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Preface

Public Accounts 2004-05

The Public Accounts of Alberta are prepared in accordance with the Financial Administration Act and the Government Accountability Act. The Public Accounts consist of the annual report of the Government of Alberta and the annual reports of each of the 24 Ministries.

The annual report of the Government of Alberta released June 29, 2005 contains the Minister of Finance’s accountability statement, the consolidated financial statements of the Province and a comparison of the actual performance results to desired results set out in the government’s business plan, including the Measuring Up report.

On November 24, 2004 the Ministry of Finance became responsible for the responsibilities of the former Ministry of Revenue. This annual report contains reporting information for the Ministry of Finance and contains the Minister’s accountability statement, the audited consolidated financial statements of the Ministry and a comparison of actual performance results to desired results set out in the ministry business plan.

This Ministry annual report also includes:

• the financial statements of entities making up the Ministry including the Department of Finance, regulated funds, provincial agencies and Crown-controlled corporations for which the Minister is responsible,
• other financial information as required by the Financial Administration Act and Government Accountability Act, either as separate reports or as a part of the financial statements, to the extent that the Ministry has anything to report, and
• financial information relating to trust funds.

Minister's Accountability Statement

The Ministry’s Annual Report for the year ended March 31, 2005, was prepared under my direction in accordance with the Government Accountability Act and the government’s accounting policies. All of the government’s policy decisions as at September 22, 2005 with material economic or fiscal implications of which I am aware have been considered in the preparation of this report.

[Original Signed]

Looking back at 2004-05, it was truly a remarkable year in Alberta’s history. Strong resource revenue allowed the province to pay off its remaining accumulated debt. Albertans deserve much of the credit for such an accomplishment. They told us time and again to get our fiscal house in order and pay down the debt that once amounted to almost $23 billion.

Albertans also played a key role in shaping the Province’s fiscal future by completing the It’s Your Future survey. After counting and analyzing a record number of responses, it came as no real surprise that health care and education topped the list. Our budget numbers reflected the government’s commitment to those areas.

Alberta’s strong fiscal position was once again recognized by international bond rating agencies. For the fourth consecutive year, Dominion Bond Rating Service, Moody’s Investor Service, and Standard and Poors rated our province as triple A. We are the only Province in Canada with such status.

The government’s fiscal framework continued to protect programs from the volatility that comes with non-renewable resource revenue. For 2004-05, the limit on resource revenue spending was increased to $4 billion. The additional dollars were primarily used in health and education.

The Sustainability Fund, created in 2003-04 to protect spending from volatile revenue and the cost of emergencies and disasters again proved to be a valuable resource for Albertans in need. The Fund provided almost $1 billion for BSE assistance, flood assistance, wildfire costs, and natural gas rebates in fiscal 2004-05. We also balanced our budget for the eleventh straight year.

Albertans can once again proudly state they pay the lowest overall taxes in Canada. In 2004, the government reduced the business tax rate, continued indexation of the personal income tax system and for the eleventh straight year school property tax rates have been frozen. The combination of low personal and corporate taxes translates into a competitive tax system that is helping to attract workers and investments to Alberta, creating a strong and vibrant economy.

Reforms to auto insurance continued to be a focal point with the implementation of a new system last October. We launched an awareness campaign designed to steer Alberta drivers through the many facets of the reforms that achieve our goal of fair and affordable rates.

With pension plans on the minds of many, changes were made so members of private sector pensions can now keep better tabs on their plans. Increasing transparency and accountability means more access to financial information. Albertans are in a better position to monitor their own pensions long before they need them. The Superintendent of Pensions now has more effective ways of monitoring the funding of pension plans and stronger enforcement powers if problems arise.
It was another strong year for the Heritage Fund which earned $1.1 billion from its investments, capital projects, health care, education, roads and tax reductions.

Working with the Alberta Hotel and Lodging Association, the hotel room tax was changed to a tourism levy and the rate was reduced from five to four per cent. As a result, the tourism industry will see increased funds to better encourage more travellers to take an Alberta break.

History was made with the signing of a provincial/territorial Memorandum of Understanding regarding securities regulation. This is the first step towards streamlining and simplifying securities laws to create a more efficient and effective system, while providing a high standard of investor protection across the country.

Alberta also continued to be a leader as the first province to review income trusts. Input from public consultations and a discussion paper helped in the development of legislation which passed through the spring session of the legislature.

The hard working and dedicated staff within the Ministry saw a few changes this year. Not only do they have a new Minister, but also the decision was made to bring Alberta Finance and Alberta Revenue together again.

We have so much to be thankful for as we celebrate our province’s centennial. As we look back at the successes that have been achieved and challenges overcome to make Alberta what it is today, we are solidly on course to enter our second century.

[Original Signed]

September 22, 2005

Management's Responsibility for Reporting

The executives of the individual entities within the Ministry have the primary responsibility and accountability for their respective entities. Collectively, the executives ensure the Ministry complies with all relevant legislation, regulations and policies.

Ministry business plans, annual reports, performance results and the supporting management information are integral to the government’s fiscal and business plans, annual report, quarterly reports and other financial and performance reporting.

Responsibility for the integrity and objectivity of the consolidated financial statements and performance results for the Ministry rests with the Minister of Finance. Under the direction of the Minister, as Deputy Minister, I oversaw the preparation of the Ministry’s Annual Report, including consolidated financial statements and performance results. The consolidated financial statements and the performance results, of necessity, include amounts that are based on estimates and judgments. The consolidated financial statements are prepared in accordance with the government’s stated accounting policies.

In addition to program responsibilities, I establish and maintain the Ministry’s financial administration and reporting functions. The Ministry maintains systems of financial management and internal control which give consideration to costs, benefits, and risks that are designed to:

• provide reasonable assurance that transactions are properly authorized, executed in accordance with prescribed legislation and regulations, and properly recorded so as to maintain accountability of public money,
• provide information to manage and report on performance,
• safeguard the assets and properties of the Province under Ministry administration,
• provide Executive Council, Treasury Board and the Minister of Finance any information needed to fulfill their responsibilities, and
• facilitate preparation of ministry business plans and annual reports required under the Government Accountability Act.

In fulfilling my responsibilities for the Ministry, I have relied, as necessary, on the executives of the individual entities within the Ministry.

[Original Signed]

Brian Manning
Deputy Minister of Finance

September 22, 2005

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