From the Provincial Auditor of Saskatchewan's new report.
Under the heading: "GRF financial statements not reliable"
Our auditor's report on the GRF's financial statements for the year ended March 31, 2005 warns readers that the financial statements do not include all the Government's financial activities. Therefore, readers should not use the GRF's statements to understand and assess the Government's overall performance. The appropriate financial statements to use for that purpose are the Government's summary financial statements.
In addition, our auditor's report on the GRF's financial statements for the year ended March 31, 2005 includes three reservations. The financial statements are not reliable because they do not properly record transfers to the Fiscal Stabilization Fund, loans receivable from Crown corporations, and pension costs.
The combined effects of these reservations are as follows:
- the transfer to the Fiscal Stabilization Fund of $383 million overstates expenses by $383 million.
- transfers to Crown corporations, improperly recorded as loans, understates expenses by $12 million
- pensions expenses are understated by $120 million
- liabilities are understated by $4.1 billion, assets by $0.7 billion and accumulated deficit by $3.4 billion.
Of course the Provincial Auditor is an accountant, not a politician. He writes factually and diplomatically, devoid of rhethoric.
I happen to speak a little governmentese. Allow me to translate:
At least, that's what I think he said.
The government's books are cooked. There is no money in the phoney stabilization fund and people should stop talking like there is. The government is misleading us about their accumulated debt by leaving out $4.1 billion in pension liabilities. Make sure you read these reports carefully and spread the word.