Premier Brad Wall Says Saskatchewan Has The ONLY Balanced Budget In Canada - Sask Provincial Auditor Says 'YOUR BOOKS ARE WRONG ... HUGE Deficit'!
Saskatchewan's right wing administration is boldly proclaiming that this province has the ONLY balanced provincial budget in Canada. Today, Saskatchewan's independent, non-partisan Provincial Auditor said something QUITE different from what Premier Wall has been saying:
Government General Revenue Fund Financial Statements Wrong, Says Provincial Auditor
REGINA, Sask., December 4, 2012 – The Saskatchewan Government uses “two sets of books” to report its finances despite longstanding recommendations to stop this practice, says Provincial Auditor Bonnie Lysyk in Volume 2 of her 2012 Report, released today. In the Report, Lysyk states that the Government’s General Revenue Fund (GRF) financial statements contain significant errors and are materially wrong.
Most provinces in Canada present their finances to the public using only one set of financial statements - Summary Financial Statements - which are prepared in accordance with Canadian generally accepted accounting principles. In Saskatchewan, however, the Government uses two different sets of financial statements depending on the message it wants to send to the public regarding the state of its finances.
When discussing debt or balancing the budget, it most frequently refers to the GRF statements – a custom that is both poor practice and misleading to the public, particularly when those statements contain significant errors.
For example, the GRF statements for March 31, 2012 excluded $6.12 billion in pension liabilities and $100 million of related pension expenses. “An omission of this magnitude is similar to a company not including in its financial statements all relevant information for its shareholders, such as the financial results of a mine it owns that is losing money,” says Lysyk. “The ‘creative accounting rules’ that the Government uses for the GRF allows it to communicate to the people of Saskatchewan that the GRF budget is balanced and there is a surplus when in actual fact, there is not.” For the year ended March 31, 2012, the Government reported a surplus in the GRF of $352.3 million. What it should have reported was a deficit in the GRF of $46 million.
If the Government used proper accounting rules, the forecasted GRF surplus of $56.2 million in last week’s 2012-13 Mid-Year Report would have actually been a deficit of $528.3 million.
-CTV Regina has more ....
-So does the Regina Leader-Post ....
-CBC Sask, however, has chosen NOT to cover the Prov Auditor's position on Saskatchewan's so called 'balanced' budget ... ???