Update on Prior Years Report Items. Update. Department of Government Services and Lands
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- Virgil McKinney
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1 Te Department contravened te Financial Administration Act by purcasing equipment for wildlife compliance from funds provided by te Legislature for supplies for te Fire Suppression and Communications program. Update In October 2003, we contacted te Department of Forest Resources and Agrifoods requesting an update as to te progress on te comments and recommendation included in our 2001 report Recommendation Te Department sould comply wit te Financial Administration Act. Te Department informed us tat te Treasury Board Budgeting Division as been working closely wit te Department to monitor bot expenditure and budgetary transactions in order to more fully differentiate between program costs and normal operating overeads and to undertake a more consistent expense categorization. Department of Government Services and Lands Management of Crown Lands (1999 Annual Report, Part 3.26) Introduction Te Department of Government Services and Lands is responsible for management of te Province s Crown lands. Crown lands comprise approximately 95% of te Province s land mass and as suc is one of te Province s most significant natural resources. Te management of Crown land is assigned to te Lands Branc of te Department. Tis Branc is comprised of tree Divisions: Crown Lands Administration, Surveys and Mapping, and Land Management. Te Branc s responsibilities include processing land applications, preventing unautorized use of Crown land, resolving conflicts in land use and ownersip, producing a map inventory of land in te Province, and developing land use policy and management plans. In 1999, we performed a review of te management of Crown lands. Our review indicated tat some of te Department s systems and procedures for managing Crown lands were not adequate. Auditor General of Newfoundland and Labrador 575
2 Te Department did not ave a compreensive and complete land parcel identification system for all land in te Province. As a result, it would be difficult for Government to effectively manage and plan te use of Crown lands. Planning for land use witin Government was found to be fragmented and covers only small areas of te Province. Tis is due to te Province not aving compreensive land use policies to facilitate a co-ordinated approac for land use witin Government. Te following observations were noted wit respect to application processing: A Departmental report on te Crown Lands Division recognized a number of areas tat cause delays in te application process tat could be improved. Information maintained in te Department s system for tracking te progress of an application was often inaccurate. Te Land Management Division did not maintain adequate information on cottage lot developments, including te status of te lot sales and te associated costs and revenues. Te Department did not maintain a complete listing of all EDGE companies tat were leasing Crown land for $1. Also, te Department did not adequately monitor tese leases to ensure tat te land was being used as intended and tat te companies maintained EDGE status. Te Department ad inadequate monitoring procedures to ensure tat te lessee ad adered to te terms of te lease wit respect to te type of development and te period to complete development. Te Department did not monitor accounts receivable nor did it perform any regular collection activity. Our review of te Province s development of te implementation plan for te establisment of te Geograpic Information System (GIS) trougout Government noted several problems including: te Department ad been completing te development witout an approved Provincial Geomatics Strategy in place; and te data converted into te GIS was found to be incomplete and outdated. 576 Auditor General of Newfoundland and Labrador
3 Update Te Department of Government Services and Lands provided an update on te 1999 Crown lands report in bot 2001 and As a result, many of our comments and recommendations ave been addressed. In October 2003, we contacted te Department requesting an update as to te progress on te remaining comments and recommendations included in our 1999 report. Te information provided by te Department in response to our request is outlined below. Identification and Use of Crown Lands Te Department sould continue efforts to develop a complete land parcel identification system to establis te extent and boundaries of Crown lands. Departmental officials indicated tat work is ongoing to populate te Crown Lands Geograpic Information System (GIS) wit te outstanding unplotted Crown titles. To address tis issue te titles in te Crown Lands Registry ave been reviewed and te information on te new TRACTS computer system updated for accuracy. Presently, te Crown Lands Registry contains over 66,200 land titles comprising approximately 41,800 grants, 11,400 leases and 13,000 licences of occupation. Approximately 20,000 titles remain to be plotted in te GIS. Tis is down from te last progress update as a result of te Department s review of te Registry, quality control audits and additional uman resources. Te Division s Operational Objective to plot at least 4,000 titles per year to completion is currently on target for tis fiscal year. Tis is largely due to te partial release of Government s freeze on two vacant land survey inspector positions and te assistance of temporary employees. Departmental officials indicated it is difficult to determine a completion date for te project as te Division s objective may not be met next year. Te Department is still experiencing a staff sortage in key tecnical positions required to perform tis work. As well, te availability of Geomatics Students may be curtailed in te new year depending on te availability of funding to ire tese students. Lastly, demands to address iger priority issues, suc as te Labrador Inuit Land Claim Agreement, tat require extensive and immediate attention by te Department s land surveyors, will affect te Department s ability to complete te project. Auditor General of Newfoundland and Labrador 577
4 Land Use Policy and Planning Te Department sould continue efforts to develop compreensive land use policies to facilitate a co-ordinated approac for land use witin Government. Te Department sould also review te merits of undertaking more compreensive land planning in te Province. Te Department of Municipal and Provincial Affairs as been designated by Cabinet to prepare a provincial land use policy. Tat Department as indicated tat te nomination process for representatives on te interdepartmental committee is complete and it is intended to convene te committee in late November Te Department of Government Services and Lands is represented on te committee. Te existing data tat as already been compiled by te Department of Government Services and Lands will be made available to te committee and can be integrated into te ongoing policy development. Departmental officials indicated tat te Department does not ave te existing internal resources to undertake compreensive land use planning. As an alternative measure, te Department as initiated a pilot Crown land management project using existing resources wic will involve significant consultation and coordination of land use designations and policies wit oter departments. Tis project is underway and a preliminary field inventory as been completed. It is projected tat extensive consultation on te management plan for te pilot area will occur in , wit te project sceduled for completion by te end of 2004 or early Management of Crown Land Leases, Licenses and Grants As revenue from leases assists in covering costs of managing Crown lands, te Department sould participate in te monitoring of te accounts receivable. Te Central Services Division of te Department of Municipal and Provincial Affairs provides financial management services to te Department of Government Services and Lands. 578 Auditor General of Newfoundland and Labrador
5 Departmental officials indicated tat te Assistant Deputy Minister of Lands along wit te Director of Crown Lands and is senior staff meet on several occasions during te year wit te Director of Financial Services and is senior staff to discuss various issues regarding accounts receivables, including collections on outstanding accounts. Collection staff of te Department of Municipal and Provincial Affairs are in regular contact wit staff at te Lands Branc in order to resolve issues tat impact upon te accounts receivables. It was also indicated tat previously reported collection efforts continue. Tis includes utilizing te Oracle account receivable system to te fullest extent possible wic includes utilizing te automated collection letter component for issuing not only statements but also delinquency notices witin establised time frames; utilizing te system to monitor not only receivables as a wole but also individual accounts; and utilizing te system to prompt action by using te sceduler in order to ensure actions are followed up. All tis prompts te Department to take action on te delinquent accounts tat are greater tan 60 days old. As well, te Department continues a proactive approac to determine more effective and efficient metods to collect accounts. For example: Special attention is given to tose accounts wit a balance of $2,000 or greater tat ave been outstanding for more tan 120 days. Once tese accounts ave been addressed, lower receivables are dealt wit. Departmental officials indicate tat tese actions ave contributed to a decrease in receivables. A database of all undeliverable returned mail as been created and new addresses are actively being sougt. Te Department is considering te option of registering claims wit te Office of te Hig Seriff s Judgement Enforcement Registry database. Te Department is considering seeking collection troug Small Claims Court, foreclosure of lease and property sales or submitting debtor names to te Credit Bureau. Auditor General of Newfoundland and Labrador 579
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