Auditor general finds errors in record-keeping

WINNIPEG — Manitoba’s auditor general found “an unprecedented number of errors” during his office’s latest review of 2023-24 receipts submitted by the provincial government and public entities.

“We identified significant weaknesses in financial statement preparation,” Tyson Shtykalo wrote in a new report on public accounts and related statements.

Shtykalo’s findings show bureaucrats were asked to correct a long list of problems with their statements related to processes around collecting budget documents internally and across the public sector.

The 54-page document draws on an annual mega-review of government department, Crown corporation and public board finances for the fiscal year ending March 31, 2024.

It was released Thursday, alongside a new publication on Shared Health’s cybersecurity incident-response process.

Imprecise documentation on calculating the government’s contractual obligations and rights was also flagged high up in the report.

“It’s very frustrating and I would like to say it’s surprising, but it’s not. When you have people stretched way too thin, trying to do too much, errors will happen,” said Kyle Ross, president of the Manitoba Government and General Employees’ Union.

Provincial records show there were 12,287 civil servants as of March 31, 2024 — down from 14,876 civil servants eight years earlier.

Ross noted the workforce size has shrunk significantly since 2016. At the same time, he said the province’s recruitment and hiring processes take far too long.

The auditor general told the Winnipeg Free Press that serious challenges related to submitting summary financial statements are not new, and are worrisome because the documents — which the province must submit by Sept. 30 for the annual audit — are critical for accountability.

“It’s really important that Manitobans can be confident that the numbers that they’re receiving are correct and accurate and fairly stated,” Shtykalo said in an interview.

The province’s financial report for the last fiscal year revealed a deficit of almost $2 billion.

One section of the new auditor general report serves as a road map for the province to better prepare timely and accurate financial statements.

Manitoba needs to make a “substantial investment” to address the chronic problems, bolster financial management training and reviewing, and hire more staff who have specialized knowledge in accounting, finance and controllership, the report says.

“It is a challenging area, though,” Shtykalo said, referring to both hiring and retaining qualified certified public accountants for government and agency positions that oversee financial management.

“It’s a competitive market right now, and I’ve lost people from our office to the private sector, too.”

Further complicating matters was a mid-audit change in the provincial comptroller, he noted.

Lauren Stone, finance critic for the Opposition Tories, said her party is concerned about the report’s findings and the “financial inconsistencies” described in it.

“It is incumbent on the NDP to ensure they are providing a true and complete picture of the province’s finances, especially after adding $513 million to this year’s deficit. (Thursday’s) report suggests the government may be hiding even more bad news from Manitobans,” Stone said in a statement.

Asked about the results, Finance Minister Adrien Sala pointed to the former Progressive Conservative government’s cuts and “disrespect shown” toward members of the civil service.

“We lost a lot of the folks that we need and we lost a lot of financial capacity. We’re responding to that by staffing up,” Sala said.

The civil service added 233 employees between the spring of 2023 and 2024.

Ensuring there are enough bureaucrats skilled in these areas is a “very high priority,” Sala said, adding the NDP is thankful for the auditor general’s expertise.

Earlier this week, Sala revealed the forecast deficit for the current fiscal year had risen substantially. The minister cited overspending in the health, seniors and long-term care department, including at regional health authorities.

» Winnipeg Free Press