Bill S-201

2nd Session, 39th Parliament,

56-57 Elizabeth II, 2007-2008

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 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:

FINANCIAL ADMINISTRATION ACT

1. The Financial Administration Act is amended by adding the following after section 65:

PART VI.1

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 a quarterly financial report for each three-month period of the fiscal year.

(2) The quarterly financial report shall be prepared in accordance with generally accepted accounting principles, and shall include

(a) comparative financial information for the corresponding three-month period in the preceding fiscal year;

(b) a cash-flow statement;

(c) a statement of revenues and expenditures; and

(d) 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.

(3) The appropriate Minister shall cause the report referred to in subsection (1)

(a) to be made available to the public within 60 days after the end of each three-month period referred to in that subsection; and

(b) to be laid before each House of Parliament at the first reasonable opportunity.

(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

131.1 (1) During each financial year, each parent Crown corporation shall cause to be prepared, in respect of itself and its wholly-owned subsidiaries, if any, a quarterly financial report for each three-month period of the financial year.

(2) The quarterly financial report shall be prepared in accordance with generally accepted accounting principles, and shall include

(a) comparative financial information for the corresponding three-month period in the preceding financial year;

(b) a cash-flow statement;

(c) a statement of retained earnings;

(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 board of directors of the parent Crown corporation, should be brought to the attention of Parliament.

(3) The appropriate Minister shall cause the report referred to in subsection (1)

(a) to be made available to the public within 60 days after the end of each three month period referred to in that subsection; and

(b) to be laid before each House of Parliament at the first reasonable opportunity.

(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.

BANK OF CANADA ACT

3. The Bank of Canada Act is amended by adding the following after section 29:

29.1 (1) During each financial year, the Bank shall prepare a quarterly financial report for each three-month period of the financial year.

(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) comparative financial information for the corresponding three-month period in the preceding financial year;

(b) a cash-flow statement;

(c) a statement of retained earnings;

(d) a statement of revenues and expenses; 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 Governor, should be brought to the attention of Parliament.

(3) The appropriate Minister shall cause the report referred to in subsection (1)

(a) to be made available to the public within 60 days after the end of each three-month period referred to in that subsection; and

(b) to be laid before each House of Parliament at the first reasonable opportunity.

(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

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.