Background

11.1	We do not audit the financial statements of all the Crown 
Corporations, Boards, Commissions and other Agencies included as part 
of the provincial reporting entity. Following is a list of the agencies 
audited by other auditors.

11.2	Agencies included in the Public Accounts:

•	Board of Commissioners of Public Utilities

•	Forest Protection Limited

•	Kingsbrae Horticultural Garden Inc.

•	New Brunswick Investment Management Corporation

•	New Brunswick Liquor Corporation

•	New Brunswick Museum

•	New Brunswick Power Corporation

•	Service New Brunswick

•	Strait Crossing Finance Inc.

•	Workplace Health, Safety and Compensation Commission of New 
Brunswick

•	The eight regional hospital corporations



11.3	Other Agencies:

•	Atlantic Lottery Corporation Inc.

Scope

11.4	We review the financial statements and other documents as they 
are received. We also visit the auditors periodically to review their 
working papers. We do this to determine whether we can continue to 
rely on their work in carrying out our audit of the financial statements of 
the Province. 

Delay in submitting 
financial statements 
and management 
letters

11.5	The Auditor General Act requires the auditors of the agencies, 
listed above, to deliver to the Auditor General immediately after 
completion of the audit, a copy of any reports and recommendations 
arising out of their audits and a copy of the audited financial statements 
of the agency. Most of these agencies have a 31 March year end like the 
Province.

11.6	Despite the fact that provincial legislation requires the 
immediate submission of the financial statements and the auditors’ 
comments and recommendations to the Auditor General’s Office 
following the audit, the practice has not always conformed with this 
requirement.

11.7	Often the required documentation has been sent only after 
repeated requests by our Office. In some cases the information is 
provided well after the Province’s financial statements have been issued 
and our annual Report written.

11.8	One agency copies the Office of the Auditor General on 
management letters as they are issued. This ensures that the letter is 
always made available to our Office as soon as possible. Others could 
adopt such a practice. This enhancement could eliminate many of the 
delays we currently experience.

11.9	At 1 October 2000, only 15 of the 19 sets of financial statements 
had been received by our Office. 

New Brunswick Power 
Corporation

11.10	During the year, we reviewed the working papers of the auditors 
of New Brunswick Power Corporation. We were satisfied with the work 
done by the auditors of the Corporation for the year ended 31 March 
2000.

11.11	The auditors issued a management letter to the Corporation at 
the conclusion of their audit. Their letter addressed a number of 
concerns they had during the annual audit. Some of the comments 
related to issues raised in the prior year and some were issues first raised 
in 2000.

11.12	One of the issues brought forward from the previous year’s 
management letter was the recommendation that management undertake 
a review of certain existing liabilities. The liabilities relate to the costs 
of disposing of irradiated nuclear fuel and decommissioning Point 
Lepreau Generating Station. The costs were previously being 
accumulated on the basis of the Point Lepreau Generating Station 
operating until 2014, but this was changed to 2008.

11.13	Management indicated last year that cost studies in these two 
areas would be updated in 1999. This was not completed as anticipated. 
However the Corporation responded to their auditors that they are now 
in the process of being updated and the results should be available for 
inclusion in the 31 March 2001 financial statements.

Workplace Health, 
Safety and 
Compensation 
Commission of New 
Brunswick

11.14	The auditors issued a lengthy management letter to the 
Commission at the conclusion of their audit. The auditors’ comments 
focussed mainly on information systems. Other areas dealt with in the 
letter included internal controls and the role of internal audit. 
Management of the Commission agreed with the recommendations and 
noted the actions that have been taken or will be taken to address the 
issues raised.

Hospital Corporations

11.15	Auditors of five of the eight hospital corporations issued 
management letters following the completion of their audits of the 
financial statements for the year ended 31 March 2000. In general, 
auditors continue to report good co-operation from the hospital 
corporations in implementing recommended changes. In one 
management letter it was disclosed that all issues raised in the previous 
year, including a significant delay in invoicing accounts receivable, had 
been rectified.

11.16	Following the audits, hospital corporations received a number of 
recommendations for improvements to internal controls. A management 
letter to one corporation pointed out that detailed listings of its fixed 
assets were not maintained, leading to a concern about the safeguarding 
of the assets.