September 26, 2018
Manitoba Implements Changes to Enhance Independence of Workers' Compensation Board
– – –Ensures Government Reporting Accurately Reflects the Province's Financial Accounts: Fielding
The Manitoba government continues to implement better budgetary practices and is taking action to protect funds paid by employers to the Workers Compensation Board of Manitoba (WCB), Finance Minister Scott Fielding announced today.
“WCB funds are not, and never have been, the government’s money,” said Fielding. “This change recognizes that government does not control the WCB, nor should it. We are following best practices established in other provinces in relation to independently managed entities and funds.”
Manitoba Finance has reviewed workers compensation legislation and public accounts for all 10 provinces. The review revealed that Manitoba and only one other province include its provincial workers’ insurance agency as part of its summary accounts. The other eight provinces exclude those agencies from its government reporting entity.
“The government’s decision aligns with our practice of operating independently and is consistent with all other provinces in Canada, except Saskatchewan,” said Winston Maharaj, president and CEO, Worker’s Compensation Board of Manitoba. “This adjustment will not change or impact the WCB’s operations, governance, key priorities or its financial standing.”
Fielding noted that removing the WCB from the government reporting entity and summary accounts for 2017-18, and for future years, will allow the WCB to continue to be managed solely for the benefit of employers and workers.
“The funds managed by the WCB belong to the employers that fund it and the workers who access them,” said Fielding. “We are ensuring government reporting reflects the state of Manitoba’s summary accounts, and focuses on the funds and entities that are managed by government.”
While the Office of the Auditor General has expressed its intention to provide a limited qualification on its audit opinion in respect of this change, the province has determined it is a necessary measure in order to more accurately represent Manitoba’s finances, the minister said.
“This change is a key part of our commitment to transparency and accountability, and reflects the manner in which credit rating agencies assess governments’ fiscal performance,” said Fielding. “It is important to note this accounting change does not impact WCB policies and programming.”
The minister noted the province previously committed to making this change as part of its Fiscal Responsibility Strategy of Budget 2018.
The WCB is a mutual workplace injury and disability insurance agency funded by employer premiums. It promotes safety and health in the workplace, and aims to help prevent and reduce the occurrence of workplace injuries and disease. The WCB works with its partners to facilitate recovery and return to work, and provides compensation services for workers and employers. It insures over 34,000 employers and 76 per cent of Manitoba’s workforce. For more information, visit www.wcb.mb.ca/.
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