Proceedings of the Standing Committee on
Internal Economy, Budgets and Administration
Minutes of Proceedings - November 8, 2018
OTTAWA, Thursday, November 8, 2018
(65)
[English]
The Standing Committee on Internal Economy, Budgets and Administration met this day at 8:30 a.m., in room 160-S, Centre Block, the chair, the Honourable Sabi Marwah, presiding.
Members of the committee present: The Honourable Senators Batters, Carignan, P.C., Dawson, Dean, Forest, Forest-Niesing, Marshall, Marwah, Mitchell, Moncion, Munson, Plett, Tannas and Tkachuk (14).
Other senator present: The Honourable Senator Busson (1).
Also in attendance: Pascale Legault, Chief Corporate Services Officer and Clerk of the Standing Committee on Internal Economy, Budgets and Administration; Richard Denis, Interim Clerk of the Senate; senior Senate officials and other support staff.
Also present: The official reporters of the Senate.
WITNESSES:
The Senate of Canada:
Pierre Lanctôt, Chief Financial Officer, Finance and Procurement Directorate;
Nathalie Charpentier, Comptroller and Deputy Chief Financial Officer, Finance and Procurement Directorate.
KPMG:
Andrew Newman, Partner, Audit Leader, Public Sector Audit.
Pursuant to rule 12-7(1) of the Rules of the Senate, the committee continued its consideration of financial and administrative matters concerning the Senate's internal administration.
CIBA/2018-11-08/497(P)|211| — Adoption of Minutes of Proceedings
The committee considered the Minutes of Proceedings of Thursday, November 1, 2018, public portion.
The Honourable Senator Plett moved:
That the Minutes of Proceedings of Thursday, November 1, 2018, public portion, be adopted.
The question being put on the motion, it was adopted.
CIBA/2018-11-08/498(P)|239| — Report from the Audit Subcommittee: 2017-2018 Financial Statements
The chair of the Audit Subcommittee, the Honourable Senator Moncion, tabled the eleventh report of the subcommittee as follows:
Thursday, November 8, 2018
The Audit Subcommittee of the Standing Committee on Internal Economy, Budgets and Administration has the honour to present its
ELEVENTH REPORT
Your subcommittee has approved the Financial Statements of the Senate of Canada for the year ended March 31, 2018. The audit was conducted in accordance with Canadian generally accepted auditing standards by the professional services firm of KPMG.
The audit resulted in an unqualified auditor's report indicating that the financial statements present fairly, in all material respects, the financial position of the Senate of Canada as at March 31, 2018 and the results of its operations and cash flows in accordance with Canadian public sector accounting standards.
Your subcommittee recommends that these financial statements be tabled in the Senate.
Respectfully submitted,
LUCIE MONCION
Chair
The Honourable Senator Moncion made a statement regarding the eleventh report of the Audit Subcommittee dealing with the 2017-2018 audited financial statements.
Pierre Lanctôt and Andrew Newman made statements and answered questions.
At 8:54 a.m., the committee suspended.
At 9:17 a.m., the committee resumed.
After debate, the Honourable Senator Moncion moved:
That the report be adopted and that it be tabled in the Senate.
The question being put on the motion, it was adopted.
CIBA/2018-11-08/499(P)|190| — Report from the Subcommittee on Senate Estimates: Living Expenses Budget
The chair of the Subcommittee on Senate Estimates, the Honourable Senator Moncion, tabled the eighth report of the subcommittee as follows:
Thursday, November 8, 2018
The Subcommittee on the Senate Estimates of the Standing Committee on Internal Economy, Budgets and Administration has the honour to present its
EIGHTH REPORT
On June 21, 2018, your subcommittee was given the mandate by the Standing Committee on Internal Economy, Budgets and Administration to undertake a review of the budget requirements for senators' living expenses in the Parliamentary District.
Your subcommittee surveyed senators last June to receive their views on the appropriateness of their living expense budget. The feedback received was one source of information used to understand senators' needs. The Senate Finance and Procurement Directorate provided both a review of historical living expenses and the requirements for setting the appropriate budget level for living expenses in the Parliamentary District. These data and statistics led to a detailed analysis, guided by five key principles selected to ensure an impartial and fair review:
1. Equitable — fair and impartial for all senators regardless of their accommodation type, distance to travel and transportation constraints
2. Adequacy of resources — sufficient resources available to senators to adequately perform their parliamentary functions (based on needs) and aligned with comparable organizations
3. Stewardship — prudent use of public funds that can sustain public and media scrutiny
4. Affordability — ability of the institution to pay for additional costs (reasonable budget increase)
5. Efficiency — reasonable administrative complexity that would not require additional resources to administer
Of this analysis, your subcommittee evaluated five options based on their financial impact, as well as pros and cons. Your subcommittee recommends the option that best supports the guiding principles and addresses the concerns raised by senators: (1) a budget increased by the inflation rate; (2) an additional budget for senators who have an additional official role (such as a House Officer); (3) an additional budget for senators that are a member of a Committee that meets on Mondays and have a transportation constraint (distance, accessibility); (4) an additional budget for senators that come from a region that forces the senator to depart one day after the Senate is sitting due to transportation or distance constraints.
Accordingly, your subcommittee recommends the following:
That for the next fiscal year, the basic budget amount to $25,270 for all senators ($24,750 plus inflation rate 2.1%);
That an additional budget of up to $7,500 to cover incremental living costs (hotel and per diem only) be provided to senators who: (1) have an additional official role (such as a House Officer); (2) are a member of a committee that meets on Mondays and have a transportation constraint; or (3) come from a region that forces the senator to depart one day after the Senate is sitting due to transportation or distance constraints.
That the additional budget be used only for periods when the Senate is sitting;
That a supplemental sitting budget of up to $300 per day ($210 maximum negotiated hotel rate and/or per diem allocation) be allocated to senators who do not have access to the additional budget of $7,500 to cover incremental living costs (hotel and per diem) for additional unplanned sitting days (over the normal 75 days of sitting);
That for senators renting an apartment or owning private accommodation, only the per diem portion be allocated for additional unplanned sitting days (over the normal 75 days of sitting);
That the additional budgets and supplemental sitting budgets only be allocated on a need basis when expense forecasts confirm the needs.
To ensure equity, your subcommittee also recommends:
That the privately-owned daily allocation rate be increased from $40 to $50. The analysis is appended to this report.
Respectfully submitted,
LUCIE MONCION
Chair
The Honourable Senator Moncion and Pierre Lanctôt made statements and answered questions on the eight report of the Subcommittee on Senate Estimates dealing with the living expenses budget.
After debate, the Honourable Senator Moncion moved:
That the report be adopted.
The question being put on the motion, it was adopted.
CIBA/2018-11-08/500(P)|233| — Joint Interparliamentary Council (JIC) — Meeting of the Canadian NATO Parliamentary Association
The Honourable Senator Plett provided the committee with an update on the meeting of the Canadian NATO Parliamentary Association that was discussed at the previous meeting of this committee.
After debate, it was agreed that Colette Labrecque-Riel, Clerk Assistant and Director General of the International and Interparliamentary Affairs, would no longer need to appear before the committee on November 22, 2018.
CIBA/2018-11-08/501(P)|282| — Annual Declaration for Senators' Provincial/Territorial Residence and Parliamentary District Accommodation
The Honourable Senator Plett raised concerns regarding an email sent on November 2, 2018, requesting that senators respond by clicking on a voting button.
After debate, it was agreed that the signature of the senator be required for the Annual Declaration for Senators' Provincial/Territorial Residence and Parliamentary District Accommodation.
CIBA/2018-11-08/502(P)|322| — Selection of an Auditor for the Financial Statements
The Honourable Senator Moncion provided an update in relation to the need for a contract for an external auditor in relation to the financial statements.
After debate, the Honourable Senator Moncion moved:
That the KPMG contract for audited financial statements be extended for an additional audit year (2018-19), under the same terms and conditions as the 2017-18 audit; and
That a Request for Proposal process be initiated and an external auditor for audited financial statements be selected for future years prior to the end of the fiscal year (March 31, 2019).
The question being put on the motion, it was adopted.
At 9:51 a.m., the committee proceeded in camera, pursuant to rule 12-16(1).
At 9:52 a.m., the committee adjourned to the call of the chair.
ATTEST:
Pascale Legault
Chief Corporate Services Officer and Clerk of the Standing Committee on Internal Economy, Budgets and Administration
Gérald Lafrenière
Recording Secretary