Updated Sept. 3, 2014, for clarification re: FIPPA section

A review into allegations of improper compensation paid to two executive employees at Kwantlen Polytechnic University has found the university failed to meet government’s disclosure requirements. The report makes recommendations to further strengthen B.C.’s disclosure guidelines and improve transparency.

Finance Minister Michael de Jong released the report and endorsed the recommendations today.

The report found:

• There were failures by Kwantlen Polytechnic University (KPU) to disclose as required under government’s employment compensation guidelines.
• KPU did disclose two pre-employment contracts pursuant to the Financial Information Act. However, more detailed disclosure was required to comply with the guidelines.

The report recommendations include:

• The Post-secondary Employers’ Association, the Public Sector Employer’s Council Secretariat (PSEC) and the Ministry of Advanced Education conduct an annual mandatory one day disclosure and reporting session for the appropriate executives in each organization.
• Boards of post-secondary institutions have a formalized process to make board members aware of their responsibilities and obligations for compensation transparency, statutory requirements and guideline reporting.
• When statements of executive compensation are submitted to PSEC, include an attestation that there are no known pre-employment or post-employment contracts to senior administrators by the relevant employer that are not disclosed.
• The terms of moving allowances should be part of an employee’s employment contract and available for PSEC to review and the public to see as part of the mandatory disclosure reporting.
• PSEC compensation reporting guidelines should be rewritten to emphasize that transparency is the overarching intent of the guidelines.

The recommendations have been implemented for the 2013-14 annual executive compensation disclosure, typically released at the same time as government’s year-end financial statements.

The Minister of Finance, as minister responsible for the Public Sector Employer’s Act, directed PSEC to conduct a review of the compensation provided in order to determine:

• What payments were made and pursuant to what contractual arrangement?
• What was disclosed?
• Did disclosure occur consistent with the applicable guidelines, including PSEC requirements?
• Was the total compensation received by the employees consistent with the compensation guidelines?

In compliance with government's duties under section 33.2* of the Freedom of Information and Protection of Privacy Act, the report is not available on the government website. It is available to media on request from the Ministry of Finance.

Learn More:

http://www.fin.gov.bc.ca/psec/

*The specific section of the act that prevents the disclosure of the report outside of Canada is section 33.2, not section 30.1, as previously stated.

Media Contacts:

Jamie Edwardson
Communications Director
Ministry of Finance
250 356-2821