The Auditor General of British Columbia has given a qualified audit opinion on the Summary Financial Statements because the statements do not comply with generally accepted accounting principles (GAAP). All three of this year’s reservations were also included as reservations last year.
- Oil and natural gas producer’s royalty credits are inappropriately being netted from revenue rather than being reported as expenses.
- Government is not recording liabilities for deep-well credits owed to oil and gas producers.
- The third reservation is the improper consolidation into the Summary Financial Statements of the Transportation Investment Corporation (TIC). Consolidating the accounts of the TIC using the modified equity method rather than the line-by-line method results in significant differences in the financial statement balances.
The Liberal avoidance of honest accounting for money owed oil and gas producers is because they don’t want to admit in public to another massive give away to mega-corporations. It is not only HST that transfers huge sums of money to powerful multinationals.
Another issue, not covered by the Auditor General, is the elimination of environmental oversight at precisely the time it is most needed. Oil and gas producers now routinely use hydraulic fracturing, with a multiplicity of chemicals that can poison groundwaters wherever they are used. The BC Government slashed both staff and budget allocations over the last few years, relying instead on “self-regulation” for protection.
Keep in mind that the concept of self-regulation was behind the massive BP oil disaster in the Gulf of Mexico. To encourage this agenda energy companies have spent millions on political contributions, lobbyists and, of course, funding of the Fraser Institute.