Posted by & filed under Accounting Principles, Auditing.

Description: Grabbing much attention in the Ontario media in recent days has been the ongoing discussion about secret payments by the Ontario government to the province’s teachers’ unions. During negotiations, the government paid approximately $3.7 million to the unions to cover various administrative costs associated with the negotiations. This week a legislative committee in Ontario voted unanimously to request Auditor General Bonnie Lysyk to investigate whether these payments were good value-for-money.

Source: Globeandmail.com

Date: November 4, 2015

Link: http://www.theglobeandmail.com/news/national/ontario-auditor-general-to-investigate-payouts-to-teachers-unions/article27097883/

Discussion Points:

1) Why do you think that this issue has generated so much media discussion?

2) How would a government account for these payments in its financial statements?

3) What criteria might an auditor general use to assess whether or not these payments were good value for money?

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