9 hours Ago By Brandon Sun
Manitoba’s auditor general, Tyler Shtykalo, says the Manitoba government made an “unprecedented number of errors that required correction” during the preparation of its financial report for the 2023-24 fiscal year. Manitobans are entitled to know why they were only given that information this week. Read this article for free: Already have an account? As we navigate through unprecedented times, our journalists are working harder than ever to bring you the latest local updates to keep you safe and informed.
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or call circulation directly at (204) 727-0527. Your pledge helps to ensure we provide the news that matters most to your community! Manitoba’s auditor general, Tyler Shtykalo, says the Manitoba government made an “unprecedented number of errors that required correction” during the preparation of its financial report for the 2023-24 fiscal year. Manitobans are entitled to know why they were only given that information this week.
Read unlimited articles for free today: Already have an account? Opinion Manitoba’s auditor general, Tyler Shtykalo, says the Manitoba government made an “unprecedented number of errors that required correction” during the preparation of its financial report for the 2023-24 fiscal year. Manitobans are entitled to know why they were only given that information this week. A report released by Shtykalo’s office on Thursday says that many of the errors related to processes the government used to consolidate financial information from various government departments and other public-sector entities into the province’s year-end financial statements.
The report says that “We have found numerous errors in the consolidated information due to inaccurate, incorrect, or inconsistent information being used to prepare the adjustments.” It adds that the government: • Did not obtain all relevant information needed to prepare the consolidated summary financial statements; • Did not have adequate processes in place to ensure information used in the financial statements was accurate; • Did not review control processes to ensure they were properly designed and implemented to reduce risk of material misstatement due to fraud and error; • Did not prepare information in accordance with Public Sector Accounting Standards (PSAS) requirements; and • Did not have review processes in place to ensure financial information was accurate and prepared in accordance with standards before providing this information to the auditor, indicating a lack of sufficient review prior to providing us the information. All of that is serious, but Shtykalo’s office also found there was a lack of review by those preparing the summary information to ensure the correct and relevant information had been provided.
As regards the number of “unprecedented errors” in the financial information and statements presented for audit, the report says that hundreds of millions of dollars in accounting adjustments were required to correct the amounts presented in the summary financial statements. It adds that, in many cases, the amounts recorded in the accounting records “were not adequately supported or did not match the supporting documentation.” It attributes the problem to a lack of understanding of what is required to support amounts in financial records, a lack of review of information prepared to support amounts in financial records, and poor controls over financial reporting.
It then adds this bombshell: “We are concerned that the issues related to the preparation of the financial statements are not improving. Without improvement, the issues may escalate further.” The report says that “Timely and accurate financial reporting is essential for effective decision-making and responsible management of public resources.
” It adds that “We have serious concerns about the Province’s readiness to prepare financial information for the fiscal year ending March 31, 2025.” All of those findings in the report give rise to significant concern about the accuracy of the government’s books and the competency of those who are entrusted to prepare them. Just as importantly, they raise legitimate questions as to why Manitobans only found out about the problems this week, and not when the 2023-24 financial statement was made public.
The Manitoba government’s Annual Report and Public Accounts For the year ended March 31, 2024 was released on Sept. 27. Within the summary financial statements portion of that document is a copy of a letter signed by Shtykalo, in which he says that his office audited the government’s consolidated financial statements and that, except for two specific concerns, concluded that the statements “present fairly, in all material respects, the consolidated financial position of the Province as at March 31, 2024, and the consolidated results of its operations, consolidated statement of accumulated operating deficit, consolidated remeasurement gains and losses, consolidated changes in its net debt, and consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards (PSAS).
” Nowhere in that eight-page letter did Shtykalo disclose or even obliquely allude to the many serious deficiencies that his department’s audit identified. The public did not find out about those concerns until two days ago — almost three full months after the release of the audited financial statements. Why was this information not released with the financial statement on Sept.
27? Why were MLAs not informed of the auditor’s concerns prior to or during the just-ended fall session of the Legislative Assembly? Were the province’s lenders told? Were the bond rating agencies that assess the province’s creditworthiness told? It is a fundamental principle of government transparency and accountability that the public, and those elected to represent them, always have an accurate understanding of the financial condition of their province. The failure to disclose the many concerns that arose during the audit of the Manitoba government’s 2023-24 financial statements violates that principle. For almost three months, Manitobans were kept in the dark.
They deserve a clear and accurate explanation from Shtykalo and the government as to why this information was withheld from them for so long, and credible assurances that it will not happen again. Advertisement Advertisement.
