Halifax CAO says poor fiscal transparency grade not ‘completely accurate’
Halifax’s Fiscal Transparency Grade Questioned by City’s CAO
Halifax recently received a D- grade on fiscal transparency from the C.D. Howe Institute, a Canadian think-tank. However, Halifax’s Chief Administrative Officer, Cathie O’Toole, has expressed her disagreement with the ranking, stating that she does not place much value in the assessment.
The C.D. Howe Institute’s annual fiscal accountability report card for major Canadian municipalities in 2024 highlighted some key areas where Halifax lost points. One of the main issues cited was the passing of the 2024 budget after the fiscal year had already begun on April 1. Additionally, the institute noted that Halifax uses different accounting standards for its budget documents and financial statements, leading to discrepancies in the presentation of financial information.
Nicholas Dahir, a research officer at the institute, pointed out that while Halifax follows public sector accounting standards (PSAS) for its financial statements, the budget documents are presented on a cash basis. This difference in accounting methods can create confusion for those trying to understand the city’s financial position.
O’Toole expressed disappointment with the low grade assigned to Halifax but emphasized that there may be some confusion between budgeting and accounting in the institute’s assessment. She highlighted that the Government Finance Officers Association, which recognizes municipalities for best practices in budgeting, named Halifax a budget award winner in both 2023 and 2024.
Despite the concerns raised by the C.D. Howe Institute, O’Toole stated that Halifax’s municipal auditor general will assess the city’s capital budget process this year. Any recommendations from this review will be crucial in addressing any shortcomings identified in the fiscal transparency of the city.
While Halifax has consistently received grades in the D range from the institute since 2021, Dahir suggested that simple changes, such as including tables from the previous year’s financial statements in budget documents, could improve Halifax’s grade significantly. He also noted that many other municipalities in Canada, including Markham, Quebec City, Saskatoon, and Winnipeg, utilize PSAS methods in their budgets.
In response to the assessment, Mayor Andy Fillmore has requested a report on improving the budget process for 2026-27. This report will explore potential savings in both the capital and operating budgets and consider streamlining the process to ensure the budget is approved before the start of the fiscal year. The report is expected to be presented to councillors by June.
While the debate over Halifax’s fiscal transparency continues, it is clear that efforts are being made to address the concerns raised by the C.D. Howe Institute and improve the city’s financial reporting practices.
