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Investment Committee |
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Duties of
investment
committee
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31. The investment committee shall
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INVESTMENTS |
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Investment
policies,
standards and
procedures
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32. Subject to the regulations, the board of
directors shall establish, and the Board and its
subsidiaries shall adhere to, investment
policies, standards and procedures that a
person of ordinary prudence would exercise in
dealing with the property of others.
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Duty of
investment
managers
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33. Every investment manager who invests
the assets of the Board shall do so in
accordance with this Act and the Board's
investment policies, standards and
procedures.
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FINANCIAL MANAGEMENT |
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Financial Year |
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Financial year
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34. The financial year of the Board is the
period beginning on April 1 in one calendar
year and ending on March 31 in the next
calendar year.
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Financial Statements |
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Books and
systems
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35. (1) The Board shall, in respect of itself
and each of its subsidiaries, cause
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Manner in
which books,
etc., to be kept
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(2) The books, records, systems and
practices required by subsection (1) shall be
kept and maintained in a manner that will
provide reasonable assurance that
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Internal audit
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(3) The Board shall cause internal audits to
be conducted, in respect of itself and each of
its subsidiaries, to assess compliance with
subsections (1) and (2).
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Annual
financial
statements
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(4) The Board shall cause annual financial
statements, in respect of itself and each of its
subsidiaries, to be prepared in accordance
with generally accepted accounting
principles.
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Contents of
statements
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(5) The annual financial statements shall
show the information and particulars that in
the opinion of the directors are necessary to
present fairly, in accordance with generally
accepted accounting principles, the primary
source of which is the Handbook of the
Canadian Institute of Chartered Accountants,
the financial position for each fund as at the
end of the financial year to which it relates and
the results of the operations of the Board for
that financial year.
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Quarterly
financial
statements
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(6) During each financial year, the Board
shall cause quarterly financial statements to
be prepared for each three-month period of the
year. The quarterly statements shall
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Approval by
board of
directors
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(7) The board of directors shall approve the
annual financial statements and that approval
shall be evidenced by the signature of at least
one director of the Board.
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Auditor's Report |
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Annual
auditor's
report
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36. (1) The Board shall cause an annual
auditor's report to be prepared, in respect of
itself and each of its subsidiaries, on
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Contents
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(2) A report under subsection (1) shall be
addressed to the Board and shall
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Examination
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(3) An auditor preparing a report under
subsection (1) shall make the examination that
the auditor considers necessary for the
purpose.
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Auditing
standards
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(4) An auditor's examination shall be
conducted in accordance with generally
accepted auditing standards, the primary
source of which is the Handbook of the
Canadian Institute of Chartered Accountants.
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Reliance on
internal audit
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(5) In conducting an audit under this Act, an
auditor shall rely on any internal audit
conducted under subsection 35(3), to the
extent that the auditor considers that reliance
to be feasible.
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Copy to
Ministers
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(6) Without delay on the completion of a
report under this section, the auditor shall send
a copy of it to the Minister, the Minister of
National Defence and the Solicitor General of
Canada.
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Notice of
errors and
omissions
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37. (1) A director or officer of the Board
shall without delay notify the Board's auditor
and the audit committee of any error or
omission of which the director or officer
becomes aware in a financial statement that
the auditor or a former auditor has reported on
or in a report prepared by the auditor or a
former auditor under section 36.
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Duty of
auditor
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(2) When the Board's auditor, or a former
auditor of the Board, is notified or becomes
aware of an error or omission in a financial
statement that the auditor or former auditor
has reported on or in a report prepared by the
auditor or former auditor under section 36, the
auditor or former auditor shall without delay
notify each director of the Board of the error
or omission if the auditor or former auditor is
of the opinion that the error or omission is
material.
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Correction
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(3) When the directors receive a
notification under subsection (2) of an error or
omission in a financial statement or a report,
the Board shall prepare a revised financial
statement or the auditor or former auditor shall
issue a correction to the report, and a copy of
it shall be given to the Minister, the Minister
of National Defence and the Solicitor General
of Canada.
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Auditor |
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Appointment
of auditor
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38. (1) The auditor of the Board shall be
appointed annually by the board of directors
and may be removed at any time by it.
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Re- appointment
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(2) On the expiry of the appointment of the
auditor of the Board, the auditor is eligible for
re-appointment.
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Continuation
in office
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(3) Notwithstanding subsection (1), if an
auditor of the Board is not appointed to take
office on the expiry of the appointment of an
incumbent auditor, the incumbent auditor
continues in office until a successor is
appointed.
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Definition of
``firm of
accountants''
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39. (1) In this section, ``firm of
accountants'' means a partnership, the
members of which are accountants engaged in
the practice of accounting, or a body corporate
that is incorporated by or under an Act of the
legislature of a province and engaged in the
practice of accounting.
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Qualification
of auditor
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(2) A natural person or firm of accountants
is qualified to be the auditor of the Board if
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Independence
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(3) For the purposes of this section,
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Joint
designation
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(4) Within 15 days after appointing a firm of
accountants as its auditor, the Board and the
firm shall jointly designate a member or
officer of the firm who has the qualifications
described in paragraph (2)(a) to conduct the
audit of the Board on behalf of the firm.
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Resignation
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(5) An auditor of the Board who becomes
disqualified under this section shall resign
without delay after becoming aware of the
disqualification.
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When
resignation
becomes
effective
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(6) A resignation of an auditor of the Board
becomes effective at the time the Board
receives a written resignation from the auditor
or at the time specified in the resignation,
whichever is later.
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Statement of
auditor
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(7) If the Board's auditor resigns or receives
a notice or otherwise learns of a meeting of the
board of directors at which another auditor is
to be appointed in place of the auditor and the
auditor objects to being replaced, the auditor
shall submit to the Board a written statement
giving the reasons for the resignation or the
reasons why the auditor objects to being
replaced.
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Statement to
be sent to
Ministers
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(8) When the Board receives a written
statement referred to in subsection (7) that
relates to a resignation of its auditor as a result
of a disagreement with the directors or officers
of the Board or that relates to a replacement or
proposed replacement of the auditor, the
Board shall without delay send a copy of the
statement to the Minister, the Minister of
National Defence and the Solicitor General of
Canada.
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