$550M in errors, and $6B 'under-reporting': Here's what an audit of the B.C. government's financial statements turned up
An audit of the B.C. government's spending revealed $6 billion in under-reported revenue, and $550 million in errors impacting the deficit.
The report from the provincial Office of the Auditor General, released Tuesday, looked into the Horgan Government's summary of financial statements.
And Auditor General Michael Pickup said the end result of the investigation was that the office disagrees with how the NDP has presented its financial accounts.
"It is important for government to record revenue according to (public sector generally accepted accounting principles) to create consistency in financial reporting and allow the financial statements of the Province to be more easily compared with most other jurisdictions. By under-reporting revenues by $6 billion, the government's summary financial statements do not give a clear picture of the Province's financial position," he wrote in a news release.
Errors made in the province's financial statements required adjustments, according to the report, but are considered to be unintentional. It is important to note that the AG's office did not identify any fraud during its audit.
“We have to have proper reporting and proper accounting,” said Mike Bernier, the finance critic for the BC Liberal Party. “When we go through the budgeting process, we’ve seen how far off (the NDP) have been on most of their projections.”
The full report is posted online for those interested in more information, but the following topics were highlighted by Pickup's office.
$6 BILLION IN REVENUE
The AG report suggests the province under-reported its revenues by $6 billion. As mentioned in the quote above, this was largely due to the way its financial statements were reported, which was not consistent with the way others in the public sector do their accounting.
At the end of every fiscal year, the government is tasked with combining all of its financial information and producing a consolidated set of statements. This information is used to diagnose the financial health of the province.
Among the key issues with the NDP's reporting were the consideration of which organizations should be included, the AG said.
There were also issues with personal income tax revenue estimates and the impact of the pandemic.
$550 MILLION IN ERRORS
The AG's office said the errors identified in the audit with an impact on the provincial deficit added up to $550 million.
These errors were fixed, Pickup said, but only after they were flagged.
"Simply put, this means that without the audit, there would have been errors significantly affecting the financial statements."
$66-MILLION WRITE-OFF
The AG wrote in his report that the Provincial Health Services Authority, which buys supplies for the health sector and sells them to B.C.'s health authorities, appropriately wrote off $66 million for the value of personal protective equipment (PPE) that ultimately could not be sold.
CTV News reported previously that the PHSA faced allegations of misspending in part due to this PPE, which was considered faulty.
$850-MILLION HOSPITAL SALE
Among the AG's "other financial matters of interest" is the sale of St. Paul's Hospital by Providence Health Care Society.
The Vancouver property and buildings were sold for $850 million, and the title will be transferred in 2027.
The AG's office looked over the aspects of the sale, and found that it agreed with how this was reported.
With files from CTV News Vancouver's Travis Prasad
CTVNews.ca Top Stories
They were from different countries and barely spoke each other's languages. More than 20 years later, they're still happily in love
He decided to spend Christmas somewhere that wouldn't involve snowstorm disasters. She was spending the holidays with family, travelling for the first time outside of her native country of Venezuela. 23 years later, they're still in love.
Man who set himself on fire outside Trump trial dies of injuries, police say
A man who doused himself in an accelerant and set himself on fire outside the courthouse where former U.S. President Donald Trump is on trial has died, police said.
12 students and teacher killed in Columbine school shooting remembered at 25th anniversary vigil
Thirteen victims of the Columbine High School shooting were remembered during a vigil Friday on the eve of the 25th anniversary of the shooting that was the worst the nation had seen at the time.
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
Israeli airstrike in southern Gaza city of Rafah kills at least 9 Palestinians, including 6 children
An Israeli airstrike on a house in Gaza's southernmost city killed at least nine people, six of them children, hospital authorities said Saturday, as Israel pursued its nearly seven-month offensive in the besieged Palestinian territory.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
Iraq investigates a blast at a base of Iran-allied militias that killed 1. U.S. denies involvement
Iraqi authorities said Saturday that they were investigating an explosion that struck a base belonging to the Popular Mobilization Forces, a coalition of Iran-allied militias, killing one person and injuring eight.
The House is on the brink of approving aid for Ukraine and Israel after months of struggle
The House is preparing in a rare Saturday session to approve US$95 billion in foreign aid for Ukraine, Israel and other U.S. allies.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.