Lottery Fund "...shall be paid all proceeds from the
conduct and operation of lotteries..." However, there is no separate bank account for the
Fund, and its unexpended balance appears only as a liability account in the books of the
Province. In practice, all cash receipts and disbursements are processed through the
Province's general bank account. No separate investments are made on behalf of the Fund
and no interest income is credited to it. In contrast, the Provincial Home Acquisition Fund,
which like the Lottery Fund has no statutory provision regarding interest, was credited with
$3.5 million in interest from the General Fund in the 1979 fiscal year. As the Fund's revenue
is raised for specific purposes, I consider that interest earned on its unexpended balance
should be credited to the Lottery Fund rather than used for the general purposes of
Government. In the 1979 fiscal year interest income could have exceeded $1 million.
7.62 In late November 1978 my office was requested by the Provincial Lotteries Branch
and the Royal Canadian Mounted Police to review the Lottery Branch records in order to
substantiate reported losses of lottery tickets in late October. We confirmed that tickets with
a retail value of $91,000 were unaccounted for following a break-in at the Vancouver Office
of the Lottery Branch and the disappearance of a shipment of tickets originating from the
Victoria Office.
7.63 From our review in December 1978 and January 1979 we concluded that the
accounting records and procedures could not be relied upon to adequately control or account
for the purchase, distribution and sale of lottery tickets, and that most of the self-checking
features inherent in a good control system were missing. Although the system was designed
to balance each draw separately, no draws had been balanced since September 1978
following the introduction of the "Scratch and Win" feature of the Provincial Lottery and
the increase in draws from bi-weekly to weekly for the Western Lottery.
7.64 Subsequent to the year-end the Branch discontinued handling and distributing the
majority of lottery tickets sold in the Province. This change in operating procedures should
help to alleviate some of the problems noted at the time of our review.
 REPORT OF THE AUDITOR GENERAL
35
8
PUBLIC BODIES
8.1 The Auditor General Act states that I am eligible to be appointed the auditor of a
Crown corporation, Crown agency, or public body as defined in the Act. As at 31 March
19791 was the appointed auditor of 27 public bodies, with total assets of $4,000 million and
annual expenditures of $ 1,4000 million. These public bodies are listed in Appendix II to this
Report.
8.2 My audit opinions on the financial statements of the Workers' Compensation Board
(fiscal year ended 31 December 1978) and the Pacific Vocational Institute (fiscal year ended
31 March 1979) were qualified for the following reasons:
—Workers' Compensation Board. There was uncertainty over the likelihood that the
Board would be able to recover the full amount of class balances recoverable from
future assessments ($227 million) within the timing objective established by the
Board for funding of this item.
—Pacific Vocational Institute. There was uncertainty as to the collectibility of an
amount of $216,000 due to the Institute from the Ministry of Education, Science and
Technology. The amount was later determined to be uncollectible.
8.3 Management letters are prepared for each public body audit performed, and submitted
to the chief executive officer of the public body involved. These letters include observations
on and recommendations for improvement of internal accounting controls and financial
management systems.
8.4 Not all public bodies are audited by the Auditor General. In accordance with relevant
legislation, public accountants have been appointed as auditors for certain public bodies.
Section F of the Public Accounts includes the financial statements of some public bodies of
which I am not the auditor. These report total assets of $8,000 million and annual
expenditures of $2,000 million. These public bodies are listed in Appendix III to this
Report.
8.5 Three public body audits still remain the responsibility of the Comptroller-General, or
persons designated by him. They are:
British Columbia Systems Corporation
Pacific Coach Lines Limited
T.S. Holdings Ltd.
These entities have been audited and reported on by firms of public accountants.
 36
REPORT OF THE AUDITOR GENERAL
PUBLIC ACCOUNTS COMMITTEE
9.1 The Auditor General Act requires that the annual report of the Auditor General be laid
before the Legislative Assembly and then referred to the Select Standing Committee on
Public Accounts and Economic Affairs (commonly known as the Public Accounts Committee) for its consideration.
9.2 A new Committee is appointed at each session of the Legislature and normally sits
only during the period when the Assembly is in session. It is composed of members of the
Legislative Assembly and traditionally includes representatives of all major political parties
roughly in proportion to their overall representation in the Assembly.
9.3 My first annual Report for the fiscal year ended 31 March 1978 was tabled in the
Legislative Assembly on 2 April 1979, the day before the dissolution of the 31st Parliament.
The Report was referred to the Public Accounts Committee on 8 June 1979 during the first
session of the 32nd Parliament. The Committee met for the first time on 9 July 1979 and
held six meetings during the session. I attended four of these meetings at which the
Committee discussed matters contained in my Report.
9.4 Under the parliamentary form of government, public accounts committees play an
important role in the administrative accountability of governments to their legislative
assemblies. They provide the forum to which officials of ministries may be called to account
for the legality, probity and prudence of government expenditures, and to which central
agencies can be required to account for responsibilities in establishing administrative
policies and procedures.
9.5 The annual report of the legislative auditor can be of considerable value to a public
accounts committee by identifying problem areas and key issues. It can serve as a guide to
the elected representatives for the selection of matters which warrant further enquiry. Also,
involvement of the committee with the auditor's report and endorsement of his recommendations for corrective action can often reinforce and support the work of the auditor.
9.6 The Public Accounts Committee has been interested in and supportive of the work of
my Office, and I look forward to a continuation and strengthening of this relationship with
the Committee in the future.
 REPORT OF THE AUDITOR GENERAL 37
10
ORGANIZATION AND ACTIVITIES OF THE AUDIT OFFICE
Organization and Personnel
10.1 Organization. During the period covered by this Report the Office of the Auditor
General was organized in three audit divisions. Mr. Frank Barr, C. A. and Mr. Raymond L.
Hunter, C. A. headed the two divisions responsible for the audit of the Provincial accounts.
A third division, directed by Mr. Gordon W. Dawson, C. A., was responsible for the audit
of all public bodies of which I am the auditor. The Deputy Auditor General, Mr. Robert J.
Hayward, C.A., assisted me in the management of the Office. These senior officers,
together with myself, comprise the Executive Committee which deals with overall planning
and policy matters.
10.2 Staffing. The Audit Office has a staff of 60, consisting of 30 professionals, 25
student accountants, and an administrative staff of 5.
In addition we have received, as at 18 February 1980, firm commitments from 5 individuals
who will be joining our staff over the next few months. Recruiting efforts will continue with
a view to reaching authorized staff levels during the 1981 fiscal year.
10.3 In spite of the pressing need to be at full strength as soon as possible, we have
adhered to a firm policy of maintaining an appropriately high standard in the selection of
candidates for positions throughout the Office. Although this has lead to an extension of our
initial recruiting period, we feel that the policy is justified by the obvious long-term
benefits.
10.4 Staff levels at 31 March 1979, with a projection to 31 March 1980, are summarized
hereunder:
Actual Projected
31 March 31 March
1979 1980
Senior management 5 6
Managers and supervisors 10 18
Other audit staff 27 36
Total professional staff 42 60
Administrative staff _5 _5
47 65
Additions to the staff have substantially increased the capacity of the Office to carry out its
audit responsibilities. In the past we found it necessary to make extensive use of personnel
of public accounting firms to supplement our own resources. Although those requirements
are now being reduced, we anticipate a continued need to call on the private sector for
supplementary professional services.
10.5 Training and professional development. The establishment and maintenance of
a high level of competence is essential to any professional activity of this nature. Employees
at the student level are required to actively pursue courses of study leading to a recognized
accounting designation. Their training within the Office consists of on-the-job experience
and a program of formal training under the direction of our staff training officer. Our
professional senior staff participate in development programs, teach accounting and auditing courses, and conduct research in technical areas. The entire activity, requiring the
devotion of considerable time and effort, is considered essential to the long-term development of the Office and its staff.
 38
REPORT OF THE AUDITOR GENERAL
Audit Activities
10.6 The Office made considerable progress in the past year in the use of advanced
techniques to improve the effectiveness of our audit work. Specifically:
—We are developing the capability of applying the latest state-of-the-art in the audit of
computerized data. This requires a thorough understanding of computer theory and
operations, and entails the use of computer-assisted auditing techniques. To ensure
that this complex field is thoroughly understood and the general audit staff are
properly trained and supported, we have added an experienced senior person to our
staff to head a specialist group.
—Statistical sampling and evaluation techniques are used when appropriate to reduce
the extent of our audit tests and enable us to thoroughly assess the results of our
examinations.
—A third field of development is that of comprehensive auditing, which is described
more fully in Part 2 of this Report.
10.7 During the fiscal year ended 31 March 19791 was appointed auditor of the following
public bodies:
British Columbia Health Care Research Foundation
Health Facilities Association of British Columbia
A complete list of public bodies of which the Auditor General was the appointed auditor as
at 31 March 1979 is included as Appendix II to this Report.
Canadian Legislative Auditors' Conference
10.8 On 13 -15 August 19791 attended, with two seniormembers of my staff, the seventh
annual Conference of Legislative Auditors in St. John's, Newfoundland. These meetings
serve as a forum for the discussion of many mutual interests and concerns and the sharing of
technical and other information related to the work of the Office. All the provinces and
Canada were represented by some 40 senior members of the various audit offices. Guest
speakers included the Honourable A. Brian Peckford, Premier of Newfoundland, Mr. T.
Pat Reid, M.P.P., Chairman of the Public Accounts Committee, Province of Ontario, and
Professor J.E. Hodgetts and Mr. J.D.N. Ford, members of the Royal Commission on
Financial Management and Accountability.
10.9 A meeting of the representatives of the Public Accounts Committees from all the
provinces was held at the same time in St. John's. This provided an opportunity for a joint
meeting of the two groups at which an informative discussion of common concerns took
place.
New Office Location
10.10 After occupying two temporary office quarters in the first two years of its existence,
the Office was relocated on 10 December 1979 to permanent offices at 8 Bastion Square in
Victoria. The provision of suitable space is essential to the efficient operation of any office,
and I am pleased to report that the location and space that has been provided should meet our
requirements.
 REPORT OF THE AUDITOR GENERAL
39
Accounts of the Office of the Auditor General
10.11 The Auditor General Act requires that an auditor be appointed by the Treasury
Board to audit the accounts of the Office of the Auditor General annually. A firm of
independent public accountants was appointed and their report for the fiscal year ended 31
March 1979 has been forwarded to the Speaker for tabling at the next session of the
Legislative Assembly.
Advisory Council
10.12 Again this year a small group of senior representatives of the accounting profession
has assisted me in an advisory capacity. Their advice has been of great assistance in my
evaluation of this year's audit findings and I wish to express my appreciation for the
contribution they have made.
 40
REPORT OF THE AUDITOR GENERAL
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  PART 2
COMPREHENSIVE
AUDITING
  REPORT OF THE AUDITOR GENERAL
49
PART 2 - COMPREHENSIVE AUDITING
TABLE OF CONTENTS
Paragraph Page
INTRODUCTION  12.1 50
BACKGROUND
Evolution of the Legislative
Audit Role 12.6 50
The Auditor General Act  12.16 52
COMPREHENSIVE AUDITING
An Integrated Approach  12.21 53
Financial Controls  12.26 54
Reporting to the Legislative Assembly  12.28 54
Attest and Authority  12.33 55
Management Controls  12.35 56
Electronic Data Processing  12.41 57
COORDINATION WITH INTERNAL AUDITORS  12.44 57
THE CANADIAN COMPREHENSIVE AUDITING FOUNDATION
Background  12.46 57
Objectives  12.50 58
GOVERNMENT-WIDE ISSUES  12.54 59
THE PUBLIC ACCOUNTS COMMITTEE  12.55 59
BENEFITS TO THE LEGISLATIVE ASSEMBLY  12.57 60
CONCLUSION  12.58 60
 50
REPORT OF THE AUDITOR GENERAL
12
COMPREHENSIVE AUDITING
Introduction
12.1 In this Part of my Report I describe the approach my Office has begun to take in
conducting audits which embody all key provisions of my mandate, contained in sections 7
and 8 of the Auditor General Act. This new audit approach is called comprehensive
auditing. Comprehensive auditing allows me to carry out several tasks or areas of responsibility in one integrated audit process. The first is my responsibility for examining and
reporting on the Government's financial and accounting controls. The second is to fulfil
those requirements of the Auditor General Act aimed at evaluating both management
controls and the bases the Government uses to account for and disclose to the Legislative
Assembly the results of its activities.
12.2 Comprehensive audits are based on the premise that legislative auditing should be
constructive as well as informative. Accordingly, we describe and analyze significant
deficiencies observed during our audits and recommend ways to remedy these weaknesses.
This is a cornerstone feature of the comprehensive audit approach.
12.3 Comprehensive auditing also entails auditing and reporting on a cyclical basis. Such
work is in addition, and is complementary, to the annual audits and reporting required in the
non-discretionary sections of the Auditor General Act. Cyclical reporting will allow my
Office to manage the increased audit workload required by my broad mandate. Also,
cyclical rather than annual reporting gives members of the Legislative Assembly enough
time to digest and critically review the findings of my Office and allows managers enough
time to improve their management processes and to remedy deficiencies revealed by our
audits. Finally, comprehensive auditing is founded on the principles of coordination and
integration, which allow me to avoid unnecessary duplication of audit work, and which
ensures that my Office will conduct effective and efficient audits.
12.4 The approach to implementing my full mandate, described in this Part of my Report,
has largely evolved from developmental work undertaken by the Office of the Auditor
General of Canada. This work has been carried out over the last five years in response to the
need for more effective and efficient contemporary audit practices at all levels of the public
sector in Canada. Accordingly, I intend to introduce comprehensive auditing progressively
over several years to carry out the duties of my Office as required by section 8 of the Auditor
General Act of British Columbia.
12.5 The present task for my Office involves the monitoring and establishment of the
required methodology in my Office and the training of my staff in its application. I have
taken steps to ensure that my Office has the expertise necessary to conduct initial comprehensive audit pilot projects. We have begun our first such project. My 1980 Report will
contain the results of this work and should be regarded as illustrating the type of report that
we expect to provide to the Legislative Assembly in future. As we make further progress
and gain more experience with comprehensive audit methodology, and as the "state-of-the-
art" in comprehensive auditing emerges, our audit approach and reporting will likely be
modified as appropriate.
Background
12.6 Evolution of the legislative audit role - Its decline and resurgence. Although
the Office of the Auditor General in this Province is only two years old, the need for auditing
 REPORT OF THE AUDITOR GENERAL 51
the financial statements of the Government of British Columbia is clearly shown in the
history of this Province's administration. In 1913, the Audit Act set out the legal basis for
legislative audit in the Province by establishing both the position of Auditor General and the
attendant mechanisms for reporting to the Legislative Assembly. At that time, the Auditor
General's responsibilities were largely of a pre-audit nature, even though, within certain
limits, a duty was imposed to conduct a post-audit and to report on its results to the
Legislative Assembly. In 1917, the responsibilities originally given to the Auditor General
largely came to rest on other Government officials. The role of the Auditor General declined
and the Comptroller-General was assigned the responsibility for audit.
12.7 This was the situation until 1976, when the Legislative Assembly established my
Office through new legislation contained in the Auditor General Act. By enacting this new
legislation (proclaimed in 1977) the Legislative Assembly signalled a new era and attached
greater importance to both the need for, and the role of, audit in managing, controlling and
accounting for public resources and funds entrusted to the Government.
12.8 The legislators demonstrated their concern with these issues by including two
important kinds of provisions in the Auditor General Act. The first of these provisions
recognized that if government is to be properly accountable, there must be an independent
and objective review of the fairness, consistency and reliability of both the Government's
accounting for the funds entrusted to it, and the manner in which it reports its financial
position. Independence and objectivity are basic audit precepts. Accordingly, the Legislative Assembly took an important forward step when it drafted provisions that created an
audit office headed by an Auditor General who: reports directly to the Legislative Assembly; is a servant of the Legislature; and has sufficient funding to properly carry out assigned
responsibilities.
12.9 The second and equally critical series of provisions in the Act provide for the Auditor
General to audit the administration of public funds in a much broader context than that
which was traditionally considered to be necessary. About 60 years ago, the Public
Accounts Committee in British Columbia expressed its concern about this area. In its 1919
Report the Committee stated: "The form of the accounts should bring to light extravagence
and inefficiency, and enable criticism to be usefully applied." This principle expressed in
1919 is no less true today than it was 60 years ago when the total budget of the Province was
one three hundred and fiftieth of what was estimated for 1979.
12.10 In the Canada of today, amidst an era of growing government and increasing public
concern over the quality of management of scarce resources and public funds, there is an
increasing trend toward assigning a broader role to legislative auditors, usually Auditors
General. In this respect, the Auditor General Act of British Columbia passed by the
Legislative Assembly of 1976 ranks among the most progressive audit legislation in
Canada. Currently, there are two other provinces (Ontario and Alberta) that have enacted
broad scope audit mandates in addition to that of the legislation governing the Auditor
General Act of Canada.
12.11 A vital part of any system for controlling the public purse is the component that
provides elected representatives with enough reliable assurance that appropriate and reasonable financial and management controls do exist over the use of all public funds. When they
read reports on how funds have been spent on various activities, elected representatives
 52
REPORT OF THE AUDITOR GENERAL
must be able to rest assured that the reports are accurate. Moreover, these reports must
present information in such a way that the reader is able to assess the results of activities both
fully and meaningfully.
12.12 Governments in Canada have begun to recognize that one way of providing this
kind of assurance to elected representatives is to enlarge the scope of the audits done by
those auditors who report directly to the body of elected representatives. The enlarged scope
usually provides for examining issues of financial and management controls and the bases
used to measure and report the results of government activities.
12.13 Much of the work of the Auditor General of Canada which extends beyond the
traditional mandates of legislative auditors has become known as value-for-money audit.
Value-for-money audits in Canada have thus far focussed on the systems and procedures
which public service managers implement and use to monitor staff performance, improve
productivity and measure and report the results of their programs.
12.14 Value-for-money auditing does not try to override the public service's primary
responsibility for managing the public funds and resources entrusted to it economically,
efficiently and effectively. Nor do value-for-money audits attempt to comment on or assess
the merit of Government policy and its policy objectives. Instead, the broad objectives of
value-for-money auditing are first, to evaluate and report on whether management personnel in the public service are using reasonable and appropriate management control techniques to carry out their responsibilities, and second, to evaluate and report on the appropriateness of the methods used to account and report for the way that public funds and
resources are used.
12.15 The need for and the appropriateness of this type of legislative audit is attracting
widespread interest and support in Canada. Interest and support are shown not only by
legislative bodies who have the ultimate responsibility for effectively controlling the public
purse, but also by those who are concerned with accounting and auditing at all levels of
private enterprise and government. For example, in 1978 the Canadian Institute of
Chartered Accountants established a special committee to examine the role of the auditor.
This committee concluded that value-for-money audits are appropriate for all levels of
government and publicly funded organizations.
12.16 The Auditor General Act. The Auditor General Act defines my responsibilities
for auditing and reporting on the financial statements of the Government. It requires me to
report annually to the Legislative Assembly. At that time, I express my opinion in
accordance with accounting policy (stated by the Government) on the fairness and consistency of the Government's financial statements. The Act also directs me to report
annually any instance in which I have observed that accounting for or control over public
monies has been insufficient or where public money has been spent for purposes not
intended by the Legislature.
12.17 The Act also provides for a broader audit scope and allows me to examine programs
and report whether or not they have been conducted with due regard to economy and
efficiency. The Act allows me to report whether the financial statements of the Government, in addition to being accurate, consistent and in compliance with Government
accounting policy, are presented in such a way that they provide full and appropriate
disclosure.
 REPORT OF THE AUDITOR GENERAL
53
12.18 The Act distinguishes between my duty to report annually on the financial statements and my audit responsibilities concerning questions of economy, efficiency and the
bases of reporting - which are the underlying value-for-money areas of my mandate.
Although I am bound to audit and report annually on the financial statements, the Act does
not stipulate that I must report annually on issues of economy and efficiency for all
Government programs.
12.19 Although the Auditor General Act is flexible in its value-for-money audit provisions, I do not believe that this flexibility reduces the importance which the Act attaches to
these areas. Instead, the Act, through its "permissive" sections, recognizes that planning
and conducting audits which include value-for-money issues require different approaches
and consideration of materiality. For example, the draftsmen of the Act recognized that the
costs of annually reporting on whether or not all programs were being administered
economically and efficiently, would not likely be justified. It is unlikely that it would be
practical, even given sufficient resources, to carry out such examinations annually. Moreover, annual reporting on all programs would produce an unmanageable quantity of
information for members of the Legislative Assembly and public service managers to
digest. If this were the case, the potential for improving the mangement of the public purse
might be diminished.
12.20 Comprehensive auditing recognizes this danger.j Accordingly, one of its fundamental principles is that audits should be conducted over a period of time and reported at
intervals which suit particular programs and ministries. Thus it may be appropriate to report
periodically on major elements of completed audit work within a particular Ministry or
program. In other situations it may be more appropriate to report all findings under our
comprehensive audit mandate at one time.
Comprehensive Auditing
12.21 An integrated approach. The Auditor General Act of this Province contains
provision for audit in four key areas. In addition the audit of electronic data processing is
implicit in each of the areas specifically contained in the Act. These can be most easily
grouped into the following categories.
—Financial controls
—Reporting to the Legislative Assembly
—Attest and authority
—Management Controls
—EDP controls
12.22 In developing the comprehensive audit approach, the Auditor General of Canada
used the acronym "FRAME" to describe the five parts of comprehensive audit listed
above. This acronym provides a useful basis for examining the legal responsibilities of the
legislative auditor and for identifying the type of methodology and the skills required to
conduct comprehensive audits.
12.23 Each of the first four "FRAME" components is recognized in the Act as being
separate, and in some cases subject to different provisions for examination and reporting.
The comprehensive audit process, while recognizing the individuality of each of these
components, also recognizes that each is closely interrelated. In addition, the comprehen-
 54
REPORT OF THE AUDITOR GENERAL
sive audit process especially recognizes the importance of auditing financial and mangement controls in and over computer-based data processing systems. This emphasis arises
because the growing use, increasing complexity, and far reaching impact of computers
requires the auditor to use the skills of specialists and to apply different approaches to
auditing electronic data processing systems.
12.24 A cornerstone feature of the comprehensive audit approach is the integration of the
FRAME components in audit plans. Comprehensive audit does not mean that my Office
will undertake five different and separate audits of a program. Instead we will execute and
report on audits, which include the five FRAME components, as appropriate to the program
and the organization managing it. This integrated audit approach will help ensure that we do
not overlook significant issues.
12.25 Using this approach will also enhance the efficiency of the audit. Because all
significant audit areas are interrelated, it is easier to avoid duplication than if each area were
audited separately. Finally, a fully-integrated audit approach makes it easier to arrive at the
kinds of assessments which I am required to make under the Auditor General Act.
12.26 Financial controls. The provisions in section 8 (1) of the Auditor General Act
require that I call attention to anything arising from my examination which in my opinion
should be brought to the attention of the Legislative Assembly. These provisions include
instances in which systems of internal control and accounting have been insufficient and
they constitute the core area of the "F" in FRAME - that is, financial controls.
12.27 My Reports this year and last contain examples of certain types of observations and
recommendations arising under section 8 (1) of the Auditor General Act. The comments and
recommendations thus far reported in this area arose from observations made by my staff
while examining the Government's financial statements. These evaluations focussed, for
the most part, on certain types of processing and accounting controls that we would
normally expect to find in each system examined; for example, segregation of duties and
batch processing methods. However, even if these types of controls are provided for (and
reliably adhered to in systems) they do not necessarily result in satisfactory financial
control. This is because contemporary accepted definitions of internal control point to the
important role that planning, budgeting and reporting systems have to play in achieving an
overall adequate level of control. Accordingly, examinations of control systems in comprehensive audits will continue the pattern established thus far by my Office for basic
internal controls and will extend to include such control features as the organization of the
financial function, financial reporting and budgetary control systems and internal audit.
12.28 Reporting to the Legislative Assembly. Section 8 (2) (a) of the Auditor General
Act directs my attention to the manner in which the Government accounts for and reports on
its activities. The Act states in part: "In the (annual) report the Auditor General may also
include an assessment as to whether the financial statements of the Government are
prepared in accordance with the most appropriate basis of accounting for the purpose of fair
presentation and disclosure ..."
12.29 This part of my responsibility, referred to by the "R" (Reporting) in FRAME
encompasses two concepts. The first concept is that, to be properly accountable, the
Government must be provided with independent and objective assurance that it is using
accounting and reporting principles that are reasonable and that provide appropriate disclo-
 REPORT OF THE AUDITOR GENERAL
55
sure of the results of its activities. Financial statements contain accountability information.
Accordingly, if the bases used to account for and report on the results of government
activities are inappropriate, or if these statements omit important information, it is unlikely
that they will fulfil their intended purpose of providing information which is needed to help
draw conclusions about how the Government collects and uses public funds and how it
manages public resources, assets and debt.
12.30 The second important concept is that the reported outcomes or results of government programs must be logically linked to the intended outcomes as stated in the reports and
submissions used to request funds initially. Historical financial information about activities
and programs alone cannot provide members of the Legislative Assembly with the insight
they need to assure themselves that public funds have been spent for the purposes intended.
12.31 Since governments do not seek to earn profits, as in the private sector, linking
Estimates information with financial and other information on actual results is at the core of
appropriate disclosure. That is, comparing planned outcomes to actual outcomes. The
Public Accounts of British Columbia already recognize this fact and display information
derived from the Estimates together with the historical information about actual revenues
and expenditures.
12.32 As provided for in the Auditor General Act, comprehensive audits will examine,
under the " R " component of FRAME, information contained in the financial statements of
the Government, including the nature of information about the intended use of public funds
and the manner in which it is provided. Such examinations would provide assurance as to
whether or not the financial statements of the Government provide members of the
Legislative Assembly with:
—complete information in a form which would allow them to fully understand and
assess the Government's financial position; and
—a basis for assessing how well public service managers administer the public funds
and resources entrusted to them by the Legislative Assembly.
12.33 Attest and authority. This component of comprehensive auditing (the "A" in
FRAME) includes all of section 7 of the Auditor General Act and has direct links with
section 8 (1) (d) of the Act. Under section 7 of the Act, I am required to report annually.
Comprehensive audits will contribute directly to audit work conducted in other ministries
and central agencies, which is necessary for me to form an opinion on the extent to which the
financial statements of the Government are accurate, consistent and prepared in accordance
with the Government's stated accounting policies.
12.34 Much of the work associated with the attest and authority component of my
mandate requires the use of systems based auditing. This requirement also applies to the
financial control ("F" component) of FRAME. In a "systems based audit", the auditor
must carry out an organized study and evaluation of controls within a system to determine
how much he can rely on the system's ability to ensure that funds are reliably accounted for
and that collection and expenditure of funds are properly controlled. The same systems
based approach can be applied to the areas of economy and efficiency. Thus, the work
undertaken in the other FRAME modules is complementary to this and other parts of my
mandate.
 56
REPORT OF THE AUDITOR GENERAL
12.35 Management controls. In comprehensive auditing, the "M" component of
FRAME (Management Controls) focusses upon the Government's systems and procedures
for promoting economic acquisition and efficient use of resources. Together with the "R"
component (Reporting) the "M" component constitutes the core of what has become
known in Canada as "value-for-money auditing". My responsibilities in these areas are set
out in section 8 (2) (b) of the Auditor General Act.
12.36 Although elements of value-for-money auditing have been undertaken in numerous
government jurisdictions under various descriptions, such as operational and/or management audits, the methodology and approach for this type of audit have not been as widely
developed as those for evaluating financial control systems. Moreover, in Canada the
results of such audits or examinations in either the private or public sector have infrequently
been reported publicly. In the case of comprehensive auditing, and in line with the
provisions of the Auditor General Act, the results of value-for-money audits conducted by
my Office would be included in my Annual Report.
12.37 The comprehensive approach closely links value-for-money components with the
traditional and financial control type of examination.
12.38 The provisions of the Auditor General Act relating to value-for-money audit pose
more complex and challenging problems to implement than do the other parts of my
mandate. The Act challenges us to assess whether or not program managers are managing
their progams with due regard to economy, efficiency and appropriate reporting. We must
therefore have appropriate and reasonable criteria related to the value-for-money components of comprehensive audits. These are necessary to ensure that, as with all other aspects
of my mandate, the Office conducts its work to the highest possible standards of fairness and
objectivity. Such standards are crucial to any form of independent audit. These criteria
should also be clearly understood by public service managers and acceptable as' 'reasonable
man standards" which can and should be observed in the management of government
business.
12.39 Other governments, legislative and internal auditors and private sector auditors and
their governing bodies, such as the Canadian Institute of Chartered Accountants, are giving
increasing attention to comprehensive audit methodology. The work of developing and
selecting efficient and effective audit practices for planning, conducting and reporting on
value-for-money audits is very costly, and largely beyond the resources currently available
to my Office. However, the Auditor General of Canada has devoted considerable effort and
resources to establishing the methodology and practices needed to carry out comprehensive
audits and to develop appropriate audit criteria. Although further effort will be required to
refine these processes and develop additional methodology, the Auditor General of Canada
has already contributed much to the body of comprehensive auditing knowledge. This
knowledge has already been applied, has been shown to be of practical value, and has been
made available to both my Office and those of my provincial counterparts who have similar
value-for-money provisions in their mandates. Accordingly, I have begun to draw on this
knowledge of criteria and methodology. In my opinion, the sharing of this audit methodology among legislative auditors will result in significant savings for the taxpayers of this
Province.
12.40 Another important facet of the audit of management controls is the need to use
specialist skills which are not normally found in auditors trained only in traditional financial
 REPORT OF THE AUDITOR GENERAL
57
audit areas. To ensure that comprehensive audits are effectively and efficiently conducted it
is necessary to employ a multi-disciplined team.
12.41 Electronic data processing. Even though the Auditor General Act does not
specifically mention electronic data processing (EDP) systems, it is clearly understood that
any organized audit of financial and management controls must include a review of
computer systems. Computer systems must be audited because they can profoundly affect
the organization that uses them. Such systems, for instance, are often at the core of financial
accounting procedures and are central to processing data used for various management
control purposes.
12.42 As was discussed previously under the heading of management controls, these
systems, because they are often complex, must be audited by highly trained specialists.
These specialists must have the expertise first to assess an organization's need for computer-
based systems and then to evaluate the quality of their design. Those who audit computer-
based systems must also be able to evaluate whether these systems have been developed and
implemented properly and be able to assess their impact on other related systems and
operations.
12.43 Depending upon what would be appropriate in given circumstances, the EDP
component (the "E" in FRAME) would focus upon four areas: first, controls over the use of
and controls in electronic data processing systems; second, the use of computers by the
auditor to help audit data processed by an EDP system; third, the use of computers by the
auditor to help audit data not processed by an EDP system; and fourth, issues of economy
and efficiency related to the use of computers. For example, with respect to the fourth area
above, we might assess whether due regard to economy and efficiency has been demonstrated in determining whether or not the use of a computer has yielded significant cost
benefits over other methods of processing or controlling information.
Coordination With Internal Auditors
12.44 If my Office is to efficiently fulfil the mandate in the Auditor General Act, it must
avoid duplicating the work of internal auditors. Not only is duplication very costly to the
taxpayer, but it is disruptive to public service managers who must continue to manage their
staff while audits are in progress. Duplication also diverts scarce audit resources which
might be employed more cost effectively elsewhere. In the Government of British Columbia, although I am the only auditor who is responsible directly to the Legislative Assembly,
the responsibility for audit devolves not only upon my Office but also upon those staff who
perform internal audits. Internal auditors are usually attached to the staff of ministries
themselves or to the staff of the Comptroller-General. Coordination with these groups can
achieve economies and can result in more effective use of the time of audit staff.
12.45 Whenever my Office undertakes a comprehensive audit, we will evaluate the work
done by internal and other auditors to determine how their work might affect the nature and
extent of our audit.
The Canadian Comprehensive Auditing Foundation
12.46    Background.    The comprehensive audit approach may well provide a vehicle for
other legislative auditors in Canada and elsewhere to constructively and efficiently exercise
 58
REPORT OF THE AUDITOR GENERAL
the full scope of their value-for-money and traditional mandates. The Auditor General of
Canada has recognized this fact, and accordingly has shared the methodology of comprehensive audit, thus far developed, with me and with my provincial counterparts. I
believe that my Office has benefited greatly from this sharing, particularly when the
expertise and cost that were required to develop the basic methodology framework are
considered.
12.47 Because comprehensive auditing methodology encompasses not only the traditional work of the legislative auditor, but also the newer value-for-money components, the
adoption of this form of auditing is compatible with the terms of the provisions of the
Auditor General Act of British Columbia. The importance of the approach which the
Auditor General of Canada has developed is demonstrated by the interest being shown by
legislative auditors in Canada and elsewhere.
12.48 I was pleased during the past year to sit on a Comprehensive Audit Steering
Committee with my provincial counterparts and the Auditor General of Canada. This
Committee monitored comprehensive auditing processes and methodology.
12.49 One of the main goals of that Committee was to see a focal point established in
Canada for the further development of comprehensive audit methodology and practices and
to establish a source from which all auditors who are concerned with value-for-money and
comprehensive audit can draw from and share in. On 12 February 1980 the establishment of
such a focal point was realized with the bringing into being of the Canadian Comprehensive
Auditing Foundation.
12.50 Objectives. The objectives of the Canadian Comprehensive Auditing Foundation are broadly to:
—encourage and coordinate the development of comprehensive auditing methodology;
—to develop, promote and disseminate comprehensive auditing knowledge;
—to design, develop and organize comprehensive audit training programs; and
—to provide a focal point for the exchange of information and views in respect to
comprehensive auditing.
12.51 The benefits, in terms of the savings to taxpayers, which can be enjoyed by pooling
and sharing the methodology, knowledge and skills required for legislative auditors to fulfil
all aspects of their mandate are obvious. Without a focal point the development of such
methodology might be fragmented and ad hoc and development work would overlap
causing duplication, inconsistency and wasted effort. Since much of the methodology
required to audit various government programs under contemporary legislative audit
mandates will be similar from one government jurisdiction to another, a central focus for
development represents a practical, cost-effective approach.
12.52 The need for, and the potential for substantial benefits to be derived from, the
Canadian Comprehensive Auditing Foundation has been recognized and strongly supported
not only by legislative auditors but also by the professional audit community and the
government community. The Canadian Institute of Chartered Accountants which is re-
 REPORT OF THE AUDITOR GENERAL
59
sponsible for the setting of standards to govern its members has endorsed and supports the
objectives of the Canadian Comprehensive Auditing Foundation. Strong support has also
come from the Comptroller General of Canada and Canadian professional auditing, accounting and consulting firms.
12.53 Because of the mandate contained in the Auditor General Act, which points to the
need for my Office to conduct audits which pertain to economy, efficiency and the basis of
reporting to the Legislative Assembly, and because I have launched the comprehensive
audit process in my Office, I am pleased to be a member of the first Board of Governors of
the Canadian Comprehensive Auditing Foundation. I believe that my association with the
Foundation will help my Office and that of other legislative auditors to fulfil their mandates
in the most appropriate and efficient way.
Government-Wide Issues
12.54 Associated with and arising from the application of comprehensive auditing in
programs and ministries, it is reasonable to expect that issues of government-wide significance will be identified which should be examined by my Office in a broader government-
wide context. Such issues might, for example, include the manner in which central agencies
of the Government provide functional direction for financial management to all ministries
of the Government. Another example might be the way that the results of programs and
activities are summarized and reported in the Public Accounts. In addition such issues might
also pertain to general assessments of the adequacy of financial and management controls
over certain elements of activities common to all government ministries and programs. In
order to cope with these issues, the comprehensive audit process can be extended to
consolidate and further explore such issues on a government-wide basis. Where such an
approach appears warranted, it would be my intention to conduct further extended audit
work embodying the same principles of comprehensive auditing to deal with them.
The Pubic Accounts Committee
12.55 This section of my Report has described how I have begun to implement the key
areas of my mandate contained in section 8 of the Auditor General Act. Because of the
significance of the potential benefits of the comprehensive audit approach to members of the
Legislative Assembly and public service managers, I have been most gratified by the
interest expressed in this approach by the Public Accounts Committee, represented by its
Chairman and Secretary.
12.56 As Auditor General for the Province it is my responsibility to lead the representation of this Audit Office at the Annual Conference of Legislative Auditors. In 1979 the
conference, held in St. John's, Newfoundland, was attended by my provincial and federal
counterparts and a number of their senior staff. A key feature of this Conference was a joint
session between the legislative auditors attending and the Chairmen and Vice-Chairmen (or
Secretaries) of Public Accounts Committees from across Canada. A major topic at this joint
session was comprehensive audit and its approach and principles. These were covered in
detail. I was most gratified that the two gentlemen, who represent the Public Accounts
Committee of British Columbia, which is in fact the Audit Committee of the Legislative
Assembly, were able to devote their valuable time to this concept.
 60
REPORT OF THE AUDITOR GENERAL
Benefits to the Legislative Assembly
12.57 The comprehensive audit approach as it is currently being implemented, and
developed for the future, will facilitate the work of the members of the Legislative
Assembly and of the Public Accounts Committee. Specifically this approach will:
—simplify their assessing the quality of financial control;
—help managers to correct unsatisfactory situations and to improve the management of
public funds and resources; and
—provide them with assessments which integrate and therefore give a more balanced
picture of major findings and recommendations in all areas of my mandate contained
in sections 7 and 8 of the Auditor General Act.
Conclusion
12.58 So that my Office can start providing to the Legislative Assembly the type of report
described in this Section I have taken steps to launch comprehensive auditing in my Office.
The first comprehensive audit pilot project to be undertaken by my Office is currently
underway. I am pleased to report that it is being conducted in an atmosphere of full
cooperation and enthusiasm by the Deputy Minister and the officials of the Ministry
concerned.
12.59 To help ensure the development in my Office of the skills necessary to conduct
comprehensive audits I am pleased to have been able to retain, on loan from a national firm
of Chartered Accountants, the services of one of its partners to supplement my own Office's
resources. Mr. Jean-Pierre Boisclair, C.A., C.M.C., from MacGillivray & Co., is currently helping my Office to conduct its pilot work in this area. Mr. Boisclair has had several
years of previous experience in this field at the federal level.
 PART 3
ROYAL COMMISSION
ON
FINANCIAL
MANAGEMENT
AND
ACCOUNTABILITY
  REPORT OF THE AUDITOR GENERAL
63
13
ROYAL COMMISSION ON FINANCIAL MANAGEMENT
AND ACCOUNTABILITY
13.1 The recently published final report (March 1979) of the Royal Commission on
Financial Management and Accountability, under the chairmanship of Allen T. Lambert,
turned the spotlight on the best means of providing for financial management in the federal
administration of Canada. While it is recognized that the scope and recommendations in the
report relate specifically to conditions at the federal level, nevertheless I feel that there are
clear and consistent principles in accountability which are equally applicable at the provincial level.
13.2 The Royal Commission report points out that a vital element in the establishment of a
management system framwork is "... the introduction of processes for exacting an
accounting for performance, and applying the consequence of its outcome to individual
processes that should extend throughout the ranks of every department . . . and there can
be no proper accountability unless all information required to form a judgement about
performance has been made available." An essential requirement of the accounting process, therefore, is the fullest possible disclosure of all relevant information both within and
by government to the Legislature and the public.
13.3 The Royal Commission recognizes, however, that to provide relevant and accurate
financial information in support of both plans and results, the methods for assembling and
presenting such data must be modified. Internal audit systems must also be improved.
Quoting again from the report: "Accounting methods used in departments and in most
agencies result in both inaccurate estimates of the costs of implementing a proposal and
inaccurate reports of the cost of carrying out the activity. In addition, these program costs
cannot be reliably compared on a periodic basis with the relevant benefits or outputs. These
two shortcomings have a significant influence on efforts to obtain value for money by
running government programs economically, efficiently, and effectively. They also frustrate attempts to achieve satisfactory assessments of management performance.''
13.4 The Royal Commission report suggests that another anomaly of government accounting systems is that costs are charged to programs with little regard to when they
actually contribute to program output and fail to provide reliable calculations of the cost of
personnel, financial administration and other overhead costs.
13.5 The essence of the report is to be found in the bald statement that establishing the
means of proper accountability is the core of our democratic form of government. The
Commission contends that proper financial administration is a vital component of both
management and accountability and financial considerations should be at the heart of every
phase of departmental activity. They should form an essential part of the planning process,
the budgeting of resources to implement those plans, the control of subsequent expenditures
and the evaluation of the efficiency and effectiveness with which any activity has been
undertaken.
13.6 The Commission presses for two proposals which are central to the accurate
forecasting of revenues, the determination of appropriate expenditure limits and debt
 64
REPORT OF THE AUDITOR GENERAL
ceilings, and the assurance that full value is received for those public funds. The first
proposal is the preparation of a fiscal plan, covering a 5 year period, designed to show where
the Government is going, how it will get there and what the financial consequences will be.
The second is a realignment of responsibilities between and within major departments to
bring responsibility for management to a focus. It was not suggested by the Commission
that all the projections in the plan be met precisely, particularly those extending into the
longer term. Nevertheless, it should be a carefully prepared view of the financial path the
Government intends to follow, and deviations from it would require deliberate decisions at
the appropriate level. It must not be simply a collection of working assumptions or
mechanical projections; this would not be a plan.
13.7 The main virtue of these proposals, according to the report, is that they would
significantly strengthen the ability of government to impose expenditure ceilings from the
top, as opposed to the present system under which it is confronted by cumulative spending
proposals derived from the incremental increase in the funds sought by virtually every unit
of a department.
13.8 In respect to the Public Accounts Committee (PAC), the report recognizes its pivotal
role and how it provides the forum in which chief administrative officers of departments
account for the "legality, probity and prudence" of government expenditures. To achieve
its goals the review conducted by the PAC must be both regular and objective and the
Commission report on Financial Management and Accountability lies in its recognition that
fulfilled. To do otherwise cannot provide the basis for a comprehensive review of administrative performance, nor any assurance of accountability for that performance, states
the Commission. To quote again from the report: "The current sporadic and selective
approach to review undermines the role the Public Accounts Committee could play in the
accountability of government to Parliament''.
13.9 Also recommended is the desirability of a close liaison between other standing
committees and the PAC.' 'With its broader perspective on a department and its programs, a
standing committee would be in a position to make better informed judgements about
whether the PAC's findings reflect more general or widespread administrative or managerial problems." At the present time the PAC does not receive an accounting on aspects of
personnel management including the efficiency and effectiveness of training in improving
skills and remedying weaknesses which are just as important as financial considerations in
the delivery of programs and services.
13.10 As I mentioned at the beginning of this Section, the main virtue of the Royal
Commission report on Financial Management and Accountability lies in its recognition that
the rate of growth of government and its complexity and size make it increasingly important
that there be greater care in the use of the resources that have been entrusted to it. The
concern for accountability shown by those who wish to strengthen the management system
throughout the Federal Government should, in my view, be matched by similar consideration at the provincial level.
   REPORT OF THE AUDITOR GENERAL 67
APPENDIX 1
Sections of the Auditor General Act Relevant to the
Responsibilities of the Auditor General
Examination of Accounts
6. (1) The auditor general shall examine in such manner as he considers necessary the accounts and
records of the Government relating to the Consolidated Revenue Fund and all public money, including
trust and special funds under the management of the Government, and to public property.
(2) Notwithstanding any other Act, the auditor general
(a) shall be given access to the records of account and administration of any ministry, and
(b) may require and receive from any person in the public service, information, reports and
explanations necessary for the performance of his duties.
Report on Financial Statements
7.(1) The auditor general shall report annually to the Legislative Assembly on the financial statements
of the Government, including those required by section 40 of the Financial Control Act, respecting the
fiscal year then ended.
(2) The report shall form part of the Public Accounts and shall state
(a) whether he has received all of the information and explanations he has required, and
(b) whether in his opinion, the financial statements present fairly the financial position,
results of operations and changes in financial position of the Government in accordance
with the stated accounting policies and as to whether they are on a basis consistent with
that of the preceding year.
(3) Where the report of the auditor general does not contain the unqualified opinion required under
this section, the auditor general shall state the reasons why.
Annual Report
8.(1) The auditor general shall report annually to the Legislative Assembly on the work of his office
and call attention to anything resulting from his examination that he considers should be brought to the
attention to the Legislative Assembly including any case where he has observed that
(a) accounts have not been faithfully and properly kept or public money has not been fully
accounted for, or
(b) essential records have not been maintained, or
(c) the rules, procedures, or systems of internal control applied have been insufficient
(i) to safeguard and protect the assets of the Crown, or
(ii) to secure an effective check on the assessment, collection and proper allocation
of the revenue, or
(iii) to ensure that expenditures have been made only as authorized, or
(iv) to ensure the accuracy and reliability of the accounting data, or
(d) public money has been expended for purposes other than for which it was appropriated
by the Legislature.
(2) In the report the auditor general may also include an assessment
(a) as to whether the financial statements of the Government are prepared in accordance
with the most appropriate basis of accounting for the purpose of fair presentation and
disclosure, or
(b) as to whether any program being administered by a ministry is being administered
economically and efficiently.
Trivial Matters
9. The auditor general need not report to the Legislative Assembly on any matter he considers
immaterial or insignificant.
 68
REPORT OF THE AUDITOR GENERAL
Tabling Annual Report
10. (1) A report of the auditor general to the Legislative Assembly shall be submitted by him through
the Minister of Finance.
(2) Upon receipt of a report of the auditor general, the Minister of Finance shall lay the report
before the Legislative Assembly as soon as possible.
(3) If the Minister of Finance does not lay the report before the Legislative Assembly on the first
sitting day following the receipt of the report by him, the auditor general shall transmit the report to the
Speaker and the Speaker shall lay the report before the Legislative Assembly.
(4) Upon being laid before the Legislative Assembly, the annual report of the auditor general shall
be referred to the Public Accounts Committee of the Legislative Assembly.
Special Report
11. The auditor general may at any time make a special report to the Legislative Assembly on a matter
of primary importance or urgency that, in his opinion, should not be deferred until he makes his annual
report.
Other Reports
12. The auditor general may at any time make a report to the Minister of Finance, the Treasury Board,
the Lieutenant-Governor in Council, or any public officer on any matter that in the opinion of the
auditor general should be brought to his or their attention.
Special Assignments
13. The auditor general may undertake special assignments at the request of the Lieutenant-Governor
in Council, but he is under no obligation to carry out any such requested assignment if, in his opinion, it
would interfere with his primary responsibilities.
Stationing Officers in Ministries
14. (1) The auditor general may station in any ministry a person employed in his office to enable him
more effectively to carry out his duties, and the ministry shall provide the necessary office accommodation for a person so stationed.
(2) The auditor general shall require every person employed in his office who is to examine the
accounts or the administration of a ministry pursuant to this Act to comply with any security
requirements applicable to, and to take any oath of secrecy required to be taken by, persons employed
in that ministry.
Inquiry Powers
15. The auditor general may examine any person on oath on any matter pertaining to his responsibilities
and for the purpose of such an examination the auditor general has all the powers, protection and
privileges of a commissioner under sections 7, 10 and 11 of the Public Inquiries Act.
Public Bodies
16.(1) Notwithstanding any other Act, where the auditor general is not the auditor of a public body,
(a) the public body shall, on the request of the auditor general, supply the auditor general
with a copy of all financial statements and reports relating to the public body,
(b) the auditor of the public body shall, on the request of the auditor general, make
available to the auditor general, within a reasonable time, all working papers, reports
and other documents in his possession relating to the public body, and
(c) the auditor general may conduct such examinations of the records and operations of the
public body as he considers necessary or advisable to carry out his duties under this Act.
 REPORT OF THE AUDITOR GENERAL
69
(2) Notwithstanding any other Act, the auditor general
(a) shall be given access to the records of account and administration of any public body,
and
(b) may require and receive from any office or employee of a public body information
reports and information necessary for the performance of his duties.
Eligibility as Auditor
17. Notwithstanding any other Act, the auditor general is eligible to be appointed the auditor, or a joint
auditor, of a Crown corporation, Crown agency, or public body.
Transfer of Audit Duties
18. The Lieutenant-Governor in Council may transfer to the auditor general the duty imposed by any
Act on the comptroller-general to conduct an audit.
 70
REPORT OF THE AUDITOR GENERAL
APPENDIX II
Public Bodies of Which the Auditor General was the Appointed Auditor
as at 31 March 1979
*British Columbia Assessment Authority
*British Columbia Educational Institutions Capital Financing Authority
*British Columbia Harbours Board
*British Columbia Health Care Research Foundation
British Columbia Heritage Trust
British Columbia Institute of Technology
British Columbia Power Commission Superannuation Fund
British Columbia Railway Company Pension Fund
*British Columbia Regional Hospital Districts Financing Authority
* British Columbia School Districts Capital Financing Authority
Captain Cook Bi-Centennial Committee
College Pension Fund
Creston Valley Wildlife Management Area Trust Fund
*Health Facilities Association of British Columbia
*Legal Services Commission
*Medical Services Plan of British Columbia
Municipal Superannuation Fund
Pacific Vocational Institute
Provincial Capital Commission
♦Provincial Rental Housing Corporation
Simon Fraser University
Teachers' Pensions Fund
The University of British Columbia
The University of British Columbia Health Sciences Centre
University of Victoria
* Workers' Compensation Board of British Columbia
Workers' Compensation Board Superannuation Fund
* Included in Section F of the Public Accounts.
 REPORT OF THE AUDITOR GENERAL
71
APPENDIX III
Public Bodies, of Which the Auditor General was not the Appointed Auditor, Whose
Financial Statements are Included in Section F of the Public Accounts
British Columbia Buildings Corporation
British Columbia Cellulose Company
British Columbia Development Corporation
British Columbia Ferry Corporation
British Columbia Housing Management Commission
British Columbia Hydro and Power Authority
British Columbia Petroleum Corporation
British Columbia Railway Company
British Columbia Steamship Company (1975) Ltd.
British Columbia Systems Corporation
Housing Corporation of British Columbia
Insurance Corporation of British Columbia
Ocean Falls Corporation
Pacific Coach Lines Limited
Science Council of British Columbia
Surrey Farm Products Investments Ltd.
T.S. Holdings Ltd.
Urban Transit Authority
 72
REPORT OF THE AUDITOR GENERAL
APPENDIX IV
Sections A (pages Al to A9), B and C
of the Public Accounts
 PUBLIC ACCOUNTS 1978/79
SECTION A
MAIN FINANCIAL STATEMENTS OF THE PROVINCE
CONTENTS
Page
Statement of assets and liabilities  A 2
Statement of revenues and expenditures  A 5
Summary of General Fund revenues  A 6
Summary of General Fund expenditures  A 7
Statement of net receipts and payments (combined funds)  A 8
Notes to financial statements  A 9
 A 2
PROVINCE OF BRITISH COLUMBIA
STATEMENT OF ASSETS AND
ASSETS
1979
General Fund $
Cash and temporary investments       654,408,844
Accounts receivable from other governments
and agencies           33,064,843
Working capital advances         11,513,193
1978
$
467.181,556    187,227,288
Net increase
or (decrease)
during 1978/79
$
26,378,617
8,909,831
6,686,226
2,603,362
698,986,880
Other recorded assets—
Taxes and other accounts receivable  122,012,390
Loans and other advances   52,934,034
Investment in, and advances to, Crown corporations    393,361,531
Investments,   other     151,718,489
502,470,004    196,516,876
71,371,084      50,641,306
53,539,815 (605,781)
386,841,069
151,718,489
6,520,462
Fixed assets   2,335,606,211    2,077,930,237    257,675,974
3,055,632,655    2,741,400,694    314,231,961
3,754,619,535    3,243,870,698    510,748,837
Special Purpose Funds
Cash and Investments       294,609,342       237,632,385      56,976,957
Other assets          374,153,795       399,196,778    (25,042,983)
668,763,137       636,829,163      31,933,974
Superannuation Funds
Cash and Investments       689,550,666       573,878,245    115,672,421
Trust Funds
Cash and Investments       841,275,680       739,451,785    101,823,895
5,954,209,018    5,194,029,891    760,179,127
Notes:
The notes on page A 9 are an integral part of these financial statements.   Detailed schedules of the Asset
and Liability accounts can be found in Section B.
 PUBLIC ACCOUNTS 1978/79 A 3
LIABILITIES AS AT MARCH  31,  1979
LIABILITIES
Net increase
or (decrease)
1979 1978              during 1978/79
General Fund                                                                                  $ $                         $
Outstanding cheques         138,459,407 91,932,085      46,527,322
Accounts payable       164,300,462 147,030,787      17,269,675
Other current liabilities .._.         39,617,154 46,888,424      (7,271,270)
342,377,023 285,851,296      56,525,727
Unmatured debt      261,447,790 261,447,790            —
Excess of assets over liabilities—
Revenue surplus (deficit)
Surplus, April 1, 1976, to date       356,609,857 216,618,708    139,991,149
Deficit at March 31, 1976, funded    (261,447,790) (261,447,790)          —
Net revenue surplus (deficit)        95,162,067 (44,829,082)  139,991,149
Capital surplus   3,055,632,655 2,741,400,694    314,231,961
3,150,794,722 2,696,571,612    454,223,110
3,754,619,535 3,243,870,698    510,748,837
Special Purpose Funds
Fixed capital funds-
Capital accounts        90,000,000 90,000,000            —
Current accounts           9,300,946 8,016,805        1,284,141
Other funds       563,043,988 534,280,208      28,763,780
Miscellaneous statutory accounts           6,418,203 4,532,150        1,886,053
668,763,137 636,829,163      31,933,974
Superannuation Funds
Public Service        687,917,655 572,276,598    115,641,057
Members of the Legislative Assembly          1,633,011 1,601,647             31,364
689,550,666 573,878,245    115,672,421
Trust Funds
Miscellaneous trust accounts       841,275,680 739,451,785    101,823,895
5,954,209,018 5,194,029,891    760,179,127
Guaranteed Debt
Debt of municipalities, other local governments and Crown agencies, etc., guaranteed by the Province (net) _._  6,811,144,886 6,288,180,152
LIONEL G. BONNELL, C.A.
Comptroller-General
  PUBLIC ACCOUNTS 1978/79
A 5
STATEMENT OF REVENUES AND EXPENDITURES FOR THE FISCAL
YEAR ENDED MARCH 31, 1979
GENERAL FUND
Budgetary Transactions
Revenue 	
Expenditure   _ 	
Budgetary surplus 	
Nonbudgetary Transactions (current)
Revenue     	
Expenditure 	
Net expenditure  	
1979
$
4,566,426,231
4,323,680,656
1978
$
4,055,491,833
3,895,464,582
242,745,575       160,027,251
2,500,000
31,500,000
84,251,098
103,789,371
Revenue Surplus Account Appropriation
Expenditure—Revenue Surplus of 1976-77 Appropriation
A ct, 1978   	
Net increase in revenue surplus for the year   	
Balance, Revenue Surplus Account, April 1, 1976, to date1
Beginning of year   	
End of year          	
(29,000,000)     (19,538,273)
(73,754,426)
139,991,149
216,618,708
140,488,978
76,129,730
356,609,857      216,618,708
SPECIAL PURPOSE FUNDS
Revenue
Transfers from General Fund	
Interest on investments and loans  	
Other receipts   	
140,087,418
43,485,013
31,379,022
Expenditure
Grants  	
Administration and other expenditure
Net increase in funds
Balance of Funds
Beginning of year
End of year 	
162,171,614
20,845,865
183,017,479
SUPERANNUATION  FUNDS
Revenue
Contributions and other receipts 	
Government contributions—transfers from General Fund
Interest on investments   	
48,226,211
49,600,135
45,799,758
143,626,104
27,953,683
Expenditure
Superannuation allowances  	
Net increase in funds              115,672,421
Balance of Funds
Beginning of year           573,878,245
51,046,693
37,726,944
50,088,191
214,951,453       138,861,828
11,506,047
63,326,477
74,832,524
31,933,974   64,029,304
636,829,163  572,799,859
668,763,137  636,829,163
42,653,084
40,294,564
34,069,974
117,017,622
22,463,649
94,553,973
479,324,272
End of year        689,550,666  573,878,245
iThe Revenue Surplus Account does not include the deficit at March 31, 1976, of $261,447,790 funded pursuant to the British Columbia Deficit Repayment Act, 1975-76.
For further particulars re this summary see:
General Fund—A 6 and A 7.
Special purpose funds—B 11.
Superannuation funds—B 14.
 A 6 PROVINCE OF BRITISH COLUMBIA
SUMMARY OF GENERAL FUND REVENUES FOR THE FISCAL YEAR
ENDED MARCH  31,  1979*
Estimated,
1979                                                                                                                                    1979 1978
$               Budgetary Revenue                                                                       $ $
2,440,500,000   Taxation      2,536,189,121 2,308,287,803
557,800,000    Natural resources        721,217,660 626,718,583
237,300,000    Other revenue       261,667,887 224,525,174
219,500,000    Contributions from Government enterprises .      229,237,507 188,541,597
825,250,000    Contributions from other governments       818,114,056 707,418,676
4,280,350,000                   Total budgetary revenue   4,566,426,231 4,055,491,833
Nonbudgetary Revenue
Recovery of advance to B.C. Harbours Board .... 2,500,000 2,000,000
Government of Canada contribution to assist in
the construction of Dease Lake rail line ....           — 79,852,785
Interest earned on above             — 1,315,295
Proceeds  on  windup  of  Consolidated  Sinking
Fund              — 1,083,018
Total nonbudgetary revenue          2,500,000 84,251,098
Combined General Fund Revenues    4,568,926,231 4,139,742,931
i Details of revenue are shown on pages C 2 and C 3.
 PUBLIC ACCOUNTS 1978/79
A 7
SUMMARY OF GENERAL FUND EXPENDITURES FOR THE
FISCAL YEAR ENDED MARCH 31, 1979*
Estimated,
1979
4,397,588
2,229,903
753,760
72,051,221
186,676,087
13,610,996
29,166,038
1,032,846,805
96,284,299
53,266,986
102,704,435
118,547,852
1,156,351,556
357,366,589
552,515,648
40,397,460
10,457,213
257,099,413
132,325,548
61,300,603
Budgetary Expenditure
Legislation     	
Auditor General  	
Executive  Council  	
Ministry of Agriculture 	
Ministry of Attorney-General 	
Ministry of Consumer and Corporate Affairs 	
Ministry of Economic Development 	
Ministry of Education 	
Ministry of Energy, Transport and Communications  	
Ministry of Environment 	
Ministry of Finance 	
Ministry of Forests 	
Ministry of Health 	
Ministry of Highways and Public Works	
Ministry of Human Resources 	
Ministry of Labour 	
Ministry of Mines and Petroleum Resources 	
Ministry of Municipal Affairs and Housing 	
Ministry   of   Provincial   Secretary   and   Travel
Industry  	
Ministry of Recreation and Conservation 	
Ministry of Deregulation	
Ministry of Lands, Parks and Housing	
Ministry of Tourism and Small Business Development  —  	
4,280,350,000
1979
$
6,063,285
1,265,328
752,687
35,099,263
186,721,210
11,608,595
32,238,762
1,041,493,189
91,705,437
53,807,024
93,295,440
130,720,944
1,141,568,744
423,064,410
558,512,445
37,553,032
9,865,510
258,828,360
148,179,589
61,075,827
159,285
27,872
74,418
Total budgetary expenditure   4,323,680,656
Nonbudgetary   Expenditure   Charged  to  Current
Revenue
Special purpose funds—■
Appropriation to funds 	
Advances to a fund 	
Crown corporations—
Advances  	
Investments 	
Grants 	
Other-
Transfer of investment in Canadian Cellulose Company Ltd. shares to British Columbia Resources Investment Corporation
in exchange for noncash asset (promissory note)  	
Charged to Revenue Surplus Account
Expenditure—Revenue Surplus of 1976-77
Appropriation Act, 1978 	
11,500,000
20,000,000
31,500,000
1978
$
5,280,369
344,966
691,125
55,671,527
152,669,696
8,630,049
10,220,302
940,584,501
80,456,445
45,520,646
134,297,718
100,849,814
954,710,057
431,021,965
545,140,791
39,613,181
7,974,777
215,567,548
114,832,084
51,387,021
3,895,464,582
1,665,099
5,000,000
6,665,099
2,000,000
7,631,250
85,668,080
95,299,330
1,824,942
1,824,942
73,754,426
Combined General Fund Expenditures   4,428,935,082 3,999,253,953
1 Details of expenditures are shown on pages C 4 to 12.
In accordance with the Supply Act No. 2, 1978 (1978, chap. 38), the actual expenditures are reported in
relation to the services and amount appropriated. Reorganization changes made in December 1978, pursuant to
the Constitution Act, are therefore not reflected in these statements except for expenditures authorized under
the Constitution Act and by special warrants for the ministries of "Deregulation", "Lands, Parks and Housing",
and "Tourism and Small Business Development".
 A 8
PROVINCE OF BRITISH COLUMBIA
COMBINED FUNDS
STATEMENT OF NET RECEIPTS AND PAYMENTS FOR THE
FISCAL YEAR ENDED MARCH 31, 1979
NET RECEIPTS
Revenue (page A 5)
General Fund
Budgetary 	
Nonbudgetary ...
Special purpose funds
Superannuation funds
1979
$
4,566,426,231
2,500,000
4,568,926,231
214,951,453
143,626,104
1978
$
4,055,491,833
84,251,098
4,139,742,931
138,861,828
117,017,622
Deduct (add)—adjustments for revenues not represented by
cash received and for receipts (net) accounted for through
asset accounts
Eliminate inter-fund transfers	
Increase (decrease) in accounts receivable 	
Decrease in other assets of special purpose funds	
4,927,503,788    4,395,622,381
189,687,553
6,686,226
(25,042,983)
91,341,257
(24,541,173)
(15,728,642)
171,330,796 51,071,442
Total net receipts from operations
Other Sources
Increase in trust funds administered 	
Total net receipts    	
4,756,172,992 4,344,550,939
101,823,895   117,400,480
4,857,996,887 4,461,951,419
NET PAYMENTS
Expenditures (page A 5)
General Fund
Budgetary
Nonbudgetary	
Revenue surplus appropriations
Special purpose funds
Superannuation funds
4,323,680,656
31,500,000
73,754,426
4,428,935,082
183,017,479
27,953,683
Deduct (add)—adjustments for expenditures not represented
by cash disbursed and for payments (net) accounted for
through asset or liability accounts
Eliminate inter-fund transfers	
Net increase in current liabilities 	
3,895,464,582
103,789,371
3,999,253,953
74,832,524
22,463,649
4,639,906,244 4,096,550,126
Net decrease (increase) in working capital advances..-
189,687,553
56,525,727
(2,603,362)
91,341,257
10,634,444
506,327
Total net payments    4,396,296,326
Net cash received  _   461,700,561
Cash and investments—beginning of year  2,018,143,971
Cash and investments—end of year (below)     2,479,844,532
Cash and Investments (page A 2)
General Fund     654,408,844
Special purpose funds     294,609,342
Superannuation funds       689,550,666
Trust funds      841,275,680
243,609,918       102,482,028
3,994,068,098
467,883,321
1,550,260,650
2,018,143,971
467,181,556
237,632,385
573,878,245
739,451,785
2,479,844,532 2,018,143,971
 PUBLIC ACCOUNTS 1978/79 A 9
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies and Practices
The accounting policies and practices of the Province have been developed over the years
to meet changing circumstances and needs; they are based on concepts and provisions contained
in the Revenue Act, Financial Control Act, the annual Supply Act and other legislation.
While these policies and practices are regularly reviewed, a comprehensive examination
is being undertaken which will take into account the suggestions of the study on Canadian
Government financial reporting principles and practices sponsored by the Canadian Institute of
Chartered Accountants.
Current policies and practices are outlined in the following paragraphs.
A. The Accounting Entity and Basis of Reporting
The financial statements include the accounts of the Consolidated Revenue Fund and of
certain funds deposited with and administered by the Minister of Finance pursuant to various
statutes. They do not include those of Crown corporations and other separate Government
agencies. The interest of the Province in its Crown entities is shown only to the extent of
amounts invested in or advanced to them and as to guarantees of their debt securities issued.
Accumulated earnings (or deficits) retained in these organizations are not reflected in the
financial statements.
The financial statements summarize the financial activities of the Province during the year
and show the assets, liabilities and undisbursed balances of revenue and funds at the close of
the year. For purposes of these statements the accounts of the Province are presented in four
fund divisions:
O General Fund—includes the main operating accounts of the Province plus certain asset
accounts included for purposes of information and record only through off-setting
contra-entries to Capital Surplus Account.
O Special Purpose Funds—earmarked revenues and funds set aside from the General
Fund for specific or special purposes.
O Superannuation Funds—the accounts of the Public Service and Members of the Legislative Assembly Superannuation funds.
O Trust Funds—deposits, sinking funds and other accounts administered or held in trust
for others.
B. Basis of Accounting—General Fund
(1) Gross Basis of Accounting—In general, revenues and expenditures are reported on a
gross basis by source of revenue and by program expenditure appropriations as set out in the
annual Estimates of Revenue and Expenditure or in other legislative authority, except where
receipts are credited against related program expenditures in the Estimates.
Revenues and expenditures are presented in three categories:
(i) budgetary transactions, which are the ordinary revenues and expenditures of
Government included in the annual Estimates of Revenue and Expenditure;
(ii) nonbudgetary transactions which are extraordinary revenues and expenditures of
significant amount not anticipated in the annual Estimates or in revenue surplus
account appropriations;
(iii) revenue surplus account appropriations expenditures which are specifically
authorized by the Legislature as payable out of surpluses of prior years.
(2) Cash Basis of Accounting — The cash basis of accounting, modified as described
below, is used to report on the stewardship of the government with respect to taxes and other
revenues raised and to funds appropriated and expended for Government programs. On this
basis, revenues are taken into the accounts in the fiscal period in which they are received and
expenditures are charged when the actual payments are made.
In addition to payments for salaries and wages, goods and services, interest, grants and
subsidies and other program operating expenses, expenditures include:
—the acquisition and construction of physical assets;
—loans and recoverable advances to individuals, Crown corporations and agencies
and other organizations including school and regional improvement districts;
—equity investment in Crown and other corporations;
■—transfers to special purpose and superannuation funds;
—internal transfers between appropriations.
 A 9i PROVINCE OF BRITISH COLUMBIA
At year-end the following major modifications are applied to the cash basis accounts in
determining the annual operating results in the General Fund:
—monies received in April of the next following year pertaining to cost-sharing
programs  with  other  governments  or  agencies  are  included  in  revenue   where
related expenditures have been charged to the fiscal year;
—the net profit of ths Liquor Distribution Branch and the net income of the British
Columbia Systems Corporation, calculated on the accrual basis of accounting, are
included as revenue whether or not received in cash during the fiscal year;
—accounts payable at March 31 are included as expenditures, where payments are
made during April of the next following year;
—interest accrued at March 31 on the unmatured debt is included as expenditures;
—inventories and other assets of the Queen's Printer and the Purchasing Commission
warehouse at March 31 are deducted from expenditures and carried forward as
working capital advances.
(3) Reporting of Assets and Liabilities—The assets and liabilities of the General Fund
reported in the financial statements include:
(i) those arising from the cash transactions of the Government and the year-end
modifications. They include cash and temporary investments, liabilities for
outstanding cheques and unmatured debt at the close of the year, amounts due
from other organizations for miscellaneous non-revenue services provided,
monies held in suspense and other accounts pending disposition and amounts
resulting from the modifications to the cash basis of accounting for revenues
and expenditures described above:
(ii) taxes and other accounts receivable, loans, advances and investments (including
Crown corporations) and certain fixed assets which are included as assets even
though they are accounted for as revenues and expenditures at the time cash is
received or disbursed. These assets are reported under the heading of "Other
recorded assets" for purposes of record and information through memorandum
contra-entries to the Capital Surplus Account.
Assets representing investments or financial claims on others are recorded at cost or other
designated values without any revaluation to reflect collectible or recoverable values or any
allowances for losses.
(4) Accounting for the Excess of Assets Over Liabilities—The net assets of the General
Fund are accounted for in two surplus accounts under the above designation:
(i) the Revenue Surplus (deficit) Account represents the accumulation of revenues
and expenditures to date and is presented in two sections:
—Surplus April 1, 1976 to date, which is represented by cash and other current
assets less the liabilities other than the unmatured debt.
—Deficit at March 31, 1976 which is funded by the unmatured debt.
(ii) the Capital Surplus Account represents the recorded value of the assets included
in the financial statements on a memorandum basis for record and information
purposes as outlined above.
C. Basis of Accounting—Other Funds
(1) Special Purpose Funds—The accounts of these funds are maintained on the cash
basis of accounting. However, in the Housing and Home Acquisition funds, transactions
recording the acquisition and disposal of certain program assets are accounted for as capital
transactions instead of current expenditures or revenues. Accordingly assets of these funds
include advances and mortgages receivable, real estate held for development and investments
in and advances to Crown corporations and are recorded at cost without revaluation to reflect
collectible or recoverable values or any allowances for losses. Gains and losses realized on
disposal of these assets are included in revenues and expenditures.
As in the General Fund, revenues and expenditures are generally reported on a gross
basis by source of revenue—including transfers from general fund expenditure accounts—and
by appropriate classifications of expenditure, primarily grants.
(2) Superannuation Funds—These funds are maintained on a cash basis. Revenues are
reported net of refunds and include Government employer contributions transferred from
general fund expenditure accounts.    Expenditures are superannuation allowances paid.
(3) Trust Funds—Individual accounts are maintained on a cash basis. Receipts and
disbursements are not reported as such but are reflected in the Statement of Assets and
Liabilities as increases or decreases in the balances of funds held.
 PUBLIC ACCOUNTS 1978/79 A 9ii
(4) Interest Entitlement—The interest entitlement of individual funds or accounts is
determined by the governing statute. Some statutes do not provide for specific investment of
funds nor for any interest to be paid while others may specify that any interest earned on fund
investments is to be credited to general fund revenues rather than to the specific fund.
(5) Funds and Cash Assets Accounting and Reporting—In accordance with statutory or
administrative requirements, separate accounts are maintained for each of the individual
accounts included in these fund divisions. Where required by the governing legislation or
administrative policy, separate bank accounts and/or specific investment accounts are also
maintained. Otherwise the cash assets together with any uninvested balances of funds are held
in the general fund cash and temporary investment accounts for purposes of administration and
cash management. Interest due to individual funds or accounts on such balances is paid or
allocated at market rates.
At the close of the year these cash balances are reported in the assets of the applicable fund
divisions in the financial statements together with the balances held in the specific bank and
investment accounts.
D. Commitments
No provision is made in the accounts for commitments under construction or other
contracts in force at the year-end.
2. Cash and Investments
Investments are recorded at cost with the exception of long-term debt securities held by
the superannuation funds which are recorded at the lower of cost or par since premiums paid
on these securities are written off at the time of purchase. No allowances or provisions for
losses on realization of investments are included in the accounts; any such losses, or gains, are
accounted for at the time of sale or maturity.
At March 31, 1979 $1,339,328,000 of the investments held are securities issued or
guaranteed by the Province.
3. Crown Service Corporations
Functions formerly performed internally by the Government are the responsibility of two
Crown corporations formed to provide facilities and services to the Government on a fee-for-
service basis.
(1) The British Columbia Buildings Corporation provides building accommodation
and related facilities and services to Government ministries on a rental and
service fee basis. All Government buildings except the Legislative Buildings,
Government House and certain other properties have been transferred to the
Corporation.
Consequently, expenditures for the construction, maintenance and related
costs of public buildings are no longer direct budgetary expenditures of the
government—primarily of the Ministry of Highways and Public Works—but
are incurred by the Corporation and recovered through annual buildings
occupancy charges to user ministries which are included in their budgetary
expenditures.
In consideration for the income-producing properties transferred from the
government, and which had been charged to government expenditures in prior
years, the Corporation issued a noninterest bearing note to the Province dated
March 31, 1978 in the amount of $143,570,934 being the deemed cost of depreciable properties included in the determination of the occupancy charges. The
note is payable in 29 semi-annual $5 million instalments which are credited to
budgetary revenue when received by the Province thereby offsetting on an
aggregate basis the deemed-costs portion of the annual building occupancy
charges payable by the ministries. As indicated in Note 7—Subsequent Events,
issuance of an additional note has been authorized by the Corporation; the
accounting treatment will be the same as outlined above.
The Province also receives dividends from the Corporation from time to
time which are credited to budgetary revenue.
(2) The British Columbia Systems Corporation is responsible for the provision of
data processing services to ministries on a fee-for-service basis. Its annual net
income is payable to the Province and is included in budgetary revenue.
Financial statements of these corporations are included in Public Accounts, Section F.
 A 9iii
PROVINCE OF BRITISH COLUMBIA
4. British Columbia Railway Company
The Province holds the entire issued share capital of the Railway and, pursuant to the
British Columbia Railway Construction Loan Act, guarantees the payment of the principal
and interest of all moneys borrowed by the Railway. The investment and guarantee as at
March 31, 1979 are:
—Investment, at the historical cost of the shares, $185,572,900
—Guaranteed debt, net of sinking funds, $650,037,861.
At March 31, 1979 $177,777,000 of the Railway debt was held in investment accounts
included in these financial statements and a further $317,526,000 was held by other Provincial
public sector superannuation and pension funds.
In February 1977 the Government appointed a Royal Commission "to make inquiry into
and concerning all aspects of the management and development of the British Columbia
Railway and the participation of the Crown therein as shareholder," including a particular
inquiry into "the foreseeable financial requirements of the Railway for all purposes." The
Railway in a submission to the Royal Commission stated that "Substantial debt relief is
required. B.C. Railway cannot in the foreseeable future expect to earn sufficient moneys to
service, let alone repay, this debt." The main report of the Commission was issued in August
1978 and an addendum in March 1979. The report is under study by the Government and
the Railway.
5. Guaranteed Debt
In addition to the direct debt included in the liabilities of the General Fund, the Province
also guarantees debt securities issued by local governments and Crown corporations and
agencies and the obligations of other enterprises under certain Government programs. This
debt is generally self-sustaining, however that issued by school and regional hospital districts
and educational institutions is serviced in part by contributions from the Province through
existing grants formulas. In fiscal 1978/79 these contributions were approximately $81 million
or 60 per cent of the total debt service costs payable.
As a result of over-all Government financing policies a substantial portion of the guaranteed debt is held in investment accounts included in these financial statements and in other Provincial public sector superannuation and pension funds. Canada Pension Plan funds made
available to the Province are also invested in these securities.
The guaranteed debt is disclosed in the schedules to the Statement of Assets and Liabilities.
6. Superannuation and Pension Plans
A. Public Service Superannuation Plan
This plan is financed by employee contributions, matching employer contributions, and
additional employer contributions paid at the time each allowance is granted for any shortfall
between the actuarial present value of the allowance and the accumulated employee and
matching employer contributions.
Under the Public Service Superannuation Act, an actuarial valuation of the plan is
required to be conducted at least once every five years. The most recent valuation was
conducted as at March 31, 1977.
In that report the actuary indicated that, if the plan were financed on the entry age
normal basis, a basis frequently employed by private pension plans, there would be an actuarial
liability as at March 31, 1977 of about $154 million in respect of basic benefits. In the
actuary's opinion, aggregate statutory contributions, as described above, will exceed entry age
normal contributions and he has estimated that these contributions will be sufficient to fully
amortize the $154 million actuarial liability over a period of approximately 20 years if all
actuarial assumptions are realized.
Allowances in payment are automatically adjusted quarterly to reflect increases in the
Consumer Price Index. Such pension supplements are financed on an approximate "pay-as-
you-go" basis by contributions of one-half per cent of salary by both employees and employer.
Actuarial liabilities associated with such increases are not funded under the statutory financing
provisions, but there is provision for both employee and employer contributions to be increased
to 1 per cent of salary when required to maintain the financing on a "pay-as-you-go" basis.
There is no statutory provision for any additional contributions beyond this to finance these
post-retirement supplements even though it is possible that in future such contributions would
be required to maintain financing on the "pay-as-you-go" basis. The actuary reported that as
at March 31, 1977 there was an actuarial liability of $37 million in respect of the pension
supplements granted up to that date.
B. Teachers' Pensions Plan
Under the Teachers' Pensions Act the Province is responsible for the employer contributions to the Teachers' Pensions Fund administered by the Commissioner of Teachers'
 PUBLIC ACCOUNTS 1978/79
A 9iv
Pensions; these contributions are included in the budgetary expenditures of the Ministry of
Education. A report on the administration of the plan and fund is made annually to the
Legislature.
This plan is financed by teacher contributions, matching Government contributions, and
additional Government contributions made to ensure that at any time the assets in the fund
are at least equal to the actuarial present value of all allowances which are in effect and the
total amount of contributions, accumulated with interest, held in the fund on behalf of
teachers in respect of whom no allowance has been granted.
Under the Teachers' Pensions Act, an actuarial valuation of the plan is required to be
conducted by an actuary at least once in each consecutive five-year period. The most recent
valuation was conducted as at December 31, 1977. In that report the actuary recommended
that the statutory basis of contributions be strengthened so that contributions, in future, would
be sufficient to fully finance benefits for all new entrants to the plan and to hold the actuarial
liability constant as a percentage of future teacher payroll. On this basis, he advised that the
actuarial liability was $548 million for basic benefits. While this represents an increase of $80
million since December 31, 1974, the report stated that the plan "funded ratio" has improved.
Discussions are continuing between Government and teachers as to the manner in which
the recommended increase in contribution rates should be achieved and no change has yet
been made.   Any such change would require amendment of the Act.
Allowances in payment are automatically adjusted quarterly to reflect increases in the
Consumer Price Index. Such pension supplements are financed on an approximate "pay-as-
you-go" basis by contributions of 1 per cent of salary by both teachers and Government.
Actuarial liabilities associated with such increases are not funded under the statutory financing
provisions. There is no statutory provision for any additional contributions to finance these
post-retirement supplements even though it is possible that in future such contributions would
be required to maintain financing on the "pay-as-you-go" basis.
7.  Subsequent Events
A. Revenue Surplus Account Appropriations
During the 1979 summer session of the Legislature the Revenue Surplus Account of
$356,609,857 as of March 31, 1979 was appropriated to the extent of $220,488,978 by the
following Acts:
Revenue Surplus of 1977-78 Appropriation Act, 1979—$140,488,978.
Vancouver and Victoria Trade and Convention Centres Fund Act-^-% 12,500,000.
Lower Mainland Stadium Fund Act— $25,000,000.
Special Purpose Appropriation Act, 1979—$42,500,000.
B. British Columbia Resources Investment Corporation
In March 1978 the Government transferred its holdings in several resource corporations
as well as certain petroleum and gas exploration rights to the Corporation in exchange for a
promissory note for $151,532,930 {see page B 5 for details).
In January 1979 the Government announced a plan to make a gift of five free shares in
the Corporation to each eligible resident of the Province. Accordingly, on April 19, 15 million
common shares in the Corporation were received by the Government in exchange for the
Corporation's promissory note and subsequently applications were received by the Government
for approximately 10.5 million of these free shares. A further 81.2 million treasury shares
were subscribed by the public for cash, raising some $487.4 million for the Corporation. As
a result of these share distributions the interest of the Government in the Corporation has
been reduced from 100 per cent to less than 5 per cent.
C. British Columbia Buildings Corporation
Subsequent to March 31, 1979 the Corporation authorized the issuance of an additional
noninterest bearing promissory note to the Province for $40,143,682 in settlement of additional
properties transferred to the Corporation including buildings under construction at March 31,
1978, and not completed.
D. Surrey Farms Products Investments Ltd. (formerly Panco Poultry Ltd.)
The assets and business of Surrey Farm Products Investments Ltd. and subsidiaries were
sold during the 1978/79 fiscal year. Subsequent to March 31, 1979 the company paid a
dividend of $14.8 million to the Province, the sole shareholder. Surrey Farms is in the
process of being wound up.
8.  Comparative Figures
Where applicable, the 1978 figures provided for purposes of comparison have been restated
to conform with the presentation used in the current year. These restatements have had no
effect on the reported net results of operations for the previous year.
  SECTION  B
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES
CONTENTS
Pace
General Fund—
Assets  B 2
Liabilities  B 6
General Fund excess of assets over liabilities  B 7
Special purpose funds—
Assets  B 9
Summary of transactions and balances of funds  B 11
Superannuation funds—
Assets  B 12
Summary of transactions for the year ended March 31, 1979  B 14
Trust funds—assets, fund balances  B 15
Guaranteed debt  B 16
Details of direct debt  B 18
 B 2 PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES
AS AT MARCH 31, 1979
GENERAL FUND ASSETS
Cash and Temporary Investments 1979
Cash $
Cash on hand and in chartered banks in Canada ...   12,182,558
Cash in banks in England (converted at current rate)   ... 82,585
Cash in banks in United States (U.S. dollars)  547,815
12,812,958
Temporary Investments (at cost)—listed below        753,950,741
766,763,699
Less amounts applicable to:
Special purpose funds (page B 9)         49,028,775
Superannuation funds (page B 12)   18,708,159
Trust funds (page B 15)    44,617,921
{See note below) 	
112,354,855
1978
$
2,515,570
264,942
325,879
3,106,391
570,790,048
Net increase
or (decrease)
during 1978/79
$
9,666,988
(182,357)
221,936
9,706,567
183,160,693
573,896,439    192,867,260
57,918,353
3,550,621
45,245,909
(8,889,578)
15,157,538
(627,988)
106,714,883        5,639,972
Total cash and temporary investments          654,408,844       467,181,556    187,227,288
Securities Held (listed at par value)—
Short-term   deposits   with   chartered   banks,
trust companies, etc.—
Banque Canadienne Nationale 	
20,000,000
13,816,450
81,128,365
79,023,662
10,000,000
222,159,073
2,000,000
1,009,300
22,326,320
8,522,491
133,684,500
75,506,159
11,929,194
73,219,858
59,302,280
3,327,500
1,000,000
183,956,029
4,011,020
1,000,000
3,084,000
80,848,117
123,562,597
and
The
Bank of British Columbia	
Bank of Montreal    	
Bank of Nova Scotia..   	
British Columbia Central Credit Union
Canadian Commercial Industrial Bank
Canadian Imperial Bank of Commerce
Co-operative Trust of Canada 	
First City Trust Company  	
Mercantile Bank of Canada	
Northland Bank	
Provincial Bank of Canada 	
Royal Bank of Canada	
Toronto Dominion Bank 	
Other—
British Columbia Buildings Corporation
notes 	
1British Columbia Development Corporation note 	
669,176,320
20,000,000
23,000,000
20,000,000
12,801,780
9,170,300
545,240,595
20,000,000
9,000
981,161
4,770,090
1British   Columbia   Hydro   and    Power
Authority parity bonds	
1British Columbia Railway Company notes.
2Export Development Corporation notes
3Procan Ltd. notes	
Less excess of par value over cost	
754,148,400
197,659
571,000,846
210,798
Total securities, at cost, above	
753,950,741
570,790,048
minvested balances of the superannuation funds
fund cash and short-term investment accounts.
:ated above.
i Province of British Columbia guarantee.
2 Government of Canada guarantee.
3 Provincial Bank of Canada guarantee.
Note—For purposes of administration and cash management the i
various special purpose and trust deposit funds are held in the general
balances as of March 31 are shown in the respective fund divisions as indi
 PUBLIC ACCOUNTS 1978/79 B 3
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GENERAL  FUND ASSETS—Continued Net increase
or (decrease)
1979 1978 during 1978/79
Accounts   Receivable   From   Other   Governments,   Agencies,                 $ $ $
and Miscellaneous Accounts
Government of Canada—re shared-cost program          22,476,781 11,647,116 10,829,665
British Columbia Buildings Corporation                 — 4,646,566 (4,646,566)
British Columbia municipalities—re shared-cost program       _           1,646,100 4,175,885 (2,529,785)
British Columbia Systems Corporation              2,228,587 — 2,228,587
Sundry agencies and miscellaneous accounts             6,713,375 5,909,050 804,325
33,064,843 26,378,617 6,686,226
Working Capital Advances
Purchasing Commission (Langford Warehouse)               310,148 274,601 35,547
Liquor Distribution Branch.....               6,801,609 4,030,606 2,771,003
Workers' Compensation Board               245,000 245,000 —
Queen's Printer                1,352,001 1,406,799 (54,798)
Miscellaneous advances—ministries               2,804,435 2,952,825 (148,390)
11,513,193 8,909,831 2,603,362
Other Recorded Assets Comprising The Capital Surplus Account
Taxes and Other Accounts Receivable
Note—These accounts are included for record purposes only.
The amounts are not taken into revenue until received in cash.
Property taxes      	
Social services tax  	
Corporation capital tax 	
Insurance premiums tax.....  	
Logging tax      	
Mining and mineral land tax     	
Probate fees and succession duties 	
Timber royalty and stumpage and grazing fees 	
Social and health agencies    	
Student-aid loans  	
Teacher-training loans    	
Farmers' land-clearing, domestic water, and irrigation
drainage assistance     	
Land sales (principal)   	
Sundry      	
Loans and Other Advances
Note—These assets are carried at book value, as the amount of
ultimate realization cannot be determined at this date.
School districts, library districts, improvement districts,
and local areas (recoverable through rural
property tax collections, mainly in next following year)—
Various school districts    	
Various regional library districts    -
Various improvement districts 	
Miscellaneous  	
British Columbia Assessment Authority—advances	
Water districts, co-operative associations and other—
Various water and irrigation districts	
Various co-operative associations, etc.   _
10,085,596
10,603,456
(517,860)
4,501,025
6,305,314
(1,804,289)
560,289
1,124,803
(564,514)
15,017
2,512
12,505
1,557,218
2,733,249
(1,176,031)
75,906
457,830
(381,924)
2,324,566
4,726,315
(2,401,749)
88,292,320
32,507,826
55,784,494
917,711
691,059
226,652
41,864
41,864
—
9,306
9,306
—
13,027,333
11,633,525
1,393,808
604,062
533,771
70,291
177
254
(77)
122,012,390
71,371,084
50,641,306
29,817,000
25,056,000
4,761,000
1,136,291
1,125,924
10,367
1,796,947
1,619,384
177,563
62,915
118,342
(55,427)
2,500,000
—
2,500,000
328,507
342,337
(13,830)
29,038
29,038
—
 B 4
PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GENERAL FUND ASSETS—Continued
1979
Loans and Other Advances—Continued $
Various enterprises re economic development—
Ministry of Economic Development Act  3,820,800
Farm Products Industry Improvement Act  3,806,358
Pacific North Coast Native Co-operative Loan Act... 5,397,092
Provincial Transit Fund  —
University Endowment Lands Administration Account  4,184,887
Sundry           54,199
1978
3,320,800
2,265,846
5,422,292
10,000,000
4,184,887
54,965
Net increase
or (decrease)
during 1978/79
$
500,000
1,540,512
(25,200)
(10,000,000)
(766)
52,934,034 53,539,815 (605,781)
Investment in, and Advances to, Crown Corporations
1 2British Columbia Buildings Corporation—advances         123,570,934       133,570,934    (10,000,000)
British  Columbia  Cellulose  Company—entire  issued
capital stock of two common snares  2 2 —
2British Columbia Development Corporation—entire issued capital stock of 350,000 common shares  35,000,000 25,000,000      10,000,000
British   Columbia   Ferry   Corporation—entire   issued
capital stock of 58,497 shares of $100 each  5,849,700 5,849,700 —
British Columbia Harbours Board—advances...  18,838,693 21,338,693      (2,500,000)
2 3British   Columbia   Railway   Company—entire   issued
capital stock of 1,855,729 shares of $100 each...         185,572,900       185,572,900 —
British Columbia Steamship Company (1975)  Ltd.—
entire issued capital stock of five common shares  5 5 —
British Columbia Systems Corporation—advances  5,000,000 — 5,000,000
I.O.K. Poultry Ltd.—100 per cent interest, 600 common
shares at cost  600 600 —
Ocean Falls Corporation—
Amount paid to the corporation pursuant to the
Ocean Falls Corporation Appropriation Act,
1973, for the purpose of acquiring the mill
and other properties at Ocean Falls  789,952 789,952 —
Advances    10,000,000 6,000,000        4,000,000
Surrey Farm Products Investments Limited (formerly
Panco Poultry Ltd.)—
Entire issued capital stock of  101,750 common
and 11,027 preferred shares...   4,800,000 4,800,000 —
Pacific Coach Lines Ltd.—
Entire issued capital stock of two common shares..... 2 — 2
Advances  1,088,204 — 1,088,204
T.S. Holdings Ltd.—
Entire issued capital stock of one common share  1 1 —
Advances  2,850,538 3,918,282      (1,067,744)
393,361,531       386,841,069        6,520,462
t Pursuant to the British Columbia Buildings Corporation Act (Order in Council 763/78), the British Columbia Buildings
Corporation issued a noninterest bearing promissory note to the Province dated March 30, 1978, in the amount of $143,570,934
payable in 29 semiannual instalments of $5,000,000 in payment for the completed buildings transferred to the Corporation by
the Province. Subsequent to March 31, 1979, the Corporation authorized the issuance of an additional noninterest bearing
promissory note for $40,143,682 in settlement of additional properties transferred to the Corporation including buildings under
construction at March 31, 1978, and now completed.
2 In addition to the above investments and advances, short-term notes are held in Temporary Investments (page B2) as
follows:
BriUsh Columbia Buildings Corporation—$20,000,000 repayable March 31, 1980.
British Columbia Development Corporation—$23,000,000 repayable March 31, 1980.
British Columbia Railway Company—$20,000,000 repayable March 31, 1980.
s See Note 4, page A 9—British Columbia Railway Company.
 PUBLIC ACCOUNTS 1978/79 B 5
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GENERAL FUND ASSETS—Continued
Investments, Other
'British Columbia Resources Investment Corporation—
Shares  	
Note	
Chef Ready Foods Ltd.—33.33 per cent interest, 10,000
common shares at cost	
Kootenay Dehydrators Ltd.—
35.9 per cent interest,  2,000 Class A common
shares at cost   	
Entire issued capital stock of 98,000 Class B common shares at cost    	
South Peace Dehy-Products Ltd.—27.7 per cent interest,
277 nonvoting common and 277 voting preferred
shares at cost   	
Dntinued
1979
$
1978
$
Net increase
or (decrease)
during 1978/79
$
5
151,532,930
5
151,532,930
—
85,000
85,000
—
2,000
2,000
—
98,000
98,000
—
554
554
151,718,489   151,718,489
Fixed Assets
Gross         2,466,671,095    2,198,517,376   268,153,719
*Less depreciation           131,064,884       120,587,139      10,477,745
2,335,606,211    2,077,930,237    257,675,974
Detail as of March 31, Gross
1979— $
3Highways   1,997,460,313
Bridges   409,120,432
Wharves   203,250
Ferries  and  ferry
landings   36,211,616
^Buildings   22,901,794
Songhees Reserve,
Victoria   773,690
Depreciation
$
118,041,863
203,240
7,927,304
4,892,477
Net
$
1,997,460,313
291,078,569
10
28,284,312
18,009,317
773,690
2,466,671,095       131,064,884    2,335,606,211
i Pursuant to the British Columbia Resources Investment Corporation Act (Order in Council 530/78) the following assets
and rights were transferred to the British Columbia Resources Investment Corporation in exchange for a promissory note
based on the valuations shown:
Canadian Cellulose Company Limited—9,848,453 common shares without par value; 39,750 nonvoting
shares without par value      	
Plateau Mills Ltd.—9,000 common shares, par value of $10 —	
Kootenay Forest Products Ltd.—11,993,399 common shares, par value of $1
Westcoast Transmission Company Limited—1,157,125 common shares without par value
Province of British Columbia—Assigned petroleum or natural gas rights 	
Valuation of promissory note
$64,273,320
9,000,000
1
37,363,566
40,896,043
$151,532,930
See note 7—Subsequent events, page A 9.
2 Fixed assets, other than highways and the Songhees Reserve (land) account, are depreciated on the straight-line method
over a 40-year period through memorandum charges to Capital Surplus Account.
3 Placed on the books March 31, 1926, by order of the Treasury Board, based on mileage classification and average value
determined by the then Department of Public Works, plus additions to date.
4 These totals include the cost for buildings for the Legislative Buildings, Government House, and Glendale Laundry. All
other buildings were transferred to British Columbia Buildings Corporation on March 30, 1978. (See Note 3 page A 9—
Crown Service Corporations.)
 B 6 PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GENERAL FUND LIABILITIES
1979
Outstanding Cheques..
Accounts Payable...	
Other Current Liabilities
Accrued interest payable on public debt..
Education tuition fees 	
Guarantee   and   performance   deposits—contractors,
licensees, etc....     	
Holdbacks on construction contracts.— 	
Hospital construction funds held pending claims by hospitals  	
Municipal vehicle licence account 	
Petroleum production credits redeemable upon performance of exploration development work 	
Suspense—
Permit and licence applications  	
Taxes, fees, etc      	
Miscellaneous ministerial accounts 	
Unmatured Debt {British Columbia Deficit Repayment Act
1975-76 (1976, chap. 6)) i
Bonds—
Series B: Due May 1, 1988, 9Vs per cent 	
Debentures—
Series AC: Due Nov. 1, 1978, 9V* percent..
Series AD: Due Feb. 18, 1979, 8 per cent...
Series AE: Due Mar. 15, 1979, 8 per cent...
Subtotal, deficit repayment debentures..
Treasury Bills-
Series DS: Due Mar. 31, 1979, 8 per cent-
Series DT: Due Mar. 31, 1979, 8 per cent	
Subtotal, deficit repayment Treasury Bills..
138,459,407
1978
$
91,932,085
Net increase
or (decrease)
during 1978/79
$
46,527,322
164,300,462
147,030,787
17,269,675
9,869,654
8,000,000
4,253,159
8,000,000
5,616,495
2,177,984
4,396,199
2,145,028
10,022,267
32,956
(5,626,068)
151,318
348,337
179,911
584,040
(28,593)
(235,703)
571,470
7,178,997
(6,607,527)
6,857,021
2,183,849
5,061,322
8,697,588
1,578,938
4,248,496
(1,840,567)
604,911
812,826
39,617,154
46,888,424
(7,271,270)
261,447,790
261,447,790
50,000,000 (50,000,000)
100,000,000 (100,000,000)
11,447,790 (11,447,790)
161,447,790 (161,447,790)
50,000,000 (50,000,000)
50,000,000 (50,000,000)
100,000,000 (100,000,000)
261,447,790  261,447,790
l On May 1, 1978, the above debentures and treasury bills were substituted for bonds in the same amount repayable in
10 annual instalments commencing May 1, 1979. As at March 31, 1979 and 1978 the total unmatured debt was held in the
investment accounts of the Public Service Superannuation and other Trust funds. (For details as to terms of issue, etc., see
page B 18.)
 PUBLIC ACCOUNTS 1978/79 B 7
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GENERAL FUND EXCESS OF ASSETS OVER LIABILITIES
Revenue Surplus (Deficit) Account (arising from revenue sources)
Surplus, April 1, 1976, to date—
Balance at March 31, 1978.
Add (deduct) net transactions for year (page A 5).
Budgetary surplus    242,745,575
Nonbudgetary expenditure (net)    (29,000,000)
Revenue surplus appropriation expenditure   (73,754,426)
216,618,708
139,991,149
Balance at March 31, 1979            356,609,857
Deficit at March 31, 1976, funded pursuant to the British Columbia Deficit Repayment
Act, 1975-76—no transactions during year  _     (261,447,790)
Balance of Revenue Surplus Account at March 31, 1979 {see note 7 to Financial Statements re appropriation of surplus)             95,162,067
Capital Surplus Account (arising from capitalization of assets)
Balance at March 31, 1978   	
Add net credits during year.
Expenditure on fixed assets, less depreciation booked Gross Expenditure
(page B 5) *
Highways         237,863,878
Bridges         25,260,385
Ferries and ferry-landings      2,314,376
Buildings and furnishings       2,715,080
2,741,400,694
Depreciation
$
9,216,816
816,738
444,191
268,153,719      10,477,745
Net increase in taxes and other accounts receivable (record purposes only, page B 3)
Net increase (decrease) in recorded loans and other advances (page B 3)
School districts, improvement districts, etc.—increase in advances
recoverable through rural property tax collections  	
British Columbia Assessment Authority—advance issued 	
Water and irrigation districts—
Advance issued     22,730
Repayments     (32,758 )
Write-offs     (3,802 )
257,675,974
50,641,306
4,893,503
2,500,000
Ministry of Economic Development Act—additional loan issued
to Burns Lake Native Development Corporation 	
Farm Products Industry Improvement Act—
Advance issued .    100,000
Repayments     (40,343 )
Restatement of loan previously recorded at nominal value of $ 1  1,499,999
Reduction in funds held by trustee for claims
settlement     (19,144)
(13,830)
500,000
1,540,512
(25,200)
Pacific North Coast Native Co-operative Loan Act—Proceeds from
sale of assets    	
Provincial Transit Fund (advance deleted, not recoverable)     (10,000,000)
Sundry loan repayments       (766)
(605,781)
 B 8 PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GENERAL FUND  EXCESS OF ASSETS OVER LIABILITIES—Continued
$ $ $
Net increase in recorded investments  in  and  advances
to Crown Corporations (page B 4)—
British Columbia Buildings Corporation annual instalment payment on advance received  (10,000,000)
British   Columbia   Development   Corporation—purchase of additional 100,000 common shares  10,000,000
British Columbia Harbours Board—advances repaid.. (2,500,000)
British    Columbia    Systems    Corporation—advance
issued     5,000,000
Ocean Falls Corporation—advances issued   4,000,000
Pacific Coach Lines Ltd.—
Record 2 shares issued, at nominal value  2
Advances transferred from T.S. Holdings Ltd       1,088,204
         1,088,206
T.S. Holdings Ltd.—
Noncash advances, net, re fixed assets   20,460
Advances transferred to Pacific Coach Lines Ltd.     (1,088,204)    (1,067,744)
      6,520,462
Balance at March 31, 1979  3,055,632,655
Combined balance of surplus at March 31, 1979 (Excess of assets over liabilities)   3,150,794,722
 PUBLIC ACCOUNTS 1978/79 B 9
SCHEDULES TO STATEMENT OF ASSETS AND  LIABILITIES—Continued
SPECIAL PURPOSE FUNDS—ASSETS
Cash and Investments
Cash (in banks)	
Funds held in the General Fund cash and short-term investment accounts (page B 2)	
Investments (at cost)—listed below  	
Total cash and investments	
Securities Held (listed at par value)
Short-term deposits with chartered banks, trust companies, etc.—
Bank of British Columbia..... 	
Bank of Montreal	
Bank of Nova Scotia  	
British Columbia Central Credit Union.... 	
Canadian Imperial Bank of Commerce 	
Provincial Bank of Canada  	
Royal Bank of Canada	
Toronto Dominion Bank  	
Other—
1 British Columbia Hydro and Power Authority
parity bonds  	
1 British Columbia Railway Company parity bonds.
1 British  Columbia  Regional   Hospital  Districts
Financing Authority bonds	
1 British Columbia School Districts Capital Fi
nancing Authority bonds  	
2 Export Development Corporation notes	
Less excess of par value over cost	
Total Securities, at cost, above	
—ASSETS
1979
$
1978
$
Net increase
or (decrease)
during 1978/79
$
(2,849)
18,732
(21,581)
49,028,775
245,583,416
57,918,353
179,695,300
(8,889,578)
65,888,116
294,609,342
237,632,385
56,976,957
131,650
42,674,882
39,293,510
40,809,615
130,000
20,300,000
365,000
754,000
7,643,679
272,500
6,758,870
173,000
33,378,583
5,072,000
143,339,657
54,417,632
9,852,700
10,235,000
17,511,800
10,235,000
22,000,000
22,000,000
60,443,000
60,592,000
15,000,000
245,870,357
286,941
179,756,432
61,132
245,583,416
179,695,300
i Province of British Columbia guarantee.
2 Government of Canada guarantee.
 B 10 PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
SPECIAL PURPOSE FUNDS—ASSETS—Continued
1979
Other Assets $
Note—These assets are carried at book value as the amount of
ultimate realization cannot be determined at this date.
Housing Fund (pursuant to the Ministry of Municipal
Affairs and Housing Act)—
Accounts and advances receivable   14,704,567
Mortgages receivable—secured  10,103,619
Real estate   88,986,343
Investment in, and advances to
Housing Corporation of British Columbia—
Entire issued share capital of 1,355,084
common shares at cost  5,799,760
Advances...     1,300,000
Provincial Rental Housing Corporation—
Entire issued share capital of three common shares at cost  633,511
Advances   24,808,621
British Columbia Housing Management Commission Advances  7,000,010
153,336,431
Lottery Fund—working capital—
Advance to the Western Canada Lottery Foundation  100,000
1 Provincial Home Acquisition Fund—mortgage loans
pursuant to the Provincial Home Acquisition Act
and the Leasehold and Conversion Mortgage Loan
Act           220,717,364
1978
$
18,411,597
4,891,401
87,852,500
5,799,760
3,889,535
633,511
34,473,986
1,096,952
Net increase
or (decrease)
during 1978/79
$
(3,707,030)
5,212,218
1,133,843
(2,589,535)
(9,665,365)
5,903,058
157,049,242  (3,712,811)
100,000
242,047,536 (21,330,172)
1 Summary of loan transactions during year (Provincial Home Acquisition Fund)—
Loans issued     	
Deposits refunded (net)
19,781,848
9,883
Less—
Repayment of principal
Statutory remissions
19,791,731
Loans written off (uncollectable)
Net decrease in book value of loans during year, as above	
38,671,893
289,152
2,160,858
41,121,903
(21,330,172)
374,153,795  399,196,778 (25,042,983)
 PUBLIC ACCOUNTS 1978/79
B 11
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 B 12
PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
SUPERANNUATION  FUNDS—ASSETS Net increase
or (decrease)
1979 1978 during 1978/79
Cash and Investments $ $ $
Funds held in the General Fund cash and short-term in-
ment accounts (page B 2)  18,708,159 3,550,621      15,157,538
Investments  (at lower of cost or par)—listed below  (see
note below)          670,842,507       570,327,624    100,514,883
Total cash and investments        689,550,666       573,878,245    115,672,421
Securities Held
Public Service Superannuation Fund—■
Debt securities (listed at par value)—
Short-term deposits with chartered banks .
Province of British Columbia „ 	
Province of Ontario	
Province of Quebec	
Province of Saskatchewan	
Government of Canada	
Canadian National Railway	
Manitoba Hydro-electric Commission (Province of Manitoba guarantee) 	
Manitoba  Telephone  Systems   (Province   of
Manitoba guarantee)  	
Montreal Auto Route  (Province of Quebec
guarantee)  	
New Brunswick Electric  Power Commission
(Province of New Brunswick guarantee)
Newfoundland   and   Labrador   Hydro-electric
Corporation (Province of Newfoundland
guarantee) 	
Newfoundland Municipalities Capital Financing (Province of Newfoundland guarantee)  	
Nova Scotia Power Corporation (Province of
Nova Scotia guarantee) 	
Ontario   Hydro-electric   Power   Commission
(Province of Ontario guarantee) 	
Quebec Hydro-electric Commission (Province
of Quebec guarantee) 	
1 British Columbia Hydro and Power Authority
1British Columbia Railway Company 	
'British Columbia Regional Hospital Districts
Financing Authority 	
'British Columbia School Districts Capital Financing Authority 	
'British Columbia Steamship Company (1975)
Ltd	
'British Columbia municipalities	
'British Columbia improvement districts	
'British Columbia school districts	
2Export Development Corporation	
Less excess of par value over cost..
38,419,394
8,000,000
127,407,790
127,463,090
1,030,000
1,242,000
1,501,000
727,000
8,342,000
3,451,000
28,719,000
15,454,000
—
6,000
312,000
312,000
70,000
70,000
250,000
250,000
1,595,000
1,595,000
700,000
5,000,000
2,325,000
40,376,000
4,983,000
303,531,000
43,989,000
10,000,000
18,701,500
3,400,000
4,925,728
12,143,500
1,491,400
7,437,575
666,649,887
12,185,034
700,000
2,325,000
30,197,000
5,257,000
275,232,545
44,353,000
10,000,000
18,378,000
3,400,000
5,928,666
12,234,600
2,625,700
569,201,601
11,814,136
654,464,853       557,387,465
1 Province of British Columbia guarantee.
2 Government of Canada guarantee.
Note—Investments are recorded at cost with the exception of long-term debt securities held by the superannuation funds
which are recorded at the lower of cost or par since premiums paid on these securities are written off at the time of purchase.
 r                                                    PUBLIC ACCOUNTS 1978/79 B 13
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
SUPERANNUATION  FUNDS—ASSETS—Continued
Securities Held—Continued
Public Service Superannuation Fund—Continued
Stocks (listed at cost)—
Bank of British Columbia, 51,055 shares	
British Columbia Telephone Company, 1,215,
844 common shares 	
Canadian   Pacific   Limited,   1,200   common
shares 	
Imperial Oil Limited, 300 common shares ....
International   Nickel   Company   of   Canada
Ltd., 450 common shares    14,344 14,344
1979
$
1978
$
1,147,589
1,147,589
13,575,779
10,517,167
19,800
12,712
19,800
12,712
Total securities (at lower of cost or par)....    669,235,077       569,099,077
Members of the Legislative Assembly Superannuation
Account—
Debt securities (listed at par value)—
Short-term deposits with chartered banks  400,000 3,600
'British Columbia Hydro and Power Authority 1,009,000 1,047,000
'British Columbia Railway Company   20,000 20,000
'British   Columbia   School   Districts   Capital
Financing Authority   90,000 90,000
'British Columbia improvement districts   10,000 14,000
'British Columbia school districts  ..- 16,800 24,400
Government of Canada   28,000 15,000
Ontario Hydro-electric Power Commission .... 40,000 40,000
Province of Saskatchewan     15,000 —
1,628,800 1,254,000
Lew excess of par value over cost  21,370 25,453
Total securities (at lower of cost or par) ...        1,607,430 1,228,547
Total investments (at lower of cost or
par), above.....       670,842,507      570,327,624
i Province of British Columbia guarantee.
 B 14 PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
SUPERANNUATION FUNDS—SUMMARY OF TRANSACTIONS FOR THE YEARS ENDED
MARCH 31, 1979 AND  1978
PUBLIC SERVICE SUPERANNUATION FUND
Revenues and Credits
Contributions—
Employees-
Province of British Columbia-
Other employers-
Transfers from other plans and funds (net)..
'Transfers from Member's Account (below) .
Interest on investments	
1979
$
1978
$
42,426,674
54,543,461
9,972,738
1,777,210
323,362
45,690,379
38,749,640
44,467,071
7,503,560
1,428,096
33,993,531
154,733,824       126,141,898
Expenditures and Charges
Superannuation allowances  27,953,683         22,463,649
Refunds—
Employees  6,031,800          5,110,493
Province of British Columbia  5,107,284          4,303,524
39,092,767 31,877,666
Net increase in funds during year     115,641,057        94,264,232
Balance at credit of funds at beginning of year     572,276,598       478,012,366
Balance at credit of funds at end of year     687,917,655       572,276,598
MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION ACCOUNT
Revenues and Credits
Contributions—
Members   87,698 85,703
Province of British Columbia  163,958 131,017
Interest on investments...   109,379 76,442
361,035 293,162
Expenditures and Charges
'Transfer to Public Service Fund (above)  323,362 —
Refund—Members.   6,309 3,421
329,671 3,421
Net increase (decrease) in funds during year    31,364 289,741
Balance at credit of funds at beginning of year         1,601,647 1,311,906
Balance at credit of funds at end of year         1,633,011 1,601,647
t Superannation allowances to former Members of the Legislative Assembly are paid from the Public Service Superannuation Fund for purposes of administration. The capitalized values of the allowances are provided by transfer from the
Members of the Legislative Assembly Account.
Note—For purposes of the Statement of Revenues and Expenditures (page A 5) the two funds are combined; refunds
are offset against receipts and transfers between the two funds are eliminated.
 PUBLIC ACCOUNTS 1978/79 B 15
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
TRUST  FUNDS—ASSETS Net increase
or (decrease)
1979 1978 during 1978/79
Cash and Investments                                                                                   $ $ $
Cash in banks.......    -.-         6,609,554 (2,129,123) 8,738,677
Funds held in the General Fund cash and short-term investment accounts (page B 2)         44,617,921 45,245,909 (627,988)
Short-term deposits with chartered banks and trust companies     61,538,372 153,801,024 (92,262,652)
Investments—direct or guaranteed securities of the Government of Canada and the Provinces       728,509,833 542,533,975 185,975,858
Total cash and investments         841,275,680 739,451,785 101,823,895
TRUST FUNDS—BALANCES
Trust Deposits
Bond redemption account (unclaimed bonds)  7,525
Bond interest coupon account (unclaimed bond coupons)    3,284
Cemetery Tax Account    85,737
Companies in liquidation     455,787
Courts    28,206,990
Intestate estates      17,599,848
Long term disability fund—Public Service   3,724,381
Long term disability fund—Crown Corporations  678,413
Official Committee    22,890,119
Official Guardian    6,722,683
Patients' accounts, Provincial institutions ...  375,202
Miscellaneous   47,449
7,500
3,284
85,312
382,632
65,944,112
13,784,862
22,627,835
5,650,246
346,377
177,905
25
425
73,155
(37,737,122)
3,814,986
3,724,381
678,413
262,284
1,072,437
28,825
(130,456)
80,797,418       109,010,065       (28,212,647)
Sinking Funds
British Columbia Buildings Corporation  	
British Columbia Educational Institutions Capital Financing Authority  	
British Columbia Ferry Authority	
British Columbia Hydro and Power Authority 	
British Columbia Railway Company	
British Columbia Regional Hospital Districts Financing Authority-
British   Columbia  School  Districts   Capital  Financing
Authority. _     	
Burnaby, District of 	
Greater Vancouver Sewerage and Drainage District	
Queensborough Bridge account  	
Sundry improvement districts 	
1,281,568
121,089
27,778,759
348,834,604
100,076,128
52,987,325
192,957,349
780,510
19,979,917
1,247,984
5,991,644
Other
Elderly Citizens Housing Fund-
Ferries Insurance Fund 	
Land Registry Assurance Fund-
Travel Agents Assurance Fund.—.
Workers' Compensation Board,
account 	
Accident Fund bank
1,473,967
4,751,785
840,938
262,914
1,111,781
8,441,385
314,852
31,268,867
288,858,958
84,557,874
39,921,456
154,212,609
709,379
18,112,156
1,524,243
5,164,789
966,716
121,089
(3,490,108)
59,975,646
15,518,254
13,065,869
38,744,740
71,131
1,867,761
(276,259)
826,855
752,036,877       624,645,183       127,391,694
4,381,113
806,522
203,300
405,602
5,796,537
1,473,967
370,672
34,416
59,614
706,179
2,644,848
Total miscellaneous trust accounts     841,275,680      739,451,785       101,823,895
 Less
Sinking
Net
Funds-
Outstanding
$
$
B 16 PROVINCE OF BRITISH COLUMBIA
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GUARANTEED DEBT
Debt of Municipalities, Other Local Governments, and Crown Agencies, Etc.,
Guaranteed by the Province (net) as to Principal and Interest
Gross
Outstanding!
$ $
Municipalities and other local governments:
(1) Guarantees authorized pursuant to the
Public Schools Act (principally funded) 950,284,900
Less held by British Columbia
School  Districts  Capital  Finan-
ing Authority   939,760,000
  10,524,9003
(2) Guarantees authorized pursuant to
sec. 46, Regional Hospital Districts
Act   388,464,000
Less held by British Columbia
Regional Hospital Districts Financing Authority   388,464,000
(3) Guarantees authorized pursuant to sec. 3, Municipalities Assistance Act (principally serials)          32,841,871
(4) Guarantees authorized pursuant to sec. 12, Improvement Districts Assistance Loan Act: Debentures (principally serials)          26,591,400
(5) Greater Vancouver Sewerage and Drainage District
debentures (some serials)          19,944,000
Subtotals, municipalities and local governments -          89,902,171
6,519,265
17,862,947
10,524,900
829,389 32,012,482
20,072,135
2,081,053
25,211,601 64,690,570
 PUBLIC ACCOUNTS 1978/79
B  17
Gross
Outstanding!
Less
Sinking
Funds-
Net
Outstanding
$
$
$
SCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES—Continued
GUARANTEED DEBT—Continued
Crown agencies—
(6) Guarantees authorized pursuant to sec. 8, British
Columbia Educational Institutions Capital Financing Authority Act—debentures—funded 	
(7) Guarantees authorized pursuant to sec. 46, British
Columbia Hydro and Power Authority Act, 1964—
Bonds and debentures—funded	
Parity bonds—unfunded 	
(8) Guarantees authorized pursuant to sec. 17, British
Columbia Railway Company Construction Loan
Act*—
Bonds and debentures—funded	
Notes—unfunded 	
(9) Guarantees authorized pursuant to sec. 28, British
Columbia Ferry Authority Act, bonds and debentures—funded 	
(10) Guarantees authorized pursuant to sec. 9, British
Columbia School Districts Capital Financing Authority Act, debentures—principally funded	
(11) Guarantees authorized pursuant to sec. 9, British
Columbia Regional Hospital Districts Financing
Authority Act, debentures—funded 	
(12) Guarantees authorized pursuant to sec. 8, British
Columbia Cellulose Company Act, 1973 (U.S.
funds)  	
(13) Guarantees authorized pursuant to sec. 4a, Ministry of the Environment Act re B.C. Steamship
Company (1975) Ltd. 	
(14) Guarantees authorized pursuant to sec. 12, British
Columbia Buildings Corporation Act, 1976—
Debentures—funded 	
Notes—unfunded 	
(15) Guarantees authorized pursuant to sec. 14, Development Corporation of British Columbia Act—
notes	
25,291,000
5,143,539,189
50,000,000
736,454,000
20,000,000
17,113,000
939,760,000
388,464,000
30,500,000
3,400,000
68,086,000
20,000,000
123,004 25,167,996
355,957,250    4,787,581,939
— 50,000,000
106,416,139       630,037,861
— 20,000,000
17,113,000
198,410,809       741,349,191
54,479,464       333,984,536
30,500,000
3,400,000
25,600,000
Subtotal, Crown agencies     7,468,207,189
Resource enterprises—
(16)  Guarantees authorized pursuant to sec.  3, Farm
1,308,868        66,777,132
— 20,000,000
25,600,000
733,808,534    6,734,398,655
Products  Industry   Improvement  Act,   1973,   2nd
Sess.  	
(17) Guarantees authorized pursuant to sec. 3, Agricultural Credit Act, 1973, 2nd Sess. 	
(18) Guarantees   authorized  pursuant   to   sec.   4   (3),
Ministry of Economic Development Act	
Subtotal, resource enterprises 	
8,252,592
3,604,669
198,400
12,055,661
8,252,592
3,604,669
198,400
12,055,661
Grand total, all guaranteed debt    7,570,165,021       759,020,135    6,811,144,886
i Except in the case of the British Columbia Hydro and Power Authority (7) where debt payable in United States dollars
is translated to Canadian dollars at the rates of exchange prevailing at the date the debt was incurred, debt payable in
United States dollars is recorded at par. Translation of the debt payable in United States dollars at the rate of exchange as
at March 31, 1979, would increase the total gross debt outstanding by approximately $237 million.
2 Sinking funds comprise cash and investments recorded at par value plus accrued interest except for Item (7) recorded
at book value plus cash and accrued interest and Item (9) shown at an adjusted value equivalent to the debt outstanding
(book value plus cash plus accrued interest equals $28,325,306). Translation of securities payable in United States dollars,
including accrued interest, at the rate of exchange as at March 31, 1979, would increase the total value of sinking funds by
approximately $12 million.
3 Repayable serially.
<l See Note 4 page A 9—British Columbia Railway Company.
Note—See Note 5 page A 9—Guaranteed Debt.
 B 18
PROVINCE OF BRITISH COLUMBIA
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§•
 SECTION C
SCHEDULES OF GENERAL FUND REVENUE AND EXPENDITURE
CONTENTS
Pace
Revenue for the fiscal year ended March 31, 1979—Details by source...   C 2
Expenditure for the fiscal year ended March 31,1979—
Budgetary expenditures and appropriations by ministries—
Legislation  C 4
Auditor General  C 4
Executive Council  C 4
Ministry of Agriculture    C 4
Ministry of Attorney-General  C 4
Ministry of Consumer and Corporate Affairs  C 5
Ministry of Economic Development  C 5
Ministry of Education  C 5
Ministry of Energy, Transport and Communications  C 6
Ministry of Environment  C 6
Ministry of Finance  C 6
Ministry of Forests  C 7
Ministry of Health    C 8
Ministry of Highways and Public Works  C 8
Ministry of Human Resources  C 8
Ministry of Labour.   C 8
Ministry of Mines and Petroleum Resources  C 9
Ministry of Municipal Affairs and Housing  C 9
Ministry of Provincial Secretary and Travel Industry  CIO
Ministry of Recreation and Conservation    C 11
Ministry of Deregulation  C 11
Ministry of Lands, Parks and Housing  C 11
Ministry of Tourism and Small Business Development  C 12
Nonbudgetary expenditure  C 12
Expenditure (Revenue Surplus Appropriation)    C 12
 C 2
PROVINCE OF BRITISH COLUMBIA
DETAILS OF REVENUE FOR THE FISCAL YEAR ENDED MARCH 31,  1979
Estimated
$
1,182,000,000
315,000,000
595,000,000
175,000,000
23,000,000
2,500,000
60,000,000
36,000,000
20,000,000
12,000,000
9,000,000
8,500,000
2,500,000
2,440,500,000
SOURCE
TAXATION  REVENUE
Personal   income*   	
Corporation income .	
Social services 	
Gasoline 	
Motive-fuel use	
Fuel-oil 	
Cigarette and tobacco
Corporation capital ....
Property
Insurance premiums
Hotel and motel room .
Pari mutuel betting .	
Succession and gift	
Received
$
1,220,087,814
301,470,437
652,407,667
175,458,113
22,402,440
2,306,297
63,578,662
45,335.130
19,166,723
13,522,399
9,772.099
8,748,736
1,932,604
Total taxation revenue
2,536,189,121
195,000,000
125,000,000
42,200,000
10,000,000
8,000,000
7,000,000
3,600,000
2,500,000
393,300,000
NATURAL RESOURCE REVENUE
Minerals-
Petroleum and natural gas—
British Columbia Petroleum Corporation
Permits and fees  	
  164,250,000
  155,457,896
Petroleum and natural gas royalties   41,568,986
Mining tax  _   16,127,312
Mineral resource tax  _  8,765,044
Mineral land tax _   8,190,587
Coal, minerals, and metals royalties     6,063,740
Miscellaneous mining receipts    _ 2,690,807
403,114,372
48,000,000
80,000,000
8,000,000
5,500,000
1,500,000
143,000,000
Lands and Forests—
Logging tax .
Timber sales 	
Timber royalties  _	
Land leases, rentals, and fees
Miscellaneous lands and forests receipts
Water Resources—
15,500,000       Water rentals and recording fees
6,000,000    Wildlife Act—fees and licences	
557,800,000 Total natural resource revenue	
51,859,999
228,623,991
7,819,598
7,565,961
1,184,086
297,053,635
15,238,851
5,810,802
721,217,660
2,000,000
4,200,000
9,790,000
2,800,000
2,600,000
8,300,000
1,775,000
19,400,000
5,924,000
1,500,000
1,000,000
2,858,000
1,200,000
1,675,000
2,478,000
67,500,000
OTHER REVENUE
Sales and service fees—
Land sales _ _.
Motor-vehicle lien and search fees	
Medicare services recoveries	
Ferry revenue  	
Ambulance service  _.
Forest scaling fees .
Land-clearing receipts
Land Registry fees
Reservoir waterway improvements  _      6
Sheriffs' fees      1
Publications Service Branch 	
Hearing-aid equipment
Receipts from Beautiful British Columbia Magazine        1
Miscellaneous parks receipts         1
Miscellaneous sales and services    _     4
333,791
,072,056
873,575
655,059
,220,970
,563,342
869,565
996,742
,903,838
174,026
714,735
583,114
,472,835
631,173
379,806
66,444,627
i Personal income tax includes Federal contribution of $117,400,000 under the temporary Federal-Provincial
sales tax reduction program.
 PUBLIC ACCOUNTS 1978/79
C 3
DETAILS OF REVENUE FOR THE FISCAL YEAR ENDED MARCH  31,  1979—Continued
Estimated
$
54,000,000
3,800,000
2,400,000
1,500,000
2,500,000
7,000,000
1,300,000
1,250,000
6,350,000
80,100,000
SOURCE
$
OTHER REVENUE—Continued
Licences and permits—
Motor-vehicle licences and permits   61,321,112
Companies Branch _ _  4,488,112
Electrical energy inspection tees  2,066,106
Fire Marshal Act—tees, etc _  1,556,847
Law stamps  _ _   2,197,919
Liquor Licensing Branch—permits and fees   8,600,510
Probate fees _.... 1,470,112
Camp-site permits and fees     1,467,786
Miscellaneous licences and permits  5,624,932
10,000,000   Fines and penalties
32,000,000    Interest from investments
10,500,
2,535,
1,500,
4,000
4,450
1,000
1,400,
11,750
10,565
000
000
000
000
000
,000
000
,000
,000
Miscellaneous—
Institutional maintenance receipts—
Maintenance of children          8,
Other maintenance receipts        4,
Miscellaneous Revenue—
Pearson Hospital receipts
47,700,000
237,300,000
,334,982
,452,152
Insurance claims receipts  _ _      4,472,338
6,127,254
20,797
1,168,495
Superannuation Branch cost recoveries
Federal sales tax recoveries .
Glendale laundry receipts
Recovery from B.C.  Hydro  for highway  relocation
costs            2,312,850
Other miscellaneous revenue      14,221,626
Received
$
88,793,436
11,238,761
54,080,569
41,110,494
Total other revenue
261,667,887
190,000,000
19,500,000
10,000,000
219,500,000
470,800,000
132,500,000
67,500,000
30,100,000
7,250,000
7,500,000
14,000,000
16,500,000
50,800,000
796,950,000
2,000,000
2,300,000
801,250,000
24,000,000
825,250,000
4,280,350,000
CONTRIBUTIONS FROM GOVERNMENT
ENTERPRISES
Liquor Distribution Branch—net profit  _   _
British Columbia Buildings Corporation
Dividends    -	
Repayment of Capital Advances  -	
British Columbia Systems Corporation  _
Total, contributions from Government enterprises    _	
CONTRIBUTIONS FROM OTHER
GOVERNMENTS
Canada,—
Established programs financing   _  482
Canada assistance  plan   \204
Social services block funding  _ /
Other shared-cost programs—
Adult  occupational  training 	
Water planning and management
Apprenticeship   training   	
Economic development
Transportation and highways
Other federal payments 	
207,008,920
10,000,000
10,000,000
2,228,587
929,000
111,652
,818,778
,578,973
000,000
,609,552
,937,215
,328,101
Percentage of power corporation tax
Statutory subsidies	
Subtotal, Canada
Municipal share of joint-service programs
Other provinces	
Total, contributions from other governments
Total budgetary revenue  	
NONBUDGETARY
Recovery of advances to B.C. Harbours Board -
Total revenue 	
229,237,507
790,313,271
235,400
2,116,848
792,665,519
25,305,864
142,673
818,114,056
4,566,426,231
2,500,000
4,568,926,231
 C 4
PROVINCE OF BRITISH COLUMBIA
EXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1979
SUMMARY SHOWING EXPENDITURE COMPARED WITH MAIN ESTIMATES AND OTHER AUTHORIZATIONS
No.
of SERVICE
vote
Legislation
1 Legislation	
Statutory—Constitution    Act    (R.S.B.C.
1960, chap. 71, sec. 71)	
2 Crown Corporation Reporting Committee.
Statutory—Crown Corporation Reporting
Act (1977, chap. 49, sec. 10)	
Auditor General
3 Auditor General	
4 Building occupancy charges.
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Executive Council
5   Executive Council	
Ministry of Agriculture
Minister's office	
7 Deputy Minister's office.
8 General administration..
9 Production services..	
10 Marketing services	
Supplement—Special Warrant No. 11..
11 General and financial services	
12 Specialist and regulatory services	
13 Milk Board	
14 Building occupancy charges.
15 Computer and consulting charges.
Supplement—Special Warrant No. 34	
Statutory—Livestock       improvement,
Horned Cattle Purchases Act (R.S.B.C.
1960, chap. 176, sec. 8)	
Ministry of Attorney-General
Minister's office	
Administration and support.
Court services 	
Supplement—Special Warrant No. 62..
Crown Counsel	
Supplement—Special Warrant No. 62..
Police services _	
Supplement—Special Warrant No. 62-
Corrections _	
Legal Services Commission	
Supplement—Special Warrant No. 62_
Justice Development Commission	
Legal services to Government	
Supplement—Special Warrant No. 26..
Judiciary	
Coroners 	
Supplement—Special Warrant No. 62-
British Columbia Parole Board	
Law Reform Commission	
Criminal Injuries Compensation Act	
Statutory—Criminal  Injuries   Compensation Act (1972, chap. 17, sec. 2 (5)) ...
Public Trustee	
Fire Marshal _	
Racing Commission	
Supplement—Special Warrant No. 62 .
Land Registry -
Order in Council Patients' Review Board ...
Building occupancy charges	
Computer and consulting charges. 	
Statutory—
Task  force  on  policing  costs,  Police
Act (1974, chap. 64, sec. 7 (4))	
Total
expenditure
401,399
35,099,263
119.315
2,723,551
30,225,560
8,921,819
34,921,939
52,721,023
9,912,773
1,605,086
4,142,279
6,277,630
1,415,155
73,143
215,386
1,764,511
1,474,671
790,314
498,848
5,447,651
58,460
21,346,138
1,940,584
91,565
Main
estimates
voted
»
3.997.5S8
Expenditure
over (under)
main
estimates
$
1,6C4,29S
1,399
Other
authorizations1
$
1,664,298
Net
over (under)
expenditure
f
1.399
6,063,285
4,397,588
1,665,697
1,666,697
—
1,195,948
2,034,507
(838,559)
(838,559)
69,380
195,396
(126,016)
(126,016)
1,265,328
2,229,903
(964,575)
(964,575)
752,687
753,760
(1,073)
(1,073)
111,252
100,533
10,719
10,719
l,t03,S64
1,146,532
(42,668)
(42,668)
1,286,085
1,241,849
44,236
44,236
3,761,474
3,950,723
(189,249)
(189,249)
752,893
503,383
249,510
185,632
63,878
21,450,147
57,893,907
(36,443,760)
(36,443,760)
3,775,673
4,351,768
(576,095)
(576,095)
203,406
203,671
(265)
(265)
2,293,295
2,437,855
(144,560)
(144,560)
264,086
221,000
43,086
50,000
(0,914)
97,088
97,088
97,088
—
72,051,221  (36,951,958)
139,990
2,804,356
28.952,359
8,284,545
35,192,543
53,941,435
9,600,000
1,835,180
2,673,452
6,548,370
1,198,602
79,113
295,361
1.500,000
1,557,506
1,439,731
452,890
5,958,191
92,221
21.488,642
2,641,000
(20,675)
(80,805)
1,273,210
637,274
(270,604)
(1,220,412)
312,773
(229,494)
1,468,827
(270,740)
216,553
(5,970)
(79,975)
264,511
(82,835)
(649,417)
45,958
(510,540)
(33,761)
(142,504)
(701,016)
91,565
332,720
1,000,000
600,000
500,000
310,000
1,300,000
200,000
264,511
60,000
91,565
(37,284,678)
(20,675)
(80,805)
273,210
37,274
(770,604)
(1,220,412)
2,773
(229,494)
168.827
(270,740)
16,553
(5,970)
(79,975)
(82,835)
(649,417)
(14,042)
(510,540)
(33,701)
(142,504)
(701,016)
 PUBLIC ACCOUNTS 1978/79
C 5
No.
of
vote
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
59
60
61
64
65
66
EXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1979—Continued
SERVICE
Ministry of Attorney-General—■
Continued
Statutory—Continued
Separation   allowance   for   Provincial
Judge,  Provincial Court Act  (1975,
chap. 57, sec. 34 (4)) _
Special Warrants—
No. 19—Out-of-court  settlement,   land
purchase
Total
expenditure
Main
estimates
voted
Expenditure
over (under)
main
estimates
Other
authorizations!
Net
over (under)
expenditure
$
S
$
$
S
No. 31—Claim for interest on estate
of Joseph Leblanc	
No. 44—Provincial Court Registry
shortage, Campbell River  _
Ministry of Consumer and
Corporate Affairs
Minister's office	
Executive and administration	
Consumer affairs	
Corporate affairs	
Rentalsman 	
Rent Review Commission	
Liquor Control and Licensing Branch	
Corporate and Financial Services Commission 	
19,250
5,000
3,037
3,313
19,250
19,250
5.000 5,000
3,637 3,637
5,313 5,313
Auditors' Certification Board	
Building occupancy charges	
Computer and consulting charges .
Ministry of Economic Development
Minister's office	
Administration	
Supplement—Special Warrant No. 7	
Grants   	
Federal-Provincial Shared-cost Program   -
Building occupancy charges	
Computer and consulting charges	
Special Warrants—
No. 53—Grant to City of Castlegar	
No. 63—Burns Lake Native Development Corporation 	
No. 68—Duke   Point   Shipping   Terminal  	
Ministry of Education
Minister's office	
Supplement—Special Warrant No. 69 .
Ministry services.
186,721,210
186,676,087
45,123
4,359,276
(4,314,153)
149.204
150,911
(1,707)
(1,707)
491,981
516,939
(24,958)
(24.958)
2,469,689
2,906.603
(436.914)
(436.914)
3,660,458
3,868,245
(207,787)
(207,787)
1,224,539
1,293,893
(69,354)
(69,354)
455,129
542,806
(87,677)
(87,677)
1,062,941
1,170,364
(107,423)
(107,423)
25,620
74,400
(48,780)
(48.780)
1,378
3,000
(1,622)
(1.622)
1,490,202
1,496,912
(6,710)
(6.710)
577,454
1,586,923
(1,009,469)
(1,009.469)
11,608,595
13,610,996
(2,002,401)
(2,002,401)
120,202
154,432
(34,280)
(34,230)
7,078,151
6,933,841
144,310
700,000
(555,690)
5,535,050
6,340,000
(804,350)
(804,350)
4,361,200
14,000.000
(9,638,800)
(9,638.800)
037,585
800,874
(143,289)
(143,289)
181,474
936,891
(755,417)
(755,417)
1,500,000
1,500,000
1,500,000
—
S04.500
S04.500
804,500
—
12,000.000
12,000,000
12,000,000
—
Basic Education K-XII Program	
Independent schools	
Pcst-secondary education—universities	
Supplement—Special   Warrants   Nos.   2
and 64  	
Post-secondary   education—colleges   and
provincial institutes	
Student Aid Programs —	
Teachers' Pension Fund	
Statutory—Teachers' Pensions Act (1961,
chap. 62, sec. 8 (7))	
Metric conversion	
Advances re rural school taxes—net -
Statutory—Public Schools Act (R.S.B.C.
1960, chap. 319, sec. 197 (10))	
Research Secretariat	
Building occupancy charges	
Computer and consulting charges	
Statutory—Initial   operating   costs   and
research   grant,   Science   Council   of
British Columbia Act (1978, chap. 37,
sec. 18)	
32,238,762
127,761
4,421,870
590,560,843
8,562,874
208.913,867
142,774,742
10,689,926
49,376,504
250,860
6,309,587
53,585
18,057,264
' 1,016,206
352,300
29,166,038
119,793
5,097.460
591,589,968
9,156,008
208,602,857
3,072,724       15,004,500 (11,631,776)
7,968
(675.590)
(1,029,125)
(593.134)
311,010
146,630,743        (3,856,001)
11,273,537 (583.611)
40,600,000 8,776,504
331,430
10
(80,570)
6,309,577
(34,150)
87,735
18,057,264
1,300,000    (283,794)
352,300
5.000
687,500
8,776,504
6.309,577
352.300
2,968
(675,590)
(1,029,125)
(593,134)
(376,490)
(3,856,001)
(583,611)
(80,570)
(34,150)
(283,794)
 C t
No.
of
vote
i                                                PROV
EXPENDITURE FOR THE 1
SERVICE
Ministry of Education—Continued
Special Warrant No. 16—Canada-British
Columbia Co-operative Projects Agreement	
Ministry of Energy, Transport
and Communications
Minister's office	
INCE OF BRITISH COLUMBIA
:ISCAL YEAR ENDED MARCH  31,  1979—Continuec
Expenditure
T     ,                     Main            over (under)          Other
-__i?SH r„           estimates              main              authori-
expcnauure              yoted              estimates          zationsi
$                          $                       $                      $
25,000                                                   23,000                 40,070
Net
over (under)
expenditure
$
(15,070)
67
68
1,041,493,189
89.703
666,842
643,544
3,060,853
13,268,480
932,830
12,799,327
371,732
216,357
1,033,790
1,810,520
51,384,050
22,974
2,020,216
2,773,514
004,699
1,032,846,805
152,472
698,130
674,198
3,200.246
15,160.033
947,209
12,202,674
868,182
367,191
1,402,187
2,091,671
50,558,500
107,723
2,079,282
3,498,546
2,270,055
8,646,384
(62,769)
(31,288)
(30,654)
(139,393)
(1.891,547)
(14,379)
596,653
(496,450)
(150,S34)
(368,397)
(281,151)
825,550
(84,749)
(53,066)
(725,032)
(1,671,356)
16,170,951
1,100,000
200,000
825,550
65,000
(7,524,567)
(62,769)
(31,288)
(30,654)
(139,393)
(1,891,547)
(14,379)
(503,347)
(496,450)
(150,834)
(568.397)
(281,151)
(84,749)
(118,066)
(725,032)
(1,671,356)
69
70
71
Weigh Scale Branch	
72
73
74
Supplement—Special Warrant No. 56	
Communications    System    Development
75
76
77
78
79
Transport Research and Planning Branch..
Supplement—Special Warrant No. 17	
British Columbia Energy Commission	
British Columbia Ferries—subsidy	
Supplement—Special Warrant No. 61	
80
81
82
Air Services -	
Supplement—Special Warrant No. 60	
Building occupancy charges	
Ministry of Environment
Minister's office 	
Supplement—Special Warrant No. 65	
83
84
91,705,437
141,523
1,766.923
11,655,401
27,420,353
6,994,302
761,112
704,416
2,676,466
1,622,963
19,517
38,555
5,433
96,284,299
131,756
1,798,066
11,477,133
26.288,717
7,774,376
1,016,324
691,389
2,732,825
1,356,400
(4,578,862)
9,767
(31,143)
178,328
1,131,636
(780,074)
(255,212)
13,027
(56.359)
260,563
19,517
38,555
5,433
2,190,550
10,000
115,000
1,000,000
2,000,000
25,000
370,000
19,517
38,555
5,433
(6,769,412)
(233)
(146,143)
(821,672)
(868,364)
(780,074)
(255,212)
(11,973)
(56,359)
(109,437)
Supplement—Special  Warrants  Nos.  71
85
86
87
Supplement—Special Warrant No. 76	
Environmental and engineering service
Supplement—Special Warrant No. 35	
88
Environment and Land Use Committee
89
90
Provincial Agricultural Land Commission-
Supplement—Special Warrant No. 65	
91
Supplement—Special Warrant No. 36	
Statutory—
Agricultural   Land   Reserves,   Agricultural Land  Commission  Act   (1973,
chap. 46, sec. 21)	
Cyanide spill clean-up costs, Kamloops
—Pollution Control Act (1967, chap.
34, sec. 26 (3))	
Special Warrant No. 70—Fish and Wildlife Branch—replace stolen receipts
Ministry of Finance
92
53,807,024
108,847
1,091,001
3,364,076
6,583,137
1,941,197
4,609,227
53,266,986
105,330
1,072,434
4,002,470
6,801,506
2,045,495
4,797,307
540,038
3,517
18,567
(638,394)
(218,369)
(104,298)
(188,080)
3,589,505
90,000
300,000
60,000
(3,049,467)
3,517
18,567
(638,394)
(308.369)
(404,298)
(248,080)
93
94
Administrative and support services	
95
96
Computer and consulting charges	
Supplement—Special Warrant No. 37	
97
Supplement—Special Warrant No. 12	
Supplement—Special Warrant No. 33
 PUBLIC ACCOUNTS 1978/79
C 7
EXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,   1979—Continued
No.
of
vote
98
SERVICE
Ministry of Finance—Continued
Total
expenditure
$
836,458
3,477,725
23,657,670
13,389,049
5,281,878
' 2,492,197
305,762
8,780,159
9,252,841
2,972,007
152,209
3,000,000
Main
estimates
voted
8
400,000
5,084,380
21,833,323
10,481,000
3,400,000
1,800,500
250,000
21,064,320
9,148,408
3,737,890
Expenditure
over (under)
main
estimates
$
430,458
(200,001)
1,804,347
(3,091,951)
1,881,878
631,697
55,762
(12,284,161)
104,373
(705,889)
152,209
3.000,000
Other
authorizations1
$
450,000
40,000
1,804,347
90,000
2.686
146.816
1,154,284
578,092
090,000
55,762
1,400,000
152,209
3,000,000
Net
over (under)
expenditure
$
99
ion
Supplement—Special  Warrants   Nos.   22
and    66	
Government agencies	
Supplement—Special Warrant No. 57
(13,542)
(246,661)
Statutory—British  Columbia Deficit Repayment Act, 1975-1976  (1976,  chap.
6, sec. 7)	
101
Grants, contributions, and subsidies	
102
Supplement—Special Warrant No. 38
Interest on deposits 	
Statutory—
Cemetery Companies Act, sec. 10 (4)
Official Guardian Act, sec. 19 (1)	
Patients' Estate Act, sec. 27 (3)	
(3,181,951)
103
Supreme Court Act, sec. 33
—
Supplement—Special   Warrants   Nos.   22
and 58	
(58,303)
104
105
Statutory—Revenue Act (R.S.B.C.  1960,
chap. 341, sec. 55 (3))	
(12,284,101)
106
107
Supplement—Special Warrant No. 55	
Building occupancy charges	
Statutory—Judgments against the Crown,
Crown  Proceedings  Act   (1974,   chap.
24, sec. 13 (4))    	
(1,295,627)
(765,889)
Special Warrant No. 54—Free share distribution and offer expenditures re B.C.
Resources Investment Corporation 	
Ministry of Forests
Minister's office	
Supplement—Special   Warrants   Nos.   25
and 73
	
10S
93,295,440
124,084
21,192,116
9,799,701
653,340
8,202,671
1,442,587
18,984,917
2,051,088
18,768,603
8,848,814
4,213.393
10,623,874
1.947,995
8,965,130
6,063,746
3,577,021
1,917,644
3,343,020
102,704,435
110,042
21,337,907
9,105,583
049,614
8,473,647
1.776,086
19,837.242
2,181,163
7,000,000
10,102,369
6,305,210
11,249,847
2,289,571
6,594,677
5,973,966
3,878,928
1,682,000
(9,408,995)
14,642
(145,791)
694,118
3,720
(270,976)
(333,499)
(852,325)
(130,075)
11,768,603
(1,253,555)
(2,091,517)
(625,973)
(341,576)
2,370,453
89,780
(301,907)
235,644
3,343,620
10,014,196
15,000
508,000
550.000
11,768,603
12.500
3,196,305
1,050,000
600,000
3,343,620
(19,423,191)
(358)
109
110
111
IP
Supplement—Special Warrant No. 74	
Engineering Support Services Program
Public Information Services Program	
(713,791)
694,118
3.726
in
Supplement—Special Warrant No. 3 	
(820,976)
(333,499)
114
(852,325)
115
(130,075)
116
Fire Suppression Program	
Statutory—Forest  Act   (1978,   chap.   23,
sec. 124 (4))   	
117
118
Supplement—Special Warrant No. 8	
(1,266,055)
(2,091,817)
119
(625,973)
\->o
(341,576)
121
122
Forest Development Roads Maintenance
Program	
Supplement—Special   Warrants   Nos.   4
and 5	
Reservoir Waterway Improvements  Pro-
(825,852)
123
124
Supplement—Special Warrant No. 21	
Building occupancy charges	
Computer and consulting charges 	
Supplement—Special Warrant No. 39 —
Statutory—Implementation of new legislation—Forest   Act   (1978,   chap.   23,
sec. 165)    -.            	
(960,220)
(301,907)
(364,356)
130,720,944
118,547,852
12,173,092
21,104,028
(8,930,936)
 C 8 PROVINCE OF BRITISH COLUMBIA
EXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1979—Continued
No.
of
vote
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
150
151
152
153
154
155
156
157
158
159
160
161
SERVICE
Ministry of Health
Minister's office	
Supplement—Special Warrant No. 75..
Administration and support services ...
Community Health Programs:
Branch support services	
Public Health Programs	
Mental Health Programs	
Special health services-
Other health care expenditures.
Hospital Programs	
Supplement—Special   Warrants
and 40	
Government institutions	
Forensic psychiatric services	
Alcohol and Drug Commission	
Medical Services Commission	
Nos.
Statutory—Medical  Services  Act   (1967,
chap. 24, sec. 11)	
Emergency health services	
Long-term Care Program	
Building occupancy charges _.
Computer and consulting charges	
Ministry of Highways and
Public Works
Minister's office	
General administration—Highways	
Highway maintenance _	
Supplement.—Special Warrant No. 51-
Highway construction—capital-
Total
expenditure
130,228
2,329,983
3.294.570
33,321,180
15,395,346
9,841,903
4,916,107
031,382,771
56.452.427
3,658,897
8.940.033
221,542,573
23,115.808
90,994,928
21,789,863
6,242,113
Main
estimates
voted
$
139,851
2,629,019
3,339,570
34,622,592
17,863.005
9.856,065
0.281,800
Expenditure
over (under)
main
estimates
Other
authorizations!
$ 8
10,377
(99,034)
6.500
(44.994)
(1,301,400)
(2,467,659)
(14,162)
(1,365,753)
609.588,881       21,793,890
01,134,726 (4,6S2,299)
4,136,440 (477,543)
10,619,966 (1,679.933)
211,613,000 9,929,573
24,775.037 340,771
120,457,272 (23,462,344)
31,593,289 (9,803.426)
7,700,983 (1,458,870)
21,700,000
9,929,573
Net
over (under)
expenditure
3,877
(99,034)
(44,994)
(1,301,406)
(2.467,659)
(14,162)
(1.305,753)
93.890
(4,682,299)
(477,543)
(1,679,933)
340,771
(23,462,344)
(9,803,426)
(1,458,870)
Supplement—Special Warrants Nos.  23,
24, 30, and 52	
Hydro development—Highways _
Safety Engineering Division	
Glendale Laundry .
Government-owned    residences    maintenance 	
Employees* salaries and benefits 	
Supplement—Special Warrant No. 29	
Building occupancy charges	
Computer and consulting charges	
Ministry of Human Resources
Minister's office	
Administration and community service-
Services to families and children	
Community projects	
Health services	
Supplement—Special Warrant No. 80...
GAIN Programs	
Supplement—Special Warrant No. 49—
Special programs for the retarded	
Building occupancy charges-
Computer and consulting charges.
558,512,445 552,515,648 5,996,797       38,100,000
Ministry of Labour
Minister's office 	
Supplement—Special Warrant No. 46	
162 Ministerial   administration   and   support
services 	
Supplement—Special Warrant No. 50	
163 Job  Training  and  Employment  Oppor
tunities Program	
164 Occupational environment and compen
sation   advisory   services	
165 Collective Bargaining and Labour Stand
ards Program	
158,108 140,241 17,867
3,234,770 2.795,211 439,559
26,516,032 29.308,710 (2,792,678)
1,439,571 1,503,301 (03,730)
2,601,307 2,622,380 (21,073)
20,500
100,000
(32,103,203)
(2,633)
339,559
(2,792,678)
(63,730)
(21,073)
1,141,568,744
1,156,351,556
(14,782,812)
31,636,073
(46,418,885)
151,850
180,378
(28,528)
(28,528)
5,080,580
5,115,924
(35,338)
(35,338)
149,782,073
153,925,075
(4,142,402)
2,500,000
(0,642,402)
238,342,500
157,258,037
81,083,863
85,000,000
(3,910,137)
2,224.589
11,750,000
(9.525.411)
(9,525,411)
5,057,081
5,837,073
(779,392)
(779,392)
1,227,055
1,718,735
(491,080)
(491,080)
992
180,000
(185,008)
(185,008)
5,841,031
4,120,000
1,721,631
2,440,000
(718,309)
14,390,021
15,523,267
(1,127,246)
(1,127,240)
958,232
1,751,500
(793,268)
(793,268)
423,064,410
357,366,589
65,697,821
89,940,000
(24,242,179)
159,019
145,890
13,129
13,129
55,665,371
64,048,833
(8,383,462)
(8,383,402)
59,819,062
71,680,528
(11,861,466)
(11,861.466)
23,301,383
26,815,473
(3,514,090)
(3,514,090)
48.915,787
45,332,296
3,583,491
2.100,000
1,483,491
310.942,695
277,873,264
33.069,431
36,000,000
(2,930,569)
40,637,205
43,429.775
(2,792,570)
(2,792,570)
17.188,880
19,373,175
(2,184,289)
(2,184,289)
1.883,037
3,816,414
(1,933,377)
(1,933,377)
 PUBLIC ACCOUNTS 1978/79
C 9
EXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1979—Continued
No.
of
vote
166
167
168
169
170
SERVICE
Ministry of Labour—Continued
Human Rights Programs	
Labour Relations Board	
Essential Services Advisory Agency	
Building occupancy charges -	
Computer and consulting charges	
Supplement—Special Warrant No. 41 _
Statutory—Special mediator's expenses,
West Kootenay Schools Collective Bargaining Assistance Act (1978, chap.
42, sec. 8 (2)) _	
171
172
173
174
175
176
177
178
179
180
181
182
183
Ministry of Mines and Petroleum
Resources
Minister's office	
184
185
1S6
187
188
189
190
191
192
193
Deputy Minister's office _
Mineral Resources Branch	
Petroleum Resources Branch 	
Supplement—Special Warrant No. 20 .
Grants and Subsidies Program	
Mineral Road Program	
Prospectors' Assistance Program	
Mineral Research Program	
Mineral Data Program 	
Mineral Employment Program.
Energy Resource Evaluation Program.
Building occupancy charges.
Computer and consulting charges 	
Statutory—Correction of safety hazards,
Mines Regulation Act (1967, chap. 25,
sec. 12 (2))	
Special   Warrant   No.    10—Out-of-court
settlement, Morris	
Ministry of Municipal Affairs
and Housing
Minister's office	
Office of the Deputy Minister—Municipal Affairs.
47
Supplement—Special   Warrants   Nos
and 48 	
Grants,   contributions,   and   subsidies—
Municipal Affairs	
Supplement—Special    Warrants    Nos.    9
and 59	
Statutory—
Municipalities Aid Act (R.S.B.C. 1960,
chap. 259, sec. 4)   —	
Provincial    Home-owner    Grant    Act
(R.S.B.C. 1960, chap. 308, sec. 15)	
Revenue Sharing Fund	
Office of Deputy Minister—Housing	
Central Ministry Services	
Shelter   Aid   for   Elderly   Renters   and
Renters' Tax Credit	
Mobile Home Registry _.	
Supplement—Special Warrant No. 27	
Building occupancy charges
Computer and consulting charges	
Supplement—Special Warrant No. 42	
Statutory—
Start-up costs, Urban Transit Authority
Act (1978, chap. 39, sec. 20)	
Family First Home Program start-up
costs, Home Purchase Assistance Act
(1976, chap. 20, sec. 13.3)	
Late home-owner grants, Provincial
Home-owner Grant Act (R.S.B.C.
1960, chap. 308, sec. 16.1  (I))	
Toial
expenditure
$
Main
estimates
voted
$
Expenditure
over (under)
main
estimates
S
Other
authorizations!
»
Net
over (under)
expenditure
$
493,634
1,193,205
51,379
1,172,902
685,624
507,351
1,197,304
300,000
1.384,760
038,202
(13,717)
(4,099)
(248,621)
(211,798)
47,422
195,598
(13.717)
(4,099)
(248,621)
(211.798)
(148,170)
6,440
6.440
37,553,032
40,397,460
(2,844,428)
322,538
(3,166,966)
101.890
87.861
14,035
14.035
1.139,353
1,145,667
(6,314)
(6,314)
4,233,713
4,392.165
(158,452)
(158,452)
1.343,324
1,400,434
(57,110)
21,225
(78,335)
578,900
585,250
(6.350)
(6,350)
775.401
900,000
(124,599)
(124,599)
214.401
215,000
(599)
(599)
40,547
77,000
(36,453)
(36,453)
145.402
155,000
(9,598)
(9,598)
29,970
60,000
(30,030)
(30,030)
342.739
351,300
(8.501)
(8,561)
710,509
772,436
(55,927)
(55,927)
172,915
315,100
(142,185)
(142,185)
5,440
5.440
5,440
—
25,000
25,000
25,000
—
9,865,510
10,457,213
(591,703)
51,665
(643,368)
153,448
153,456
(8)
(8)
9.132,167
8,518,528
C13.C39
1,399,575
(785,936)
51,054.526
40,700,000
10,354,520
9,392,624
997,773
465,253
(501,124)
138,300,000
138,300,000
—
—
32,191,497
38,122,106
(5,930,609)
(5,930,609)
397,509
449.243
(51,734)
(51,734)
24,147.068
28,996,905
(4,849,2S7)
(4,849.237)
638,918
443,704
195,164
253,236
(58.082)
512.611
.889,521
(376,910)
(376,910)
600,480
525,890
80,590
267,010
(187,020)
1,010,293
1,010,293
1.010,293
—
150,010
150,010
150,010
—
527,233
527.233
527,233
—
258,828,360
257,099,413
1,728,947
14,469,607
(12,740,660)
 C 10
PROVINCE OF BRITISH COLUMBIA
EXPENDITURE  FOR THE  FISCAL YEAR ENDED MARCH  31,   1979—Continued
No.
of
vote
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
226
227
228
SERVICE
Ministry of Provincial Secretary and
Travel Industry
Provincial Secretary and
Travel Industry
Minister's office—- „.   	
General administration 	
Central Microfilm Bureau 	
Postal Branch  	
Legislative Library 	
Provincial Archives  	
Queen's Printer _  	
Government House	
Supplement—Special Warrant No. 78	
Agent-General's   Office   and  British   Columbia House  _
Supplement—Special   Warrants   Nos.   28
and 79	
Indian Advisory Act  	
Public Inquiries Act ,
Statutory—Public Inquiries Act (R.S.B.C.
1960, chap. 315, sec. 13)	
Grants, special services, and events - _
Provincial Elections Act 	
Statutory—Provincial Elections Act
(R.S.B.C.   1960,   chap.   306,   sec.   192
(D)
Provincial Emergency Program	
Captain Cook Bi-Centennial -	
British Columbia Lottery Branch	
Unemployment insurance and workers'
compensation 	
Provincial Museum and Resource Museum... —
Government publications - „	
Public information	
Legislative tour guides -	
Queen   Elizabeth   II   British   Columbia
Centennial Scholarship Act	
Flood Relief Act	
Statutory—Terrace    flood    costs,    Flood
Relief Act  (1948,  2nd Sess.  chap.   1,
sec. 3)	
General administration—Travel Industry-
Travel Division
Supplement—Special Warrant No. 45 _
Beautiful British Columbia Magazine	
California and London offices „	
Film and Photographic Branch	
Building occupancy charges	
Computer and consulting charges	
Statutory—Medical expenses, London,
England, and California, Public Services Act (1976, chap. 45, sec. 74 (2)) .
Special Warrant No. 15—Dan Matijevich
Endowment—British Columbia Forest
Hall of Fame	
Subtotal, Provincial Secretary and Travel
Industry	
Public Service Commission
224 Administration  —	
225 Public Service Adjudication Board	
Subtotal, Public Service Commission	
Superannuation Branch
Administration _,
Public Service superannuation and retirement benefits 	
Statutory—Public Service Superannuation
Act (R.S.B.C. 1960, chap. 57, sec.
30 (1) )  	
Members of the Legislative Assembly
Superannuation Act	
Total
expenditure
201,543
431,SS2
1,081,439
5,838,545
699,315
976,540
(08,253)
184,202
Expenditure
Main            over (under) Other
estimates               main authori-
voted               estimates zatior.s1
774,182
41,309
73:i,,805
2,738,774
2,409,846
1,533,578
860,000
12,579,030
3,906,411
108,571
193,952
143,610
15,500
5,425,176
19.935
7,843,509
1,345,012
225,598
770,017
5,127,390
1,016,410
141,098
57,308,889
2,780,251
230,445
1,307,422
60,679,952
212,278
440,525
1,126,743
5,858,024
757,136
1,087,626
10
164,489
65,807
500,000
3,100,000
931,102
1,534,542
1,000,000
10
13,200,000
3,980,358
201,759
205,054
144,086
19,000
50,000
60,992
7,746,708
1,343,931
230,073
7S1.008
7,514,080
1,400.000
54,182,889
2,895,352
285,393
3,180,745
(10,735)
(14,643)
(45,304)
(19,479)
(57,821)
(111,086)
(6S.2C3)
19,713
254,034
(24,438)
233,865
(361,220)
1,478,744
(964)
(140,000)
(10)
(020,964)
(73,947)
(93,188)
(9,102)
(470)
(3,500)
5,375,170
(41,057)
96,801
(919)
(4,475)
(4,391)
(2,380,084)
(383,590)
141,698
(164,049)
1,387,888 (20,466)
51,280,000 9,399,952
25,000
233,865
1,478,744
100,000
1,571
141,698
3,126,000 7,551,054
(109,101)
(54,948)
Net
over (under)
expenditure
$
(10,735)
(14,043)
(45,304)
(19,479)
(57,821)
(111,080)
(68,263)
(5,287)
59,034
(24,43S>
(301,226)
(964)
(140,000)
(10)
(620,964)
(73,947)
(93,188)
(9,102)
(476)
(3,500)
(41,057)
(3,139)
(919)
(4,475)
(4,391)
(2,380,684)
(383,590)
(4,425,054)
(109,101)
(54,948)
(164,049)
(20,466)
9,399,952
140,000
23,958
 PUBLIC ACCOUNTS 1978/79
C 11
EXPENDITURE FOR THE FISCAL YEAR  ENDED MARCH  31,   1979—Continued
No.
of
vote
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
249
250
SERVICE expenditure
Ministry of Provincial Secretary and $
Travel Industry—Continued
Sl'PERANNUAI ion Branch—Continued
Statutory—Members   of   the   Legislative
Assembly Superannuation Act (R.S.B.C.
1960, chap. 240, sec. 18)	
Employee Benefits          25,39s,498
Statutory—
Extended Health and Group Insurance,
Public   Service   Benefit   Plans   Act
(1976, chap. 46, sec. 5)  	
Retirement   allowance,   Public   Service
Act (1976, chap. 45, sec. 49).....	
Statutory—Special pensions adviser, Public Service Act (1976, chap. 45, sec. 2)... 30,968
Special   Warrant   No.   13—Investigation
into   pension   benefits  standards   legislation    13,200
Subtotal, Superannuation Branch          87,854,004
Total,   Ministry  of  Provincial   Secretary	
and   Travel   Industry.        148,179,589
Ministry of Recreation and
Conservation
Minister's office     82,801
General administration    1,224,138
Information and education   494,191
Marine Resources Branch  511,288
Salmonid Enhancement Program  1,183,193
Fish and Wildlife Branch  10,808,380
Federal and other agency programs  308,200
Creston Valley Wildlife Management  130,049
Parks management..    1 0,445,919
Parks capital    4,501,091
Statutory—K.   R.   Yctter   Bequest,   Park
Act (1965, chap. 31, sec. 32)	
Land  acquisition—National  and  Provincial parks  1.950,390
Supplement—Special Warrant No. 77	
Youth crew   988,280
Heritage Conservation Branch  1,182,002
Recreation and Fitness Branch  1,855,704
Recreation facilities grants   7,000,000
Grants-in-aid  of  regional   park  development     1 ,080,000
Cultural Services Branch   403,(108
Library Services Branch  4,283.423
Supplement—Special Warrant No. 14	
Provincial Capital Commission  1,380,745
Supplement—Special Warrant No. 6	
Building occupancy charges   2,892,870
Computer and consulting charges  133,939
Statutory—Crystal   Gardens   restoration,
Provincial    Capital    Commission    Act
(1956, chap. 55, sec. 11)   2,475,000
61,075,827
Ministry of Deregulation
Statutory—Minister's salary, Constitution
Act (R.S.B.C. 1960, chap. 71, sec. 9
(6))--- _..	
Special Warrant No. 32—Professional
and special services and other expenditures          	
Ministry of Lands, Parks and Housing
Statutory—Minister's salary, Constitution
Act (R.S.B.C. 1960, chap. 71, sec. 9
(6))          	
Statutory—Minister's office expenditures,
Constitution Act (R.S.B.C. 1960, chap.
71, sec. 12b) 	
7,809
7.809
20,063
Expenditure
Main            over (under) Other
estimates               main authori-
votcd               estimates zations1
Net
over (under)
expenditure
*
22,15 1,(12(1
30,968
23,958
1,814,747
374,494
30,908
36,600
74,961,914       12,892,090       11,680,719
132,325,548       15,854,041        19,231,773
110,724
1,294,013
493,024
551,430
2,064,800
10,323,445
1,559,950
129,750
10,340,619
4,500,000
1,858,000
1,000,000
1,477,331
2,333,953
7,000,000
1,080,000
421,299
4,430,193
r,79,790
3,390,270
342,000
61,300,603
(33,923)
(09,875)
(833)
(40,142)
(881,007)
(15,115)
(1,191,750)
299
99,300
1,091
92,390
(11,720)
(294,729)
(478,249)
(17,031)
(152,770)
(497,400)
(208,001)
151,476
159,286
7,809
5,000
104,000
2,475,000 2,475,000
(224,776)        3,642,000
7,809
100,000
107,809
7,809
20,063
1,255,231
(23,394)
(3,377,732)
(33,923)
(09,875)
(833)
(40,142)
(881,007)
(15,115)
(1,191,756)
299
99,300
(3,909)
(11,604)
(11,720)
(294,729)
(478,249)
(17,031)
(170,770)
(39,051)
(497,400)
(208,001)
(3,866,776)
51,476
51,476
27,872
 C 12
PROVINCE OF BRITISH COLUMBIA
EXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31.  1979—Continued
No.
of
vote
SERVICE
Ministry of Tourism and Small Business
Development
Statutory—Minister's salary, Constitution
Act (R.S.B.C. 1960, chap. 71, sec. 9
(6)) 	
Special Warrant No. 43—Professional
and special services and expenditures....
Total
expenditure
7,809
66.609
74,418
Main
estimates
voted
*
Expenditure
over (under)
main
estimates
$
7,809
66.609
74,418
Other
authorizations!
S
7,809
103.000
110,809
Net
over (under)
expenditure
$
(36,391)
(36,391)
Total budgetary expenditure    4,323,680,656    4,280,350,000      48,330,858    272,071,5692   (229,740,913)
Nonbudgetary Expenditure Charged to
Current Revenue
Crown Corporations
Advances—
British Columbia Assessment Authority
(Assessment   Authority   of   British
Columbia Act,   1974,  chap.  7,  sec.
17 (4) ) 	
British Columbia Systems Corporation
(Systems Act,   1977,  chap. 45,  sec.
8(D)	
Ocean   Falls   Corporation   Act   (1973,
chap. 64, sec. 9)   	
Grant—British Columbia Railway Company re Fort Nelson Extension—
Special Warrant No. 18	
Special Warrant No. 67	
Total nonbudgetary expenditure	
2,500,000
5,000,000
4.000,000
16.000,000
4.000,000
31,500,000
Expenditures out of Revenue Surplus of
1976—77 Appropriation Act
Agriculture:
Accelerated Agricultural Program (Sec.
1 (/))-
Energy, Transport and Communications:
Local   Airport   Assistance   Programs
(Sec. 1 (c))	
Environment:
Accelerated Water Treatment Program
(Sec. 1 (At))	
Forests:
Accelerated     Reforestation     Program
(Sec. 1 (d) )	
Highways and Public Works:
Highways Program (Sec. 1 (6))	
Labour:
Accelerated   Summer  Works  Program
(Sec. 1 (e))	
Mines and Petroleum Resources:
Accelerated Mineral Development Program (Sec. 1 (/)) 	
Municipal Affairs and Housing:
Accelerated Elderly Citizens' Housing
Construction Program (Sec. 1 (6)) ...
Recreation and Conservation:
Accelerated Recreation Facilities Program (Sec. 1 (g))	
Accelerated   Fisheries   Program   (Sec.
1 (/))	
British Columbia Development Corporation:
Purchase of Shares (Sec. 1 (a))	
1,751.051
2,000,000
(248,949)
4.099,995
5,000.000
(5)
1,998,421
2,000,000
(1.579)
8,001,447
10.000,000
(1.398.553)
27,090,139
27,629,730
(533.591)
4,999,901
5,000,000
(99)
4,999,736
5,000,000
(204)
2,000,000
2,000,000
—
5,500,000
5,500,000
—
1,807,736
2,000,000
(192,264)
10,000,000
10,000,000
	
73,754,426
Combined General Fund Expenditures    4,428,935,082
76,129,730        (2,375,304)
i "Other authorizations" comprise statutory and special warrant authorizations as indicated.
2 The total of other authorizations of $272,051,506 represents statutory authorizations of $70,975,900 and special warrant
(Financial Control Act) authorizations of $201,075,606.
Note—In accordance with the Supply Act No. 2, 1978 (1978, chap 38), the actual expenditures are reported in relation to
the services and amounts appropriated. Reorganization changes made in December 1978, pursuant to the Constitution Act, are
therefore not reflected in these statements except for expenditures authorized under the Constitution Act and by special
warrants for the ministries of "Deregulation", "Lands, Parks and Housing", and "Tourism and Small Businss Development".

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