Proposed legislation may bring public some form of accountability to Ontario Universities. On December 9, 2003 the first reading of Bill 18 "An Act respecting the Provincial Auditor" occurred in the Legislature of Ontario. This Bill will enhance the powers of the provincial auditor and require that all recipients of provincial funds be audited. This includes universities. This means that a Board of Governors Audit Committee will have to assure compliance.

Premier McGinty's news release stated:

MCGUINTY GOVERNMENT INTRODUCES LEGISLATION TO EXPAND PUBLIC SECTOR ACCOUNTABILITY

This legislation, if passed, would rename the Provincial Auditor the Auditor General, and would provide the Auditor General with expanded powers to conduct value-for-money audits of institutions in the broader public sector, such as school boards, universities, colleges, hospitals, and all Crown-controlled corporations including Hydro One, Ontario Power Generation and their subsidiaries.

“We will allow the public watchdog to shine a light on more of those organizations that spend taxpayer dollars as a key means of ensuring that Ontarians are getting value for the money they invest in their public services,” Sorbara said.

He added that value-for-money audits are characterized by two principal considerations: whether money was spent without due regard for economy and efficiency; and whether appropriate procedures are in place to measure and report on the effectiveness of the programs.

Universities, as grant recipients, would now be subject to audit;

13. Sections 10 and 11 of the Act are repealed and the following substituted:

Duty to furnish information
10. (1) Every ministry of the public service, every agency of the Crown, every Crown controlled corporation and every grant recipient shall give the Auditor General the information regarding its powers, duties, activities, organization, financial transactions and methods of business that the Auditor General believes to be necessary to perform his or her duties under this Act.

Access to records
(2) The Auditor General is entitled to have free access to all books, accounts, financial records, electronic data processing records, reports, files and all other papers, things or property belonging to or used by a ministry, agency of the Crown, Crown controlled corporation or grant recipient, as the case may be, that the Auditor General believes to be necessary to perform his or her duties under this Act.

Note: Bill 18 will amend Section 1 of the Audit Act by adding the following definitions:

• “grant recipient” means an association, authority, board, commission, corporation, council, foundation, institution, organization or other body that receives a reviewable grant directly or indirectly.
• “reviewable grant” means a grant or other transfer payment from the Consolidated Revenue Fund, from an agency of the Crown or from a Crown controlled corporation.

The full text of the bill may be retrieved here.