{"http:\/\/dx.doi.org\/10.14288\/1.0378733":{"https:\/\/open.library.ubc.ca\/terms#identifierAIP":[{"value":"ff520f1b-4432-4481-b350-f212b09f0b64","type":"literal","lang":"en"}],"http:\/\/www.europeana.eu\/schemas\/edm\/dataProvider":[{"value":"CONTENTdm","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/alternative":[{"value":"PUBLIC ACCOUNTS 1977\/78","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/isReferencedBy":[{"value":"http:\/\/resolve.library.ubc.ca\/cgi-bin\/catsearch?bid=1198198","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/isPartOf":[{"value":"Sessional Papers of the Province of British Columbia","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/creator":[{"value":"British Columbia. Legislative Assembly","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/issued":[{"value":"2019-04-08","type":"literal","lang":"en"},{"value":"[1982]","type":"literal","lang":"en"}],"http:\/\/www.europeana.eu\/schemas\/edm\/aggregatedCHO":[{"value":"https:\/\/open.library.ubc.ca\/collections\/bcsessional\/items\/1.0378733\/source.json","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/elements\/1.1\/format":[{"value":"application\/pdf","type":"literal","lang":"en"}],"http:\/\/www.w3.org\/2009\/08\/skos-reference\/skos.html#note":[{"value":" Province of\nBritish Columbia\nreport\nof the\nAUDITOR\nGENERAL\nfor the year ended\n31 March 1978\nJ\n  Province of\nBritish Columbia\nOffice of the\nAuditor General\nProvince of British Columbia\n756 Fort Street\nVictoria\nBritish Columbia\nV8V1X4\nThe Honourable Evan M. Wolfe\nMinister of Finance\nProvince of British Columbia\nSir:\nI have the honour to transmit herewith my Report to the\nLegislative Assembly for the fiscal year ended 31 March 1978\nfor submission to the Assembly in accordance with the\nprovisions of Section 10(1) of the Auditor General Act,\nS.B.C. 1976, Chapter 3.\nusfffa\"'*'\"\nAuditor General\nVictoria, British Columbia\n30 March 1979\n  REPORT OF THE AUDITOR GENERAL 5\nTABLE OF CONTENTS\nSection Page\n1. Highlights     7\n2. Introduction     9\n3. Nature and Extent of Examination  11\n4. Report on the Financial Statements  12\n5. Legislation  14\n6. Stated Accounting Policies  15\n7. Internal Control Over Expenditures   17\n8. Statement of Assets and Liabilities  22\nA. Fund Accounts  22\nFund Accounting Procedures  22\nB. General Fund\u2014Revenue Surplus Section  23\nCash  23\nAccounts Receivable From Other Governments and Agencies  24\nWorking Capital Advances  24\nOther Current Liabilities  25\nRevenue Surplus .  26\nC. General Fund\u2014Capital Surplus Section  28\nCapital Surplus  28\nAnalysis of Changes in Capital Surplus  29\nTaxes and Other Accounts Receivable  30\nLoans and Other Advances  30\nInvestment in, and Advances to, Crown Corporations  32\nInvestments, Other.  3 2\nFixed Assets  3 2\nD. Special Purpose Funds  34\nHousing Fund  34\nLottery Fund  35\nProvincial Home Acquisition Fund  36\nProvincial Transit Fund  36\nE. Superannuation Funds  3 8\nF. Trust Funds  39\nCourts  39\nPublic Trustee.  39\n9. Guaranteed Debt  40\n10. Revenue  42\n11. Ministries  43\nMinistry of Consumer and Corporate Affairs\u2014\nLiquor Distribution Branch  43\n 6 REPORT OF THE AUDITOR GENERAL\nTABLE OF CONTENTS\u2014Continued\nSection Pagb\n11. Ministries\u2014Continued\nMinistry of Education\u2014\nPublic School Insurance  43\nMinistry of Finance\u2014\nTreasury Section  44\nSecurities Section  45\nConsumer Taxation Branch  45\n12. Public Bodies  47\n13. Organization and Activities of the Audit Office  48\nAppendices\nI  Sections of the Auditor General Act Relevant to the Responsibilities of the\nAuditor General  51\nII  Public Bodies of Which the Auditor General was the Appointed Auditor\nas at 31 March 1978  54\nIII Public Bodies, of Which the Auditor General was not the Appointed Auditor, Whose Financial Statements are Included in Section F of the Public\nAccounts .  55\nIV Sections A (pages A 1 to A 12), B and C of the Public Accounts  56\n REPORT OF THE AUDITOR GENERAL\n1    HIGHLIGHTS\nA Personal Overview\nThe Auditor General Act, S.B.C. 1976, chapter 3, imposes three specific\nresponsibilities on the Auditor General in regard to the accounts of the Government\nof the Province.   They are:\n\u2014to examine the accounts and records;\n\u2014to report on the financial statements as presented in accordance with stated\naccounting policies; and\n\u2014to report on the work of the Office, calling attention to anything resulting\nfrom the examination which the Auditor General feels should be brought to\nthe attention of the Legislative Assembly, including certain specified matters\nand others which are discretionary or permitted.\nSection 3 of this Report deals with the nature and extent of the examination\nconducted.\nMy report on the financial statements for the year ended 31 March 1978, which\nhas been printed in the Public Accounts, is reproduced in Section 4 herein.\nThis initial annual report to the Legislative Assembly deals with the background, organization, and activities of my Office. It presents comments and\nobservations, arising from the examination conducted by my staff, which are additional or supplementary to the considerations on which my report on the financial\nstatements is based.\nThe items included have been selected to provide important general information, because of their individual significance, or because they are illustrative of\nparticular situations.\nMajor concerns discussed include:\n\u2014the urgent necessity for revision of financial legislation to meet contemporary needs;\n\u2014the importance of the establishment of, and adherence to, a body of clearly\nstated accounting policies, and improved financial statement presentation to\nremove present deficiencies and ambiguities;\n\u2014the need for correction of serious weaknesses which are evident in the\nsystems of internal control over expenditures; and\n\u2014the significance of the status of substantial debt guaranteed by the Province\nwhich is disclosed only by implication through a note to the financial statements and which, in my opinion, should be included as direct liability of the\nProvince.\nThroughout my examination, excellent co-operation was received from the\nvarious ministry and public body officials, and I wish to express my appreciation to\nthem.\nIt is gratifying to note that correction of some of the weaknesses noted is in\nprogress or is planned. I trust that remedial action will proceed or be undertaken\nwith the least possible delay.\n 8\nREPORT OF THE AUDITOR GENERAL\nThe efforts of my Office will continue to be directed toward meeting, to the\nbest of its capacity, the requirements as to statutory examination, report and\nopinion, and associated obligations in regard to the accounts and statements of\nGovernment and the public bodies of which 1 am the auditor. In addition, I look\nforward to extending the scope of the examinations and studies conducted by my\nOffice to include permissive areas of assessment and report as provided by the Act.\n REPORT OF THE AUDITOR GENERAL\n2    INTRODUCTION\nForeword\n2.1 This is my first Report submitted to the Legislative Assembly of the Province\nof British Columbia in accordance with the provisions of the Auditor General Act,\nS.B.C. 1976, chapter 3. It describes the background and statutory responsibilities\nof my position, presents the required opinion on the financial statements of the\nGovernment, and reports on the work of my Office, as required by that Act. Within\nthe permissive provisions of the Act, I also present initial comments on the basis\nof presentation and disclosure of the financial statements.\nLegislation\n2.2 The Auditor General Act was proclaimed in force on 23 June 1977, with\nthe exception of section 7 and section 21 (e) and (\/). These excepted sections\nwere proclaimed in force on 20 January 1978. Accordingly, my first annual report\nis that required on the financial statements of the Government for the fiscal year\nended 31 March 1978.\nFinancial Statements\n2.3 Financial statements are prepared for the purpose of providing summarized\ninformation as to the financial position of an organization at a given point in time,\nand the results of its financial activities over a specified period. The Public Accounts\nare the medium by which this information is provided for the Province of British\nColumbia.\n2.4 The magnitude of financial operations summarized in the Public Accounts,\nand the special nature of the accountability of governments to the people they\nrepresent, impose a great responsibility on those concerned with the proper maintenance of the records on which they are based and the presentation of the results\nin the most accurate and clearly understandable form possible. This responsibility\nrests with the Comptroller-General who is the chief accounting officer of the\nGovernment. Responsibility for the accounts and financial statements of public\nbodies rests with the management of those bodies. Representations in the financial\nstatements of the Government and of the public bodies are therefore those of the\nGovernment and of the managements of the public bodies.\nFunction of the Auditor General\n2.5 Governments have long felt the need to appoint an officer independent of the\ngovernment of the day and of public officials and employees, to carry out an\nexamination of the public accounts, and report directly to the elected legislative\nentity. The practice is international, and Canada has had an Audit Office since\n1878. All of the provinces have, over the years, established such offices. In 1976\nthe Legislative Assembly enacted the Auditor General Act establishing the position\nof Auditor General for the Province of British Columbia. I was appointed as the\nfirst incumbent under that Act, taking office on 1 September 1977.   I am an officer\n 10 REPORT OF THE AUDITOR GENERAL\nof the Legislature, appointed by the Lieutenant-Governor on the recommendation\nof the Legislative Assembly. By the Act I am independent of the Government,\nand report directly to the Legislative Assembly.\n2.6 One of the primary functions of an auditor is to report on the representations\nmade by management in the financial statements submitted by it to its constituency.\nSuch financial statements are a report by management of its stewardship. In the\ncase of a provincial government, the management is the government of the day.\nThe financial statements are embodied in the Public Accounts submitted to the\nLegislative Assembly.\n2.7 To carry out this function the auditor examines such audit evidence as is\ndeemed appropriate and is available. The examination is conducted in accordance\nwith professionally established generally accepted auditing standards. The Canadian\nInstitute of Chartered Accountants pronounces upon these standards. On the\nbasis of the evidence examined the auditor endeavours to arrive at an opinion as\nto the credibility of management's representations, and to the degree of their\ncompliance with established accounting principles. In most activities other than\nthose of governments, these are known as \"generally accepted accounting principles\". Because generally accepted accounting principles have not been established\nfor governments, it is usual to report on the degree of compliance with stated\naccounting policies.\n2.8 Under early legislation of other government jurisdictions, it was usual to\nrestrict the duties required of legislative auditors to those described in the previous\nparagraph. More recently it has become accepted that they may, or are required\nto, extend their audit functions beyond those traditionally required for the expression\nof an opinion, in order to provide additional information for the improvement of\nfinancial management. The concept has also evolved that legislative auditors may\nor should extend the scope of their work to include assessments of the degree to\nwhich programs are economically and efficiently administered and the appropriateness of the basis of accounting for fair presentation in the Public Accounts. These\nextended duties are included in the areas on which the Auditor General of British\nColumbia may report under the Auditor General Act. Future audits and reports,\nas the capacity of the Office permits, will be directed toward these areas.\n2.9 The text of the sections of the Auditor General Act relevant to the duties\nand responsibilities of the Auditor General is included as Appendix I.\n REPORT OF THE AUDITOR GENERAL\n11\n3 NATURE AND EXTENT OF EXAMINATION\n3.1 The nature and extent of my examination in my initial audit was governed\nby several factors. They included the legislative requirements of the Auditor\nGeneral Act, the size and complexity of the audit entity, the fact that no independent\naudit had previously been performed, time constraints, and availability of staff.\n3.2 In complying with the requirements of the Act, I decided that the verification\nof assets and liabilities, and the assessment of internal controls over revenue and\nexpenditure were essential. These matters were accordingly given the highest\npriority.\n3.3 The size and complexity of the financial operations of the Government are\nreadily apparent. The sections of the Act requiring an opinion on the financial\nstatements for the fiscal year ended 31 March 1978 were proclaimed on 20 January\n1978, at which time my audit staff numbered 20, of whom only six senior staff\nmembers had been with me for more than one month. In addition, the audits of\n19 public bodies had been assigned to my Office in December 1977. These facts\nall combined to limit the extent of audit coverage possible.\n3.4 Initial efforts of my staff were directed toward those functions, within both\nthe Ministry of Finance and the Office of the Comptroller-General, concerned with\nthe collection of revenue, the management and custody of cash and investments,\nand the maintenance of the centralized accounting systems from which the financial\nstatements of the Government are prepared. In addition to assessing the controls\nexercised by these central agencies, my staff reviewed the major complementary\ninternal controls established within the ministries. The central offices of all\nministries were visited, as well as a limited number of regional and district offices.\n3.5 The audit findings, comments, and recommendations contained in this Report\nhave been reviewed and discussed with senior officials of the various ministries\ndirectly involved.\n 12 REPORT OF THE AUDITOR GENERAL\n4    REPORT ON THE FINANCIAL STATEMENTS\nMy report on the financial statements of the Government, required under\nsection 7 of the Auditor General Act, has been included in the Public Accounts for\nthe year ended 31 March 1978.   It reads as follows:\nAUDITOR GENERAL'S REPORT\nTo the Legislative Assembly\nof the Province of British Columbia\nParliament Buildings\nVictoria, British Columbia\nI have examined the financial statements of the Government of the Province\nof British Columbia for the year ended March 31, 1978 as presented in the Public\nAccounts, and the related schedules contained in Sections B and C of the Public\nAccounts.   These statements are:\nStatement of Assets and Liabilities as at March 31, 1978.\nNotes to Financial Statements.\nSummary of Transactions for the Fiscal Year ended March 31, 1978.\nSummary of General Fund Revenues for the Fiscal Year ended March\n31, 1978.\nSummary of General Fund Expenditures for the Fiscal Year ended March\n31, 1978.\nStatement of Source and Application of Funds for the Fiscal Year ended\nMarch 31, 1978.\nThese statements and schedules in my opinion constitute the statements of\nfinancial 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.\nI did not examine and do not express an opinion on:\nStatement of Consolidated Revenue by Major Sources for the fiscal\nyears ended March 31, 1973 through 1978.\nStatement of Consolidated Expenditure by Major Functions for the fiscal\nyears ended March 31, 1973 through 1978.\nThe information contained in these statements is supplementary in nature and not\nan integral part of the financial statements on which I am required to report.\nExcept as explained in the following paragraph, my examination was made in\naccordance with generally accepted auditing standards, and accordingly included\nsuch tests and other procedures as I considered necessary in the circumstances.\nI have received all the information and explanations I have required for the purpose\nof my examination.\nMy Office commenced operations in January 1978, and staff resources and time\navailable for this initial examination were limited. It was not feasible to satisfy\nmyself as to the asset and liability position at the beginning of the 1978 fiscal year\nand, in addition, an independent audit was not performed for the preceding fiscal\nyear. As a result of these conditions the extent of my tests and procedures was\ninsufficient to provide the level of assurance necessary for an unqualified opinion\n REPORT OF THE AUDITOR GENERAL\n13\non the financial statements and on the consistency of the accounting bases followed\nas between the fiscal years 1977 and 1978.\nI have relied upon information furnished by the Consulting Actuary for the\nPublic Service Superannuation Fund and the Teachers' Pensions Fund as to the\naccuracy of Note 4 to the financial statements as presented in the Public Accounts.\nI report in accordance with section 7 of the Auditor General Act. In my\nopinion, except for the effect of any adjustments which might have been indicated\nby a more extensive audit examination, these financial statements present fairly the\nfinancial position of the Government of the Province of British Columbia as at\nMarch 31, 1978 and the results of operations and changes in financial position\nfor the year then ended in accordance with the stated accounting policies as set out\nin Notes 1, 2, 3 and 5 to the financial statements. For the reasons stated, I do not\nexpress an opinion with respect to the consistency of the accounting bases followed\nas between the fiscal years 1977 and 1978, nor on the 1977 comparative figures\npresented in the financial statements.\nIt is emphasized that my opinion above is limited under section 7 of the Act\nto an opinion on presentation of the financial statements in accordance with the\nstated accounting policies of the Government. Under section 8 of the Act I report\nseparately to the Legislative Assembly on other matters. That report, dated\nJanuary 31, 1979, contains a number of comments in regard to accounting policies\nand disclosure. The most important of these comments relates to the treatment in\nthe Government's financial statements of debt of other parties guaranteed by the\nProvince when the debtor appears unable to meet his obligations. This is of\nparticular importance this year in relation to debt of British Columbia Railway\nCompany guaranteed by the Province.\n^^\\_^T^=^f?y7^^7 ''\u2022\nERMA MORRISON, C.A.\nAuditor General\nVictoria, B.C.\nJanuary 31,1979.\n 14\nREPORT OF THE AUDITOR GENERAL\n5    LEGISLATION\n5.1 The two main statutes providing legislative authority and direction for the\nadministration and control of the financial affairs of the Province are the Financial\nControl Act (formerly the Audit Act) and the Revenue Act. Both of these Acts\nare outdated, and fail to recognize changed circumstances or to provide essential\nstatutory definition of duties, responsibilities, and requirements to deal with the\nfinancial activities of the Government in present times and circumstances. The\nprovisions of the Financial Control Act are basically unchanged from those of the\nAudit Act of 1917. No significant amendments of a financial control nature have\nbeen made to the Revenue Act since 1932.\n5.2 Legislation to meet current and anticipated requirements in this critical area\nis urgently needed, and I recommend that action be taken to provide it without\ndelay.\n REPORT OF THE AUDITOR GENERAL\n15\n6    STATED ACCOUNTING POLICIES\n6.1 In expressing my opinion on the financial statements, I am required to report\nwhether they present certain financial information fairly in accordance with the\nstated accounting policies of the Government.\n6.2 The purpose of a formal statement of accounting policies, as an integral part\nof the financial statements, is to provide a clear understanding of the principles and\nmethods used to present the financial information contained in the statements. Due\nto the nature of government accounting, especially when compared to practices\nfollowed in the private sector, the accounting policies stated in the Notes to Financial\nStatements have particular importance to a reader who would wish to have an\nadequate understanding of the Public Accounts.\n6.3 The major accounting policies of the Government are derived from the\nprovisions of various statutes such as the Revenue Act, the Financial Control Act,\nthe Supply Act, and other Acts which stipulate policies and practices to be followed\nin the administration of some Special Purpose Funds. Certain other policies are\nbased on conventional accounting practices, while others are formulated at management's discretion.\n6.4 A clear and concise description of the significant accounting policies is an\nessential element of fair presentation of the financial statements. Inherent in this\nis the understanding that all major accounting practices followed will be subject\nto the stated policies. It should be noted, however, that an adequate description of\nstated accounting policies does not necessarily result in fair presentation of the\nfinancial statements if the policies are not appropriate in the circumstances.\n6.5 The auditor, in commenting on the fairness of presentation of the financial\nstatements, is faced with potential difficulties concerning stated accounting policies.\nThese include:\n\u2014Certain key policies may not be stated, or may not be clear.\n\u2014There may be departures from stated policies.\n\u2014Stated policies may not result in the most appropriate presentation.\n\u2014Changes in accounting policies or major accounting practices, and their\neffects, may not be adequately described in the financial statements.\n6.6 In the course of my examination examples of all of the above-mentioned\ndifficulties were encountered, as described below in this section and elsewhere in\nmy Report.\nPolicies not Stated or Unclear\n6.7    Capital surplus. This account is derived from the recording of the following\nasset accounts which appear in the Statement of Assets and Liabilities:\n\u2014Taxes and other accounts receivable.\n\u2014Loans and other advances.\n\u2014Investment in, and advances to, Crown corporations.\n\u2014Investments, other.\n\u2014Fixed assets.\n 16 REPORT OF THE AUDITOR GENERAL\nThere is no statement of policy concerning the bases upon which assets are included\nin Capital Surplus, or how certain transactions affecting Capital Surplus are to be\nhandled.\n6.8 Funds. Policies concerning the treatment of Funds and fund divisions in\nthe financial statements are unclear in that they do not adequately disclose the\naccounting practice followed with respect to pooling of cash and short-term investments.   Further details are contained in Section 8A of this Report.\n6.9 Other current liabilities. Although there is a stated policy of accounting\nfor revenues and expenditures on a cash basis (with certain major modifications),\nit does not clearly disclose the accounting treatment of some substantial current\nliability items.\nDepartures From Stated Policies\n6.10 Liquor Distribution Branch. Budgetary Revenue of the Province includes net profits of this Branch. These profits are calculated on a full accrual\nbasis, which does not conform to the stated policy of accounting for Provincial\nrevenue on a cash basis. In my opinion, the accrual basis is appropriate for this\nparticular operation. However, attention should be drawn in the Notes to Financial\nStatements to this modification of the general policy.\nPolicies not Resulting in Appropriate Presentation\n6.11 Loans and other advances. Appropriate allowances for losses are not\nprovided in all cases where realization is considered doubtful, and the extent of\nloss reasonably determinable.\n6.12 Investment in, and advances to, Crown corporations. This classification, shown at cost in accordance with stated policy, does not reflect long-term\ndiminution of value of certain major investments.\nChanges in Policies and Practices\n6.13 Major changes in cost allocations. As a result of significant changes\narising from the establishment of the British Columbia Buildings Corporation,\nbuilding occupancy charges formerly reported as expenditures of the Ministry of\nHighways and Public Works are now being reported as expenditures of individual\nuser ministries. The effect of this change on the financial statements should have\nbeen disclosed.\n6.14 \/ consider that deficiencies and ambiguities in the content and application\nof stated accounting policies are sufficiently serious to warrant a thorough study of\nthe Government's accounting policies and financial statement presentation.\n REPORT OF THE AUDITOR GENERAL\n7    INTERNAL CONTROL OVER EXPENDITURES\n17\n7.1 In the fiscal year ended 31 March 1978, the Provincial Government reported\nGeneral Fund expenditures of approximately $4,000 million. The total movement\nof moneys through this and other Funds under the administration of the Government in the course of the year was estimated to be at least three times this figure.\nThe Government is a large and complex entity, consisting of 18 ministries and\nhundreds of responsibility centres.\n7.2 In these circumstances it is essential that there be reliable internal controls\nto ensure the safeguarding of assets, the reliability of accounting records, and the\npresentation of accurate financial information.\n7.3 My staff conducted a study and evaluation of the internal controls over\ngeneral disbursements and payrolls. Although certain basic controls were found\nto be in place in the Comptroller-General's office and in the ministries, in my\nopinion they were not sufficient to achieve adequate control. Principal matters\nof concern, detailed later in this section, are summarized hereunder:\n\u2014Policies, directives, and guidelines in the area of financial management and\ncontrol are not clearly defined, nor effectively communicated to individuals\nconcerned,   (paragraph 7.6)\n\u2014Delegation of authority in the disbursement process lacks definition and\nregulation, and is inadequately documented,    (paragraphs 7.7 to 7.9)\n\u2014Organizations have not adequately segregated duties of individuals for\npurposes of better control,    (paragraph 7.10)\n\u2014Batch processing controls of documents and other vital controls are seldom\nutilized,    (paragraphs 7.11 to 7.13)\n\u2014Financial reports from the Office of the Comptroller-General were not\neffectively used by most ministries, thus negating the control features\ninherent in the reports,    (paragraph 7.14)\n\u2014There has been no audit of expenditures by the Internal Audit Division of\nthe Comptroller-General's office,    (paragraph 7.15)\n\u2014The payroll system is inadequate,    (paragraphs 7.16 to 7.20)\n\u2014Payroll bank accounts have not been reconciled on a regular or frequent\nbasis,   (paragraph 7.19)\n7.4 Based on these findings, I am of the opinion that the system of internal control over the disbursement of Provincial funds fails to meet generally recognized\nstandards. I recommend that corrective action to bring controls to an adequate\nlevel be given high priority.\n7.5 My findings in this regard are described in further detail in the balance of\nthis section. Future audits will continue to evaluate the internal controls as to\ntheir adequacy and effectiveness.\n 18\nREPORT OF THE AUDITOR GENERAL\nGeneral Disbursements\n7.6 Policies, directives, and guidelines. Since the Government is a large,\ndecentralized organization it is vital that financial control policies be clearly defined\nand that related directives and guidelines be effectively communicated to all those\nconcerned. To accomplish this there should be clear, concise direction through\nreadily available financial control manuals. There are no such manuals in use.\nDirectives on accounting matters from the Office of the Comptroller-General are\nusually contained in Audit Memoranda. Treasury Board matters of general interest\nare published in Treasury Board Directives. These documents are not appropriately\nclassified and indexed, and cover only a limited range of financial control subjects.\n7.7 Delegation of authority. Proper delegation of authority, clearly documented, is necessary to ensure that only those individuals who have been specifically\nauthorized to do so may be involved in the acquisition of goods and services, and\npayment therefor. Approval by these individuals is the evidence the Office of the\nComptroller-General relies on in processing vouchers for payment. From these\nsignatures it is assumed that procedures for receiving goods or services have been\nobserved and that the terms of purchase were complied with. Limitation of the\nnumber of such persons and their level of responsibility provides a key control in\nlarge, decentralized systems.\n7.8 From my examination it appears that there is no standard basis for delegating\nauthority, and no standard format for recording such delegation. Some ministries\nhave no documented evidence of delegation, while in others, delegation instruments\nindicate little discrimination in determining the types or amounts of payments which\nmay be authorized by various individuals. As a result, some documents may be\npassed for payment, even for substantial amounts, on the signature of junior\nemployees. Often the types or amounts of expenditures which an individual may\napprove are not restricted, permitting staff members to be involved with transactions inconsistent with their knowledge and level of responsibility.\n7.9 The function of the Voucher Processing Section of the Comptroller-General's\noffice is to evaluate the propriety of all transactions by review and approval prior\nto payment. For the year under review, the Voucher Processing Section had no\nsystematic and reliable method of ensuring that the signatures on vouchers were\nthose of persons to whom approval authority had been delegated. Vouchers were\noften passed for payment on the basis of personal knowledge of previous transactions.   Few signature cards or similar documents were on file.\n7.10 Segregation of duties. Segregation of duties is a method of control\nemployed to reduce risk of fraud and to detect errors. A purchases\/payables\/\npayments system should be designed so that the same individuals do not participate\nin both purchasing or receiving goods and services, and accounting for them. My\nstaff found that in many branch offices of ministries the same individuals initiated\npurchases, received goods or services, and approved payment therefor. In some\nsmaller offices the lack of segregation of duties was unavoidable because of limited\nstaff numbers. However, in many cases where segregation could have been\nachieved, this control feature has not been recognized in establishing procedures.\n REPORT OF THE AUDITOR GENERAL\n19\n7.11 Batch processing controls. Batch processing is a system of grouping\nand controlling documents in order to ensure that all data transferred to another\nlocation or submitted for processing is actually received and is complete. Control\ninformation determined by the source location prior to processing is reconciled\nwith information received after processing to ensure its completeness and accuracy.\n7.12 In those ministries with decentralized accounting authority, documents\noriginating from numerous field locations are usually sent directly to the\nComptroller-General's office for processing. This compounds the control problem,\nin that these documents have not been subject to review by a central accounting\nauthority within the ministry.\n7.13 In most ministries little attempt is made to ensure that all data is controlled\nfrom one step to the next. Within the Comptroller-General's office no batch controls are implemented until immediately before the data is to be processed by the\ncomputer. Data could be lost, changed, or removed during the numerous processes\nbefore this point. In addition, as discussed more fully later, there is limited user\nreview of output. Without data controls or detailed user review of output there\nis no assurance that incomplete, inaccurate, or unauthorized data will be detected.\n7.14 Timely and meaningful reports. Reports supplying information as to\nactual disbursements processed are issued to the various ministries by the Comptroller-General's office. Normally such reports would be reconciled to approved\ndisbursements by the originating offices in order to ensure that the reports received\naccurately reflect expenditures for which each office is responsible. Many ministries,\nhowever, have stopped using these reports, preferring instead to rely on their own\ninternally developed reports which frequently are not reconciled to those issued\ncentrally. This reliance on internally generated information means that the ministries do not check the financial data reported by the Comptroller-General's office,\nthus negating an important check on the basic accuracy of the central accounting\nsystem.\n7.15 Internal audit. There is an Internal Audit Division in the Office of the\nComptroller-General. During the period of our review this Division performed\nno audits of expenditures due to commitments to revenue, statutory, and other\naudit matters. I consider that internal audit of expenditure is essential for adequate\ninternal control.\nPayrolls\n7.16 Payrolls are prepared through a centralized computer and manual system\ninstalled essentially in 1966 when there were approximately 25,000 employees on\nthe Government payroll. At that time there were no collective agreements, and\ntherefore no accommodation for the peculiarities of specific contracts was required.\nCompensation plans were simple enough to allow all salaried and hourly employees\nto be paid through the same system.\n 20 REPORT OF THE AUDITOR GENERAL\n7.17 Since 1966, major changes have occurred in the Government's relationships with its employees. Compensation plans have become complicated, and in\n1978 the Government was party to some 30 collective agreements. Remuneration\nof approximately 50,000 individuals is processed through the payroll system.\nMany alterations have been made to both the computer and manual systems to\ndeal with the changing requirements. A project to completely redesign and\nmodernize the system to deal with current circumstances is now in progress.\n7.18 During the year under review, it was evident that the total payroll system\nwas under considerable stress, in both the computer and manual environments.\nPressures on staff to produce payrolls and deliver cheques to employees on a timely\nbasis have resulted in a weakening of those controls necessary to prevent errors\nand irregularities, and those established to ensure that delegated responsibilities\nare properly discharged.\n7.19 Although some improvements were made during the year, the present\npayroll procedures do not ensure sufficient control over these expenditures, nor\ncan they be relied upon in the future to pay employees on a timely basis. Key\ncontrols which were found to be ineffective or nonexistent include:\n\u2014As at 31 March 1978, the payroll bank account had not been reconciled\nbeyond 31 August 1977.\n\u2014Batch controls over documents which transfer key payroll information to,\nthrough, and from the central pay office, the data centre, and numerous\nlocations throughout the Province, are often lacking. This constitutes a\nconstant risk that data may be mislaid or changed, or that unauthorized\ndata may be entered into the processing system.\n\u2014Responsibilities for the payroll payment process are not effectively segregated from the responsibilities for maintenance of employee data. Procedures should be designed so that individuals who are able to initiate\nchanges to employee data should not prepare or process the payroll, handle\ncheques, or distribute them to employees. This is particularly important in\na computer environment.\n7.20 The serious problems inherent in the payroll system have been recognized\nby the Comptroller-General. As mentioned earlier, some improvements have\nalready been made. Although efforts should be continued to strengthen controls\nwithin the existing system, the total system redesign project should be given\npriority.\nFinancial Management Reporting System\n7.21 In order to properly manage their ministries, senior officials need adequate\nfinancial information. The Province's financial information systems were originally\ndeveloped primarily to meet legislative requirements, particularly those of the\nFinancial Control Act. Section 13 of that Act requires that the accounts show the\nstanding of all legislative appropriations at all times.\n REPORT OF THE AUDITOR GENERAL\n21\n7.22 The necessity for additional information was recognized some time ago,\nand a Financial Management Reporting System was introduced in 1975. This\nsystem reports budgets to the lowest level of program and responsibility centre,\nand produces monthly reports of actual expenditures and a comparison with budget.\n7.23 Few ministries are using the Financial Management Reporting System\neffectively. In at least one large ministry, a parallel system, which includes commitment reporting, has been designed and implemented. In other ministries\nsystems have been set up, or are contemplated, to overcome the shortcomings of\nthe present system. This clearly indicates a pressing need for improvements in\nthe management information systems.\n 22 REPORT OF THE AUDITOR GENERAL\nSTATEMENT OF ASSETS AND LIABILITIES\n8A    Fund Accounts\n8A.1 The Statement of Assets and Liabilities shows four fund divisions accounted\nfor by the Government, namely:\n\u2014General Fund.\n\u2014Special Purpose Funds.\n\u2014Superannuation Funds.\n\u2014Trust Funds.\n8A.2 General Fund. This fund reflects all revenues and expenditures of a\ngeneral operating nature, as well as certain nonbudgetary transactions. The net\nassets of the General Fund are equal to Revenue Surplus and Capital Surplus\ncombined, which represent the balance of the fund.\n8A.3 Special Purpose Funds. These funds are set aside or earmarked by\nlegislation for specific purposes. They are not available for the general operations\nof the Government.\n8A.4 Superannuation Funds and Trust Funds. These funds are administered\nby the Government in its fiduciary capacity. They are not available for the general\noperating or special purposes of the Government, but are held in trust.\nFund Accounting Procedures\n8A.5 For accounting purposes, a fund is defined as a self-balancing entity with\nits own assets on the one hand, offset by liabilities and a fund balance on the other.\nThe presentation of funds in the financial statements of the Province suggests that\nthe individual funds are accounted for in this manner. In fact, only the assets of\nthe Sinking Funds, which form part of Trust Funds, are permanently separated\nfrom those of the other funds. On a day-to-day operating basis, cash and temporary\ninvestments of all other funds are intermingled. It is only at a financial statement\ndate that completely balanced positions are achieved by an accounting entry\nallocating cash and investments from the General Fund to the Special Purpose,\nSuperannuation, and Trust Funds.\n8A.6 It is clear that the present method of accounting for the funds does not\nmeet the generally recognized procedures of fund accounting. Superannuation\nand Trust Funds are, by their nature, distinctly separate from the other funds\nadministered by the Government, and it would be preferable that their assets be\nsegregated from those of the other funds at all times.\nSAT The fact that cash and short-term investments of all funds are pooled during\nthe year should have been clearly described in the stated accounting policies,\ntogether with an explanation of the bases used to allocate interest income among\nthe funds.\n REPORT OF THE AUDITOR GENERAL\n23\nSTATEMENT OF ASSETS AND LIABILITIES\n8B     General Fund\u2014Revenue Surplus Section\n8B.1    The assets and liabilities comprising the Revenue Surplus Section of the\nStatement of Assets and Liabilities are:\nAssets:\n\u2014Cash.\n\u2014Temporary investments.\n\u2014Accounts receivable from other governments and agencies.\n\u2014Working capital advances.\nLiabilities:\n\u2014Outstanding cheques.\n\u2014Accounts payable.\n\u2014Other current liabilities.\n\u2014Unmatured debt.\nI comment more fully on certain of these items in the following paragraphs.\n8B.2 It will be noted throughout the balance of this Report that references are\nmade to specific sections and pages of the Public Accounts. For example, the\nStatement of Assets and Liabilities as at March 31, 1978, would be referenced for\nconvenience as (PA A 2 and A 3). Sections A (pages A 1 to A 12), B and C of\nthe Public Accounts are included as Appendix IV to this Report.\nCash\n8B.3 Cash comprises a number of Government bank accounts for which the\nTreasury Section of the Ministry of Finance has general responsibility. The following matters regarding bank accounts were noted.\n8B.4 Bank reconciliations. The Financial Control Act requires the Comptroller-General to prepare monthly reconciliations of bank accounts operated by\nthe Treasury Section. My staff observed that monthly reconciliations were not\nperformed regularly during the year, thus making it difficult, if not impossible, to\nreconcile some accounts at the year-end date. As at 31 March 1978, the payroll\nbank account had not been reconciled beyond 31 August 1977. A number of\nother accounts contained long-standing unreconciled or unexplained differences.\nWhile none of these was substantial in amount, their existence gives cause for\nconcern. I am advised at the date of this Report that the bank reconciliations\nhave been brought up-to-date.\n8B.5 Authorization of bank accounts. The Revenue Act states that \"all\npublic moneys . . . shall be paid to the credit of the Minister of Finance,\nthrough such banks or persons as the Minister of Finance may . . . direct and\nappoint.\" Within the Ministry of Finance the Treasury Section keeps a list of\nauthorized bank accounts. This list is inaccurate in that various changes to the\noriginal banking arrangements, such as signing authorities, have not been updated,\nand it is incomplete in that there are various Government bank accounts which\nare not listed.\n 24\nREPORT OF THE AUDITOR GENERAL\n8B.6 In view of my comments in Section 7 of this Report concerning internal\ncontrol weaknesses, and the risks inherent in the control and management of cash\nresources, I strongly urge that bank reconciliations and authorizations be maintained on a current basis in the future.\nAccounts Receivable From Other Governments and Agencies\n8B.7 The Notes to Financial Statements state that the accounts of the General\nFund are maintained on a cash basis whereby revenues are taken into the accounts\nin the fiscal period in which they are received. A major modification to this policy\nis described in Note l.A. (a) as follows:\n\"Moneys received in April of the next following year pertaining to cost-\nsharing programs with other governments (principally the Government of\nCanada), and for which the relative program expenditures have been charged\nto the current year, are included in revenues and shown as accounts receivable\nin the statement of assets and liabilities.\"\n8B.8 My examination disclosed that this policy was not fully complied with.\nCash received subsequent to 30 April 1978 amounting to $1,251,657 and returned\ncheques not cleared at that date amounting to $797,134 were included in the\namount shown as receivable from sundry agencies and miscellaneous accounts as\nat 31 March 1978.\n8B.9 The returned cheques referred to consist mainly of NSF cheques, a few\nof which date back to 1970. Items such as these that are considered uncollectible\nshould be deleted from the accounts.\nWorking Capital Advances\n8B.10 Liquor Distribution Branch. The Working Capital Advance of\n$4,030,606 represents the excess of assets over liabilities in the accounts of the\nLiquor Distribution Branch. These are determined on the accrual basis and therefore contain certain assets and liabilities which would not normally have been\nincluded in the accounts of the Province.\n8B.11 Further reference to, and recommendations regarding this Branch are\ncontained in Sections 6 and 11 of this Report.\n8B.12    Queen's Printer.   The operations of the Queen's Printer are governed\nby the Public Printing Act, which states in section 11 (1):\n\"The Queen's Printer shall prepare a statement of accounts made up to the\nthirty-first day of March in each year and at such other times as the Minister\nmay direct, and shall submit the same to the Comptroller-General for his\ncertification.\"\n8B.13 Although annual statements have been prepared, they have not been\ncertified by the Comptroller-General in recent years. My staff was informed that\nthe accounting system was not considered sufficiently reliable to support certification\nof the statements.\n REPORT OF THE AUDITOR GENERAL\n25\n8B.14 The major portion of this advance, for which funds are provided from\nthe Consolidated Revenue Fund, consists of inventories of material and supplies\nwhich are normally in excess of $1 million. As at 31 March 1978 it was stated\nto be approximately $1.2 million. At that date members of my staff attended the\nphysical stocktaking and performed the audit tests normal to such procedure. The\nfollowing deficiencies were noted:\n\u2014lack of documented procedures to ensure completeness and accuracy of\nthe physical stock count;\n\u2014failure to maintain perpetual inventory records to provide control over the\nmaterial and supplies, work in process and finished goods included in\ninventory; and\n\u2014lack of clear pricing policy to support assigned inventory values.\n8B.15 I am informed that some attempts were made since 1976 to redesign the\naccounting system and to install perpetual inventory records, but that no such work\nis now in progress. Steps should be taken, without further delay, to remedy the\nexisting deficiencies by instituting systems and procedures to provide accurate\ninformation for both management and reporting purposes.\nOther Current Liabilities\n8B.16 This general classification contains a wide variety of accounts of a\nliability or suspense nature arising from various types of transactions, and affecting\npractically all ministries. The following matters were observed in the course of\nmy examination.\n8B.17 Stated accounting policies. Although there is a stated policy of\naccounting for revenues and expenditures on a cash basis (with certain major\nmodifications), it does not clearly disclose the policy followed with respect to the\nfollowing current liability items:\n\u2014Holdbacks on construction contracts amounting to $10,022,267 were\ncharged to expenditures of the 1978 fiscal year. The actual cash disbursements were made in the following fiscal year. Although this is a commonly\naccepted practice, it is a departure from the stated policy of accounting.\n\u2014Revenue from the sale or lease of Crown lands is only recorded when the\nCrown grant transferring title or granting a lease is made. As a result of this\npractice, approximately $2.7 million received prior to 31 March 1978 was\ndeferred, instead of being recorded in revenue as implied in the stated\npolicy. While this procedure may be technically correct, the opposite\ntreatment is used when property is acquired by the Province.\n8B.18 Suspense accounts. The accounts in this category totalled $13,578,159\nas at 31 March 1978. By their very nature, suspense accounts tend to be catchalls\nfor transactions awaiting completion or clarification. Accordingly, it is important\nthat control be maintained over these accounts by the ministries and the Office\nof the Comptroller-General through a process of regular account reconciliations and\ndisposition of outstanding items.   I am concerned about the following matters:\n 26 REPORT OF THE AUDITOR GENERAL\n\u2014Many suspense accounts have not been reconciled or cleared for some time.\nIn some cases a lack of adequate subsidiary records precludes any form of\nreconciliation.\n\u2014The suspense account maintained by the Ministry of Forests ($4,925,504\nas at 31 March 1978) is supported by subsidiary records maintained in\nDistrict Offices. Monthly reconciliations of these records to central control\naccounts have not been thoroughly reviewed at ministry headquarters and,\nas a result, the accounts contain numerous old balances which should be\nadjusted or eliminated.\n\u2014Suspense accounts incorrectly include $1,002,540 receivable from the British\nColumbia Ferry Corporation for payroll taxes paid on its behalf. This\nbalance should have been shown in current assets as receivable from the\nCorporation.\n\u2014As at 31 March 1978, the Rights-of-Way\u2014Highways account included\n$96,164 which represented duplicate charges to the appropriations. These\ncharges arose from failure to adjust the accounts for cheques issued and\nsubsequently redeposited.\n8B.19 Guarantee and performance deposits. As a condition of contracting\nwith the Government, or engaging in certain businesses, contractors and licensees\nare often required to deposit cash or securities which are held by the Government\nas a guarantee of performance. If the deposit is in cash it is recorded in Other\nCurrent Liabilities. If, however, the depositor offers a negotiable security as a\ndeposit it is not recorded in the Provincial accounts, but is noted in memorandum\nrecords only as the property of the depositor.\n8B.20 During my staff's examination it was noted that effective control is not\nalways maintained over securities lodged as deposits. In one instance a security\nwith $5,000 face value could not be located in the files of one ministry for over\na year. In order to meet the Government's fiduciary responsibility for the safekeeping of such property, I recommend that all securities held as deposits be under\nthe direct supervision and record keeping of the Securities Section in the Ministry\nof Finance.\nRevenue Surplus\nSB.21 The excess of assets over liabilities of the General Fund is presented\nin two sections in the Statement of Assets and Liabilities. The first of these sections\ndeals with surplus and deficit resulting from operational revenues and expenditures,\nand the second with Capital Surplus. This discussion is related to the first section.\nSurplus is the balance of revenue less expenditure accumulated to the financial\nstatement date. If accumulated expenditure exceeds accumulated revenue the\nresult is a deficit.\n8B.22 The Statement of Assets and Liabilities presents both a surplus and a\ndeficit. The revenue surplus of $216,618,708 is the accumulated excess of revenue\nover expenditure during the period 1 April 1976 to 31 March 1978. The deficit\nof $261,447,790 was accumulated prior to 1 April 1976.\n REPORT OF THE AUDITOR GENERAL\n27\n8B.23 The net result of the above balances in the accounts of the Province is\na deficit of $44,829,082, which appears as an untitled amount in the Statement of\nAssets and Liabilities.\nSB.24 I do not consider that the presentation in the financial statements achieves\nthe most appropriate disclosure of the deficit in the Province's accounts at 31 March\n1978. The balance of $44,829,082 should be identified as \"Deficit\" in the Statement of Assets and Liabilities, and the balance of $216,618,708 in Revenue Surplus\nAccount in the Summary of Transactions (PA A9) should be clearly shown to be\n\"for the period 1 April 1976 to 31 March 1978\".\n8B.25 Subsequent event. The Revenue Surplus of 1976-77 Appropriation\nAct, 1978 referred to in Note 8 to the financial statements was passed subsequent\nto the 1978 fiscal year end; consequently it did not affect the financial statements\nfor that year.\n 28 REPORT OF THE AUDITOR GENERAL\nSTATEMENT OF ASSETS AND LIABILITIES\n8C     General Fund\u2014Capital Surplus Section\nCapital Surplus\n8C.1 Capital Surplus is derived from the recording of certain assets in the\nProvincial accounts.   These assets are basically of four kinds:\n\u2014taxes receivable, not treated as revenue until received in cash;\n\u2014other accounts receivable, which generally record recoverable amounts\npreviously expended from the Consolidated Revenue Fund;\n\u2014long-term investments, loans, and advances arising out of expenditures\nfrom the Consolidated Revenue Fund; and\n\u2014fixed assets, adjusted each year to reflect certain additional expenditures\nout of the Consolidated Revenue Fund, and depreciation.\n8C.2 Certain of these assets are commented on in this section of my Report.\nAs stated in the Notes to Financial Statements these assets are recorded \"for purposes of record only\". It should be noted that no cash transactions would be\ninvolved in any of the adjustments recommended.\n8C.3 Because there is no precise description or definition of Capital Surplus,\nassets in this category have been included on traditional and often arbitrary bases.\nI therefore recommend that, in order to present Capital Surplus fairly, the stated\naccounting policies concerning this account be more clearly defined both as to\npurpose and content.\n8C.4 Fixed assets comprise the largest part of Capital Surplus assets. It should\nbe noted, however, that the amounts shown do not include the whole of the\nProvince's equity in its fixed assets. Land, buildings acquired by ministries other\nthan Highways and Public Works, machinery and equipment, motor-vehicles, and\nfurnishings and equipment acquired through Government expenditures have not\nbeen accounted for as fixed assets, or presented as such in the financial statements.\nI comment further in this regard in paragraphs 8C.26 to 8C.31.\n8C.5 In general, Capital Surplus assets result from expenditures out of the\nRevenue Surplus section of the General Fund. Fixed assets such as highways,\nbridges, etc., are acquired through annual expenditures from appropriated moneys.\nSimilarly, amounts invested in or advanced to Crown corporations, public bodies,\nand other entities are provided from either annual or special legislative appropriations. The balance of the Capital Surplus assets (taxes receivable) represents\nuncollected revenue amounts pertaining to current and prior years which will be\nrecorded as budgetary revenue when received in cash.\n8C.6 The analysis of changes in Capital Surplus presented in the financial statements (PA B8) does not, I believe, provide sufficient information about significant\ntransactions. Since these transactions often include the sale or transfer of major\nProvincial assets, I consider it desirable that the related elements of each transaction\nbe grouped so that the net results are clearly shown. A suggested alternative is\npresented in the following schedule.\n REPORT OF THE AUDITOR GENERAL\n29\nAnalysis of Changes in Capital Surplus During the Year Ended\n31 March 1978\nINCREASES\nAssets acquired from budgetary  and nonbudgetary expenditures\nof the year:\nFixed assets\t\n$\nInvestments in and advances to Crown corporations, and other\nloans and advances:\nOcean Falls Corporation  2,000,000\nT.S. Holdings Ltd. __   13,767\nSwan Valley Foods Ltd. (shares)   7,631,250\nSundry loans and advances\u2014net of repayments  6,616,320\nShares in Canadian Cellulose Company Ltd., held as temporary\ninvestments \t\nTotal\nIncrease in taxes and other accounts receivable\t\nDividend paid by British Columbia Cellulose Company in shares\nof various companies     19,849,421\nLess advances written off     14,355,123\nAdditional shares of Swan Valley Foods Ltd., acquired for waiver\nof interest on advances \t\nBritish Columbia Resources Investment Corporation shares and\npromissory note, received for Crown assets and rights transferred   151,532,935\nLess book value of assets transferred    54,794,369\nTotal increases during the year .\n262,089,693\n16,261,337\n1,824,942\n280,175,972\n20,677,857\n5,494,298\n251,000\n96,738,566\n403,337,693\nDECREASES\nDepreciation provided on fixed assets\t\nWrite-off of fixed assets transferred to British Columbia Buildings\nCorporation:\nNet book value of assets transferred\t\nLess consideration received\u2014promissory note\t\nInstalment payment received on British Columbia Buildings Corporation promissory note, recorded as budgetary revenue of the\nyear \t\nWrite-off of Swan Valley Foods Ltd.  investment and advances:\nBook value of shares\t\nAdvances \t\nLess consideration received\u2014\nPromissory note\n297,211,290\n143,570,934\nBalance of cash held in trust\t\nDebenture (face value $1,500,000)\n8,307,751\n4,440,616\n12,748,367\n2,000,000\n161,452\n1\n2,161,453\n9,812,082\n153,640,356\n10,000,000\n10,586,914\n 30 REPORT OF THE AUDITOR GENERAL\nAnalysis of Changes in Capital Surplus During the Year Ended\n31 March 1978\u2014Continued\nDECREASES\u2014Continued\nRepayment of advances received from British Columbia Harbours\nBoard, recorded as nonbudgetary revenue of the year\t\nWrite-off of investment in Crown Development Corporation\t\nTotal decreases during the year\t\n2,000,000\n1,000\n186,040,352\nNet increase during the year j    217,297,341\nBalance of Capital Surplus\u201431 March 1977 1 2,524,103,353\nBalance of Capital Surplus\u201431 March 1978 2,741,400,694\nTaxes and Other Accounts Receivable\n8C.7 The note regarding this item (PA B3) states: \"These accounts are included\nfor record purposes only. The amounts are not taken into revenue until received\nin cash.\" This practice results in annual adjustments of these accounts being made\nto Capital Surplus; neither Net Revenue for the year nor the Revenue Surplus\naccount is affected. Nevertheless, these asset accounts should reflect the best\navailable estimate of the amounts receivable.\n8C.8 My examination indicates that a more accurate statement of receivables\nwould have been presented had the following items been recognized in the accounts\nas at 31 March 1978.\n8C.9 Timber royalties and stumpage and grazing fees. These accounts\nreceivable represent unpaid billings as at 31 March 1978. My staff has estimated\nthat an amount of $43 million could reasonably have been added to this receivable,\nrepresenting timber scalings made in March 1978 and prior months which had not\nbeen billed as at 31 March 1978. Had billings been made on a current basis, it is\nestimated that $26 million of the above amount would probably have been collected\nand included as revenue in the 1978 fiscal year. Further details in this regard\nappear in Section 10 of this Report.\n8C.10 Other allowances and adjustments. No provision was made for\nestimated doubtful accounts receivable of $6.2 million, nor have adjustments been\nmade for errors noted by my staff which totalled approximately $1.4 million and\naffected various accounts included in this category.\nLoans and Other Advances\n8C.11 The note to this item (PA B3) states: \"These assets are carried at book\nvalue, as the amount of ultimate realization cannot be determined at this date.\"\n8C.12 The loan of $1,592,876 to Southern Okanagan Lands Project has been\nfully provided for by a \"reserve for losses on realization\". I consider that further\nprovisions for losses are required as described in the following paragraphs. To the\nextent that provision has not been made, these assets and, by reflection, Capital\nSurplus are overstated as at 31 March 1978.\n REPORT OF THE AUDITOR GENERAL\n31\n8C.13 Ministry of Economic Development Act. In December 1975, under\nauthority of this Act, advances to a borrower totalling $2,500,000 were approved.\nThe terms of repayment called for an instalment of $100,000 on or before 31 March\n1977, and thereafter, on each succeeding 31 March, a payment of $300,000 or 50\nper cent of the net cash flow from operations, whichever is greater.\n8C.14 As at 31 March 1978, no payments had been received by the Province,\nand my staff has not been able to find any agreements or authority for delaying\nrepayment. Steps should be taken either to enforce the terms of this loan agreement or to obtain authorization for deferral.\n8C.15 Farm Products Industry Improvement Act. As part of the transactions encompassed in the sale of Swan Valley Foods Ltd., Creston Valley Foods\nLtd. purchased from Swan Valley its plant and processing equipment at Creston,\nand issued a debenture for $1,500,000 in payment. Swan Valley Foods Ltd. subsequently assigned this debenture to the Province. It is included in Loans and\nOther Advances at the nominal value of $1. I have not been able to determine the\nauthority for this reduction to the nominal amount. Section 25 (2) of the Revenue\nAct requires approval by the Lieutenant-Governor in Council to write off assets in\nexcess of $200.\n8C.16 Pacific North Coast Native Co-operative Loan Act. Loans totalling\n$5,500,000 were authorized by the above Act to be made to the Co-operative.\nA repayment of $10,708 and proceeds of $67,000 from the sale of fixed assets\nhave reduced the loan to the present balance.\n8C.17 The independent auditors' report on the financial statements of the Cooperative for the year ended 30 April 1978 contains the following qualification:\n\"The Co-operative has incurred substantial operating losses and has never\nmade any repayments on its long-term debt. The Co-operative does not have\nsufficient working capital to sustain continued losses and its future depends\nupon its ability to obtain adequate financing and attain profitable operations.\"\n8C.18 In addition, at 31 March 1978, the Co-operative was in arrears for interest\nin the amount of $592,731. Under the circumstances the collectibility of this loan\nis questionable, and appropriate provision should be made.\n8C.19 Provincial Transit Fund. Advances totalling $10,000,000 were made\nto this Fund as nonbudgetary expenditures in the 1977 and 1978 fiscal years. These\nadvances are shown as an amount receivable in the General Fund. Since the\nProvincial Transit Fund (a Special Purpose Fund) is on the cash basis of accounting, no corresponding liability is shown in the fund accounts. Furthermore, it has\nno sources of revenue, other than the General Fund, from which to repay advances.\nAccordingly, I consider that the advance was not, at 31 March 1978, a realizable\nasset of the General Fund.\n8C.20 General. A number of other items were noted as being wholly or partially irrecoverable. Because the individual amounts are not considered to be\nmaterial for purposes of this Report, they are not described in detail. They should,\nhowever, be reviewed and considered for deletion from the accounts or offset by an\nallowance for loss as may seem appropriate in the circumstances.\n 32\nREPORT OF THE AUDITOR GENERAL\nInvestment in, and Advances to, Crown Corporations\n8C.21 British Columbia Railway Company. The financial statements of the\nCompany show accumulated operating losses of $255,913,606 as at 31 December\n1977, and an over-all deficiency of equity of $9,090,706. In view of forecasts from\nvarious responsible sources as to the financial future of the Company, it appears\nthat the value of its shares has been completely eroded.\n8C.22 In the interests of fair presentation, I recommend that this investment,\nconsisting of the entire issued capital stock of the Company in the amount of\n$185,572,900, be written down to a nominal value of $1.\n8C.23 I comment further with respect to debt of the Company in Section 9 of\nthis Report.\nInvestments, Other\n8C.24    British Columbia Resources Investment  Corporation.     As  at  31\nMarch 1978, all issued shares of this Corporation were held in trust for the\nProvince. It seems, therefore, that the promissory note and shares of this Corporation totalling $151,532,935 would be more appropriately included in Investments\nin, and Advances to, Crown Corporations.\n8C.25    Kootenay Dehydrators Ltd.   The Province has an investment of $100,-\n000 in the shares of this Company and has guaranteed its loans to a total of\n$1,952,000. The Company has received interest reimbursement grants from the\nProvince amounting to $27,678 in the 1978 fiscal year and $99,410 subsequently.\n1 have been advised by ministry officials of concerns as to the viability of this\nCompany as a self-supporting enterprise. I therefore recommend reappraisal of\nthe value of this investment and potential loss under the guarantees, with appropriate\naction to reflect these as accurately as possible in the accounts and statements of\nthe Province.\nFixed Assets\n8C.26 Stated accounting policy. The only reference to policy on fixed assets\nis contained in Note 1 to the financial statements which reads, in part: \". . . the\nProvince records certain assets for purposes of record only through credits to Capital\nSurplus Account. These are: ... and fixed assets.\" This fails to address the\nquestions of specific exclusions, basis of valuation, depreciation, or accounting for\nsale or disposal.\n8C.27 In practice, only highways, bridges, wharves, ferries and ferry landings,\nand buildings and furnishings constructed or otherwise acquired by the Ministry\nof Highways and Public Works, and reported by that ministry to the Comptroller-\nGeneral as fixed assets, are included under this account heading.\n8C.28 Assets generally regarded as fixed in nature (including land and buildings),\nbut acquired by other ministries through current appropriations or through Special\nPurpose Funds, are not recorded as fixed assets in the accounts of the Province.\nMy staff was unable to determine, or even to estimate the amount of fixed asset\n REPORT OF THE AUDITOR GENERAL\n33\nacquisitions which have not been recorded in prior years. An indication of the\nextent of this item is provided in the following figures extracted from expenditure\nsummaries for the 1978 fiscal year:\n($ Millions)\nMachinery and equipment  26.7\nMotor-vehicles (transport of personnel)      3.7\nOffice furniture and equipment     3.6\n8C.29 In light of the foregoing comments, steps should be taken to clarify the\nstated policy regarding fixed assets so that it reflects the practices deemed appropriate in the circumstances.\n8C.30 Disposal of fixed assets. Note 3 to the Schedule of Fixed Assets\n(PA B5) states: \"As of March 30, 1978, assets in the amount of $381,571,109\n(at cost) less accumulated depreciation of $84,359,819 were transferred to the\nBritish Columbia Buildings Corporation pursuant to the British Columbia Buildings\nCorporation Act.\"\n8C.31 The adjustment referred to constituted the elimination from the accounts\nof the Province of all asset values for buildings and furnishings, other than those\nidentified as pertaining to the Parliament Buildings, Government House, and the\nGlendale Laundry. Due to the lack of subsidiary records of buildings and furnishings, it was not possible to identify net book values of particular assets transferred,\nor to determine the cost of assets transferred to the British Columbia Buildings\nCorporation which had never been recorded as fixed assets in the accounts of the\nProvince.\n 34 REPORT OF THE AUDITOR GENERAL\nSTATEMENT OF ASSETS AND LIABILITIES\n8D     Special Purpose Funds\n8D.1 Special Purpose Funds are set aside by legislation for specific purposes,\nand are separated from the ordinary operating funds of the Government. They are\nlisted in PA Bl 1.   I comment on certain of these Funds in the following paragraphs.\nHousing Fund\nSD.2 The Housing Fund was established in 1973, pursuant to the Ministry of\nMunicipal Affairs and Housing Act, for the purposes of supervising, acquiring,\ndeveloping, maintaining, improving, and disposing of housing within the Province.\n8D.3 The purposes of the Fund have, to a large extent, been achieved through\ntwo other organizations: the Housing Corporation of British Columbia (HCBC),\na Crown corporation; and the Central Mortgage and Housing Corporation\n(CMHC), a federal agency.\n8D.4 The Housing Fund was administered by the Ministry of Municipal Affairs\nand Housing during the year under review. Due to the Ministry's relationship\nwith HCBC in regard to projects administered by HCBC, the Housing Fund has\nhistorically relied on HCBC billings and project cost allocations for accounting\ndata. For projects undertaken jointly by the Housing Fund and CMHC, CMHC\nhas been the active partner in the majority of projects. As the active partner,\nCMHC is responsible for the administration of the projects, while the Housing\nFund provides a portion of the financing. Included in the agreement with CMHC\nis the right to audit, which has never been exercised.\n8D.5 The assets of the Housing Fund include inventories of real estate under\ndevelopment and mortgages receivable arising from the sale of completed properties. The Housing Fund maintains subsidiary records of the Province's share of\ncosts for federal\/provincial partnership projects. These records were not reconciled\nto the Housing Fund's control account balance of $17,352,865 at 31 March 1978.\nThe Fund's share ($1,917,980) of mortgages receivable under the Rural and\nRemote Housing Program is not supported by Fund subsidiary records. To establish the correctness of these balances it would have been necessary to rely on CMHC\nrecords. At the time of our review the Fund records had not been reconciled with\nthose of CMHC.\n8D.6 As a result of the deficiencies described in the foregoing paragraph, the\nrecords maintained by the Fund for projects administered by HCBC and CMHC\nfail to provide adequate control or complete information. The accounting records\nin general are poorly organized, frequently incomplete, and often do not properly\nrecord the transactions which have taken place.\n8D.7 Errors were noted during my staff's review of the Housing Fund accounts.\nAlthough their adjustment would have resulted in an increase to the Fund balance\nof only $301,000, this represents the net result of several major offsetting transactions.\n REPORT OF THE AUDITOR GENERAL\n35\n8D.8 The Ministry has recognized this situation and significant improvements\nare in progress. Since my audit, meetings have been held by the Ministry with\nCMHC, and the Ministry informs me that it expects better information to be provided\non both partnership projects and Rural and Remote Housing mortgages in the\nfuture.\n8D.9 A further item noted by my staff during the examination of the Housing\nFund concerned expenditures for professional services which required specific\nTreasury Board approval. The Ministry of Municipal Affairs and Housing obtained\nprofessional services from the Housing Corporation of British Columbia. The total\ncost of these services was $256,163, of which $175,322 required Treasury Board\napproval based on the amounts of the individual projects involved. This approval\nwas not obtained. The expenditures were charged as \"office expense\", and \"grants,\ncontributions and subsidies\", rather than being properly classified as \"professional\nservices\".\nLottery Fund\n8D.10 The Lottery Fund was established by authority of section 6 of the\nLotteries Act which states that the Fund is to \"be paid all proceeds from the conduct\nand operation of lotteries by the Province, or jointly with Canada or other provinces,\nor with municipalities, regional districts, and other local government bodies, or\nother persons.\" Sections 6 and 7 of the Act provide for the payment of costs of\nadministration of the Act, and use of the balance for \"cultural or recreational\npurposes or for preserving the cultural heritage of the Province or for any other\npurpose consistent with the objects of the Western Canada Lottery Foundation.\"\n8D.11 The Western Canada Lottery Foundation was granted Supplementary\nLetters Patent on 27 September 1977, expanding the areas for which funds could\nbe used. The expanded areas now include: \"objects of a national, patriotic,\nreligious, philanthropic, charitable, scientific, artistic, social, professional, sporting,\nrecreational, social welfare, civic improvement, educational, environmental or con-\nservational nature, and to purchase, establish, develop, maintain and operate\nfacilities, programs and services used or useful in connection therewith.\"\nSD.12 The Lotteries Branch is divided into two sections. The Licensing Section\nis concerned with the licensing and regulation of all lottery operations in the Province, except the Federal and Provincial government lotteries. The Western Canada\nLottery Foundation Section is responsible for the distribution of and accounting for\ntickets of the Western Express and Provincial lotteries.\n8D.13 Revenue totalling $233,630 earned by the Licensing Section was credited\nto Budgetary Revenue in the 1978 fiscal year, while its operating costs of approximately $150,000 were charged to the Lottery Fund. It would be more appropriate\nand accurate for related revenues and expenditures to be reported through the\nsame fund.\n8D.14 Although the Fund is to \"be paid all proceeds\" in the words of the Act,\nin practice all cash receipts are deposited in the Province's general bank account and\nFund disbursements are made from the same account. The unexpended Fund\nbalance, therefore, appears only as a liability account in the books of the Province.\n 36\nREPORT OF THE AUDITOR GENERAL\n8D.15 This is the only major Special Purpose Fund which is not credited with\ninterest income. The potential income is significant, based on the average Fund\nbalance of approximately $10 million in the 1978 fiscal year. In view of the\nFund's primary revenue source and its stated purposes, it would seem reasonable\nthat the Fund be credited with the interest earned on its unexpended balance.\n8D.16 My staff reviewed the grants made from the Fund during their audit for\nthe fiscal year ended 31 March 1978, with which period this Report is concerned.\nThe purposes for which the grants were designated were consistent with the objects\nof the Western Canada Lottery Foundation.\nProvincial Home Acquisition Fund\n8D.17 The Provincial Home Acquisition Fund was established in 1967. At\n31 March 1978, the Fund balance was $277,133,149, including $242,047,536 in\nmortgages. Approximately 64,000 mortgages have been advanced under three\nActs:\n\u2014The Provincial Home Acquisition Act and the Home Purchase Assistance\nAct provide second mortgages and grants on first-time purchases of homes.\nMortgages under these Acts totalled $224,888,891 at 31 March 1978.\n\u2014The Leasehold and Conversion Mortgage Loan Act provides mortgage\nfunds for building on Crown land or converting single family homes to\nmultiple unit dwellings. Mortgages under this Act amounted to $17,158,645\nat 31 March 1978.\n8D.18 It was noted that no allowance had been made in the accounts for\ndoubtful mortgages. Loans written off as uncollectible totalled $185,352 in the\n1977 fiscal year, and $622,940 in the 1978 year. The Director of the Fund estimates that a reasonable allowance as at 31 March 1978 would have been $3 million\n(1.24 per cent of mortgages receivable). Based on the increasing number of bad\ndebts and foreclosures during the 1978 fiscal year, I believe such a provision should\nhave been made.\nProvincial Transit Fund\n8D.19 This Fund was originally established in 1968 under the Burrard Inlet\n(Third Crossing) Fund Act with a transfer of $27 million from the Consolidated\nRevenue Fund. The enabling legislation is now called the Provincial Transit Fund\nAct (1974) and its purposes are stated as \"purchasing, constructing, equipping, and\noperating such transit facilities or services within the Province as may be required\nunder that Act.\"\n8D.20 The Provincial Transit Fund is unique among the Special Purpose Funds\nwhich acquire long-term assets in that it does not record such assets, as is done by\nthe Housing Fund and the Provincial Home Acquisition Fund. It is used simply\nas an expenditure vehicle. An intimate knowledge of the Public Accounts would\nbe required to determine what assets had been acquired from expenditures of this\nFund. The transit facilities acquired are provided for the use of Crown corporations\nand municipal transit systems at no cost to those entities.\n REPORT OF THE AUDITOR GENERAL 37\n8D.21 Major capital acquisitions of transit facilities made since 1974, largely\nfrom the Provincial Transit Fund supplemented by voted appropriations, were as\nfollows:\nProvincial Transit Fund ($ Millions)\n\u2014Burrard Inlet Ferry System (Sea-Bus)   37.1\n\u2014Transit Fleet  18.1\n55.2\n1977 Appropriations\n\u2014Burrard Inlet Ferry System (Sea-Bus)     7.1\n\u2014Transit Fleet     7.5\n14.6\n8D.22 Advances of $10,000,000 from the General Fund to the Provincial\nTransit Fund are discussed under Loans and Other Advances in Section 8C of this\nReport.\n8D.23 During their review, my staff found two cases of duplicate payments which\nresulted in an understatement of $468,235 of the Fund balance at 31 March 1978.\nThe first involved a cheque for $446,000 in payment of a land purchase which was\nsubsequently replaced with a cheque for a different amount. The original cheque\nremained outstanding and uncashed from October 1977 to October 1978 when the\nerror was discovered and the cheque returned for cancellation. The second instance\nconcerned a duplicate cheque for $22,235 issued in November 1977 which was\ncashed by the payee. When the duplicate payment was found, ministry officials\ncontacted the payee and obtained a reimbursement cheque in November 1978.\n 38\nREPORT OF THE AUDITOR GENERAL\nSTATEMENT OF ASSETS AND LIABILITIES\n8E     Superannuation Funds\n8E.1 In addition to the Public Service Superannuation Fund and the Members\nof the Legislative Assembly Superannuation Account included in the financial\nstatements of the Province, I have audited and reported separately on the following\nsuperannuation and pension funds:\nBritish Columbia Power Commission Superannuation Fund.\nBritish Columbia Railway Company Pension Fund.\nCollege Pension Fund.\nMunicipal Superannuation Fund.\nTeachers' Pensions Fund.\nWorkers' Compensation Board Superannuation Fund.\n REPORT OF THE AUDITOR GENERAL 39\nSTATEMENT OF ASSETS AND LIABILITIES\n8F    Trust Funds\n8F.1 The Government acts in a fiduciary capacity in the safekeeping and administration of certain funds held in trust, as listed in the Schedule of Trust Funds\nBalances (PA B15). During their examination of the individual trust accounts, my\nstaff noted the following matters.\nCourts\n8F.2 There are 92 local court offices throughout the Province which receive, in\ntrust, deposits in connection with various legal proceedings. These deposits are\nusually transferred to the Provincial Treasury where they are recorded as Trust\nFunds. However, certain amounts are retained in local court bank accounts for\ndirect payment to legal recipients in cases where early disposition of the funds is\nexpected. As at 31 March 1978, bank confirmations received by my Office\nshowed $5.8 million on deposit in local court bank accounts. This figure suggests\nthat fairly substantial amounts, held in local accounts, are not reflected in the\ncentral accounting system, nor in Trust Funds reported in the financial statements.\nPublic Trustee\n8F.3 My staff made a preliminary review, but have not yet conducted a detailed\nexamination, of the system and records maintained by the Public Trustee. Based\non this limited review, discussions with ministry officials, and observations contained\nin the Acting Comptroller-General's report on his audit of the accounts and records\nof the Public Trustee for the period from 25 October 1975 to 23 June 1977,1 offer\nthe following comments.\n8F.4 Asset control accounts. The Public Trustee accounts for cash and other\nassets on behalf of Intestate Estates, the Official Committee, and the Official\nGuardian. Only cash is included in the Public Accounts, while other assets such as\njewellery, real estate, automobiles, securities, and personal effects are recorded only\nas memorandum accounts until converted into cash. These noncash assets as at\n31 March 1978 were assigned values totalling $27,095,077 in the records of the\nPublic Trustee. The control account relating to these assets maintained by the\nOffice of the Comptroller-General showed a balance of $59,747,909. The difference between the balances in the two offices was attributed to a breakdown in\nreconciliation procedures caused by data processing problems. While the assets\nand corresponding liability are not reflected in the Public Accounts, steps should be\ntaken to reconcile the accounts and to maintain them on a controlled basis.\n8F.5 Investigative teams. It was noted by the Acting Comptroller-General in\nhis report that single investigators, rather than investigative teams of more than one\nindividual, were being used to inventory and receipt trust assets. This is unsatisfactory from the standpoint of control, as well as being at variance with the\nprocedures prescribed by the Ministry of the Attorney-General.\n 40\nREPORT OF THE AUDITOR GENERAL\n9    GUARANTEED DEBT\n9.1 The Province has undertaken, under the provisions of various Acts, to\nguarantee the repayment of principal and interest on indebtedness incurred by\nothers. As of 31 March 1978, the Schedule of Guaranteed Debt of the Province\nshows guarantees for debts of municipalities and other local governments, Crown\nagencies, and resource enterprises totalling $6,288,180,152 net of sinking funds.\n9.2 The guarantee of debt generally facilitates the borrowing of money, and may\nenable the borrower to obtain funds at a lower cost than would otherwise be\npossible. The possibility always exists that a borrower will be unable to repay a loan\nand the guarantor will be called upon to honour the contingent liability. Should\nthat happen, the contingent liability then becomes the direct obligation of the\nguarantor. Good financial reporting requires that the obligation be recognized as\na liability in the financial statements of the guarantor immediately it is known that\nthe borrower is unable to repay the debt from his own resources. My comments\nin regard to liability of the Province are based on the foregoing criteria.\n9.3 British Columbia Railway Company. As at 31 March 1978, the Public\nAccounts show guaranteed debt of the British Columbia Railway Company in the\nnet amount of $652,760,711.\n9.4 The Royal Commission on the British Columbia Railway, in its report dated\n25 August 1978 concluded, in part, as follows:\n\"BCR has borrowed for many years to meet commitments on earlier borrowings and to cover losses; if this practice continues BCR's loss could exceed\n$600 million annually by the year 2000 and impair the province's credit. We\nrecommend that the present total debt of close to $700 million be removed\nfrom BCR's accounts and assumed directly by the province . . .\".\n9.5 The Railway, in its submission to the Royal Commission, as quoted in Note 6\nto the financial statements of the Province, expressed the opinion that the Railway\ncannot in the foreseeable future expect to earn sufficient moneys to service let alone\nrepay its debt.\n9.6 Considering the present financial position of the Company, and the forecasts\nas to its ability to meet its debt obligations, I am of the opinion that the net debt of\nthe British Columbia Railway Company guaranteed by the Province should be\nrecognized as a direct debt, and recorded as such in the accounts of the Province.\n9.7 Other guaranteed debts. My general comments as to recognition of direct\nliability apply also to certain other smaller debts guaranteed by the Province where\nthe circumstances are such that the debtor cannot reasonably be expected to repay.\n9.8 Calculation of net guaranteed debt. The net outstanding guaranteed debt\nof $6,288,180,152 shown in the Public Accounts comprises $6,913,656,916 gross\noutstanding debt less $625,476,764 in sinking funds. Note 1 to the Schedule of\nGuaranteed Debt (PA B17) states that gross debt would have been increased by\napproximately $169 million had accrued interest been included. The sinking fund\nfigures reported include accrued interest of approximately $11 million.    For the\n REPORT OF THE AUDITOR GENERAL\n41\nsake of consistency, interest should be treated on the same basis in both gross\nguaranteed debt and sinking funds. I consider that this schedule would provide\nbetter disclosure if accruals were used in both cases. This treatment would also be\nconsistent with that used in regard to the Province's direct unmatured debt in the\nStatement of Assets and Liabilities as described in Note 1A (c) to the financial\nstatements.\n 42\nREPORT OF THE AUDITOR GENERAL\n10    REVENUE\n10.1 My examination included a review of the systems of internal control over\nthe collection and recording of major Provincial revenues. In the course of this\nreview it came to my attention that abnormal delays had occurred in the billing of\ntimber royalties and stumpage fees. These delays were attributed to problems\nencountered with a new computerized billing system in the Ministry of Forests.\nAs a result an estimated $26 million of revenue, which otherwise would have been\ncollected in the 1978 fiscal year, was collected and recorded as revenue in the\nfollowing fiscal year.\nJ\n REPORT OF THE AUDITOR GENERAL\n11     MINISTRIES\n43\n11.1 In this section I comment on matters which came to my attention concerning\nspecific ministries of the Government, and which have not been dealt with elsewhere\nin this Report.\nMinistry of Consumer and Corporate Affairs\nLiquor Distribution Branch\n11.2 During the year my staff reviewed the accounts and records of the Branch,\nand its systems and procedures. In general the accounting systems and procedures\nwere found to be inadequate for today's business environment. As a result the\ninformation flowing from them lacked many elements important to management\nfor the purposes of operational control. In December 1977, based on submissions\nfrom the Branch, the Treasury Board also recognized such deficiencies and approved\n$1.6 million for the development of new management information systems. Although\nthere was little indication of progress during the audit period, my staff has since\nobserved that work on the improvement of systems has been given priority, and\nthat considerable progress has been made.\n11.3 Recommendations to the Branch arising from the audit included:\n\u2014establishment of formal plans and budgets in order to measure operating\nperformance against defined objectives;\n\u2014expansion of scope of the internal audit function to include the audit of\naccounting systems and warehouse operations; and\n\u2014improvement of various accounting controls.\n11.4 Branch management has recognized the problems identified, and is presently\nin the process of implementing improved procedures.\n11.5 Comments on the accounting treatment in the Provincial accounts with\nrespect to the Liquor Distribution Branch appear in Section 8B of this Report.\nFinancial statements of the Liquor Distribution Branch for the fiscal year ended\n31 March 1978 are contained in Section F of the Public Accounts.\nMinistry of Education\nPublic School Insurance\n11.6 Prior to 1974 the responsibility for obtaining fire and general insurance\nprotection for public schools throughout the Province was undertaken by the Boards\nof Trustees of individual School Districts. The cost of insurance was met out of\nSchool District operating funds. On 1 January 1974 the insurance of all public\nschool property was placed with the Insurance Corporation of British Columbia\n(ICBC) and, commencing in the 1975 fiscal year, the Ministry of Education began\npaying the required premiums for insurance on public schools out of the current\nyear's appropriations.\n 44 REPORT OF THE AUDITOR GENERAL\n11.7 As a result of the Province increasing the insurance deductible amount\nthrough two stages (from $1,000 to $1,000,000 on 1 March 1976, and from\n$1,000,000 to $5,000,000 on 1 March 1977) and thereby assuming a larger obligation for self-insurance, premium refunds became due to the Province and were\nrecognized as a liability by ICBC. The two increases in deductible amounts resulted in premium reductions of $4,757,752 and $3,703,691 respectively.\n11.8 These amounts were never reimbursed to the Province, but were held by\nICBC and formed, in effect, a fund from which disbursements of an insurance claim\nor property protection nature were made at the direction of the Ministry of Education. To the fund so created the Ministry transferred $633,372 from the 1978\nappropriations, and ICBC added interest of $784,870. The accounts of ICBC\nrecord $2,690,483 as a liability to the Province as at 31 March 1978. No corresponding account receivable exists in the accounts of the Province.\n11.9 The over-all effects of these transactions were:\n\u2014Due to changes in insurance coverage, insurance premiums paid to ICBC\nfrom moneys appropriated by the Legislature for the 1976 and 1977\nfiscal years were greater than was required for that purpose.\n\u2014The premium overpayments were not returned to the Consolidated Revenue\nFund but were held to the credit of the Province by ICBC.\n\u2014The fund so created, arising from moneys appropriated for specific fiscal\nyears, was used in subsequent years without being charged to votes or\nappropriations of those later years.\n11.10 In my opinion the fund balance should be returned to the Consolidated\nRevenue Fund.\nMinistry of Finance\nTreasury Section\n11.11 The Treasury Section of the Ministry of Finance is responsible for the\nbanking of all Provincial revenue, overseeing all bank accounts, distributing\ncheques, and controlling and distributing the Government stock of law stamps,\npermits, and licences. This Section also reconciles the main bank accounts of the\nProvince.\n11.12 My staff reviewed compliance with applicable legislation, and evaluated\nand tested the accounting system, procedures, and controls. The principal areas of\nconcern are commented on in the following paragraphs.\n11.13 Bank accounts. The Revenue Act requires that all public moneys be\ndeposited in bank accounts as directed by the Minister of Finance. The Treasury\nSection exercises this authority on behalf of the Minister and maintains lists of bank\naccounts and cheque signatories. The cheque signatories list has not been kept\ncurrent, and many cases were found of Government bank accounts having been\nset up without proper authorization.\n REPORT OF THE AUDITOR GENERAL 45\n11.14 Bank reconciliations. The Treasury Section prepares the reconciliations\nof the major Government bank accounts. Reconciliations were not kept up-to-\ndate, and unresolved and sometimes long-standing differences existed in a number\nof these accounts.   Further comments appear in Section 8B of this Report.\nSecurities Section\n11.15 The Securities Section is responsible for the investment, custody, administration, and accounting for short-term and long-term securities which totalled over\n$5,000 million at 31 March 1978. These are the security investments of the\nGeneral and Special Purpose Funds, and those held on behalf of Superannuation\nFunds, Trust Funds, and other funds administered by the Province in a fiduciary\ncapacity.\n11.16 My audit of the Securities Section disclosed a number of weaknesses in\norganization and supervision, internal controls and accounting records.\n11.17 One notable result of these weaknesses came to my attention when my\nstaff carried out their first physical count and reconciliation of securities in the last\nweek of January 1978. At that time it was ascertained that securities in bearer form\ntotalling $1 million, which had been sent to the issuer for registration in November\n1977, had never been received by the issuer. The securities had apparently been\nmisdirected in mailing, and were subsequently recovered. No loss was incurred\nby the Province, but it is of concern to me that this error could remain undetected\nfor a period in excess of two months.\n11.18 It appears that many of the Section's past problems arose from insufficient\nsupervisory staff, and deficiencies in its computerized systems. In recent months\nprogress has been made toward correcting these problems. In view of the complexity and responsibilities of this Section, I urge that efforts in this area continue to\nbe given high priority.\nConsumer Taxation Branch\n11.19 A number of procedures and controls used to monitor the collection and\nreceipt of taxes by the Consumer Taxation Branch were found to need considerable\nimprovement.   My main concerns are outlined below.\n11.20 Cash handling. Procedures used for receiving and recording cash and\ncheques totalling approximately $987 million in taxes annually need considerable\nimprovement to reach a desirable standard.\n11.21 Accounts receivable and collections. Accounts receivable arise mainly\nfrom the work of the Audit and Collections Section of the Branch. Of the total\nrecorded receivables of $6,305,314 at 31 March 1978, approximately 53 per cent,\nor $3.3 million, is considered doubtful of collection. This high percentage is\nattributed to incomplete records, collection difficulties, and the age of the accounts.\nThere had been no write-offs since 1975.\n 46\nREPORT OF THE AUDITOR GENERAL\n11.22 Fuel taxes. My review indicated that tax audit coverage was not sufficiently comprehensive to ensure adequate monitoring and collection of fuel taxes.\nRevenue from this source amounted to approximately $189 million in the 1978\nfiscal year. Fuel tax audits are currently performed by personnel whose main\nefforts are directed toward audits under the Social Services Tax Act. The volume\nof revenue generated by fuel taxes requires a concentration of audit effort, and\nconsideration should be given to supplying specialized staff for this purpose. Of\nparticular concern are the frequency of audits, and the audits of truckers' rebates,\ntransactions between oil companies, common storage facilities for fuels with\ndifferent tax rates, and marked fuel.\n REPORT OF THE AUDITOR GENERAL\n47\n12    PUBLIC BODIES\n12.1 A \"public body\", as defined in section 1 of the Auditor General Act, means:\n(i)  an agency of the Crown, or\n(ii) a board, commission, council, or other body of persons, whether or\nnot incorporated, all the members of which or all the members of the\nboard of management or board of directors of which are appointed by an\nAct, an order of the Lieutenant-Governor in Council, or a minister of\nthe Crown, or\n(iii) a corporation, more than 50 per cent of the shares or ownership of\nwhich is, directly or indirectly, vested in the Crown, or\n(iv) a corporation, association, board, commission, or society to which a\ngrant or advance of public money is made, or the borrowings of which\nmay be guaranteed by the Crown under the authority of any Act.\n12.2 Nineteen audits of public bodies previously performed by the Comptroller-\nGeneral were transferred to the Auditor General on 15 December 1977 by Order\nin Council under section 18 of the Auditor General Act. Six additional audits were\nlater assigned to me, resulting in a total of 25 public body audits for which I was\nresponsible as at 31 March 1978. The assets and annual expenditures of these\npublic bodies total approximately $3,500 million and $1,250 million respectively.\nA list of the public bodies of which I have been appointed the auditor appear as\nAppendix II.\n12.3 Included in Section F of the Public Accounts are financial statements of a\nnumber of public bodies of which I am not the auditor. These are listed in\nAppendix III to this Report.\n12.4 The Liquor Distribution Branch, which was formerly audited and reported\non by the Comptroller-General as a separate body, has been audited for the year\nended 31 March 1978 by my Office. I have not reported on this Branch separately\nas it is a Branch of the Ministry of Consumer and Corporate Affairs and as such is\nincluded in the audit and report on the general accounts of the Government.\n12.5 Three public body audits still remain the responsibility of the Comptroller-\nGeneral, or persons designated by him.   They are:\nBritish Columbia Development Corporation.\nBritish Columbia Systems Corporation.\nT.S. Holdings Ltd.\nIn all cases these entities have been audited and reported on by firms of public\naccountants.    In view of the Comptroller-General's responsibilities, which are\ninternal to the Government, it would seem more appropriate to completely divorce\nexternal and internal audit responsibilities.\n 48 REPORT OF THE AUDITOR GENERAL\n13    ORGANIZATION AND ACTIVITIES OF THE\nAUDIT OFFICE\nOrganization and Personnel\n13.1 My appointment as Auditor General became effective on 1 September 1977.\nThe four months following my assumption of office were necessarily devoted to the\nbasic requirements of planning and organizing, as there was no pre-existing organization or transfer of personnel. Concurrently, an extensive recruiting program was\nestablished, with the objective of engaging experienced professional accountants for\nthe more senior positions, and individuals of high potential for less senior positions\nin the Office. This is a most time-consuming and difficult process, but one of the\nhighest importance as the ultimate success of the Office depends on the quality\nof its staff.   I feel that to date this endeavour has been most successful.\n13.2 Since inception, the policy established for the Office is to require that all\nmembers of the audit staff either possess a recognized accounting qualification, or\nbe actively pursuing a course of study toward such qualification. This general\npolicy has been successfully followed by the Legislative Auditors of the other\nprovinces, and by the Auditor General of Canada. At 31 December 1978, 21 members of my professional staff were members of professional accounting associations.\nIn addition, 20 students-in-accounts were following programs leading to such\nqualifications.\n13.3 In June 1978, following an extensive review and assessment of the standards\nand programs of the Office, the Institute of Chartered Accountants of British\nColumbia approved the Office for the registration of students in its training program.\nThis recognition has greatly helped in the development of our professional objectives, and the success of our recruiting efforts.\n13.4 The functions of the Office of the Auditor General are comparable to those\nof a major firm engaged in the professional practice of public accounting. Therefore, I have considered it appropriate to organize the Office along lines similar to\nthose of such firms. A factor in the plan of organization has been the requirement\nthat suitable ratios of senior to junior staff be established to ensure that high professional standards are maintained commensurate with the performance of audits\nin a cost-effective manner.\n13.5 I am assisted in the over-all direction and administration of the Office by\nthe following senior officers:\nRobert J. Hayward, C.A., Deputy Auditor General.\nFrank Barr, C.A., Audit Director.\nGordon W. Dawson, C.A., Audit Director.\n REPORT OF THE AUDITOR GENERAL 49\n13.6    The staff complement at 31 March 1978 and projected to 31 March 1979\nis summarized hereunder:\nActual Projected\n31 March 31 March\n1978 1979\nSenior management    4 6\nManagers and supervisors      7 15\nAuditors     3 10\nOther audit staff  10 24\nTotal professional staff\nAdministrative staff\t\n24\n4\n55\n5\n28\n60\n13.7 The eventual size and composition of our staff will depend on many factors\nyet to be determined or assessed.   These will include:\n\u2014the degree of reliance placed on systems of internal and managerial control\nthroughout the Government;\n\u2014the geographic dispersion of functions and operations of ministries;\n\u2014the exposure and sensitivity of transactions to error and fraud;\n\u2014the extent of involvement in special assignments; and\n\u2014the reliance on assistance from outside sources.\nAudit Activities\n13.8 On 16 January 1978, members of my staff began auditing the Provincial\naccounts, and those of certain public bodies of which I am the auditor. The difficulties faced by professional accountants in the initial audit of such large enterprises\nare considerable. The fact that the accounts of the Province had never before been\nsubject to an independent examination of this nature compounded the difficulty of\nthat assignment.\n13.9 A number of the public bodies audited by my staff, such as the Workers'\nCompensation Board, The University of British Columbia, Simon Fraser University, the University of Victoria, the British Columbia Institute of Technology, and\nthe Medical Services Plan of British Columbia are complex and substantial audits.\n13.10 I emphasize these points in order to stress my appreciation of the extra\neffort and devotion to duty shown by the members of my staff in achieving the\nresults they have, under difficult circumstances and over a relatively short span of\ntime.\n13.11 In the early stages of development, my staff resources were insufficient\nto perform these audits in a timely manner and at an acceptable level of coverage.\nThis gap was bridged by making extensive use of the services of public accounting\nfirms, who provided professional staff to work under the direction of my own\npersonnel.   I wish to express my appreciation to both the staff and firms involved.\n 50\nREPORT OF THE AUDITOR GENERAL\n13.12 While the requirements for outside help will gradually diminish as the\ncapabilities of my Office are built up, there will be continued need to rely on the\nprivate sector for assistance and advice in areas where special expertise is required.\nAdvisory Council\n13.13 I have been assisted by a small group of highly qualified and respected\nmembers of the accounting profession who served as an Advisory Council. I wish\nto acknowledge with appreciation their advice, which was of great assistance to me\nin resolving some of the extremely difficult problems I encountered in formulating\nmy opinion on the financial statements.\nCanadian Legislative Auditors' Conference\n13.14 Since 1973 the legislative auditors of all the provinces, and the Auditor\nGeneral of Canada, have met annually to discuss matters of common interest and\nconcern. Prior to my appointment, the Comptroller-General represented the\nProvince at these meetings.\n13.15 The sixth annual Conference of Legislative Auditors was held in Edmonton on 25-27 September 1978. It was my honour to serve as General Chairman of\nthe Conference this year. Guest speakers included the Hon. Peter Lougheed,\nPremier of Alberta; John D. Heller, Assistant to the Comptroller General, U.S.\nGeneral Accounting Office; and Kenneth J. Sharp, Head of the Government\nAccountancy Service, Great Britain. Some 40 senior members of the various offices\nattended, including four from this Office.\nIn Memoriam\n13.16 The sudden death on 23 July 1978 of Donald Barry Wallace, C.A., an\nAudit Manager on the staff of this Office, saddened his many friends. Although he\nwas with the Office for only some six months, he will long be remembered for his high\nethical and moral standards, professional competence, enthusiasm, and warm, good\nnature. My condolences and those of my staff are extended to Mrs. Wallace and\ntheir family.\n REPORT OF THE AUDITOR GENERAL\n51\nAPPENDIX I\nSections of the Auditor General Act Relevant to the\nResponsibilities of the Auditor General\nExamination of Accounts\n6. (1) The auditor general shall examine in such manner as he considers necessary the\naccounts and records of the Government relating to the Consolidated Revenue Fund and all\npublic money, including trust and special funds under the management of the Government,\nand to public property.\n(2) Notwithstanding any other Act, the auditor general\n(a) shall be given access to the records of account and administration of any\nministry, and\n(b) may require and receive from any person in the public service, information,\nreports and explanations necessary for the performance of his duties.\nReport on Financial Statements\n7. (1) The auditor general shall report annually to the Legislative Assembly on the financial\nstatements of the Government, including those required by section 40 of the Financial Control\nAct, respecting the fiscal year then ended.\n(2) The report shall form part of the Public Accounts and shall state\n(a) whether he has received all of the information and explanations he has required, and\n(Z>) whether in his opinion, the financial statements present fairly the financial\nposition, results of operations and changes in financial position of the Government in accordance with the stated accounting policies and as to whether they\nare on a basis consistent with that of the preceding year.\n(3) Where the report of the auditor general does not contain the unqualified opinion\nrequired under this section, the auditor general shall state the reasons why.\nAnnual Report\n8. (1) The auditor general shall report annually to the Legislative Assembly on the work of\nhis office and call attention to anything resulting from his examination that he considers should\nbe brought to the attention of the Legislative Assembly including any case where he has\nobserved that\n(a) accounts have not been faithfully and properly kept or public money has not been\nfully accounted for, or\n(b) essential records have not been maintained, or\n(c) the rules, procedures, or systems of internal control applied have been insufficient\n(i) to safeguard and protect the assets of the Crown, or\n(ii) to secure an effective check on the assessment, collection and proper\nallocation of the revenue, or\n(iii) to ensure that expenditures have been made only as authorized, or\n(iv)  to ensure the accuracy and reliability of the accounting data, or\n(d) public money has been expended for purposes other than for which it was appropriated by the Legislature.\n(2) In the report the auditor general may also include an assessment\n(a) as to whether the financial statements of the Government are prepared in\naccordance with the most appropriate basis of accounting for the purpose of\nfair presentation and disclosure, or\n(b) as to whether any program being administered by a ministry is being administered\neconomically and efficiently.\nTrivial Matters\n9. The auditor general need not report to the Legislative Assembly on any matter he considers\nimmaterial or insignificant.\n 52\nREPORT OF THE AUDITOR GENERAL\nTabling Annual Report\n10. (1) A report of the auditor general to the Legislative Assembly shall be submitted by him\nthrough the Minister of Finance.\n(2) Upon receipt of a report of the auditor general, the Minister of Finance shall lay the\nreport before the Legislative Assembly as soon as possible.\n(3) If the Minister of Finance does not lay the report before the Legislative Assembly\non the first sitting day following the receipt of the report by him, the auditor general shall\ntransmit the report to the Speaker and the Speaker shall lay the report before the Legislative\nAssembly.\n(4) Upon being laid before the Legislative Assembly, the annual report of the auditor\ngeneral shall be referred to the Public Accounts Committee of the Legislative Assembly.\nSpecial Report\n11. The auditor general may at any time make a special report to the Legislative Assembly on\na matter of primary importance or urgency that, in his opinion, should not be deferred until\nhe makes his annual report.\nOther Reports\n12. The auditor general may at any time make a report to the Minister of Finance, the Treasury\nBoard, the Lieutenant-Governor in Council, or any public officer on any matter that in the\nopinion of the auditor general should be brought to his or their attention.\nSpecial Assignments\n13. The auditor general may undertake special assignments at the request of the Lieutenant-\nGovernor in Council, but he is under no obligation to carry out any such requested assignment\nif, in his opinion, it would interfere with his primary responsibilities.\nStationing Officers in Ministries\n14. (1) The auditor general may station in any ministry a person employed in his office to\nenable him more effectively to carry out his duties, and the ministry shall provide the necessary\noffice accommodation for a person so stationed.\n(2) The auditor general shall require every person employed in his office who is to\nexamine the accounts or the administration of a ministry pursuant to this Act to comply with\nany security requirements applicable to, and to take any oath of secrecy required to be taken\nby, persons employed in that ministry.\nInquiry Powers\n15. The auditor general may examine any person on oath on any matter pertaining to his\nresponsibilities and for the purpose of such an examination the auditor general has all the\npowers, protection and privileges of a commissioner under sections 7, 10 and 11 of the\nPublic Inquiries Act.\nPublic Bodies\n16. (1) Notwithstanding any other Act, where the auditor general is not the auditor of a\npublic body,\n(a) the public body shall, on the request of the auditor general, supply the auditor\ngeneral with a copy of all financial statements and reports relating to the public\nbody,\n(b) the auditor of the public body shall, on the request of the auditor general, make\navailable to the auditor general, within a reasonable time, all working papers,\nreports and other documents in his possession relating to the public body, and\n(c) the auditor general may conduct such examinations of the records and operations\nof the public body as he considers necessary or advisable to carry out his duties\nunder this Act.\n(2) Notwithstanding any other Act, the auditor general\n(a) shall be given access to the records of account and administration of any public\nbody, and\n(b) may require and receive from any officer or employee of a public body information reports and information necessary for the performance of his duties.\nJ\n REPORT OF THE AUDITOR GENERAL\n53\nEligibility as Auditor\n17. Notwithstanding any other Act, the auditor general is eligible to be appointed the auditor,\nor a joint auditor, of a Crown corporation, Crown agency, or public body.\nTransfer of Audit Duties\n18. The Lieutenant-Governor in Council may transfer to the auditor general the duty imposed\nby any Act on the comptroller-general to conduct an audit.\n 54\nREPORT OF THE AUDITOR GENERAL\nAPPENDIX II\nPublic Bodies of Which the Auditor General was the Appointed\nAuditor as at 31 March 1978\n\u2666British Columbia Assessment Authority\nBritish Columbia Educational Institutions Capital Financing Authority\n\u2666British Columbia Harbours Board\nBritish Columbia Heritage Trust\nBritish Columbia Institute of Technology\nBritish Columbia Power Commission Superannuation Fund\nBritish Columbia Railway Company Pension Fund\n\u2666British Columbia Regional Hospital Districts Financing Authority\n\u2666British Columbia School Districts Capital Financing Authority\nCaptain Cook Bi-Centennial Committee\nCollege Pension Fund\nCreston Valley Wildlife Management Area Trust Fund\n\u2666Legal Services Commission\n\u2666Medical Services Plan of British Columbia\nMunicipal Superannuation Fund\nPacific Vocational Institute\nProvincial Capital Commission\n\u2666Provincial Rental Housing Corporation\nSimon Fraser University\nTeachers' Pensions Fund\nThe University of British Columbia\nThe University of British Columbia Health Sciences Centre\nUniversity of Victoria\n\u2666Workers' Compensation Board of British Columbia\nWorkers' Compensation Board Superannuation Fund\n\u2022 Included in Section F of the Public Accounts.\n REPORT OF THE AUDITOR GENERAL\n55\nAPPENDIX III\nPublic Bodies, of Which the Auditor General was not the Appointed Auditor,\nWhose Financial Statements are Included in Section F of the Public Accounts\nBritish Columbia Buildings Corporation\nBritish Columbia Cellulose Company\nBritish Columbia Development Corporation\nBritish Columbia Ferry Corporation\nBritish Columbia Health Care Research Foundation\nBritish Columbia Housing Management Commission\nBritish Columbia Hydro and Power Authority\nBritish Columbia Petroleum Corporation\nBritish Columbia Railway Company\nBritish Columbia Steamship Company (1975) Ltd.\nBritish Columbia Systems Corporation\nCanadian Cellulose Company, Limited\nHealth Facilities Association of British Columbia\nHousing Corporation of British Columbia\nInsurance Corporation of British Columbia\nKootenay Forest Products Ltd.\nOcean Falls Corporation\nPanco Poultry Ltd.\nPlateau Mills Ltd.\nT.S. Holdings Ltd.\nVancouver Resources Board\n 56\nREPORT OF THE AUDITOR GENERAL\nAPPENDIX IV\nSections A (pages Al to A12), B and C\nof the Public Accounts\n PUBLIC ACCOUNTS 1977\/78\nSECTION A\nMAIN FINANCIAL STATEMENTS OF THE PROVINCE\nCONTENTS\nPage\nStatement of assets and liabilities as at March 31, 1978  A   2\nNotes to financial statements  A   4\nReport of the Auditor General  A    7\nSummary of transactions for the fiscal year ended March 31, 1978 (General\nFund and Special Purpose Funds)  A   9\nSummary of General Fund revenues for the fiscal year ended March 31,\n1978  A 10\nSummary of General Fund expenditures for the fiscal year ended March 31,\n1978  A 11\n(Where appropriate, comparative figures for the preceding year are given.)\n A 2 PROVINCE OF BRITISH COLUMBIA\nSTATEMENT OF ASSETS AND\n(with comparative figures\nASSETS\nNet increase\nor (decrease)\n1978 1977 during 1977\/78\nGeneral Fund $ $                        $\nCash   2,134,949 17,660,827 (15,525,878)\nTemporary investments    467,333,172 273,349,807 193,983,365\nAccounts   receivable   from   other   governments and agencies   23,631,007 50,919,790 (27,288,783)\nWorking capital advances    8,909,831 9,416,158         (506,327)\n502,008,959       351,346,582    150,662,377\nTaxes and other accounts receivable  71,371,084 50,693,227 20,677,857\nLoans and other advances (note 2)   53,539,815 49,202,658 4,337,157\nInvestment in, and advances to, Crown corporations (notes 3 and 6)  386,841,069 275,275,747 111,565,322\nInvestments, other   151,718,489 26,067,805 125,650,684\nFixed  assets   2,077,930,237 2,122,863,916 (44,933,679)\n3,243,409,653 2,875,449,935 367,959,718\nSpecial Purpose Funds\nCash                    20,209 305,193 (284,984)\nInvestments             237,612,176 157,569,246 80,042,930\nOther assets         399,196,778 414,925,420 (15,728,642)\n636,829,163 572,799,859 64,029,304\nSuperannuation Funds\nCash                .      ....                   10,621 20,830 (10,209)\nInvestments         573,867,624 479,303,442 94,564,182\n573,878,245 479,324,272 94,553,973\nTrust Funds\nCash and investments       739,451,785 622,051,305 117,400,480\n5,193,568,846 4,549,625,371 643,943,475\nNotes:\nThe notes on pages A 4 to A 6 are an integral part of this statement.   Detailed schedules\nof the Asset and Liability accounts can be found in Section B.\n PUBLIC ACCOUNTS 1977\/78\nLIABILITIES AS AT MARCH 31, 1978\nas at March 31, 1977)\nLIABILITIES\n1978\nGeneral Fund $\nOutstanding cheques           92,417,903\nAccounts payable        147,030,787\nOther current liabilities         45,941,561\n285,390,251\nUnmatured debt\u2014\nDeficit repayment   261,447,790\nOther       \u2014\nLess sinking funds    \u2014\n261,447,790\nExcess of assets over liabilities\u2014\nRevenue surplus (note 8)      216,618,708\nDeficit at March 31, 1976, funded    (261,447,790)\n(44,829,082)\nCapital  surplus   2,741,400,694\n2,696,571,612\n3,243,409,653\nSpecial Purpose Funds\nFixed capital funds\u2014\nCapital accounts    90,000,000\nCurrent accounts   8,016,805\nOther funds     534,280,208\nMiscellaneous statutory accounts   4,532,150\n636,829,163\nSuperannuation Funds (note 4)\nPublic Service          572,276,598\nMembers of the Legislative Assembly  1,601,647\n573,878,245\nTrust Funds\nMiscellaneous trust deposits       739,451,785\n5,193,568,846\nGuaranteed Debt\nDebt of municipalities, other local governments, and Crown agencies, etc., guaranteed by the Province (net)  (note 6)  6,288,180,152\nCommitments (note 5)\nA 3\nNet increase\nor (decrease)\n1977 during 1977\/78\n$ $\n82,703,277\n152,248,168\n40,265,407\n9,714,626\n(5,217,381)\n5,676,154\n275,216,852  10,173,399\n261,447,790    \u2014\n422,150   (422,150)\n(422,150)   422,150\n261,447,790\n76,129,730 140,488,978\n(261,447,790)    \u2014\n(185,318,060) 140,488,978\n2,524,103,353 217,297,341\n2,338,785,293 357,786,319\n2,875,449,935 367,959,718\n90,000,000\n7,024,861\n472,149,176\n3,625,822\n991,944\n62,131,032\n906,328\n572,799,859  64,029,304\n478,012,366  94,264,232\n1,311,906    289,741\n479,324,272  94,553,973\n622,051,305 117,400,480\n4,549,625,371 643,943,475\n5,484,270,450\nLIONEL G. BONNELL, C.A.\nComptroller-General\n A 4\nPROVINCE OF BRITISH COLUMBIA\nNOTES TO FINANCIAL STATEMENTS\n1. Accounting\nFor purposes of the financial statements, funds or accounts held in trust and those set\naside or earmarked for specific or special purposes are segregated from the general operating\naccounts of the government. Thus the accounts are presented in four separate fund divisions\u2014\nGeneral, Special Purpose, Superannuation and Trust\u2014as shown in the Statement of Assets\nand Liabilities. The accounting policies and practices employed in the four divisions are\nsummarized below:\nA. General Fund\nThe accounts of the General Fund are maintained on a cash basis whereby revenues are\ntaken into the accounts in the fiscal period in which they are received and expenditures are\ncharged when the actual payments are made. The financial statements reflect this cash-basis\naccounting, but with the following major modifications:\n(a) Moneys received in April of the next following year pertaining to cost-sharing\nprograms with other governments (principally the Government of Canada), and\nfor which the relative program expenditures have been charged to the current\nyear, are included in revenues and shown as accounts receivable in the statement\nof assets and liabilities.\n(b) Accounts payable at March 31 for which cheques are issued during April of the\nnext following year are included in current-year expenditures and are shown as\naccounts payable in the statement of assets and liabilities.\n(c) Interest accrued on the unmatured deficit repayment debt at March 31 is included\nin budgetary expenditure and shown in other current liabilities in the statement\nof assets and liabilities.\nGeneral Fund revenues and expenditures are separated into two distinct categories:\n(a) Budgetary transactions: All regular revenues and all ordinary expenditures of\ngovernment. These are reported in the form of and are compared with the\nannual Estimates of Revenue and Expenditure as authorized by the Legislature.\n(b) Other, nonbudgetary transactions: Any extraordinary revenues of significant\namount and all nonbudgetary expenditures and surplus appropriations, such as\nappropriations of moneys to and recoveries of balances from Special Purpose\nFunds, and capital investment in and advances to Crown corporations, boards,\netc.\nThe overall net revenue or expenditure of the General Fund for a fiscal period increases\nor decreases the Revenue Surplus Account of the Province.\nIn addition to the operational or current assets and liabilities and the unmatured debt, the\nProvince records certain assets for purposes of record only through credits to Capital Surplus\nAccount. These are: Taxes and other accounts receivable which are not included in Revenue\nuntil received in cash, loans and other advances, investments in and advances to Crown corporations, etc., and fixed assets.\nB. Special Purpose Funds\nThe accounts of all Special Purpose Funds are maintained on a cash basis with the exception of the Housing, Lottery and Provincial Home Acquisition Funds, wherein mortgage loans,\naccounts and advances receivable, and investments in real estate, as well as investments in and\nadvances to housing corporations are not charged to expenditure accounts but are capitalized\nand shown as assets of the respective Funds.\nC. Superannuation Funds and Trust Funds\nThe individual Funds in these categories are maintained on a cash basis.\n2. Loans and Other Advances\nLoans and other advances are carried as assets at book value (net of reserves in certain\ncases), as the amount of their ultimate realization cannot be determined at this date.\n3.  Investment in and Advances to Crown Corporations\nThe interest of the Province in its Crown corporations is shown in the financial statements\nonly to the extent of the amounts actually invested in or advanced to them; thus accumulated\nearnings (or deficits) of these organizations are not reflected therein. Financial statements of\nCrown corporations and other Government agencies are presented in Section F of this\npublication.\n PUBLIC ACCOUNTS 1977\/78\nA 5\n4. Superannuation and Pension Plans\nA. Public Service Superannuation Plan\nThis plan is financed by employee contributions, matching employer contributions, and\nadditional employer contributions paid at the time each allowance is granted for any shortfall\nbetween the actuarial present value of the allowance and the accumulated employee and matching employer contributions.\nUnder the Public Service Superannuation Act, an actuarial valuation of the plan is required\nto be conducted at least once every five years. The most recent valuation was conducted as\nat March 31, 1977.\nIn that report the actuary indicated that, if the plan were financed on the entry age normal\nbasis, a basis frequently employed by private pension plans, there would be an actuarial liability\nas at March 31, 1977, of about $154 million in respect of basic benefits. In the actuary's\nopinion, aggregate statutory contributions, as described above, will exceed entry age normal\ncontributions and he has estimated that these contributions will be sufficient to fully amortize\nthe $154 million actuarial liability over a period of approximately 20 years if all actuarial\nassumptions are realized.\nAllowances in payment are automatically adjusted quarterly to reflect increases in the\nConsumer Price Index. Such pension supplements are financed on an approximate \"pay-as-\nyou-go\" basis by contributions of one-half per cent of salary by both employees and employer.\nActuarial liabilities associated with such increases are not funded under the statutory financing\nprovisions, but there is provision for both employee and employer contributions to be increased\nto 1 per cent of salary when required to maintain the financing on a \"pay-as-you-go\" basis.\nThere is no statutory provision for any additional contributions beyond this to finance these\npost-retirement supplements even though it is possible that in future such contributions would\nbe required to maintain financing on the \"pay-as-you-go\" basis. The actuary reported that as\nat March 31, 1977, there was an actuarial liability of $37 million in respect of the pension\nsupplements granted up to that date.\nB. Teachers' Pensions Plan\nUnder the Teachers' Pensions Act the Province is responsible for the employer contributions to the Teachers' Pensions Fund administered by the Commissioner of Teachers' Pensions;\nthese contributions are included in the budgetary expenditures of the Ministry of Education.\nA report on the administration of the plan and fund is made annually to the Legislature.\nThis plan is financed by teacher contributions, matching Government contributions, and\nadditional Government contributions made to ensure that at any time the assets in the fund are\nat least equal to the actuarial present value of all allowances which are in effect and the total\namount of contributions, accumulated with interest, held in the fund on behalf of \"teachers in\nrespect of whom no allowance has been granted.\nUnder the Teachers' Pensions Act, an actuarial valuation of the plan is required to be\nconducted by an actuary at least once in each consecutive five-year period. The most recent\nvaluation was conducted as at December 31, 1974. In that report the actuary recommended\nthat the statutory basis of contributions be strengthened so that contributions, in future, would\nbe sufficient to fully finance benefits for all new entrants to the plan and to hold the actuarial\nliability constant as a percentage of future teacher payroll. On this basis, he advised that the\nactuarial liability was $468 million for basic benefits. An actuarial valuation is presently being\nconducted as at December 31, 1977, and the actuary expects to submit his report by February\n28, 1979. Preliminary indications are that the actuarial liability at December 31, 1977, will\nincrease to about $550 million from the $468 million at December 31, 1974.\nDiscussions are continuing between Government and teachers as to the manner in which\nthe recommended increase in contribution rates should be achieved and no change has yet been\nmade.   Any such change would require amendment of the Act.\nAllowances in payment are automatically adjusted quarterly to reflect increases in the\nConsumer Price Index. Such pension supplements are financed on an approximate \"pay-as-\nyou-go\" basis by contributions of 1 per cent of salary by both teachers and Government.\nActuarial liabilities associated with such increases are not funded under the statutory financing\nprovisions. There is no statutory provision for any additional contributions to finance these\npost-retirement supplements even though it is possible that in future such contributions would\nbe required to maintain financing on the \"pay-as-you-go\" basis.\n5. Commitments\nNo provision is made in the accounts for commitments under construction or other contracts in force at the year-end. Such future expenditures are charged to appropriations in the\nyears in which the work or service is performed.\n A 6\nPROVINCE OF BRITISH COLUMBIA\n6. British Columbia Railway Company\nThe Province holds the entire issued share capital of the Railway and, pursuant to the\nBritish Columbia Railway Company Construction Loan Act, the Province guarantees the payment of the principal and interest of all moneys borrowed by the Railway. The investment and\nguarantee are shown in the financial statements under\n(a) Investment in and advances to Crown corporations:\nThe investment is carried at the historical cost of the shares, $185,572,900.\n(See note 3 above.)\n(b) Guaranteed debt:\nThe outstanding debt of the Railway at March 31, 1978, net of sinking funds\nheld, aggregated $652,760,711.\nThe financial statements of the Railway at December 30, 1977 (reproduced in Section F\nof this report) show that the net overall shareholder's position is a deficit of $9,090,706 after\nrecording a net loss for the year then ended of $58,291,395. The Railway in a submission to\nthe Royal Commission (see below) 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\nthis debt.\" The annual interest and debt repayment charges will average approximately $69\nmillion over the next five years.\nBy Order in Council dated February 7, 1977, a Royal Commission was appointed \"to\nmake inquiry into and concerning all aspects of the management and development of the British\nColumbia Railway and the participation of the Crown therein as shareholder,\" including a\nparticular inquiry into \"the foreseeable financial requirements of the Railway for all purposes.\"\nThe final report of the Commission was submitted to the Government on August 28, 1978, and\nis currently under review. An addendum dealing with specific statutory revisions to give effect\nto its recommendations has not yet been received.\n7. Anti-inflation Legislation\nThe Province is subject to controls on compensation instituted by the Government of\nCanada pursuant to an agreement entered into under the Anti-Inflation Measures Act (1976,\nchap. 1), effective June 21, 1976.\n8. Revenue Surplus Appropriation\nPursuant to the Revenue Surplus of 1976-77 Appropriation Act, 1978, $76,129,730 of the\nRevenue Surplus Account has been appropriated for specific purposes.\n PUBLIC ACCOUNTS 1977\/78\nA 7\nAUDITOR GENERAL'S  REPORT\nTo the Legislative Assembly\nof the Province of British Columbia\nParliament Buildings\nVictoria, British Columbia\nI have examined the financial statements of the Government of the Province\nof British Columbia for the year ended March 31, 1978, as presented in the Public\nAccounts, and the related schedules contained in Sections B and C of the Public\nAccounts.   These statements are:\nStatement of Assets and Liabilities as at March 31, 1978.\nNotes to Financial Statements.\nSummary of Transactions for the Fiscal Year ended March 31, 1978.\nSummary of General Fund Revenues for the Fiscal Year ended March\n31, 1978.\nSummary of General Fund Expenditures for the Fiscal Year ended March\n31, 1978.\nStatement of Source and Application of Funds for the Fiscal Year ended\nMarch 31, 1978.\nThese statements and schedules in my opinion constitute the statements of\nfinancial 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.\nI did not examine and do not express an opinion on:\nStatement of Consolidated Revenue by Major Sources for the fiscal years\nended March 31, 1973, through 1978.\nStatement of Consolidated Expenditure by Major Functions for the fiscal\nyears ended March 31, 1973, through 1978.\nThe information contained in these statements is supplementary in nature and\nnot an integral part of the financial statements on which I am required to report.\nExcept as explained in the following paragraph, my examination was made\nin 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\nthe purpose of my examination.\nMy office commenced operations in January 1978, and staff resources and\ntime available for this initial examination were limited. It was not feasible to\nsatisfy myself as to the asset and liability position at the beginning of the 1978 fiscal\nyear and, in addition, an independent audit was not performed for the preceding\nfiscal year. As a result of these conditions, the extent of my tests and procedures\nwas insufficient to provide the level of assurance necessary for an unqualified\nopinion on the financial statements and on the consistency of the accounting bases\nfollowed as between the fiscal years 1977 and 1978.\nI have relied upon information furnished by the Consulting Actuary for the\nPublic Service Superannuation Fund and the Teachers' Pensions Fund as to the\naccuracy of Note 4 to the financial statements as presented in the Public Accounts.\n A 8\nPROVINCE OF BRITISH COLUMBIA\nI report in accordance with section 7 of the Auditor General Act. In my\nopinion, except for the effect of any adjustments which might have been indicated\nby a more extensive audit examination, these financial statements present fairly\nthe financial position of the Government of the Province of British Columbia as\nat March 31, 1978, and the results of operations and changes in financial position\nfor the year then ended in accordance with the stated accounting policies as set\nout in Notes 1, 2, 3, and 5 to the financial statements. For the reasons stated,\nI do not express an opinion with respect to the consistency of the accounting bases\nfollowed as between the fiscal years 1977 and 1978, nor on the 1977 comparative\nfigures presented in the financial statements.\nIt is emphasized that my opinion above is limited under section 7 of the Act\nto an opinion on presentation of the financial statements in accordance with the\nstated accounting policies of the Government. Under section 8 of the Act I\nreport separately to the Legislative Assembly on other matters. That report, dated\nJanuary 31, 1979, contains a number of comments in regard to accounting policies\nand disclosure. The most important of these comments relates to the treatment\nin the Government's financial statements of debt of other parties guaranteed by the\nProvince when the debtor appears unable to meet his obligations. This is of\nparticular importance this year in relation to debt of British Columbia Railway\nCompany guaranteed by the Province.\nErma Morrison, C.A.\nAuditor General\nVictoria, B.C.\nJanuary 31, 1979.\n PUBLIC ACCOUNTS 1977\/78\nA 9\nSUMMARY OF TRANSACTIONS FOR THE FISCAL YEAR ENDED\nMARCH 31, 1978\nGENERAL FUND\nRevenue $ $\nBudgetary revenue        4,055,491,833\nNonbudgetary revenue .....     \u2014 -        84,251,098\n4,139,742,931\nExpenditure\nBudgetary expenditure     \u2014 3,895,464,582\nNonbudgetary expenditure          103,789,371\n3,999,253,953\nNet Revenue for the year   I.....         140,488,978\nRevenue Surplus Account1\nBalance at beginning of year\n76,129,730\nBalance at end of year          216,618,708\nSPECIAL PURPOSE  FUNDS\nRevenue and Credits\nTransfers from General Fund\u2014\nBudgetary expenditure\u2014\nMinistry of Agriculture (Vote 97)  \t\nMinistry of Municipal Affairs and Housing (Vote 199)\nNonbudgetary expenditure     \t\nInterest on investments and loans\nOther receipts \t\nExpenditure\nGrants\u2014\nFixed-capital (perpetual)  funds .\nOther funds \t\nMiscellaneous statutory accounts\nExpenditures\u2014\nFixed-capital (perpetual) funds ..\nOther funds    \t\nMiscellaneous statutory accounts\nNet Increase in funds  \t\nBalance of funds at beginning of year\n7,148,611\n4,342,302\n15,134\n11,506,047\n111,341\n59,558,623\n3,656,513\n28,381,594\n16,000,000\n6,665,099\n51,046,693\n37,726,944\n50,088,191\n138,861,828\n74,832,524\n64,029,304\n572,799,859\nBalance at end of year (page B 11)            636,829,163\niNot including deficit at March 31,  1976. $261,447,790 funded pursuant to the British  Columbia Deficit\nRepayment Act, 1975-76.\n A 10 PROVINCE OF BRITISH COLUMBIA\nSUMMARY OF GENERAL FUND REVENUES FOR THE FISCAL YEAR\nENDED MARCH 31, 1978\n(With comparative figures for the preceding fiscal year.)\nEstimated,\n1978                                                                                                                                           1978 1977\n$                Budgetary Revenue                                                                      $ $\n20,400,000    Property taxes           21,562,622 21,738,190\n980,500,000    Social services, fuel taxes, etc       987,175,258 889,194,512\n1,443,500,000    Corporation, personal, succession, and gift taxes 1,287,193,360 1,124,181,413\n451,390,000    Privileges, licences, and natural resources taxes\nand royalties           712,949,614 500,339,740\n55,800,000    Sales and service fees         57,310,264 45,908,951\n8,500,000    Fines and penalties          10,377,029 9,295,256\n12,000,000    Interest, discount, premium, and exchange         34,896,363 16,494,886\n627,810,000    Contributions from other governments       707,418,676 671,730,802\n203,000,000    Contributions from Government enterprises .....     195,677,062 211,054,141\n27,000,000    Miscellaneous   ...:        40,931,585 39,965,588\n3,829,900,000 Total budgetary revenue    4,055,491,833    3,529,903,479\nNonbudgetary Revenue\nGovernment of Canada contribution to assist in\nthe construction of Dease Lake rail line  79,852,785 \u2014    \u2022 *\nInterest earned on above     1,315,295 \u2014\nRecovery of advance to B.C. Harbours Board .... 2,000,000 \u2014\nProceeds  on  windup   of  Consolidated   Sinking\nFund         1,083,018 \u2014\nSale of ferry vessels    \u2014 48,442,000\nRecovery of special purpose fund balances  \u2014 29,760,388\nRecovery of an advance to a special purpose fund \u2014 10,800,000\nTotal nonbudgetary revenue    84,251,098 89,002,388\nCombined General Fund Revenues    4,139,742,931 3,618,905,867\nDetails of revenue are shown on pages C 2 and C 3.\n\u25a0\n PUBLIC ACCOUNTS 1977\/78\nA 11\nSUMMARY OF GENERAL FUND EXPENDITURES  FOR THE\nFISCAL YEAR ENDED MARCH 31,  1978\n(With comparative figures for the preceding fiscal year.)\nEstimated,\n1978\n$\n3,580,426\n119,810,768\n713,648\n107,689,915\n147,108,802\n7,086,857\n45,543,610\n64,569,333\n64,294,319\n8,560,926\n104,025,393\n336,012,897\n947,709,405\n981,237,356\n569,826,615\n223,017,301\n35,540,134\n8,633,118\n54,939,177\n3,829,900,000\n1978\nBudgetary Expenditure $\nLegislation       5,280,369\nAuditor General   344,966\nMinistry of Finance   134,297,718\nExecutive Council     691,125\nMinistry of the Provincial Secretary and Travel\nIndustry   114,832,084\nMinistry of the Attorney-General   152,669,696\nMinistry of Economic Development  .. ;': ! ., 10,220,302\nMinistry of the Environment   45,520,646\nMinistry of Agriculture   55,671,527\nMinistry of Energy, Transport and Communications    80,456,445\nMinistry of Mines and Petroleum Resources   ... 7,974,777\nMinistry of Forests   100,849,814\nMinistry of Highways and Public Works .  431,021,965\nMinistry of Education      940,584,501\nMinistry of Health   954,710,057\nMinistry of Human Resources   545,140,791\nMinistry of Municipal Affairs and Housing  215,567,548\nMinistry of Labour ...........   39,613,181\nMinistry of Consumer and Corporate Affairs ..... 8,630,049\nMinistry of Recreation and Conservation   51,387,021\nTotal budgetary expenditure \u201e       3,895,464,582\nNonbudgetary Expenditure Charged\nto Current Revenue\nSpecial purpose funds\u2014\nAppropriation to funds \t\nAdvances to a fund \t\n1,665,099\n5,000,000\n6,665,099\n19771\n$\n3,345,188\n127,727,355\n553,458\n88,352,267\n118,510,162\n.    4,537,262\n38.987,412\n54,875,367\n103,400,069\n7,148,147\n87,866,010\n378,160,016\n854,546,043\n857,980,426\n481,011,458\n219,038,162\n18,096.869\n6,261,259\n41,032,809\n3,491,429,\/39\n6,000,000\n5,000,000\n11,000,000\nCrown corporations\u2014\nAdvances     2,000,000\nInvestments       7,631,250\nGrants     85,668,080\n312,505\n32,600.000\n95,299,330 32,912,505\nOther-\nBook adjustment to capital surplus account\nElimination of publication services working\ncapital account \t\nTransfer of investment in Canadian Cellulose Company Ltd. shares to British Columbia Resources Investment Corporation\nin exchange for noncash asset (promissory\nnote)      *\t\nTotal nonbudgetary expenditure\n1,824,942\n1,824,942\n103,789.371\n2,873,008\n4,560,885\n7,433,893\n51,346,398\nCombined General Fund Expenditures     3,999,253,953     3,542,776,137\nDetails of expenditures are shown on pages C 4 to C 12.\n1 The 1977 figures have been restated to reflect reorganizational changes between ministries made in the fiscal\nyear 1976\/77, pursuant to the Constitution Act.\n A  12 PROVINCE OF BRITISH COLUMBIA\nSTATEMENT OF SOURCE AND APPLICATION OF FUNDS FOR THE\nFISCAL YEAR ENDED MARCH 31, 1978\nGENERAL FUND\nSource $ $\nBudgetary revenue      4,055,491,833\nNonbudgetary revenue           84,251,098\n  4,139,742,931\nApplication\nBudgetary expenditure    ... 3,895,464,582\nNonbudgetary expenditure         103,789,371\n  3,999,253,953\nNet Funds Received accounted for by the increase in current position during the\nyear  :.. .=,__           140,488,978\n$\nIncrease in current assets (page A 2)     150,662,377\nLess increase in current liabilities  (page\nA 3)        10,173,399\n140,488,978\nSPECIAL  PURPOSE  FUNDS\nSource\nTransfers from General Fund              51,046,693\nInterest and other receipts            87,815,135\nDecrease in other assets (net) .              15,728,642\n154,590,470\nApplication\nGrants and other expenditures     \u2014        74,832,524\nIncrease in investments             80,042,930\n154,875,454\nNet Cash Applied accounted for by the decrease in cash position during the year\n(page A 2)         (284,984)\n\u25a0.-\u2022\u25a0.\n PUBLIC ACCOUNTS 1977\/78\nSECTION B\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\nCONTENTS\nPage\nGeneral Fund\u2014-\nAssets  B 2\nLiabilities    B 6\nCapital and Revenue Surplus Accounts  B 8\nSpecial purpose funds\u2014\nAssets  B 9\nSummary of transactions and balances of funds  B 11\nSuperannuation funds\u2014\nAssets    B 12\nSummary of transactions for the year ended March 31, 1978  B 14\nTrust funds\u2014assets, fund balances  B 15\nGuaranteed debt    B 16\nDetails of unmatured debt  B 18\n B 2\nPROVINCE OF BRITISH COLUMBIA\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\nAS AT MARCH 31, 1978\n(With comparative figures as at March 31, 1977.)\nGENERAL FUND ASSETS\nCash\nCash on hand\t\nCash in chartered banks in Canada\t\nCash in banks in England (converted at current rate).\nCash in banks in United States (U.S. dollars)\t\n1978\n$\n7,323\n1,536,805\n264,942\n325,879\n2,134,949\nTemporary Investments\nRevenue Act, sec. 9 (at cost).\nSecurities at par value\u2014\nShort-term   deposits   with   chartered   banks,\ntrust companies, etc.\u2014\nBanque Canadienne Nationale   \u2014\nBank of British Columbia..   11,929,194\nBank of Montreal      56,669,858\nBank of Nova Scotia   59,302,280\nBritish Columbia Central Credit Union...... 3,327,500\nCanadian Commercial Industrial Bank  1,000,000\nCanadian Imperial Bank of Commerce  141,424,153\nMercantile Bank of Canada   4,011,020\nNorthland Bank  1,000,000\nProvincial Bank of Canada   3,084,000\nRoyal Bank of Canada     63,373,117\nToronto Dominion Bank    96,662,597\nYorkshire Trust Company..   \u2014\nOther-\nBritish Columbia Buildings Corporation\nnotes -  \t\n1British  Columbia  Development  Corporation note\t\n1British Columbia Hydro and Power Authority parity bonds\t\n2Export Development Corporation notes...\n3Procan Ltd. notes \t\nLess excess of par value over cost.\nStocks   (book   value)\u2014Canadian   Cellulose\nCompany Ltd., 278,100 common shares.\u2014\ni Province of British Columbia guarantee.\n2 Government of Canada guarantee.\n3 Provincial Bank of Canada guarantee.\n1977\n$\n8,330\n17,167,467\n219,537\n265,493\n7,283,684\n10,500,000\n41,736,926\n43,038,338\n21,000\n43,372,651\n11,230,847\n5,321,400\n50,821,377\n34,645,300\n2,000,000\n441,783,719      249,971,523\n2,000,000\n19,808,112\n20,000,000\n9,000\n981,161 \u2014\n4,770,090 \u2014\n467,543,970 271,779,635\n210,798 254,770\n467,333,172 271,524,865\n\u2014 1,824,942\nTotal securities at cost, above     467,333,172 273,349,807\nNet increase\nor (decrease)\nduring 1977\/78\n$\n(1,007)\n(15,630,662)\n45,405\n60,386\n17,660,827       (15,525,878)\n467,333,172       273,349,807        193,983,365\n PUBLIC ACCOUNTS 1977\/78 B 3\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGENERAL FUND ASSETS\u2014Continued\n1978\nAccounts Receivable From Other Governments and Agencies, $\netc.\nGovernment of Canada\u2014re shared-cost program         11,647,116\nBritish Columbia Buildings Corporation         4,646,566\nBritish Columbia municipalities\u2014re shared-cost program        4,175,885\nSundry agencies and miscellaneous accounts          3,161,440\nWorking Capital Advances\nLangford Warehouse\t\nLiquor Distribution Branch\t\nWorkers' Compensation Board\t\nQueen's Printer\t\nMiscellaneous advances\u2014ministries..\nTaxes and Other Accounts Receivable\nNote\u2014These   accounts  are  included   for   record  purposes  only.\nThe amounts are not taken into revenue until received in cash.\nProperty taxes\t\nSocial services tax\t\nCorporation capital tax\t\nInsurance premiums tax\t\nLogging tax\t\nMining and mineral land tax \t\nProbate fees and succession duties\t\nTimber royalty and stumpage and grazing fees\t\nSocial and health agencies\t\nStudent-aid loans\t\nTeacher-training loans..\n8,909,831\n10,603,456\n6,305,314\n1,124,803\n2,512\n2,733,249\n457,830\n4,726,315\n32,507,826\n691,059\n41,864\n9,306\nFarmers' land-clearing, domestic water, and irrigation\ndrainage assistance\t\nLand sales (principal)\t\nSundry  \t\n11,633,525\n533,771\n254\n71,371,084\n1977\n$\n43,158,929\n5,052,552\n2,708,309\n9,416,158\n10,395,027\n3,464,864\n792,201\n10,172\n2,956,313\n215,101\n6,299,923\n15,865,441\n41,864\n9,306\n10,218,941\n423,966\n108\n50,693,227\nNet increase\nor (decrease)\nduring 1977\/78\n(31,511,813)\n4,646,566\n(876,667)\n453,131\n23,631,007 50,919,790       (27,288,783)\n274,601\n287,900\n(13,299)\n4,030,606\n4,902,791\n(872,185)\n245,000\n245,000\n\u2014\n1,406,799\n1,377,187\n29,612\n2,952,825\n2,603,280\n349,545\n(506,327)\n208,429\n2,840,450\n332,602\n(7,660)\n(223,064)\n242,729\n(1,573,608)\n16,642,385\n691,059\n1,414,584\n109,805\n146\n20,677,857\nLoans and Other Advances\nNote\u2014These assets are carried at book value, as the amount of\nultimate realization cannot be determined at this date.\nSchool districts, library districts, improvement districts,\nand local areas (recoverable through rural\nproperty tax collections, mainly in next following year)\u2014\nVarious school districts         25,056,000 23,552,100\nVarious regional library districts         1,125,924 1,141,801\nVarious improvement districts  1,619,384 1,526,626\nMiscellaneous     118,342 86,903\nDyking districts, co-operative associations, and other\u2014\nVarious dyking districts    \u2014 20,718\nVarious water and irrigation districts   342,337 382,418\nVarious co-operative associations, etc  29,038 44,757\nVarious enterprises re economic development\u2014\nMinistry of Economic Development Act   3,320,800 3,320,800\nFarm Products Industry Improvement Act  2,265,846 4,507,366\nPacific North Coast Native Co-operative Loan Act.. 5,422,292 5,450,000\n1,503,900\n(15,877)\n92,758\n31,439\n(20,718)\n(40,081)\n(15,719)\n(2,241,520)\n(27,708)\n B 4\nPROVINCE OF BRITISH COLUMBIA\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGENERAL FUND ASSETS\u2014Continued Netincrease\nor (decrease)\n1978 1977 during 1977\/78\nLoans and Other Advances\u2014Continued                                                       $ $ $\nProvincial Transit Fund       10,000,000 5,000,000 5,000,000\nSouthern Okanagan Lands Project         1,592,876 1,592,901 (25)\nUniversity Endowment Lands Administration Account....        4,184,887 4,184,887 \u2014\nSundry                  54,965 5,000 49,965\n55,132,691 50,816,277 4,316,414\nLess reserve for losses on realization\u2014\nVarious dyking districts              \u2014 20,718 20,718\nSouthern Okanagan Lands Project         1,592,876 1,592,901 25\nInvestment in, and Advances to, Crown Corporations\nBritish Columbia Buildings Corporation\u2014advances\t\nBritish Columbia Cellulose Company\u2014\nEntire issued capital stock of two common shares...\nAdvances \t\n2British   Columbia   Development   Corporation\u2014entire\nissued capital stock of 250,000 common shares\t\nBritish   Columbia   Ferry   Corporation\u2014entire   issued\ncapital stock of 58,497 shares of $100 each\t\nBritish Columbia Harbours Board, advances\t\nBritish   Columbia   Railway   Company\u2014entire   issued\ncapital stock of 1,855,729 shares of $100 each\t\nBritish Columbia Steamship Company (1975) Ltd.\u2014\nentire issued capital stock of five common shares\t\nCrown Development Corporation\u2014entire issued capital\nstock of 10 common shares (1977 only)  \t\nI.O.K. Poultry Ltd.\u2014100 per cent interest, 600 common shares at cost  \t\nOcean Falls Corporation\u2014\nAmount paid to the corporation pursuant to the\nOcean Falls Corporation Appropriation Act,\n1973, for the purpose of acquiring the mill\nand other properties at Ocean Falls   789,952\nAdvances         6,000,000\nPanco Poultry Ltd.\u2014\nEntire issued capital stock of 101,750 common\nand 11,027 preferred shares    4,800,000\nPlateau Mills Ltd.\u201497.5 per cent interest, 8,775 common shares at cost (1977 only)   \u2014\nT. S. Holdings Ltd.\u2014\nEntire issued capital stock of one common share  1\nAdvances               3,918,282\n789,952\n4,000,000\n4,800,000\n7,663,256\n1\n3,904,515\n2,000,000\n(7,663,256)\n13,767\n386,841,069       275,275,747       111,565,322\nlPursuant to the British Columbia Buildings Corporation Act (Order in Council 763\/78), the British Columbia Buildings\nCorporation issued a noninterest bearing promissory note to the Province dated March 30, 1978, in the amount of $143,570,934\npayable in 29 semiannual instalments, in payment for the completed buildings transferred to the Corporation by the Province.\nThe Corporation paid the first Instalment due March 31, 1978, in the amount of $10,000,000. As buildings under construction\nare completed, further notes are to be issued to the Province in consideration of expenditures made by the Province on such\nbuildings prior to transfer to the Corporation.\n2 In addition to its investment in the capital stock of the British Columbia Development Corporation, the Government\nhas advanced the corporation $20,000,000 repayable March 31, 1979. This advance is included in Temporary Investments\n(page B2).\n53,539,815\n49,202,658\n4,337,157\n133,570,934\n\u2014\n133,570,934\n2\n2\n14,355,123\n(14,355,123)\n25,000,000\n25,000,000\n5,849,700\n21,338,693\n5,849,700\n23,338,693\n(2,000,000)\n185,572,900\n185,572,900\n\u2014\n5\n5\n\u2014\n\u2014\n1,000\n(1,000)\n600\n600\n\u2014\n PUBLIC ACCOUNTS 1977\/78\nB 5\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGENERAL FUND ASSETS\u2014Continued\n1978\nInvestments, Other $\nBritish Columbia Resources Investment Corporation\u2014\nShares\t\nNote    \t\nChef Ready Foods Ltd.\u201433.33 per cent interest, 10,000\ncommon shares at cost\t\nKootenay Dehydrators Ltd.\u2014\n33.33 per cent interest, 2,000 common shares at cost.\nEntire   issued  capital   stock  of  98,000   Class   B\ncommon shares\t\nSouth Peace Dehy-Products Ltd.\u201427.7 per cent interest, 277 nonvoting common and 277 voting preferred shares at cost\t\nSwan Valley Foods Ltd.\u201440 per cent interest, 219,804\ncommon and 28,266 preferred shares at cost\t\nWestcoast Transmission Company Limited\u201410.6 per\ncent interest, 1,157,125 common shares at cost.\t\n151,532,930\n85,000\n2,000\n98,000\n554\n1977\n$\n85,000\n2,000\n98,000\n554\n425,501\n25,456,750\nNet increase\nor (decrease)\nduring 1977\/78\n$\n151,532,930\n(425,501)\n(25,456,750)\n151,718,489 26,067,805       125,650,684\nFixed Assets\nGross...\n   2,198,517,376    2,317,998,792\nLess depreciation       120,587,139       195,134,876\n(119,481,416)\n(74,547,737)\n2,077,930,237    2,122,863,916       (44,933,679)\nGross\nDetail as of March 31, $\n1978\u2014\n2Highways  1,759,596,435\nBridges..   383,860,047\nWharves  203,250\nFerries    and    ferry-\nlandings _. 33,897,240\n3Buildings   and   furnishings...  20,186,714\nSonghees   Reserve,\nVictoria  773,690\nDepreciation\n$\n108,825,047\n203,240\n7,110,566\n4,448,286\nNet\n$\n1,759,596,435\n275,035,000\n10\n26,786,674\n15,738,428\n773,690\n2,198,517,376   120,587,139 2,077,930,237\n1 Pursuant to the British Columbia Resources Investment Corporation Act (Order in Council 530\/78) the following assets\nand rights were transferred to the British Columbia Resources Investment Corporation in exchange for a promissory note\nbased on the valuations shown:\nCanadian Cellulose Company Limited\u2014\n9,848,453 common shares without par value; 39,750 nonvoting shares without par value     $64,273,320\nPlateau Mills Ltd.\u20149,000 common shares, par value of $10 _ _ _        9,000,000\nKootenay Forest Products Ltd.\u201411,993,399 common shares, par value of $1     _._  1\nWestcoast Transmission Company Limited\u20141,157,125 common shares without par value       37,363,566\nProvince of British Columbia\u2014Assigned petroleum or natural gas rights _         40,896,043\nValuation of promissory note\n$151,532,930\nThe book values of these assets and rights were as follows:\n(a) Shares received as a dividend from British Columbia Cellulose Company in repayment of advances   $19,849,421\nCanadian Cellulose Company Limited\u20149,570,353 common shares; 39,750 nonvoting shares\nPlateau Mills Ltd.\u2014225 common shares\nKootenay Forest Products Ltd.\u201411,993,339 common shares\n(M Canadian Cellulose Company Limited\u2014278,100 common shares held as temporary investment \t\n(c) Plateau Mills Ltd.\u20148,775 common shares held as investment in Crown corporation \t\n(d) Westcoast Transmission Company Limited\u20141,157,125 common shares held as investment, other       25,456,750\n(e) Petroleum and natural gas rights  _ _ _          Nil\n2 Placed on the books March 31, 1926, by order of the Treasury Board, based on mileage classification and average value\ndetermined by the then Department of Public Works, plus additions to date.\n3 As of March 30, 1978, assets in the amount of $381,571,109 (at cost) less accumulated depreciation of $84,359,819 were\ntransferred to the British Columbia Buildings Corporation pursuant to the British Columbia Buildings Corporation Act.\n1,824,942\n7,663,256\n B 6                                                 PROVINCE OF BRITISH COLUMBIA\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGENERAL   FUND   LIABILITIES Net increase\nor (decrease)\n1978 1977 during 1977\/78\n$ $ $\nOutstanding Cheques        92,417,903 82,703,277 9,714,626\nAccounts Payable (paid in April of next following year)    147,030,787 152,248,168 (5,217,381)\nOther Current Liabilities\nAccrued interest payable on public debt   4,253,159 4,536,490 (283,331)\nEducation tuition fees   8,000,000 8,000,000 \u2014\nGuarantee and performance deposits\u2014contractors, licensees, etc    2,145,028 2,006,603 138,425\nHoldbacks on construction contracts    10,022,267 5,860,040 4,162,227\nHospital  construction  funds  held pending  claims  by\nhospitals       179,911 221,768 (41,857)\nMunicipal vehicle licence account     584,040 590,452 (6,412)\nPetroleum  production  credits  redeemable  upon  performance of exploration and development work..  7,178,997 10,454,539 (3,275,542)\nSuspense\u2014\nPermit and licence applications  8,697,588 3,023,944 5,673,644\nTaxes, fees, etc        1,578,938 1,566,536 12,402\nMiscellaneous ministerial accounts    3,301,633 4,005,035 (703,402)\n45,941,561 40,265,407 5,676,154\nUnmatured Debt (for details as to terms of issue, etc., see\npageB 18)\ntDeficit repayment\nDebentures\u2014\nSeries AA: Due Dec. 22, 1977, 9<A per cent...  \u2014 50,000,000 (50,000,000)\nSeries AB: Due Sept. 1, 1978, 9Va per cent  \u2014 50,000,000 (50,000,000)\nSet:\u00bbs AC: Due Nov. 1, 1978, 9V4 percent  50,000,000 50,000,000 \u2014\nSeries AD: Due Feb. 18, 1979, 8 per cent......  100,000,000 100,000,000 \u2014\nSeries AE: Due Mar. 15, 1979, 8 per cent  11,447,790 11,447,790 \u2014\nSubtotal, deficit repayment debentures  161,447,790 261,447,790 (100,000,000)\nTreasury Bills\u2014\nSeries DS: Due Mar. 31, 1979, 8 per cent  50,000,000 \u2014 50,000,000\nSeries DT: Due Mar. 31, 1979, 8 percent  50,000,000 \u2014 50,000,000\nSubtotal, deficit repayment Treasury Bills...... 100,000,000 \u2014 100,000,000\nTotal deficit repayment   261,447,790 261,447,790 \u2014\nOther-\nTreasury Bills, payable to Government of Canada in annual instalments through 1977\u2014\nInterest free  \u2014 278,073 (278,073)\nInterest at 2Ya per cent.....    \u2014 144,077 (144,077)\nSubtotal, other    \u2014 422,150 (422,150)\n261,447,790 261,869,940 (422,150)\nl Borrowing made pursuant to British Columbia Deficit Repayment Act, 1975-1976 (1976, chap. 6). On May 1, 1978, the\nabove debentures were substituted for 9.125% bonds in the same amount repayable in 10 annual instalments commencing May\n1, 1979.   (See Note 5, B-18.)\n PUBLIC ACCOUNTS 1977\/78 B 7\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGENERAL FUND LIABILITIES\u2014Continued Net increase\nor (decrease)\n1978 1977 during 1977\/78\nlinking Funds (deducted from unmatured debt) $ $ $\nBook value of funds; being less than par value of assets \u2014 422,150 (422,150)\nAssets at par value\u2014\nCash in banks      \u2014 373\nShort-term deposits with chartered banks and trust\ncompanies     \u2014 1,087,560\nSecurities\u2014\nProvince of Manitoba  \u2014 422,150\n\u2014 1,510,083\nLess excess of par value over book value (including a provision for future interest\nrequirements)...    \u2014 1,087,933\nTotal sinking fund assets at book value, as\nabove   \u2014 422,150\nSummary of Sinking Fund Transactions During Year\nPayments and charges\u2014\nRedemption of debt   422,150\nTransfer to Consolidated Revenue Fund\u2014\nExtraordinary income on wind up of fund         1,083,018\n1,505,168\nReceipts and credits\u2014\nProceeds on disposal of investments          1,083,018\nNet reduction in sinking funds during year,\nas above   422,150\nl These sinking funds have been provided for the full repayment of long-term debt (principal and interest) exclusive of\nborrowings pursuant to the British Columbia Deficit Repayment Act, 1975-1976 (1976, chap. 6).\n PROVINCE OF BRITISH COLUMBIA\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGENERAL FUND EXCESS OF ASSETS OVER LIABILITIES\nRevenue Surplus\nBalance at March 31, 1977\t\nNet revenue for the year (page A 9)  \t\n        76,129,730\n          140,488,978\nBalance at March 31, 1978           216,618,708\nDeficit at March 31, 1976, funded pursuant to the British Columbia Deficit Repayment Act,\n1975-1976..\n(261,447,790)\nCapital Surplus\nBalance at March 31, 1977       2,524,103,353\nExpenditure on fixed assets, less depreciation (page B 5)-\nHighways  \t\nBridges-\nGross Expenditure\n$\n...  234,027,257\n..    22,312,325\nFerries and ferry-landings           3,516,452\nBuildings and furnishings           2,233,659\nLess transfer to British Columbia Buildings Corporation (page B 5)\t\nDepreciation\n$\n8,694,905\n728,827\n388,350\n9,812,082\n84,359,819\n(119,481,416)  (74,547,737)\n262,089,693\n381,571,109\n(44,933,679)\nNet increase in taxes and accounts receivable (page B 3 )        20,677,857\nNet increase in loans and advances (page B 4)    4,337,157\nTransactions pertaining to investments in and advances to Crown Corporations\nand other long-term investments\nBritish Columbia Buildings Corporation\u2014\nPromissory note received for depreciable assets transferred    143,570,934\nInstalment payment received      (10,000,000)\nBritish Columbia Cellulose Company-\nDividends received in various securities      19,849,421\nLess applied to advances outstanding        14,355,123\n133,570,934\nBalance representing interest earned on advances    5,494,298\nBritish Columbia Harbours Board\u2014Advances repaid  \u2014         (2,000,000)\nBritish Columbia Resources Investment Corporation\u2014\nShares at nominal value        5\nPromissory note received for assets and rights transferred        151,532,930\nBook values of assets transferred     54,794,369\nLess those that were held as temporary investments (see nonbudgetary expenditure)        1,824,942\n(See footnote (J) on page B 5 for particulars of transfer)\nCrown Development Corporation\u2014write-off shares, corporation wound up.\nOcean Falls Corporation\u2014additional advances  .__\nSwan Valley Foods Ltd.\u2014\nAdditional shares acquired:\nFor cash    \t\nFor other considerations    \t\n(52,969,427)\n(1,000)\n2,000,000\nBook value of the entire Swan Valley Foods Ltd. shareholding sold to\nStandard Brands Ltd. for $2,200,000 represented by promissory note\nof $2,000,000 and cash held in trust subject to claims settlement.\n(Included in loans and advances\u2014Farm Products Industry Improvement Act, page B-3)   \t\nT. S. Holdings Ltd.\u2014advances    \t\n7,631,250\n251,000\n7,882,250\n(8,307,751)\n(425,501)\n13,767\nBalance at March 31, 1978      2,741,400,694\nCombined balance of surplus at March 31, 1978\u2014     2,696,571,612\n PUBLIC ACCOUNTS 1977\/78\nB 9\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nCash (in banks).\nSPECIAL PURPOSE FUNDS\u2014ASSETS\n1978\n$\n   20,209\nInvestments (at cost)..       237,612,176\nSecurities Held at Par Value\nShort-term deposits with chartered banks, trust companies, etc.\u2014\nBanque Canadienne Nationale\t\nBank of British Columbia  \t\nBank of Montreal \t\nBank of Nova Scotia    \t\nBritish Columbia Central Credit Union-\nCanadian Imperial Bank of Commerce\nMercantile Bank  \t\nProvincial Bank of Canada \t\nRoyal Bank of Canada \t\nToronto Dominion Bank\t\nOther\u2014\ntBritish Columbia Hydro and Power Authority\nparity bonds      \t\n!British Columbia Railway Company parity bonds ...\niBritish Columbia Regional Hospital Districts Financing Authority bonds\t\nBritish Columbia School Districts Capital Financing Authority bonds\t\n2Export Development Corporation notes\t\nLess excess of par value over cost\ni Province of British Columbia guarantee.\n2 Government of Canada guarantee.\n1977\n$\n305,193\n157,569,246\n\u2014\n2,000,000\n365,000\n4,000,000\n9,754,000\n3,124,875\n7,643,679\n8,390,000\n272,500\n\u2014\n30,775,746\n\u2014\n\u2014\n2,421,900\n173,000\n5,000,000\n43,278,583\n12,817,444\n20,072,000\n11,000,000\n112,334,508\n48,754,219\n17,511,800\n16,009,200\n10,235,000\n10,235,000\n22,000,000\n22,000,000\n60,592,000\n60,592,000\n15,000,000\n\u2014\n237,673,308\n157,590,419\n61,132\n21,173\n237,612,176\n157,569,246\nNet increase\nor (decrease)\nduring 1977\/78\n$\n(284,984)\n80,042,930\n B 10 PROVINCE OF BRITISH COLUMBIA\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nSPECIAL  PURPOSE  FUNDS\u2014ASSETS\u2014Continued Net increase\nor (decrease)\n1978 1977 during 1977\/78\nOther Assets $ $ $\nNote\u2014These assets are carried at book value as the amount of\nultimate realization cannot be determined at this date.\nHousing Fund (pursuant to the Ministry of Municipal\nAffairs and Housing Act) \u2014\nAccounts and advances receivable          18,411,597 4,674,334 13,737,263\nMortgages receivable\u2014secured.            4,891,401 3,484,632 1,406,769\nReal estate   87,852,500 63,440,514 24,411,986\nInvestments in, and advances to\nHousing Corporation of British Columbia\u2014\nEntire issued share capital of 1,355,084\ncommon shares at cost   5,799,760 5,799,760 \u2014\nAdvances  3,889,535 39,441,231        (35,551,696)\nProvincial Rental Housing Corporation\u2014\nEntire issued share capital of three common shares at cost  633,511 633,511 \u2014\nAdvances        34,473,986 37,439,221 (2,965,235)\nBritish Columbia Housing Management Commission Advances     1,096,952 6,099,732 (5,002,780)\n157,049,242       161,012,935 (3,963,693)\nLottery Fund\u2014working capital\u2014\nAdvance to the Western Canada Lottery Foundation    100,000 100,000 \u2014\ntProvincial Home Acquisition Fund\u2014mortgage loans\npursuant to the Provincial Home Acquisition Act\nand the Leasehold and Conversion Mortgage Loan\nAct           242,047,536      253,812,485       (11,764,949)\n399,196,778       414,925,420       (15,728,642)\nl Summary of loan transactions during year (Provincial Home Acquisition Fund)-\nLoans issued    \t\nDeposits refunded (net)\nLess-\nRepayment of principal\nStatutory remissions\nLoans written off (uncollectable)\t\n34,014,348\n13,116\n34,027,464\n44,836,893\n319,820\n635,700\n45,792,413\nNet decrease in book value of loans during year, as above _  11,764,949\n PUBLIC ACCOUNTS 1977\/78\nB 11\n\u20223-2\n\"8\nC\n8\u00ab\nI\nz\n<\n4> \u25a1 U\nO X ~\nW\n\u00a33\u00b0\nQwU\n<\nEi\nj <\nCO   <\"\n<i\n-j p\n\u00ab\/>  r-\nI-\nui\n\u00ab\/l\n\"\u25a0I\n\u00a9I\nui J\n*z\n(\/>   o\na,\nO *\nO \u00ab\n*j w s\negg\nC\u00a3r>\nn at1\"*\nLU\n-J\n3\nO\nUJ\nX\nu\n1\/%\n<\n\u00a9 \u00a9 Q\n\u00a9 O \u00a9\n\u00b0, \u00b0. \u00b0.\no' O o\"\no o o\n\u00a9 \u00a9 \u00a9\n3\nu\n\u2014\u25a0 t- r*\nin no m\nOvmo\n\u00a9* \u00bb-T oo\"\nON  t*   \u2014\nr- so m\nen r-T \u25a0-\"\nNO On \u00a9\nCO on no\n\u00b0V \u00b0. \u00b0i\n\"W  CO\nco r- r-\ncn r- fN\nI I\n\"noo\n\"*  ON NO\nN0_0 On\no\" rn 00*\nr- r- r\u00bb\nr-     -* o on\nr\u2014      coon\nTf      on^o irt\nt-T  . \u00abo\"m\n<n o no\n1  c\u00bb \u00a9^ m\nui m pi\n\\o cs   oo m\nOn \"t im <N\n00N|h rt\nin oC 'm\">n\"\ntto   mo\nOn (si\nCO ON\n8\nI I I\nen no\n\u2014\u25a0 m\nNO   m\nin\" r>\n00 T\no_o\ninM\n(S NO\nt- c-\nno\"no\"\noo\nI     I  I\non r-\nNO  ON\n00fcl>\nm no\"\nO m\nON   ~H\nON \u00ab-> m\nTt m r-\noo o\nr- r-\nNO NO\nIS I\nI I\n\u00bb\"\u2022  \"<t  Xf  NO  ON NO\no on o ri o \u2014\nm oo ON fsi \u2022\u2014i r\u2014\ni\u2014\" o\" m\" ob\" l>\nNO\\r- on\ni- *-. i-. o\nown\nrttsri\nm m cn\nIS IS   s\nIS I\n. i oo o\nO cni \u00abn\nm <n on\nI I I a l l\nI I\nr^ m \u25a0>*\n^r\nO  NO  0O\nNO\nUl\no on r-\nCN\n<s _, _\nI   III\nI I I I I   II\n\u00b0. \u00a3 \u00b0\nOn. On m\n\u00abn ON ON\n,       ,    ON  ON  NO*\nUl \u00a9 CO\nI       I    N0OCN\nI 2\nO <S\n(N m\nno in\nNO* ON\nO CO\nO  NO\non in\nd r-\nI l\nIs\" I\nr- on\nNO ON\ny- O\nI   I   I\n3\nu\n\u00a9 o \u00a9\n\u00a9 \u00a9 \u00a9\n\u00a9 q o_\no' o\"o\nS \u00b0 \u00a3\n\u00a9 O \u00a9\no r^in tt\n-fr O NO CO\n\u25a0* tn cm r-\nco in* r-^cT\nno \u00ab-h no m\nin \u00a9 On ^c\nrJ rf p\u00ab -h*\nr- t-~ -vt\nm ** no\n\u00a9 \u25a0* o_\n(N* (N* r*J~\nI lal\nI   I s I     o\n1     I   ro    I Q\n[\u2014 OO ON CO rO\n\u25a0rt co fi r- r-\n0_0\\\nON   \u2014\nsi    Si\np-   I       <*-\u00bb   I\nI I\nOn no\nON t-\n\u25a0*\"(N\nO  CO\nr4 rsi\no \u2014\n*-> CO\nI I\nI s I\nO no m\nno o r-\nvo \u00ab f^i\n^TvO*nO\n\u2014 o o\nON_ O^ \"vT\n\u00bbn\nl I I a I\nTt \u00ab-\u00ab m \u2014 -vt\nt^ r^ oo r> r>\nCO NO CO 'Nt\ni  S '\nI      Tt\ntj- \u2014 m ih ^t\nr- r-cor-r-\nco NO 00 Tf\nI I I I I I\nI I I I I I\n*-\u00ab t~- m -- no -vt\nO  \u2022\"* f\u00abl  CO  NO ON\nr*> \u00bbn (S oo m -\u00abt\n^-* O <N* On        \u2014r\nStu\nx \u25a0o\nW S\nrt\n\u00a3    0\n\"\u20225 i 3\n5 oU\n\u00a5 \u00ab\n0 rt -\u201e  \u00ab\non F. t;\n-SO 3\nrB* S\n0    E\nA A.\na a -o o \u2014\ngo S.2'\n\u00a7|\t\n30i\u00ab  Nil,\n2-S   -Bo 8\nn<\nfi-o\nc c\nCO a o\n\u00abfe3 g\nu h o <3\n5 s\n\u2022o\"2\ns 9\nPhCL<\nU\nall is\ns<<on,\n5^%\nfas\n5UO\ngala\nbl SS\n5-5uo\nu   C\n3 c\no E\nat 3\ngCL,\n:S.2\ng \u00bb!\no o o\n8\u00a3E\n<:. -\n3   O  o\nc *J \u25a0a\nS \u00bb\nH<K\nSB* \u201e\n>. u\n= &-SB\nJUOQ\n< o\nS w\nQ-a\n\u00a35\nJ   s\n1 1\n\u2022o      o\nR     \"8\nv      u a\nc \u00b0    \u25a0S-S\n3M   fa\n\u2022o o      o u\n3 u    .a c\nm\no 5\nII\nD.  CO\niE u\n18 \u00a3\nS \u00ab J) u ti\n2   \u00a3   0   3 ^5\no -o J; .^ \u201e\nc s \u00ab    a\n88811\n\u00bb K t3 a< .a\n8     S\n B  12\nPROVINCE OF BRITISH COLUMBIA\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nSUPERANNUATION FUNDS\u2014ASSETS\n1978\nCash (in banks) $\nPublic Service Superannuation Fund    7,520\nMembers of the Legislative Assembly Superannuation\nAccount....      3,101\n10,621\n1977\n$\n18,920\n1,910\n20,830\nNet increase\nor (decrease)\nduring 1977\/78\n$\n(11,400)\n1,191\n(10,209)\nInvestments (at book value)\nPublic Service Superannuation Fund  \t\nMembers of the Legislative Assembly Superannuation\nAccount \t\nSecurities Held\nPublic Service Superannuation Fund\u2014\nDebt securities (par value)\u2014\nShort-term deposits with chartered banks..\nProvince of British Columbia\t\nProvince of Ontario\t\nProvince of Quebec\t\nProvince of Saskatchewan \t\nGovernment of Canada \t\nCanadian National Railway..\n572,269,078\n1,598,546\nManitoba Hydro-electric Commission (Province of Manitoba guarantee)\t\nManitoba Telephone Systems (Province of\nManitoba guarantee) \t\nMontreal Auto Route (Province of Quebec\nguarantee)\t\nNew Brunswick Electric Power Commission\n(Province of New Brunswick guarantee)\nNewfoundland and Labrador Hydro-electric\nCorporation (Province of Newfoundland\nguarantee)\t\nNova Scotia Power Corporation (Province of\nNova Scotia guarantee)\t\nOntario Hydro-electric Power Commission\n(Province of Ontario guarantee)\t\nQuebec Hydro-electric Commission (Province\nof Quebec guarantee).\nBritish Columbia Hydro and Power Authority..\niBritish Columbia Ferry Authority..\niBritish Columbia Railway Company \t\nBritish Columbia Regional Hospital Districts\nFinancing Authority \t\niBritish Columbia School Districts Capital Financing Authority   \t\niBritish Columbia Steamship Company (1975)\nLtd \t\n1British Columbia municipalities\t\nxBritish Columbia improvement districts..\n1British Columbia school districts\t\nLess excess of par value over book value..\n572,371,601\n11,814,135\n477,993,446\n1,309,996\n573,867,624  479,303,442\n11,170,000\n127,463,090\n1,242,000\n727,000\n3,451,000\n15,454,000\n6,000\n35,488,545\n111,558,790\n939,000\n25,000\n1,600,000\n250,000\n6,000\n312,000\n16,000\n70,000\n70,000\n250,000\n250,000\n1,595,000\n\u2014\n700,000\n\u2014\n2,325,000\n1,000,000\n30,197,000\n4,201,000\n5,257,000\n275,232,545\n44,353,000\n2,869,000\n200,134,000\n15,273,000\n45,823,000\n10,000,000\n10,000,000\n18,378,000\n18,056,800\n3,400,000\n5,928,666\n12,234,600\n2,625,700\n2,800,000\n6,875,412\n11,912,400\n4,104,000\n473,251,947\n6,970,113\n560,557,466  466,281,834\n94,275,632\n288,550\n94,564,182\ni Province of British Columbia guarantee.\n PUBLIC ACCOUNTS 1977\/78\nB 13\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nSUPERANNUATION  FUNDS\u2014ASSETS\u2014Continued\nInvestments (at book value)\u2014Continued\nSecurities Held\u2014Continued\nPublic Service Superannuation Fund\u2014Continued\nStocks (book value)\u2014\nBank of British Columbia, 51,055 shares\t\nBritish   Columbia   Telephone   Company,\n1,001,955 common shares\t\nCanadian   Pacific   Limited,   1,200   common\nshares\t\nImperial Oil Limited, 300 common shares\t\nInternational   Nickel   Company   of   Canada\nLtd., 450 common shares\t\n1978\n$\n14,344\nMembers of the Legislative Assembly Superannuation\nAccount (par value)\u2014\nShort-term deposits with chartered banks\t\n1British Columbia Hydro and Power Authority\t\nJBritish Columbia Railway Company  \t\niBritish Columbia School Districts Capital Financing Authority  \t\niBritish Columbia improvement districts\t\niBritish Columbia municipalities\t\niBritish Columbia school districts \t\nGovernment of Canada  \t\n2Ontario Hydro-electric Power Commission\t\nLess excess of par value over book value-\nTotal securities at book value, above.\u2014\n1,624,000\n25,454\n1,598,546\n1977\n$\n1,147,589\n1,147,589\n10,517,167\n10,517,167\n19,800\n12,712\n19,800\n12,712\n14,344\nTotal securities at book value, above     572,269,078       477,993,446\n373,600\n53,600\n1,047,000\n1,118,000\n20,000\n20,000\n90,000\n90,000\n14,000\n16,000\n\u2014\n2,000\n24,400\n32,000\n15,000\n\u2014\n40,000\n\u2014\n1,331,600\n21,604\n1,309,996\nl Province of British Columbia guarantee,\ns Province of Ontario guarantee.\n B  14 PROVINCE OF BRITISH COLUMBIA\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nSUPERANNUATION FUNDS\u2014SUMMARY OF TRANSACTIONS FOR THE YEARS ENDED\nMARCH 31,  1978 AND 1977\nPUBLIC SERVICE SUPERANNUATION FUND\nMarch 31, 1978 March 31, 1977\nReceipts and Credits                                                                                                              $ $\nContributions\u2014\nEmployees......         38,749,640 32,243,433\nProvince of British Columbia      44,467,071 38,005,601\nOther employers         7,503,560 4,208,069\nTransfers from other plans and funds (net)  _.        1,428,096 841,867\n^Transfers from Member's Account (below)             \u2014 649,713\nInterest on investments         33,993,531 34,178,961\n126,141,898       110,127,644\nDisbursements and Charges\nSuperannuation allowances        22,463,649 18,696,384\nRefunds\u2014\nEmployees            5,110,493 4,534,397\nProvince of British Columbia        4,303,524 3,872,153\n31,877,666        27,102,934\nNet increase in funds during year...       94,264,232 83,024,710\nBalance at credit of funds at beginning of year   478,012,366       394,987,656\nBalance at credit of funds at end of year   572,276,598      478,012,366\nMEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION ACCOUNT\nReceipts and Credits\nContributions\u2014\nMembers   85,703 73,051\nProvince of British Columbia     131,017 343,637\nInterest on investments    76,442 109,770\n293,162 526,458\nDisbursements and Charges\ntransfer to Public Service Fund (above).....     \u2014 649,713\nRefunds\u2014Members.......   3,421 12,753\n3,421 662,466\nNet increase (decrease) in funds during year    \u2014.        289,741 (136,008)\nBalance at credit of funds at beginning of year        1,311,906 1,447,914\nBalance at credit of funds at end of year\u2014        1,601,647 1,311,906\ni Superannuation 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\nof the Legislative Assembly Account.\n PUBLIC ACCOUNTS 1977\/78 B 15\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nTRUST   FUNDS ASSETS Net increase\nor (decrease)\n1978 1977 during 1977\/78\nCash and Investments $ $ $\nCash in banks.     1,116,786 2,221,066 (1,104,280)\nShort-term  deposits  with  chartered  banks  and  trust\ncompanies   195,801,024 79,757,971 116,043,053\nInvestments\u2014direct  or   guaranteed   securities   of   the\nGovernment of Canada and the Provinces  542,533,975 540,072,268 2,461,707\n739,451,785       622,051,305       117,400,480\nTRUST FUNDS\u2014BALANCES\nTrust Deposits\nBond redemption account (unclaimed bonds)    7,500\nBond interest coupon account (unclaimed bond coupons)  \t\nCemetery Tax Account\t\nCompanies in liquidation  \t\nCourts  \t\nIntestate estates  \t\nOfficial Committee\t\nOfficial Guardian  \t\nPatients' accounts, Provincial institutions..\nMiscellaneous  \t\nSinking Funds\nBritish Columbia Buildings Corporation\t\nBritish Columbia Hydro and Power Authority..\nBritish Columbia Ferry Authority \t\nBritish Columbia Railway Company..\nBritish Columbia Regional Hospital Districts Financing\nAuthority  \t\nBritish Columbia School Districts Capital Financing\nAuthority\t\nBurnaby, District of  \t\nGreater Vancouver Sewerage and Drainage District\t\nQueensborough Bridge Account. \t\nSundry improvement districts  \t\n109,010,065\n314,852\n288,858,958\n31,268,867\n84,557,874\n154,212,609\n709,379\n18,112,156\n1,524,243\n5,164,789\nOther\nFerries Insurance Fund\t\nLand Registry Assurance Fund_..\nWorkers' Compensation Board,\naccount\t\nAccident Fund bank\nBritish Columbia Buildings Corporation\nTravel Agents Assurance Fund\t\n4,381,113\n806,522\n405,602\n203,300\n15,500\n244,095,289\n50,490,303\n70,870,204\n121,494,030\n632,332\n17,319,689\n1,752,120\n4,387,919\n624,645,183       540,228,979\n4,045,164\n757,153\n1,027,233\n17,750,584\n(8,000)\n3,284\n4,589\n(1,305)\n85,312\n84,872\n440\n382,632\n424,941\n(42,309)\n65,944,112\n19,687,523\n46,256,589\n13,784,862\n12,245,058\n1,539,804\n22,627,835\n20,953,480\n1,674,355\n5,650,246\n4,215,745\n1,434,501\n346,377\n435,717\n(89,340)\n177,905\n174,767\n3,138\n58,242,192 50,767,873\n314,852\n44,763,669\n(19,221,436)\n13,687,670\n39,921,456        29,187,093 10,734,363\n32,718,579\n77,047\n792,467\n(227,877)\n776,870\n84,416,204\n335,949\n49,369\n(621,631)\n(17,750,584)\n203,300\n5,796,537        23,580,134       (17,783,597)\nTotal miscellaneous trust deposits     739,451,785       622,051,305       117,400,480\n B  16\nPROVINCE OF BRITISH COLUMBIA\nLess\nGross\nSinking\nNet\nOutstanding*\nFunds 2\nOutstanding\n$\n$\n$\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGUARANTEED  DEBT\nDebt Guaranteed as to Principal and Interest by $\nthe Province\nMunicipalities   and   other   local   governments\u2014\n(1) Guarantees authorized pursuant\nto the Public Schools Construction Act (principally funded)..   .  867,412,200\nLess held by British Columbia\nSchool Districts Capital Financing Authority  851,714,000\n(2)  Guarantees authorized pursuant\nto   sec.   46,   Regional  Hospital\nDistricts Act  331,464,000\nLess held by British Columbia\nRegional Hospital Districts\nFinancing Authority  331,464,000\n15,698,2003 \u2014\n(3) Guarantees authorized pursuant to sec. 3,\nMunicipalities Assistance Act (principally\nserials)  \t\n(4) Guarantees authorized pursuant to sec. 3,\nVillage Municipalities Assistance Act (repayable serially)..   \t\n(5) Guarantees authorized pursuant to sec. 12,\nImprovement Districts Assistance Loan Act,\ndebentures (principally serials)\t\n(6) Greater Vancouver Sewerage and Drainage\nDistrict debentures (some serials)\t\nSubtotals,  municipalities and local governments \t\n15,698,200\n36,994,645\n763,973\n36,230,672\n33,500\n\u2014\n33,500\n27,429,400\n5,804,369\n21,625,031\n20,085,000\n17,006,622\n3,078,378\n100,240,745\n23,574,964\n76,665,781\n Less\nSinking\nFunds2\nNet\nOutstanding\n$\n$\nPUBLIC ACCOUNTS 1977\/78 B 17\nSCHEDULES TO STATEMENT OF ASSETS AND LIABILITIES\u2014Continued\nGUARANTEED  DEBT\u2014Continued\nGross\nOutstanding!\nCrown agencies\u2014 $\n(7) Guarantees authorized pursuant to sec. 46,\nBritish Columbia Hydro and Power Authority\nAct, 1964\u2014\nBonds and debentures\u2014funded       4,683,319,200\nParity bonds\u2014unfunded         75,000,000\n(8) Guarantees authorized pursuant to sec. 17,\nBritish Columbia Railway Company Construction Loan Act\u2014\nBonds and debentures\u2014funded        736,585,000\nNotes\u2014unfunded   6,200,000\n(9) Guarantees authorized pursuant to sec. 28,\nBritish Columbia Ferry Authority Act, bonds\nand debentures\u2014funded   18,685,000\n(10) Guarantees authorized pursuant to sec. 9,\nBritish Columbia School Districts Capital Financing Authority Act, debentures\u2014principally funded...         851,714,000\n(11) Guarantees authorized pursuant to sec. 9,\nBritish Columbia Regional Hospital Districts\nFinancing Authority Act, debentures\u2014funded        331,464,000\n(12) Guarantees authorized pursuant to sec. 8,\nBritish Columbia Cellulose Company Act,\n1973 (U.S. funds)  37,000,000\n(13) Guarantees authorized pursuant to sec. 4a,\nMinistry of the Environment Act   3,400,000\n(14) Guarantees authorized pursuant to sec. 12,\nBritish Columbia Buildings Corporation Act,\n1976, debentures\u2014funded         33,000,000\n(15) Guarantees authorized pursuant to sec. 14,\nDevelopment Corporation of British Columbia\nAct, 1973\u2014notes..     22,600,000\nSubtotal, Crown agencies     6,798,967,200\n294,335,480   4,388,983,720\n\u2014 75,000,000\n90,024,289       646,560,711\n\u2014 6,200,000\n18,685,000 \u2014\n157,896,764 693,817,236\n40,639,189 290,824,811\n\u2014 37,000,000\n\u2014 3,400,000\n321,078 32,678,922\n\u2014 22,600,000\n601,901,800    6,197,065,400\nResource enterprises\u2014\n(16) Guarantees   authorized   pursuant   to   sec.   3,\nFarm   Products  Industry   Improvement   Act,\n1973, 2nd Sess  10,584,309\n(17) Guarantees   authorized   pursuant   to   sec.   3,\nAgricultural Credit Act, 1973, 2nd Sess  3,525,462\n(18) Guarantees authorized pursuant to sec. 4 (3),\nMinistry of Economic Development Act.   339,200\nSubtotal, resource enterprises  14,448,971\nGrand total all guaranteed debt..     6,913,656,916\n10,584,309\n3,525,462\n339,200\n14,448,971\n625,476,764   6,288,180,152\nl Except in the case of the British Columbia Hydro and Power Authority where debt payable in United States dollars is\ntranslated to Canadian dollars at the rates of exchange prevailing at the date the debt was incurred, debt payable in United\nStates dollars is recorded at par. Translation of the debt payable in United States dollars at the rate of exchange as at March\n31, 1978, would increase the total gross debt outstanding by approximately $198 million. In addition, interest accrued at\nMarch 31, 1978, on the gross debt would further increase the total gross debt by approximately $169 million.\n' Sinking funds comprise cash and investments recorded at par value plus accrued interest except for Item (7) recorded at\nbook value plus cash and accrued interest and Item (9) shown at an adjusted value equivalent to the debt outstanding (book\nvalue plus accrued interest equals 531,514,681). Translation of securities payable in United States funds, including accrued\ninterest, at the rate of exchange as at March 31, 1978, would increase the total value of sinking funds by approximately $11\nmillion.\nS Repayable serially.\n B  18\nPROVINCE OF BRITISH COLUMBIA\nOS\nm\nU\n<\n<\n<\na.\nZ\nQ\nZ\n<\no\nz\n5\nz\n<\nO\n>-\n<\niii\ntC\nr-\nD\nZ\n<\ni\/>\nin\nc*\nI-\nZ\nhi\nCD\n111\no\nH\nZ\nI-\nto\n960;\nand\n960;\nand\n960;\nand\n11    8l\n. v\u00a9          . *0          . vo\n. \u00abo        .\\o\n07    U^    Uf\n07    U7\n>.\n\u00abp   \u00abp   \u00abp\nffljn       op\n\u00bb\u00bb     t\/i o\\     c\/i o\\\n(Z) o\\      w 0\no\nfa    *o pi        a;\n3\n<\nif \"^ r- ?f ^ ^ 0\" ^ ^\nX OS *o ^ K r^\n\u25a0 f\u00ab\">             \u25a0 VI             -co\n\u25a0 m         \u2022 ^t\n\u00abQ      \u00a3Q      *Q\n*Q          \u00abQ\ngougougoo\n\u00a3OU JUU\nS^'djnJdjoJd\n\u00a3\u00abQO |<xo\n05           OS           \u00ab\n\u00ab       a;\na\no\nft\" 8*1\" 81*\nO Q 0 \u00a9 \u00a9 \u00a3 O O 0\nc\n1\no\nB\niliiiilii;\np\n-8\"-8\"-8\"\n^\nl\u00a7\n1-   frt\nsi\n<N              d              <N\n**\"'\n\u00ab\nwww\n\u00ab*-.\no\nl4             u              u\nIn\n>     >     >\nC\nsi\nrfa   7*   T3?\n^'      1\niii    u S   u S\nu      0\n\u00abH     cq'H     bH\nca       0\no\nUse    u\u00a3    qfc\n7        V\nJ2\n1. pi     1.\u00ab     1. si\n1          1\n\u00a3\nSu   So   So\ns    s\nni       J      J\nJ       -i\n>       9      S.\nO           3           u\nV) \u2014\n55         <         to\n\"jo\nfen\n\u00ab     \u00abI     \u00ab\n>~iP-c\n>*          xi           t)\n\u00ab           a)          ^\n2    *    s\n\"        22        \"\"'\n00\n00*\n0        0        i>\n0\n1      1\n0\n8\ni\no\n0\"       0\"       i>\n~8      8       3\nO                \u00a9                irt\nift           \u00a9           t-\n8      8\"\np            O\n0'            0\"\n8\"\n~\u2122<\n,-H\nt-l        ri\nM\n\"u\nu\nto\nu      a      ai\n<      <      <\nCO          H\nQ        Q\n_sr\nz\n\u25a0a\nEQ       u\n\u2022U\nto               w\nbl\nn            eg            eq\nt>                 V                 V\n3    3        3\n& 3\no\nE            W            K\n^    pa       co\n3\n3\n3            3             3\nw         >\u00bb               >^\nc         c         c\nX)     h         b\n0       0\nrt\nu            y            <J\nS     s         3\nX\n\u00a31             X>             Xi\nu              U              0)\nQ         Q         G\n\u25a0n        c              to\n1 e    fi\n3   \u00a7\nO       v-\nH\t\nH     O\nIs\n\"5          2          2\nCN                O                p\n8      8\n0\\                CO                00\ncd          00'\n4)\n\\o         t-         \u00a3\u2022\nP     s\n3\nc<\u25a0\u25a0'-!-     ; b\nV)\n5       2       s\n2       S\nO\n\u201e\u2022\u25a0         00\"         u-T\n4>\nQ\n>          ~          iJ\n9     \u25a0S     1\n*         B.         2\nQ         S\nOB              CT\\              ^\nO                  <^\nK          F-          i>\nr-            r^\n>\u00bb\nf>              O              0\\\nO           0\nH\n3\n^                 00*                 IT)\n^-\"           m\nn\nt-H                          l-\u00ab\nm           f*>\ns\n1    -s     s\nrt              as\n1\n*    fi    s\ns     s\n\u25a0 -  u\n8-\nt; \u00ab a S\nac 5 5\npiS\nSi      S\n03   e\n\"a\no .\u2014\n\u2022a* la   1Q\n.     O   \u2122   C        tXJ   \u00ab\nO ttt o B\nJJ oS|\n| MS\n\u20229     !rO\n81\nIf\nQ\n.SO\n03\nS ^s-si\n>.a y.*|\ncSS \u00a7 a\n\u00ab \u00ab g a \u00a9\n\u25a0a &s s'0\ng -s 15 a -a\n5 \u201e u \u00ab m>3\nIS \u25a0\"> bl I   5\nJS*3-.8a\u00abt|\nNt^t-SS^O--        o\n'5\u00b0:2 .* s >. uu\nS      --in ^2 Oo \u201e\n\" a *2 a ~ oc \u25a0 u o\n\u00a7OCo'ol\u00ab\u00ab\n\u00ab \u00b0 .. 5 * \u00ab \u00b0 ?,\n=J.a |ls-\u00a3 1|\nujj \"i S\u00ab> \"\u00abo\n.-o^'au2oS\u00ab\nSou - ft \u00ab'\nc* \u00ab ja o\u201e\"\u00a3Ow\n'm 5 H v .2 w   -     ><\n3 \u25a0?! 5 ot) \u00ab>< 3\nB\"S\n5 '\u2022 as\nU 7\n.- 2 o \u00b0\n\".2\u00a7.sSg\u00b0Ljas\nBOcroSeg.   .\n\u2022a*5*:s\u00a7 sis\ng \u2022& -c -c b. a I \u00b0 I.\n* S 3 8 od\" e 6  .\n<fxiSj=rS\u00bbo\u201eo\nE\u00ab>ou2-a.2 = c\nj5.a.s.s~-\u00bb&ss\nliss&'cf.SflT\nScL,a,B,g g-7.-\n*\u00bb\u2022\u2022\n1\ng'rT\nW   M   03   *   \u00bb\no;5\n PUBLIC ACCOUNTS 1977\/78\nSECTION C\nSCHEDULES OF GENERAL FUND REVENUE AND EXPENDITURE\nCONTENTS\nPage\nRevenue for the fiscal year ended March 31, 1978\u2014Details by source  C    2\nExpenditure for the fiscal year ended March 31, 1978\u2014\nBudgetary expenditures and appropriations by ministries\u2014\nLegislation\t\nAuditor General  C\nMinistry of Finance  C\nExecutive Council  C\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o\nMinistry o:\nthe Provincial Secretary and Travel Industry  C\nthe Attorney-General  C\nEconomic Development  C\nthe Environment  C\nAgriculture  C\nEnergy, Transport and Communications  C\nMines and Petroleum Resources  C\nForests  C\nHighways and Public Works  C\nEducation  C\nHealth    C\n4\n4\n4\n4\n4\n6\n6\n7\n\u20227\n7\n8\n8\n8\n9\n9\nHuman Resources  C 10\nMunicipal Affairs and Housing  C 10\nLabour  C 11\nConsumer and Corporate Affairs  C 11\nRecreation and Conservation  C 11\nNonbudgetary expenditure.\nC 12\n C 2\nPROVINCE OF BRITISH COLUMBIA\nDETAILS OF REVENUE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\nSOURCE\n$\nPROPERTY TAXES\n20,400,000    Real property tax _._ _ _  21,562,622\nEstimated\n$\nReceived\n7,000,000\n740,000,000\n171,000,000\n19,000,000\n3,000,000\n32,000,000\n8,500,000\n980,500,000\nSOCIAL SERVICES, FUEL TAXES, ETC.\nPari mutuel betting tax \u2014 \t\nSocial services tax (net).- _\t\nGasoline tax    \t\nMotive-fuel use tax.\nFuel-oil tax \t\nCigarette and tobacco tax ~\nHotel and motel room tax.\nTotal, social services, fuel taxes, etc.\n8,002,981\n748,383,192\n167,031,542\n19,792,152\n2,458,145\n33,255,747\n8,251,499\n987,175,258\nCORPORATION, PERSONAL, SUCCESSION, AND\nGIFT TAXES\nCorporation:\n283,000,000       Income tax _ -   _\t\n33,000,000       Capital tax    \t\n1,115,500,000   Personal income tax   \t\n12,000,000   Succession and gift taxes - - _  \t\n1,443,500,000\nTotal,  corporation,  personal,\ngift taxes   \t\nsuccession,   and\n245,699,084\n41,452,916\n985,990,685\n14,050,675\n1,287,193,360\nPRIVILEGES, LICENCES, AND NATURAL RESOURCES\nTAXES AND ROYALTIES\n48,600,000    Motor-vehicle Licences and Permits\t\nNatural Resources\n6,100,000    Wildlife Act\u2014Fees and licences _ _\t\nLands and Forests\u2014\n500,000       Grazing permits and fees\u2014 _    460,041\n5,000,000       Land leases, rentals and fees  _  7,050,778\n10,000,000        Logging tax       48,461,112\n150,000       Timber leases - - - -    143,532\n500,000       Timber licences      505,639\n7,000,000       Timber royalties    - 8,668,094\n50,000,000       Timber sales    _   -  79,234,093\nMinerals\u2014\n5,300,000       Coal, minerals, and metals royalties  \u2014  4,516,651\n245,600,000       Petroleum and natural gas royalties, leases, and fees.._ 426,691,591\n200,000       Free miners' certificates    216,478\n2,500,000       Mining receipts, general     2,004,955\n11,000,000       Mining tax  \u2014  9,150,820\n9,040,000       Mineral land tax    8,087,921\n11,000,000       Mineral resource tax  _   - - 11,396,392\nWater Resources\u2014\n13,300,000       Water rentals and recording fees.\t\n57,791,570\n5,541,912\n144,523,289\n462,064,808\n14,588,575\n600,000\n175,000\n3,300,000\n2,200,000\n990,000\n175,000\n210,000\n10,000,000\n1,800,000\n1,000,000\n240,000\n4,910,000\n451,390,000\nOther\nAgricultural licences and fees.\nBoiler inspection fees\t\nCompanies Branch-\nElectrical energy inspection fees\t\nFire Marshal Act\u2014fees, etc .\t\nGas Act\u2014fees\t\nInsurance Act \t\nInsurance premiums tax.\nLaw stamps\t\nProbate fees \t\nSecurities Act.\t\nSundry licences and permits _\n648,577\n292,854\n3,787,118\n1,941,632\n1,645,580\n188,171\n460,966\n12,356,562\n2,098,662\n1,321,694\n178,715\n3,518,929\nTotal privileges, licences, and natural resources\ntaxes and royalties.. _\t\n28,439,460\n712,949,614\n PUBLIC ACCOUNTS 1977\/78\nC 3\nDETAILS OF REVENUE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\u2014Continued\nEstimated\n$\n1,250,000\n350,000\nSOURCE\nSALES AND SERVICE FEES\nSales\nLand sales \t\nSale of maps and air photos...\n',303,889\n354,528\nServices\nAdministration Act-\n\u2022fees-\n4,000,000\n693,000\n5,900,000\n2,500,000\n2,567,000\n6,750,000\n840,000\n18,000,000\n5,068,000\n1,500,000\n1,000,000\n550,000\n4,832,000\n55,800,000\nMotor-vehicle lien and search fees...\nEducation course and examination fees  _\t\nMedicare Services recoveries _ _     6\nFerry revenue\t\nAmbulance Service\t\nForest scaling fees _\nLand-clearing receipts..\nLand Registry fees.\nReservoir waterway improvements.\nSheriffs' fees  _\nPublications Service Branch (Education) rentals and sales \u2014\nVital Statistics  __ _ _ _\t\nSundry services   _\t\n303,459\n,883,321\n580,739\n,020,036\n,562,969\n,246,843\n,374,248\n,468,974\n,269,289\n,277,549\n,312,285\n868,281\n456,154\n,027,700\nReceived\n2,658,417\n54,651,847\nTotal, sales and service fees..\n57,310,264\nFINES AND PENALTIES\n8,500,000   Court fees and fines\t\nINTEREST, DISCOUNT,  PREMIUM, AND EXCHANGE\n12,000,000   Miscellaneous interest and dividend income.._ _\t\n10,377,029\n34,896,363\nCONTRIBUTIONS FROM OTHER GOVERNMENTS\n2,300,000 Canada statutory subsidies  _\t\n2,000,000 Canada percentage of power corporation tax\t\n310,300,000 Canada established programs financing  -\t\n282,403,000 Canada share of joint service programs in lieu of opting out _\n597,003,000\n30,785,000   Municipal share of joint service programs.\n22,000   Other provinces _ _   _\n627,810,000\nTotal, contributions from other governments.\n2,116,848\n477,620\n373,854,000\n298,211,283\n674,659,751\n32,685,829\n73,0%\n707,418,676\nCONTRIBUTIONS FROM GOVERNMENT ENTERPRISES\n170,000,000    Net profit, Liquor Distribution Branch (including permits) _.\n33,000,000    British Columbia Buildings Corporation \u2014 -\t\n203,000,000\nTotal,   contributions  from   Government  enterprises    _\t\n180,677,062\n15,000,000\n195,677,062\nMISCELLANEOUS\n7,045,000    Institutional maintenance receipts _.\t\n19,955,000   Miscellaneous revenue  \t\n27,000,000\n3,829,900,000\nTotal, miscellaneous ...\nTotal, budgetary revenue\n15,082,041\n25,849,544\n40,931,585\n4,055,491,833\nNONBUDGETARY\nGovernment of Canada contribution to assist in the construction of Dease Lake rail line   - \t\nInterest earned on above _ __ _ _\t\nRecovery of advance to B.C. Harbours Board -\t\nProceeds on wind up of Consolidated Sinking Fund \t\nTotal, nonbudgetary revenue\t\nTotal revenue _\t\n79,852,785\n1,315,295\n81,168,080\n2,000,000\n1,083,018\n84,251,098\n4,139,742,931\n C 4\nPROVINCE OF BRITISH COLUMBIA\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\nSUMMARY SHOWING EXPENDITURE COMPARED WITH MAIN ESTIMATES AND OTHER AUTHORIZATIONS\nNo.\nof\nvote\nSERVICE\nLegislation\n1    Legislation  _ _ _\t\nStatutory\u2014\nConstitution Act (R.S.B.C. 1960, chap.\n71, sec. 71)  \t\nCrown    Corporation    Reporting    Act\n(1977, chap. 49, sec. 10)..\u2014 \t\nAuditor General\nStatutory\u2014Auditor   General  Act   (1976,\nchap. 3, sec. 20) \t\nTotal\nexpenditure\n5,131,913\n148,456\n5,280,369\n344,966\nMain\nestimates\nvoted\n$\n3,580,426\n3,580,426\nExpenditure\nover (under)\nmain\nestimates\n$\n1,551,487\n148,456\n1,699,943\n344,966\nOther\nauthorizations1\n1,551,487\n148,456\n1,699,943\n344,966\nNet\nover (under)\nexpenditure\nMinistry of Finance\nMinister's office  \t\nSupplement\u2014Special Warrant No. 72..\nAdministrative and support services\t\nSupplement\u2014Special Warrant No. 72 .\nControlling and audit branch..\nComputer and consulting services \t\nSupplement\u2014Special Warrant No. 72\t\nStatutory\u2014Revenue Act, (R.S.B.C.  1960,\nchap. 341, sec. 55 (3))  \t\nPurchasing Commission _   _\nSupplement\u2014Special Warrant No. 72\t\nTaxation administration  _\t\n8 Assessment Appeal Board   \t\nSupplement\u2014Special Warrant No. 59..\n9 Government agencies   \t\n10   Interest on public debt..\nSupplement\u2014Special Warrant No. 72\t\n11 Grants, contributions and subsidies\u2014\t\nSupplement\u2014Special Warrant No. 14\t\n12 Interest on funds and deposits \u2014\t\n13 Incidentals    .' \t\nSupplement\u2014\nSpecial Warrant No. 29\t\nSpecial Warrant No. 72\n14 Salary contingencies (all ministries)\t\nSupplement\u2014Special Warrant No. 72 .\n15 Treasury Board-\nSupplement\u2014Special Warrant No. 15\t\n16 Building occupancy charges\t\n17 Computer and consulting charges\t\nStatutory\u2014\nCourt of Revision costs. Assessment\nAmendment Act (1977, chap. 30,\nsec. 165 )   \t\nJudgments against Crown, Crown Proceedings Act (1974, chap. 24, sec.\n13 (4))  _ _ _  \t\nStaff reduction salary savings\t\nExecutive Council\n18 Executive Council.   \t\nMinistry of the Provincial Secretary\nand Travel Industry\nProvincial Secretary and\nTravel Industry\n19 Minister's office \u2014 -\t\n20 General administration _  \t\n21 Central Microfilm Bureau  -\t\n22 Postal Branch 1 \t\nSupplement\u2014Special Warrant No. 67.\n23 Legislative Library \t\n24 Provincial Archives  \t\nSupplement\u2014Special Warrant No. 21\t\n25    Queen's Printer \t\nStatutory\u2014Public Printing Act (R.S.B.C.\n1960, chap. 318, sec. 12)...- - _\n105,026\n95,034\n9,992\n10,000\n(8)\n947,853\n903,968\n43,885\n70,000\n(26,113)\n2,599,261\n2,830,063\n(230,802)\n(230,802)\n5,856,154\n3,500,010\n2,356,^44\n300,000\n2,056,144\n1,311,898\n1,315,344\n(3,446)\n110,000\n(113,446)\n3,982,898\n4,322,478\n(339,580)\n(339,580)\n168,175\n100,000\n68,175\n72,500\n(4,325)\n(328,149)\n4,589,145\n4,917,294\n(328,149)\n22,507,492\n13,875,000\n8,632,492\n8,691,508\n(39,016)\n31,590,883\n30,260,000\n1,330,883\n3,100,000\n(1,769,117)\n3,430,358\n3,500,000\n(69,642)\n(69,642)\n1,941,053\n788,510\n1,152,543\n742,500\n440,000\n(29,957)\n41,358,721\n41,362,498\n(3,777)\n2,750,000\n(2,753,777)\n10,251,329\n10,765,913\n(514,584)\n265,000\n(779,584)\n1,616,695\n1,666,187\n(49,492)\n(49,492)\n1,595,502\n1,595,502\n\u2014\n\u2014\n421,839\n23,436\n134,297,718\n134,297,718\n691,125\n144,787\n354,802\n737,173\n5,030,070\n615,642\n770,534\n121,797,801\n1,987,033\n119,810,768\n713,648\n155,690\n339,252\n806,242\n4,529,088\n646,994\n742,620\n30,312\n421,839\n23,436\n12,499,917\n1,987,033\n14,486,950\n(22,523)\n(10,903)\n15,550\n(69,069)\n500,982\n(31,352)\n27,914\n30,302\n421,839\n23,436\n19,052,927\n19,052,927\n600,000\n39,300\n30,302\n(6,553,010)\n1,987,033\n(4,565,977)\n(22,523)\n(10,903)\n15,550\n(69,069)\n(99,018)\n(31,352)\n(11,386)\n PUBLIC ACCOUNTS 1977\/78\nC 5\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH  31,   1978\u2014Continued\nNo.\nof SERVICE\nvoto\nMinistry of the Provincial Secretary\nand Travel Industry\u2014Continued\nProvincial Secretary and Travel\nIndustry\u2014Continued\n26 Government House  \t\nSupplement\u2014Special Warrant No. 22\t\n27 Agent  General's  Office  and  British  Co\nlumbia House, London, England \t\nSupplement\u2014Special Warrant No. 23\t\n28 Indian Advisory Act  -\t\n29 Public Inquiries Act   \t\nStatutory\u2014Public Inquiries Act (R.S.B.C.\n1960, chap. 315, sec. 13) .._ -\t\n30 Grants\u2014Special services and events\t\n31 Provincial Elections Act...- \u2014\t\n32 Provincial Emergency Programme\t\n33 Air Services \t\nStatutory\u2014Revenue Act, (R.S.B.C. 1960,\nchap. 341, sec. 55 (3))     - -\n34 British Columbia Lottery Branch \t\n35 Unemployment Insurance  and  Workers'\nCompensation  \t\n36 Provincial   Museum   and   Resource   Mu\nseums \u2014 \u2014 \u2014 ~\t\nSupplement\u2014Special Warrant No. 24\t\n37 Government publications \t\n38 Public information  _\t\n39 Legislative tour guides  -\t\n40 Queen Elizabeth II British Columbia\nCentennial Scholarship Act \t\n41 Flood Relief Act  _\t\n42 General administration\u2014travel industry ....\n43 Travel division ...  \t\nSupplement\u2014Special Warrant No. 56\t\n44 Beautiful British Columbia Magazine\t\n45 California and London offices  -\n46 Film and photographic branch \u2014\t\n47 Building occupancy charges \u2014\t\n48 Computer and consulting charges\t\nStatutory\u2014\nAdvances to committee, Captain Cook\nBi-centennial Commemoration Act\n(1977, chap. 23, sec. 9)  \t\nMedical expenses, London, England\nand California, Public Service Act\n(1973, 2nd Sess., chap. 143, sec.\n74(1))..._ _ __ _ \t\nSubtotal, Provincial Secretary and Travel\nIndustry     ...\nStaff reduction salary savings\t\nPublic Service Commission\n49 Public   Service   Commission   administra\ntion     \t\n50 Grants   re   Public   Service   and   retiring\nallowance    \t\n51 Public Service Adjudication Board\t\nSpecial    Warrant    No.    42\u2014Negotiated\ntermination settlements - \t\nSubtotal, Public Service Commission\t\nStaff reduction salary savings\t\nSuperannuation Branch\n52 Superannuation Branch administration\t\nStatutory\u2014Public Service Superannuation\nAct (R.S.B.C. I960, chap. 57, sec. 29)-\n53 Public Service  Superannuation   and  Re\ntirement Benefits     \t\nStatutory\u2014Public Service Superannuation\nAct (R.S.B.C. 1960, chap. 57, sec.\n30 (1))   _\n54 Members   of   the   Legislative   Assembly\nSuperannuation Act \t\n55 Municipal Superannuation Act \t\nTotal\nexpenditure\n150,296\nMain\nestimates\nvoted\n131,888\nExpenditure\nover {under)\nmain\nestimates\n$\n18,408\nOther\nauthorizations^\nNet\nover {under)\nexpenditure\n25,000\n(6,592)\n519,338\n44,567\n1,292,477\n454,184\n60,420\n280,000\n65,154\n(15,853)\n1,012,477\n130,000\n(64,846)\n(15,853)\n2,674,762\n515,215\n1,266,110\n1,782,1162\n2,910,000\n580,236\n1,347,486\n1,508,000\n(235,238)\n(65,021)\n(81,376)\n274,116\n1,012,477\n(235,238)\n(65,021)\n(81,376)\n\u2014\n10\n(10)\n274,116\n(10)\n13,269,589\n13,200,000\n69,589\n69,589\n3,712,823\n190,392\n141,229\n85,954\n3,659,102\n200,000\n150.000\n96,354\n53,721\n(9,608)\n(8,771)\n(10,400)\n128,000\n(74,279)\n(9,608)\n(8,771)\n(10,400)\n10,500\n63,427\n5,134,905\n1,164,420\n182,308\n583,110\n5,262,452\n450,000\n10,500\n50,000\n63,380\n4,237,780\n1,185,068\n174,720\n588,182\n5,496,452\n450,000\n(50,000)\n47\n897,125\n(20.648)\n7.588\n(5,072)\n(234,000)\n900,000\n(50,000)\n47\n(2,875)\n(20,648)\n7,588\n(5,072)\n(234,000)\n1,250,000\n1,250,000\n1,250,000\n\u2014\n8,140\n8,140\n8,140\n\u2014\n47,437,450\n44,053,658\n1,139,410\n3,383,792\n1,139,410\n4,397,335\n(1,013,543)\n1,139,410\n47,437,450\n42,914,248\n4,523,202\n4,397,335\n125,867\n2,248,937\n2,564,830\n(315,893)\n(315,893)\n3,609,827\n21,200\n3,970,000\n266,600\n(360,173)\n(245,400)\n(360,173)\n(245,400)\n65,371\n65,371\n100,000\n(34,629)\n5,945,335\n6,801,430\n274,554\n(856,095)\n274,554\n100,000\n(956,095)\n274,554\n5,945,335\n6,526,876\n(581,541)\n100,000\n(681,541)\n1,157,308\n1,153,661\n3,647\n3,647\n49,706,880\n45,120,000\n4,586,880\n4,586,880\n131,017\n27,850\n135,000\n50,000\n(3,983)\n(22,150)\n(3,983)\n(22,150)\n C 6\nPROVINCE OF BRITISH COLUMBIA\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH  31,  1978\u2014Continued\nNo.\nof\nvote\n56\nSERVICE\nMinistry of the Provincial Secretary\nand Travel Industry\u2014Continued\nSuperannuation Branch\u2014Continued\nEmployee benefits \u2014 \u2014\t\nSubtotal, Superannuation Branch\t\nStaff reduction salary savings\t\n57\n58\n59\n60\n61\n62\n63\n64\n65\n66\n67\n68\n69\n70\n71\n72\n73\n74\n75\n76\n77\n78\n79\nTotal, Ministry of the Provincial Secretary and Travel Industry  -\t\nStaff reduction salary savings\t\nMinistry of the Attorney-General\nMinister's office  _ \u2014\nAdministration and support _\t\nCourts \u2014 - -\nSupplement\u2014\nSpecial Warrant No. 55  _\t\nSpecial Warrant No. 65  _.._\t\nCrown Counsel  \u2014  \t\nSupplement\u2014Special Warrant No. 65-\nPolice services \u2014   \u2014\nSupplement\u2014Special Warrant No. 65-\nCorrections. - _\t\nSupplement\u2014\nSpecial Warrant No. 9 \t\nSpecial Warrant No. 49 - _\nSrecial Warrant No. 65 \t\nRegional justice co-ordination\t\nSupplement\u2014Special Warrant No. l...\nLegal Services Commission \u2014\nJustice Development Commission -.\nSupplement\u2014Special Warrant No. 1 \u2014\nLegal services to Government -\nSupplement\u2014Special Warrant No. 65-\nJudiciary  \u2014 \t\nCoroners     - \u2014\nSupplement\u2014Special Warrant No. 65-\nBritish Columbia Parole Board _.\nLaw Reform Commission - _\nCriminal Injuries Compensation Act....\nPublic Trustee _ - \t\nFire Marshal  \t\nRacing Commission \t\nSupplement\u2014Special Warrant No. 25-\nLand Registry Program .\nOrder in Council Patients' Review Board.\nSupplement\u2014Special Warrant No. 65\t\nBuilding occupancy charges\u2014\t\nComputer and consulting charges\t\nStatutory\u2014\nSeparation   allowance   for   Provincial\nJudge, Provincial Court Act  (1975,\nchap. 57, sec. 34 (4)) __\t\nTask  force  on  policing  costs,  Police\nAct (1974, chap. 64, sec. 7 (4))\t\nStaff reduction salary savings\t\nMinistry of Economic Development\nMinister's office   \t\nGeneral administration _\t\nSupplement\u2014\nSpecial Warrant No. 13   \t\nSpecial Warrant No. 62\t\nGrants  - - \u2014\t\nBuilding occupancy charges  -\t\nComputer and consulting charges _\t\nSpecial Warrant No. 57\u2014Canada-British\nColumbia Industrial Development Subsidiary Agreement _ _ _\t\nTotal\nexpenditure\n10,426,244\n61,449,299\n61,449,299\n114,832,084\n106,035\n2,910,004\n25,155,200\n8,511,248\n29,893,855\n43,147,454\n388,549\n7,275,491\n1,618,473\n2,733,456\n5,143,893\n1,263,760\n73,203\n197,067\n1,452,474\n1,123,462\n661,059\n368,124\n4,408,393\n52,769\n16,006,032\n144,000\n21,000\n14,695\n152,669,696\nMain\nestimates\nvoted\n11,952,391\n58,411,052\n162,261\n58,248,791\n109,266,140\n1,576,225\n114,832,084       107,689,915\n104,720\n3,423,788\n24,727,125\n7,644,422\n29,137,388\n40,974,313\n392,576\n7,300,000\n1,721,()00\n2,277,050\n5,350,841\n980,080\n114,416\n291,353\n1,500,000\n1,179,013\n745,692\n351,078\n4,503,510\n50,000\n16,466,107\n144,000\n149,378,472\n2,269,670\n152,669,696       147,108,802\nStaff reduction salary savings .\n113,313\n4,670,476\n1,060,580\n215,933\n160,000\n4,000,000\n10,220,302\n10,220,302\n141,324\n5,501,806\n1,100,000\n227,933\n160,000\n7,131,063\n44,206\n7,086,857\nExpenditure\nover (under)\nmain\nestimates\n$\n(1,526,147)\n3,038,247\n162,261\n3,200,508\n5,565,944\n1,576,225\n7,142,169\n1,315\n(513,784)\n428,075\n866,826\n756,467\n2,173,141\n(4,027)\n(24,509)\n(102,527)\n456,406\n(206,948)\n283,680\n(41,213)\n(94,286)\n(47,526)\n(55,551)\n(84,633)\n17,046\n(95,117)\n2,769\n(460,075)\n3,291,224\n2,269,670\n5,560,894\n(28,011)\n(831,330)\n(39,420)\n(12,000)\n4,000,000\n3,089,239\n44,206\nOther\nauthorizations1\n4,590,527\n4,590,527\n9,087,862\n9,087,862\n35,000\n250,000\n900,000\n800,000\n1,138,550\n39,500\n1,000,000\n20,000\n328,000\n500,000\n400,000\n35,000\n10,000\n21,000 21,000\n14,695 14,695\n5,491,745\n5,491,745\n6,837,500\n110,000\n4,000,000\n10,947,500\nNet\nover (under)\nexpenditure\n(1,526,147)\n(1,552,280)\n162,261\n(1,390,019)\n(3,521,918)\n1,576,225\n(1,945,693)\n1,315\n(513,784)\n143,075\n(33,174)\n(43,533)\n(4,909)\n(24,027)\n(24,509)\n(430,527)\n(43,594)\n(206,948)\n(116,320)\n(41,213)\n(94,286)\n(47,526)\n(55,551)\n(84,633)\n(17,954)\n(95,117)\n(7,231)\n(460,075)\n3,133,445        10,947,500\n(2,200,521)\n2,269,670\n69,149\n(28,011)\n(7,778,830)\n(39,420)\n(12,000)\n(7,858,261)\n44,206\n(7,814,05$)\n PUBLIC ACCOUNTS 1977\/78\nC 7\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\u2014Continued\nNo.\nof\nvote\n87\n88\n89\n90\n91\n92\nSERVICE\nMinistry of the Environment\nMinister's office \t\nGeneral administration           \t\nLand and Water Management\t\nSupplement\u2014\nSpecial Warrant No. 51  -\nSpecial Warrant No. 71 _ _\t\nEnvironmental and engineering services\u2014\nSupplement\u2014\nSpecial Warrant No. 7\t\nSpecial Warrant No. 28\t\nEnvironmental protection\t\nEnvironment  and  Land  Use Committee\nSecretariat  -\t\nProvincial Land Commission  \t\nBuilding occupancy charges._ _.\u201e\t\nComputer and consulting charges\t\nStatutory\u2014\nAgricultural Land Reserves, Land\nCommission Act (1973, chap. 46, sec.\n21)  _\t\nLand purchase, Greenbelt Act (1977,\nchap. 36, sec. 11)  \u2014\nStaff reduction salary savings -\t\n93\n94\n95\n96\n97\n98\n99\n100\n101\n102\n103\n104\n103\n106\n107\n108\n109\n110\n111\n112\n113\n114\n115\nMinistry of Agriculture\nMinister's office   \t\nDeputy Minister's office  \t\nGeneral administration\u2014\t\nProduction and marketing \t\nGeneral and financial services - \u2014\nSupplement\u2014Special Warrant No. 37 -\nSpecialist and regulatory services\t\nMilk Board - _.\t\nBuilding occupancy charges -\t\nComputer and consulting charges\t\nStatutory\u2014Livestock improvement,\nHorned Cattle Purchases Act (R.S.B.C.\n1960, chap. 176, sec. 8)  \t\nStaff reduction salary savings \t\nMinistry of Energy, Transport\nand Communications\nMinister's office   \t\nGeneral administration\t\nEngineering Branch \t\nWeigh Scaie Branch\t\nMotor-vehicle Branch\t\nMotor Carrier Branch. \t\nTelecommunications Service Branch   \t\nCommunications System Development\nand Regulation Branch\t\nMotor Carrier Commission \u2014- -\t\nTransport Research and Planning Branch .\nSupplement\u2014Special Warrant No. 27\t\nBritish Columbia Energy Commission\t\nSupplement\u2014Special Warrant No. 46\t\nBritish Columbia Ferries  \u2014\t\nStatutory\u2014Annual Highway Equivalent\nSubsidy, British Columbia Ferry Corporation Act (1976, chap. 8, sec. 18\n(2) )  - \u2014 _\t\nBuilding occupancy charges  _ \u2014\nComputer and consulting charges\t\nStaff reduction salary savings \u2014...\nTotal\nexpenditure\nMain\nestimates\nvoted\nExpenditure\nover (under)\nmain\nestimates\nOther\nauthorizations1\nNet\nover (under)\nexpenditure\n$\n$\n$\n$\n$\n111,521\n1,502,803\n8,023,104\n124,088\n2,201,513\n8,535,823\n(12,567)\n(698.710)\n(512,719)\n(12,567)\n(698,710)\n25,255,278\n25,676,795\n(421,517)\n81,000\n75,000\n(668,719)\n6,241,670\n7,022,355\n(780,685)\n200,523\n1,126,883\n(1,748,923)\n(780,685)\n695,196\n618,025\n2,196,118\n726,000\n1,114,830\n667,830\n2,294,118\n726,000\n(419,634)\n(49,805)\n(98,000)\n(419,634)\n(49,805)\n(98,000)\n43,205\n1,666,619\n789,000\n80,456,445\n80,456,445\n43,205\n43,205\n107,726\n107,726\n107,726\n\u2014\n45,520,646\n48,363,352\n(2,842,706)\n1,634,337\n(4,477,043)\n2,819,742\n2,819,742\n2,819,742\n45,520,646\n45,543,610\n(22,964)\n1,634,337\n(1,657,301)\n84,049\n85,952\n(1,903)\n(1,903)\n1,133,787\n1,186,506\n(52,719)\n(52,719)\n1,135,790\n1,063,149\n72,641\n72,641\n3,687,229\n4,125.391\n(438,162)\n(438,162)\n43,482,605\n52,769,511\n(9,286,906)\n6,000,000\n(15,286,906)\n3,537,455\n3,962,022\n(424,567)\n(424,567)\n164,813\n176,148\n(11,335)\n(11,335)\n2,194,521\n2,291,521\n(97,000)\n(97,000)\n221,000\n221,000\n\u25a0\"\u25a0\u25a0\n30,278\n30,278\n30,278\n\u2014\n55,671,527\n65,881,200\n(10,209,673)\n6,030,278\n(16,239,951)\n1,311,867\n1,311,867\n1,311,867\n55,671,527\n64,569,333\n(8,897,806)\n6,030,278\n(14,928,084)\n125,013\n134,140\n(9,127)\n(9,127)\n581,615\n745,512\n(163,897)\n(163,897)\n544,511\n600,906\n(56,395)\n(56,395)\n2,379,957\n2,668,076\n(288,119)\n(288,119)\n10,794,763\n14,515,844\n(3,721.081)\n(3,721,081)\n782,294\n878,840\n(96,546)\n(96,546)\n10,858,421\n11,864,584\n(1,006,163)\n(1,006,163)\n350,636\n616,780\n(266,144)\n(266,144)\n211,434\n326,596\n(115,162)\n(115,162)\n1,733,050\n548,692\n1,184,358\n4,732,500\n(3,548,142)\n1,260,632\n1,122,870\n137,762\n212,500\n(74,738)\n48,378,500\n29,819,800\n18,558,700\n1,740,619\n789,000\n66,372,259\n2,077,940\n(74,000)\n14,084,186\n2,077,940\n18,558,700\n23,503,700\n64,294,319 16,162,126       23,503,700\n(74,000)\n(9,419,514)\n2,077,940\n(7,341,574)\n C 8\nPROVINCE OF BRITISH COLUMBIA\nNo.\nof\nvote\nEXPENDITURE FOR THE FISCAL YEAR  ENDED MARCH 31,  1978\u2014Continued\nSERVICE\nMinistry of Mines and Petroleum Resources\n116\n117\n118\n119\n120\n121\n122\n123\n124\n125\n126\n127\n128\nMinister's office - - \t\nDeputy Minister's office _ _ \t\nMineral Resources Branch  \t\nPetroleum Resources Branch  -\t\nGrants and subsidies   \t\nMineral Road Program  _ _\t\nProspectors' Assistance Program \t\nMineral Research Program  -\t\nMineral Data Program    \t\nMineral Employment Program  -\nEnergy Resource Evaluation Program\t\nSupplement\u2014Special Warrant No. 31\t\nBuilding occupancy charges \u2014 \u2014\t\nComputer and consulting charges \u2014\t\nStatutory\u2014Correction of safety hazards,\nMines Regulation Act (1967, chap. 25,\nsec. 12 (2))..._ _ \t\nStaff reduction salary savings \t\n129\n130\n131\n132\n133\n134\n135\n136\n137\n138\n139\n140\n141\n142\n143\n144\n145\nMinistry of Forests\nMinister's office   \t\nMinistry Administration Program \u2014\t\nEngineering Support Services Program \u2014\nPublic Information Services Program\t\nResource Management Program- _\t\nSpecial Studies Program  \t\nReforestation Program \u2014\t\nResearch Program    _\t\nFire Suppression Program  -\t\nForest Protection Program \t\nInventory Program _  \t\nSupplement\u2014Special Warrant No. 35\t\nScaling Program _  \t\nRange Management Program \t\nForest Development Roads Program\t\nSupplement\u2014Special Warrant No. 41\t\nReservoir Waterway Improvements Program _  \t\nSupplement\u2014Special Warrant No. 40 -\nBuilding occupancy charges _\t\nComputer and consulting charges \u2014\t\nSpecial Warrant No. 4\u2014Forest Policy\nAdvisory Committee of British Columbia  _ _\t\nStaff reduction salary savings \u2014\t\n146\n147\n148\n149\n150\n151\nMinistry of Highways and Public Works\nMinister's office   _\t\nGeneral administration\u2014Highways \t\nSupplement\u2014Special Warrant No. 75\t\nHighway maintenance \t\nSupplement\u2014\nSpecial Warrant No. 60 _\t\nSpecial Warrant No. 73\t\nHighway Construction\u2014Capital \u2014\nSupplement\u2014\nSpecial Warrant No. 8\t\nSpecial Warrant No. 36\t\nSpecial Warrant No. 43\t\nSpecial Warrant No. 52 -\t\nSpecial Warrant No. 73    _\nGeneral administration\u2014Public Works\t\nStatutory\u2014Revenue Act, (R.S.B.C. 1960,\nchap. 341, sec. 55 (3))\t\nGovernment building maintenance \t\nStatutory\u2014Revenue Act, (R.S.B.C. 1960,\nchap. 341, sec. 55 (3))\t\nTotal\nexpenditure\nMain\nestimates\nvoted\nExpenditure\nover (under)\nmain\nestimates\nOther\nauthorizations1\nNet\nover (under)\nexpenditure\n$\n$\n$\n$\n$\n79,233\n86,016\n(6,783)\n(6,783)\n675,888\n1,061,418\n(385,530)\n(385,530)\n3,878,596\n4,127,990\n(249,394)\n(249,394)\n1,113,191\n1,405,616\n(292,425)\n(292,425)\n54,000\n54,000\n\u2014\n\u2014\n790,530\n1,000,000\n(209,470)\n(209,470)\n202,044\n215,000\n(12,956)\n(12,956)\n46,320\n82,000\n(35,680)\n(35,680)\n159,605\n200,000\n(40,395)\n(40,395)\n38,433\n60,000\n(21,567)\n(21,567)\n299,431\n325,000\n(25,569)\n175,000\n(200,569)\n515,614\n538,614\n(23,000)\n(23,000)\n118,000\n118,000\n\u2014\n\u2014\n3,892\n3,892\n3,892\n\u2014\n7,974,777\n9,273,654\n(1,298,877)\n178,892\n(1,477,769)\n712,728\n712,728\n712,728\n7,974,777\n8,560,926\n(586,149)\n178,892\n(765,041)\n105,278\n101,012\n4,266\n4,266\n18,398,237\n19,421,832\n(1,023,595)\n(1,023,595)\n9,417,731\n9,830,468\n(412,737)\n(412,737)\n572,228\n591,742\n(19,514)\n(19,514)\n6,973,645\n8,055,875\n(1,082,230)\n(1,082,230)\n357,015\n522,569\n(165,554)\n(165,554)\n18,418,485\n20,853,993\n(2,435,508)\n(2,435,508)\n2,421,640\n2,800,000\n(378,360)\n(378,360)\n7,508,997\n9,202,000\n(1,693,003)\n(1,693,003)\n8,659,281\n10,100,000\n(1,440,719)\n(1,440,719)\n5,063,109\n6,000,000\n(936,891)\n52,748\n(989,639)\n9,446,684\n9,800,000\n(353,316)\n(353,316)\n1,713,747\n2,000,000\n(286,253)\n(286,253)\n6,191,538\n7,000,000\n(808,462)\n150,000\n(958,462)\n3,152,984\n2,500,000\n652,984\n800,000\n(147,016)\n1,617,621\n1,689,621\n(72,000)\n(72,000)\n535,000\n535,000\n\u2014\n\u2014\n296,594\n296,594\n341,300\n(44,706)\n100,849,814\n111,004,112\n(10,154,298)\n1,344,048\n(11,498,346)\n6,978,719\n6,978,719\n6,978,719\n100,849,814\n104,025,393\n(3,175,579)\n1,344,048\n(4,519,627)\n152,532\n158,130\n(5,598)\n(5,598)\n4,244,458\n4,169,162\n75,296\n80,000\n(4,704)\n144,028,277\n136,239,800\n7,788,477\n7,760,000\n2,000,000\n(1,971,523)\n259,856,034\n179,895,078\n79,960,956\n4,440,000\n58,000,000\n561,000\n2,975,000\n14,000,000\n(15,044)\n8,241\n10\n8,231\n8,231\n1,082,272\n10\n1,082,262\n1,082,262\n PUBLIC ACCOUNTS 1977\/78\nC 9\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\u2014Continued\nNo.\nof\nvote\n152\n153\n154\n155\n156\n157\n158\n159\n160\n161\n162\n163\n164\n165\n166\n167\n168\n169\n170\n171\n172\n173\n174\n175\nSERVICE\nMinistry of Highways and\nPublic Works\u2014Continued\nConstruction of Provincial buildings\t\nSupplement\u2014\nSpecial Warrant No. 53  \t\nSpecial Warrant No. 75  \t\nStatutory\u2014Revenue Act, (R.S.B.C. 1960,\nchap. 341, sec. 55 (3))  \t\nRentals     - \t\nSafety Engineering Division\t\nGlendale laundry  \u2014\nBuilding occupancy charges\t\nComputer and consulting charges _\t\nStaff reduction salary savings...\nMinistry of Education\nMinister's office  \u2014\t\nAdministration and support services \u2014\nSupplement\u2014\nSpecial Warrant No. 38 \t\nSpecial Warrant No. 39\u2014 - -\nSpecial Warrant No. 45 _ _\t\nSpecial Warrant No. 66 _ \t\nSpecial Warrant No. 70 - _ \t\nBasic Education K-XII Program  \t\nStatutory\u2014Provincial Home-owner Grant\nAct (R.S.B.C. 1960, chap. 308, sec. 15).\nPost-secondary Education\u2014Universities\t\nSupplement\u2014Special Warrant No. 32\t\nPost-secondary   education\u2014commu n i t y\ncolleges and others \u2014 - _\t\nStudent Aid Programs\t\nTeachers' Pension Fund _.\t\nMetric conversion\u2014 - _ \t\nAdvances re rural school taxes\u2014net\t\nStatutory\u2014Public Schools Act (R.S.B.C.\n1960, chap. 319, sec. 197 (10)) \t\nBuilding occupancy charges   _\t\nComputer and consulting charges\t\nStatutory\u2014\nTransfer of property to Province, The\nNotre Dame University of Nelson\nAct (1977, chap. 82, sec. 10) \t\nPacific Vocational Institute start-up\ncosts, Colleges and Provincial Institutes Act (1977, chap. 67, sec. 84)\t\nTrinity Western College, Colleges and\nProvincial Institutes Act (1977, chap.\n67, sec. 84)   _ \t\nStaff reduction salary savings\t\nMinistry of Health\nMinister's office  \u2014 -\t\nDeputy Minister's office and support services  \u2014 \u2014\t\nSupplement\u2014Special Warrant No. 18\t\nCommunity Health Programs:\nDeputy  Minister  and  Branch support\nservices   -\t\nPublic Health Programs\t\nSupplement\u2014\nSpecial Warrant No. 16 _\t\nSpecial Warrant No. 17  \u2014\nSpecial Warrant No. 19\t\nMental Health Programs.   \t\nSpecial Health Services \t\nOther health care expenditures\t\nSupplement\u2014Special Warrant No. 16....\nTotal\nexpenditure\n$\n5,257,561\nMam\nestimates\nvoted\n10\nExpenditure\nover (under)\nmain\nestimates\n5,257,551\nOther\nauthorizations1\nNet\nover (under)\nexpenditure\n1,000,000\n500,000\n4,299,879\n1,532,129\n10,244,582\n316,000\n10\n4,786,793\n1,586,334\n10,699,582\n316,000\n(10)\n(486,914)\n(54,205)\n(455,000)\n3,757,551\n(10)\n(486,914)\n(54,205)\n(455,000)\n431,021,965\n337,850,919\n1,838,022\n93,171,046\n1,838,022\n96,164,044\n(2,992,998)\n1,838,022\n431,021,965\n336,012,897\n95,009,068\n96,164,044\n(1,154,976)\n120,506\n4,565,039\n133,168\n5,064,827\n(12,662)\n(499,788)\n(12,662)\n564,202,106\n363,700,000\n502,106\n150,000\n106,588\n36,700\n152,156\n345,000\n(1,290,232)\n190,898,040\n191,866,037\n(967,997)\n502,106\n400,000\n(1,367,997)\n111,637,739\n9,070,648\n38,225,809\n191,377\n2,112,655\n118,633,963\n11,179,254\n38,300,000\n195,630\n10\n(6,996,224)\n(2,108,606)\n(74,191)\n(4,253)\n2,112,645\n(6,996,224)\n(2,108,606)\n(74,191)\n(4,253)\n18,392,874\n232,000\n19,209,874\n232,000\n(817,000)\n2,112,645\n(817,000)\n231,506\n231,506\n231,506\n\u2014\n136,202\n136,202\n136,202\n\u2014\n568,000\n568,000\n568,000\n\u2014\n940,584,501\n948,514,763\n805,358\n(7,930,262)\n805,358\n4,740,903\n(12,671,165)\n805,358\n940,584,501\n947,709,405\n(7,124,904)\n4,740,903\n(11,865,807)\n103,293\n107,670\n(4,377)\n(4,377)\n1,215,216\n1,414,550\n(199,334)\n75,000\n(274,334)\n2,744,080\n25,896,463\n2,870,519\n27,193,153\n(126,439)\n(1,296,690)\n(126,439)\n12,561,368\n13,723,667\n8,316,934\n16,128,032\n15,330,884\n9,688,020\n(3,566,664)\n(1,607,217)\n(1,371,086)\n89,548\n100,000\n2,437,324\n144,730\n(3,923,562)\n(3,566,664)\n(1,607,217)\n(1,515,816)\n C 10\nPROVINCE OF BRITISH COLUMBIA\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\u2014Continued\nNo.\nof\nvote\nSERVICE\nMinistry of Health\u2014Continued\n176 Office of the Deputy Minister of Medical\nand Hospital Programs  \t\n177 Hospital Programs \u2014 _ \t\nSupplement\u2014Special Warrant No. 19\t\n178 Government Institutions  _\t\n179 Forensic Psychiatric Services \t\n180 Medical Services Commission \u2014 \u2014\n181 Emergency Health Services \t\n182 Building occupancy charges.\u2014 - \u2014\nSupplement\u2014\nSpecial Warrant No. 16  _\t\nSpecial Warrant No. 19-\n183   Computer and consulting charges\t\nSpecial   Warrant   No.   50\u2014Out-of-court\nsettlement \u2014  \t\nStaff reduction salary savings _\t\nTotal\nexpenditure\n61,745\n594,766,410\n49,038,718\n2,867,246\n207,300,000\n20,063,364\n15,863,461\n168,000\n20,092\n954,710,057\nMain\nestimates\nvoted\n63,980\n615,621,231\n53,084,751\n3,106,101\n207,300,000\n20,923,537\n16,568,461\n168,000\n989,568,889\n8,331,533\nExpenditure Qth\n\u00b0Veri?\u00a3fe,) authori-\nestimates -\u00ab\u00b0nsl\n$ $\n(2,235)\n(20,854,821)\n(4,046,033)\n(238,855)\n(860,173)\n(705,000)\n(34,858,832)\n8,331,533\n31,182,676\n24,102\n65,000\n20,092 20,092\n34,138,472\nNet\nover (under)\nexpenditure\n(2,235)\n(52,037,497)\n(4,046,033)\n(238,855)\n(860,173)\n(794,102)\n(68,997,304)\n8,331,533\n954,710,057       981,237,356       (26,527,299)      34,138,472        (60,665,771)\n184\n185\n186\n187\n188\n189\n190\n191\n192\n193\n194\nMinistry of Human Resources\nMinister's office.\nAdministration and community service\t\nSupplement\u2014Special Warrant No. 48\t\nServices for families and children\t\nSupplement\u2014\nSpecial Warrant No. 48\u2014  \t\nSpecial Warrant No. 74  \t\nServices for seniors and handicapped\t\nSupplement\u2014Special Warrant No. 48\t\nHealth services  -\t\nSupplement\u2014Special Warrant No. 74\t\nCommunity programs -  \t\nSupplement\u2014Special Warrant No. 48\t\nIncome Assistance Program  \t\nSpecial programs for the retarded _\t\nBurns   Lake   Community   Development\nAssociation\t\nBuilding occupancy charges\t\nComputer and consulting charges .\nStaff reduction salary savings\n133,983\n33,041,501\n54,983,131\n155,251,563\n39,705,845\n23,348,717\n191,413,797\n36,698,760\n203,239\n9,761,255\n599,000\n545,140,791\n146,516\n32,660,388\n60,273,365\n167,023,863\n37,100,000\n30,793,471\n193,920,046\n39,407,911\n206,800\n10,195,255\n599,000\n572,326,615\n2,500,000\n(12,533)\n381,113\n(5,290,234)\n(11,772,300)\n2,605,845\n(7,444,754)\n(2,506,249)\n(2,709,151)\n(3,561)\n(434,000)\n(27,185,824)\n2,500,000\n(12,533)\n(6,099,487)\n(8,485,134)\n(12,106,500)\n(194,155)\n(7,473,754)\n(2,506,249)\n(2,709,151)\n(3,561)\n(434,000)\n(40,024,524)\n2,500,000\n545,140,791        569,826,615        (24,685,824)      12,838,700        (37,524,524)\n6,480,600\n1,694,900\n1,500,000\n334,200\n2,800,000\n29,000\n12,838,700\nMinistry of Municipal Affairs and Housing\n195 Minister's office   \t\n196 Office of the Deputy Minister\u2014Municipal\nAffairs ._ - \t\n197 Grants, Contributions and subsidies _\nSupplement\u2014Special Warrant No. 20\t\nStatutory\u2014\nMunicipalities Aid Act (R.S.B.C. 1960,\nchap. 259, sec. 4) _ _ \t\nProvincial Home-owner Grant Act\n(R.S.B.C. 1960, chap. 308, sec. 15)_.\n198 Office of the Deputy Minister\u2014Housing\u2014\n199 Housing and Development  \t\nStatutory\u2014Mobile Home Act (1977, chap.\n40, sec. 46)   __ \t\n200 Central Ministry Services  _\t\n201 Building occupancy charges \u2014\n202 Computer and consulting charges\t\nSpecial   Warrant   No.   2\u2014Police   costs;\nWilliams   Lake,   Mackenzie,   Comox,\nSidney, and Langley City \u2014 \t\nSpecial Warrants No. 6 and 61\u2014Northeast Coal Development Project\t\nStaff reduction salary savings\n161,534\n5,390,944\n142,506,124\n2,607,400\n62,559,069\n357,334\n519,638\n255,000\n618,750\n591,755\n215,567,548\n147,856\n6,861,776\n140,677,000\n3,051,234\n71,770,500\n361,115\n542,638\n255,000\n223,667,119\n649,818\n13,678\n(1,470,832)\n1,829,124\n(443,834)\n(9,211,431)\n(3,781)\n(23,000)\n150,000\n1,390,152\n288,972\n168,310\n618,750 618,750\n591,755 1,781,989\n(8,099,571) 4,398,173\n649,818\n13,678\n(1,470,832)\n(443,834)\n(9,379,741)\n(3,781)\n(23,000)\n(1,190,234)\n(12,497,744)\n649,818\n215,567,548       223,017,301\n(7,449,753)        4,398,173        (11,847,926)\n PUBLIC ACCOUNTS 1977\/78\nC 11\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\u2014Continued\nNo.\nof\nvote\n203\n204\n205\n206\n207\n208\n209\n210\n211\nSERVICE\nMinistry of Labour\nMinister's office  \t\nMinisterial administration and support\nservice  -   - \u2014\nSupplement\u2014Special Warrant No. 30\t\nJob Training and Employment Opportunity Program   \t\nSupplement\u2014Special Warrant No. 3\t\nOccupational Environment and Compensation Advisory Services  \t\nCollective Bargaining and Employment\nStandards Program  \t\nHuman Rights Programs \u2014 -\t\nLabour Relations Board\nBuilding occupancy charges\t\nComputer and consulting charges.\nStaff reduction salary savings\t\nMinistry of Consumer and Corporate Affairs\n212\n213\n214\n215\n216\n217\n218\n219\n220\n221\n222\n223\n224\n225\n226\n227\n228\n229\n230\nMinister's office  ~.\nAdministrative and support...\nLegal Services Branch\t\nTrade Practices Branch .\nCommunity Programs Branch \t\nDebtor Assistance Branch \u2014\t\nCompanies Branch  - \t\nInsurance and Real Estate Branch\t\nSupplement\u2014Special Warrant No. 69\t\nSuperintendent of Brokers -\t\nSupplement\u2014Special Warrant No. 10\t\nCredit Unions and Co-operatives Branch...\nSupplement\u2014Special Warrant No. 64 _\nFilm Classification Branch \t\nSupplement\u2014Special Warrant No. 11\t\nRentalsman   \u2014\t\nRent Review Commission \t\nLiquor Control and Licensing Branch\t\nBritish    Columbia    Liquor    Distribution\nBranch  \u201e - \t\nCorporate  and  Financial  Services Commission  \u2014   \u2014\t\nTrust Companies Branch \u2014\t\nBuilding occupancy charges \u2014\t\nSupplement\u2014Special Warrant No. 12\t\nComputer and consulting charges\u2014 \t\nStatutory\u2014\nTravel Agents Registration Act  (1977,\nchap. 22, sec. 36)\u2014 \t\nResidential Tenancy Act  (1977, chap.\n61, sec. 82) _\t\nStaff reduction salary savings\t\nTotal\nMain\nestimates\nexpenditure\nover (under)\nOther\nauthori\nNet\nover (under)\nvoted\nestimates\nzations1\nexpenditure\n$\n$\n$\n$\n$\n127,567\n131,284\n(3,717)\n(3,717)\n1,534,557\n1,632,508\n(97,951)\n250,000\n(347,951)\n31,787,679\n28,036,112\n3,751,567\n7,500,000\n(3,748,433)\n1,210,094\n1,179,094\n31,000\n31,000\n2,395,136\n2,583,042\n(187,906)\n(187,906)\n381,994\n402,488\n(20,494)\n(20,494)\n1,128,949\n1,147,204\n(18,255)\n(18,255)\n866,205\n905,205\n(39,000)\n(39,000)\n181,000\n181,000\n\u2014\n\u2014\n39,613,181\n36,197,937\n3,415,244\n7,750,000\n(4,334,756)\n657,803\n657,803\n657,803\n39,613,181\n35,540,134\n4,073,047\n7,750,000\n(3,676,953)\n110,343\n108,644\n1,699\n1,699\n581,292\n641,818\n(60,526)\n(60,526)\n79,200\n87,122\n(7,922)\n(7,922)\n645,905\n648,720\n(2,815)\n(2,815)\n711,106\n922,804\n(211,698)\n(211,698)\n391,502\n397,838\n(6,336)\n(6,336)\n992,504\n1,007,540\n(15,036)\n(15,036)\n360,116\n358,320\n1,796\n14,000\n(12,204)\n723,406\n777,732\n(54,326)\n5,050\n(59,376)\n210,870\n217,440\n(6,570)\n22.000\n(28,570)\n109,392\n111,347\n(1,955)\n9,000\n(10,955)\n580,649\n1,331,092\n(750,443)\n(750,443)\n423,785\n439,358\n(15,573)\n(15,573)\n997,479\n1,064,138\n(66,659)\n(66,659)\n7,481\n45,000\n(37,519)\n(37,519)\n23,669\n30,144\n(6,475)\n(6,475)\n49,750\n86,772\n(37,022)\n(37,022)\n783,619\n818,619\n(35,000)\nMinistry of Recreation and Conservation\n231 Minister's office  \t\n232 General administration  \t\n233 Information and education  \t\nSupplement\u2014Special Warrant No. 33\u2014\n234 Marine resources\u2014  \t\nSupplement\u2014Special Warrant No. 54\u2014\n235 Fisheries Enhancement Program  -\n236 Fish and Wildlife  -\t\n237 Federal and other agency programs\t\nSupplement\u2014Special Warrant No. 34\u2014\n238 Creston Valley Wildlife Management\u2014\n239 Parks operation  _ \t\n240 Parks\u2014Capital Program   \t\nSupplement\u2014Special Warrant No. 44...\n159,000\n159,000\n61,148\n(96,148)\n42,002\n42,002\n42,002\n\u2014\n646,979\n646,979\n646,979\n\u2014\n8,630,049\n9,253,448\n(623,399)\n800,179\n(1,423,578)\n620,330\n620,330\n620,330\n8,630,049\n8,633,118\n(3,069)\n800,179\n(803,248)\n83,124\n102,752\n(19,628)\n(19,628)\n802,140\n1,009,729\n(207,589)\n(207,589)\n361,251\n438,598\n(77,347)\n62,000\n(139,347)\n615,334\n558,778\n56,556\n85,000\n(28,444)\n263,808\n300,000\n(36,192)\n(36,192)\n8,549,144\n9,348,676\n(799,532)\n(799,532)\n676,662\n640,000\n36,662\n240,950\n(204,288)\n129,862\n129,750\n112\n112\n13,965,408\n15,501,080\n(1,535,672)\n(1,535,672)\n5,225,985\n4,500,000\n725,985\n923,000\n(197,015)\n C 12\nPROVINCE OF BRITISH COLUMBIA\nNo.\nof\nvote\n241\n242\n243\n244\n245\n246\n247\n248\n249\n250\n251\n252\n253\n254\nEXPENDITURE FOR THE FISCAL YEAR ENDED MARCH 31,  1978\u2014Continued\nTotal Main \"SPffiS Other                     Net\nSERVICE                                        ...niSiS!,,, estimates OVer\u201e(X     } authori-            over (under)\nexpenditure vwed ^ates zations1            expenditure\nMinistry of Recreation and                                 $ $ $ $                           $\nConservation\u2014Continued\nBritish Columbia National Parks (Pacific\nRim)  -                732,529 2,158,000 (1,425,471) (1,425,471)\nYouth Crew    _..._ -                999,440 1,000,000 (560) (560)\nHeritage Conservation Branch - _             1,127,263 1,468,805 (341,542) (341,542)\nHeritage Conservation Capital Program.\u2014                76,203 100,000 (23,797) (23,797)\nRecreation and Fitness Branch  -            1,000,002 1,546,778 (546,776) (546,776)\nRecreation Facilities Program                 291,927 446,588 (154,661) (154,661)\nRecreation facilities grants               8,000,000 8,000,000 \u2014 \u2014\nGrants-in-aid of Regional Park Development               1,180,000 1,180,000 \u2014 \u2014\nCultural Services Branch                 307,599 427,274 (119,675) (119,675)\nLibrary Services Program  -             3,733,396 3,846,362 (112,966) (112,966)\nBritish Columbia Arts Program                     8,948 74,076 (65,128) (65,128)\nCapital Improvement District                427,495 470,000 (42,505) (42,505)\nBuilding occupancy charges\u2014             2,478,501 2,588,501 (110,000) (110,000)\nComputer and consulting charges                351,000 351,000 \u2014 \u2014\n51,387,021 56,186,747 (4,799,726) 1,310,950           (6,110,676)\nStaff reduction salary savings  1,247,570 1,247,570 1,247,570\n51,387,021 54,939,177 (3,552,156) 1,310,950           (4,863,106)\nSubtotal budgetary expenditure   3,895,464,582 3,866,328,564 29,136,018 241,457,619      (212,321,601)\nTotal staff reduction salary savings\u2014  36,428,564 36,428,564 36,428,564\nTotal budgetary expenditure _    3,895,464,582 3,829,900,000 65,564,582 241,457,6193    (175,893,037)\nNonbudgetary Expenditure Charged to\nCurrent Revenue\nSpecial Purpose Funds\nTransit   Fund\nAdvance\u2014Provincial   Transit   Fund    (Special\nWarrant No. 5)\u2014     5,000,000\nGrant\u2014Provincial Transit Fund (Special Warrant No. 58) re Burrard Inlet Ferries construction costs- _ _ _  1,665,099\nCrown Corporations\nAdvance\u2014Ocean   Falls   Corporation    (Ocean\nFalls Corporation Act, 1973, chap. 64, sec.\n9)..._     \u2014 2,000,000\nGrant\u2014British Columbia Buildings Corporation (Special Warrant No. 68) re acquisition\nof Lansdowne Campus of Camosun College.-. 4,500,000\nGrant\u2014British   Columbia   Railway   Company\n(British Columbia Railway Company Grant\nAct, 1977, chap. 46, sees. 1 and 2) re Federal\nContribution, Dease Lake rail line \u2014 81,168,080\nOther\nPurchase of additional shares in Swan Valley\nFoods Limited (Special Warrant No. 26)  7,631,250\nTransfer of Investment in Canadian Cellulose\nCompany Ltd. shares to British Columbia\nResources Investment Corporation in exchange for noncash asset (promissory note)... 1,824,942\nTotal nonbudgetary expenditure ___     103,789,371\nCombined general fund expenditure  3,999,253,953\n1 \"Other authorizations\" comprise statutory and special warrant authorizations as indicated.\n2 Pursuant to sections 12a and 12b of the Constitution Act, administration of Vote 33 was transferred to the Ministry of\nEnergy, Transport and Communications effective December 8, 1977.\n3 The total of $241,457,619 represents statutory authorizations of $41,426,304 and special warrant (Financial Control Act)\nauthorizations of $200,031,315.\n  ","type":"literal","lang":"en"}],"http:\/\/www.europeana.eu\/schemas\/edm\/hasType":[{"value":"Legislative proceedings","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/identifier":[{"value":"J110.L5 S7","type":"literal","lang":"en"},{"value":"1979_V01_05_001_C12","type":"literal","lang":"en"}],"http:\/\/www.europeana.eu\/schemas\/edm\/isShownAt":[{"value":"10.14288\/1.0378733","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/language":[{"value":"English","type":"literal","lang":"en"}],"http:\/\/www.europeana.eu\/schemas\/edm\/provider":[{"value":"Vancouver: University of British Columbia Library","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/publisher":[{"value":"Victoria, BC : Government Printer","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/rights":[{"value":"Images provided for research and reference use only. For permission to publish, copy or otherwise distribute these images please contact the Legislative Library of British Columbia","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/source":[{"value":"Original Format: Legislative Assembly of British Columbia. Library. Sessional Papers of the Province of British Columbia","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/title":[{"value":"report of the AUDITOR GENERAL for the year ended 31 March 1978","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/type":[{"value":"Text","type":"literal","lang":"en"}],"http:\/\/purl.org\/dc\/terms\/description":[{"value":"","type":"literal","lang":"en"}]}}