Public trustee asked to appear before public accounts committee
A group of P.E.I. MLAs is asking the province's public trustee to answer questions about how the government protects the finances and assets of some of the most vulnerable Islanders.
In her 2017 report, P.E.I.'s Auditor General Jane MacAdam examined how the office of the public trustee manages more than $9 million in assets of approximately 300 people deemed incapable of making their own financial decisions. This includes people declared medically unfit who have no one else to manage their affairs, and in some cases minors or people with disabilities awarded funds through court settlements and estates.
"The processes to administer and safeguard client assets are inadequate," MacAdam concluded, citing a lack of internal controls over expenditures made on a client's behalf.
Findings presented
On Wednesday, MacAdam presented her findings to the province's public accounts committee, which then passed a motion to have the public trustee appear at a future meeting.
"There are a number of questions that need answers and to bring the public trustee in I think would be a great benefit around procedures and policies, the accounting procedures they have in place to ensure the department is running in an efficient way," said PC MLA Darlene Compton.
One of the recommendations MacAdam made in her 2017 report was that government develop a policy for the public trustee for seeking out and contacting heirs in the event of a client's death.
At the committee meeting Wednesday, the auditor general told MLAs the same recommendation was made the last time the public trustee was the focus of a special audit, back in 2006.
But in MacAdam's 2017 investigation, she found there was still no policy in place, and that actions taken to contact heirs varied from case-to-case.
If assets of a deceased client go unclaimed for five years, they're converted into cash and paid to the provincial government. In 2014, the last year on record, $545,000 belonging to 72 deceased clients was transferred to government in this way.
Compton said she is also concerned that the public trustee's office is two to three years behind in filing financial statements.
Province making changes
In an email to CBC, a spokesperson for the province wrote that following the auditor general's report, released in March, government has taken a number of actions including bringing on additional staff resources, IT improvements and new legislation.
"A contract solicitor position has been posted and it is anticipated that this position will be filled by September. Work is underway on a new Guardianship Act and amendments to the Public Trustee Act," the statement said.
The amendments are expected to be tabled in late 2018.
"The Trustee Office has reached out to over 20 potential heirs of estate accounts. This will help connect heirs with any potential funds from estates managed by the Office," the statement continued.
In addition, the spokesperson wrote that updates have been made to accounting reporting requirements and a workplace policy and procedures guide is being worked on to help improve accountability and clarity in reporting.
"IT improvements will improve reporting, analysis and support oversight and proper administration. These will all help increase accountability and efficiency."
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