The creation of a new auditing department that will put local government spending under a microscope arose from a policy paper written by the BC Chamber of Commerce, Creston Valley Chamber of Commerce executive director Jim Jacobsen said last week.
“Our organization worked closely with the provincial government on this,” Jacobsen said.
“This office will support the goals of the Families First Agenda by strengthening local government accountability and ensuring B.C. families receive the best possible return on investment for their taxpayer dollars,” said Premier Clark. “Enhanced stewardship of assets and service delivery means a better quality of life for British Columbians and that's what we're aiming for.”
The primary purpose of the auditor general for local government (AGLG) is to help local governments find efficiencies in spending and improve program effectiveness by providing neutral, non-binding advice. The role has been designed to maximize value for money by undertaking performance audits and providing information to assist local governments in choosing how best to respond to their communities’ priorities.
The AGLG would make recommendations for improvements, not impose solutions. It will be up to local governments to decide what action to take on any recommendations provided by the AGLG. Local governments’ ability to make policy decisions about taxation, land use and other services would not be restricted.
“The legislation of this new office has the potential to fundamentally change the way municipalities in B.C. operate,” said John Winter, president and CEO of the BC Chamber of Commerce, “and we applaud the B.C. government for making this bold move to ensure that our municipalities are accountable and provide services in a competitive and cost effective way.”
The concept for a AGLG office in B.C. was developed in a 2010 policy paper by the BC Chamber of Commerce, which focused on creating equity in the property tax system and bringing transparency to local government. Chambers of commerce recognize that many local governments face challenges providing services with limited financial means. However, many tax rates are set with little to no involvement by the public and with no effective oversight, Winter said.
“It is critical that the public have information through value for money audits to ensure that taxpayer interests are protected, and that elected officials at all levels are held to account,” he said. “An AGLG would achieve these goals while respecting municipal autonomy.
“We are very glad to see that the guiding principles of independence and transparency for the auditor general office have been written into the legislation. The AGLG will ensure that municipalities are accountable and employing best practices in the interest of local residents and businesses.”