Bill S-201
If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.
S-201
Second Session, Thirty-ninth Parliament,
56 Elizabeth II, 2007
SENATE OF CANADA
BILL S-201
An Act to amend the Financial Administration Act and the Bank of Canada Act (quarterly financial reports)
first reading, October 17, 2007
THE HONOURABLE SENATOR SEGAL
SUMMARY
This enactment amends the Financial Administration Act to require that every portion of the federal public administration named in Schedule I, IV or V of that Act, as well as parent Crown corporations, submit quarterly financial reports to Parliament.
It also amends the Bank of Canada Act to add a similar requirement.
Available on the Parliament of Canada Web Site at the following address:
http://www.parl.gc.ca
http://www.parl.gc.ca
2nd Session, 39th Parliament,
56 Elizabeth II, 2007
senate of canada
BILL S-201
An Act to amend the Financial Administration Act and the Bank of Canada Act (quarterly financial reports)
WHEREAS Canadian taxpayers’ trust in the management of public moneys needs to be enhanced;
AND WHEREAS Canadian taxpayers’ rights to quarterly financial reports from their federal public administration and Crown corporations should be similar to the rights held by shareholders of publicly traded companies, and these financial reports should over time embrace full accrual accounting methods;
AND WHEREAS the requirements of a firm financial disclosure policy for federal public administration and Crown corporations and frequent disclosure to Parliament would lead to more openness and accountability;
AND WHEREAS the discipline of more frequent financial reporting would give early warning of problems and enable more timely remedial action;
AND WHEREAS Canadian taxpayers need to feel confident that public moneys are being managed prudently;
NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.S., c. F-11
FINANCIAL ADMINISTRATION ACT
1. The Financial Administration Act is amended by adding the following after section 65:
PART VI.1
QUARTERLY FINANCIAL REPORTS
Quarterly financial reports
65.1 (1) During each fiscal year, every portion of the federal public administration named in Schedule I, IV or V shall cause to be prepared for submission to each House of Parliament a quarterly financial report for each three-month period of the fiscal year.
Contents
(2) The quarterly financial report shall be prepared in accordance with generally accepted accounting principles, and shall include
(a) a balance sheet as at the end of the three-month period and a balance sheet as at the end of the preceding fiscal year;
(b) comparative financial information for the corresponding three-month period in the preceding fiscal year;
(c) a cash-flow statement;
(d) a statement of revenues and expenditures; and
(e) a management discussion and analysis on
(i) material changes in operations,
(ii) key changes in personnel,
(iii) key changes in program parameters, and
(iv) any other matter that, in the opinion of the appropriate Minister, should be brought to the attention of Parliament.
Tabling in Parliament
(3) The appropriate Minister shall cause the report referred to in subsection (1) to be laid before each House of Parliament on any of the first 45 days on which that House is sitting after the end of each three-month period referred to that subsection.
Application
(4) This section applies in respect of each fiscal year beginning with the fiscal year next following that in which this section comes into force.
2. The Act is amended by adding the following after section 131:
Quarterly Financial Reports
Quarterly financial reports
131.1 (1) During each financial year, each parent Crown corporation shall cause to be prepared for submission to each House of Parliament, in respect of itself and its wholly-owned subsidiaries, if any, a quarterly financial report for each three-month period of the financial year.
Contents
(2) The quarterly financial report shall be prepared in accordance with generally accepted accounting principles, and shall include
(a) a balance sheet as at the end of the three-month period and a balance sheet as at the end of the preceding financial year;
(b) comparative financial information for the corresponding three-month period in the preceding financial year;
(c) a cash-flow statement;
(d) a statement of retained earnings;
(e) a statement of revenues and expenditures; and
(f) a management discussion and analysis on
(i) material changes in operations,
(ii) key changes in personnel,
(iii) key changes in program parameters, and
(iv) any other matter that, in the opinion of the board of directors of the parent Crown corporation, should be brought to the attention of Parliament.
Tabling in Parliament
(3) The appropriate Minister shall cause the report referred to in subsection (1) to be laid before each House of Parliament on any of the first 45 days on which that House is sitting after the end of each three-month period referred to that subsection.
Application
(4) This section applies in respect of each financial year beginning with the financial year next following that in which this section comes into force.
R.S., c. B-2
BANK OF CANADA ACT
3. The Bank of Canada Act is amended by adding the following after section 29:
Quarterly financial reports
29.1 (1) During each financial year, the Bank shall prepare for submission to each House of Parliament a quarterly financial report for each three-month period of the financial year.
Contents
(2) The quarterly financial report, in the form prescribed by the by-laws of the Bank, shall be prepared in accordance with generally accepted accounting principles, and shall include
(a) a balance sheet as at the end of the three-month period and a balance sheet as at the end of the preceding financial year;
(b) comparative financial information for the corresponding three-month period in the preceding financial year;
(c) a cash-flow statement;
(d) a statement of retained earnings;
(e) a statement of revenues and expenses; and
(f) a management discussion and analysis on
(i) material changes in operations,
(ii) key changes in personnel,
(iii) key changes in program parameters, and
(iv) any other matter that, in the opinion of the Governor, should be brought to the attention of Parliament.
Tabling in Parliament
(3) The Minister shall cause the report referred to in subsection (1) to be laid before each House of Parliament on any of the first 45 days on which that House is sitting after the end of each three-month period referred to that subsection.
Application
(4) This section applies in respect of each financial year beginning with the first financial year next following that in which this section comes into force.
4. Paragraph 35(1)(d) of the Act is replaced by the following:
(d) the form of the quarterly financial reports and the annual statement of accounts; and
COMING INTO FORCE
Coming into force
5. The provisions of this Act come into force on a day or days, not later than eighteen months after the day on which this Act receives royal assent, to be fixed by order of the Governor in Council.
Published under authority of the Senate of Canada
Explanatory Notes
Financial Administration Act
Clause 1: New.
Clause 2: New.
Bank of Canada Act
Clause 3: New.
Clause 4: Relevant portion of paragraph 35(1)(d):
35. (1) The Board, with the approval of the Governor in Council, may make by-laws with respect to
. . .
(d) the form of the annual statement of accounts; and