Nova Scotia’s auditor general is using a new mid-term update to highlight concerns about government accountability, over-budget spending and the independence of her office, while also pointing to progress on recommendations made during the first half of her mandate.
Kim Adair released the report this week to mark the halfway point of her 10-year term, which began in 2021.
Since then, her office has released 36 reports and issued more than 225 recommendations aimed at improving government programs and services.
Billions in over-budget spending
One of the biggest concerns raised in the report is more than $6.7 billion in spending approved outside the province’s original budgets over the past five years.
Adair says Nova Scotia remains out of step with practices in many other provinces because extra spending does not require approval from the legislature before it occurs.
Her office has repeatedly recommended changes to the Finance Act that would require MLAs to review and vote on additional spending, but the province has so far declined to make those changes.
The issue has become a recurring point of tension between the auditor general and the Progressive Conservative government.
Earlier this year, Finance Department officials defended the province’s current approach, arguing the government needs flexibility to respond quickly to emerging priorities and unexpected events.
The auditor general has also repeatedly warned about the province’s rising spending levels and debt burden.
A report released earlier this year found annual provincial spending has climbed roughly 43 per cent since 2020-21, reaching about $18 billion annually.
The province’s latest budget projects net debt could approach $36 billion within the next several years.
Independence of the office
The mid-term update also revisits controversy surrounding proposed amendments to the Auditor General Act last year.
The changes, which were later withdrawn, drew criticism from opposition parties and accountability advocates who argued they could weaken the independence of the office.
Adair says disagreements between governments and auditors general are not unusual.
“It’s normal that Auditors General and governments, from time to time, may have a difference of opinion; on occasion we agree to disagree,” she said.
“It’s in those instances you most need an independent Auditor General.”
She says maintaining independence is critical because the office works on behalf of the legislature and the public.
“As an independent officer that works on behalf of the Legislature – and by extension all taxpayers and every Nova Scotian – this is the office that can help hold Government to account.”
Adair also says the public attention surrounding the proposed changes helped increase awareness of the office and the work it performs.
Recommendations and future audits
According to the report, more than half of the recommendations issued by the office over the past five years have already been implemented, with government considered on track to complete more.
The Office of the Auditor General plans to begin reviewing the status of the remaining recommendations later this year.
Adair says several additional audits are already underway, with a new three-year plan being developed for the second half of her mandate.
“It’s been an honour and a pleasure to serve Nova Scotians during the first five years of my 10-year mandate,” she said.
“Together with my dedicated team, I look forward to continuing the important work of this Office.”
Before becoming Nova Scotia’s auditor general, Adair served in the same role in New Brunswick from 2010 to 2021. She is also the first woman to hold the position in Nova Scotia since the office was established more than a century ago.
