The Provincial Audit Committee (Committee), created under the Auditor General Act as an advisory committee to the government and the Auditor General, is comprised of up to six private sector members and the President of Treasury Board and Minister of Finance.
As per its terms of reference, the Committee reviews and advises the government on issues relating to financial statement presentation and disclosure, accounting policies and pronouncements, and non-financial performance information.
The Committee reviews and advises on matters related to the Auditor General’s reports to the Legislative Assembly prior to its publication and any other reports made by the Auditor General.
The Committee also reviews and advises on any matter related to the financial affairs of the Crown in accordance with a request of the President of Treasury Board and Minister of Finance. Details on the nomination process to select committee members are outlined below.
A review panel is formed with the specific task of considering potential candidates and preparing a short list of candidates for the President of Treasury Board and Minister of Finance’s consideration.
The review panel generally comprises of the current Chair of the Audit Committee who is outside of government and senior officials.
Potential candidates are identified from various sources including:
- Pool from the Executive Search,
- current Audit Committee members, and
- the President of Treasury Board and Minister of Finance’s office
Accountants in accounting firms that are agents of the Auditor General will be considered to be in a conflict of interest.
The panel considers each potential candidate’s background and experience using the membership criteria as outlined in the following column.
In making its recommendations, the panel takes into account the experience and background of the current membership.
The panel's recommendations attempt to bring geographic balance to the Audit Committee.
The panel may make initial contact with potential candidates to see if they will let their name stand for consideration for the review process only.
As part of its review, the panel updates the membership criteria if needed to reflect current governance practices.
Panel recommendations are then brought forward to the President of Treasury Board and Minister of Finance for consideration.
Appointments to the Audit Committee are made by Cabinet and Order in Council. The President of Treasury Board and Minister of Finance’s office will notify selected candidates.
Committee members come from a variety of backgrounds in management, finance, professional, academic, and/or business sectors with a complementary mix of skills and experience to allow the Committee to effectively fulfill its mandate. Committee members should be well regarded in their communities, be of senior stature and, as a group, have:
- financial literacy, meaning the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the government’s financial statements;
- a strong understanding of governance;
- an appreciation of the public sector decision making process and accountability framework, including the unique role of this Committee;
- independence, including an unbiased perspective on the matters brought before the Committee and the members’ employment or involvement in other activities must not place them in a conflict of interest position;
- effective communication skills;
- strong support for ethics; and
- senior level experience in large organizations addressing strategic and conceptual issues.