Financial Assistance for Nunavut Students Program - Management Improvements Needed to Ensure Program's Success

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This News Release is also available in Inuktitut
Iqaluit, 6 June 2007—The Department of Education needs to establish better controls and provide clearer guidance to improve the management of the Financial Assistance for Nunavut Students program, says Auditor General Sheila Fraser in her Report provided today to the Speaker of the Nunavut Legislative Assembly.
"The FANS program plays a critical role in increasing access to post-secondary education," said Ms. Fraser. "The Department needs to do a better job of ensuring that the delivery of financial assistance to post-secondary students is managed well."
The Financial Assistance for Nunavut Students (FANS) program is the primary vehicle of direct financial assistance to Nunavut students for post-secondary education. It disburses some $6.1 million a year in grants, loans, and scholarships to territorial residents enrolled in post-secondary programs at approved institutions.
The audit found that the absence of operating policies and guidelines has led to practices that are not consistent with the Student Financial Assistance Act and Regulations. The Report notes, for example, that the Department has not clarified what qualifies as post-secondary education. As a result, financial assistance has been given to students enrolled in courses that need no high-school diploma (normally a requirement for post-secondary education). It is not clear that this was the intent of the FANS program.
The Report says the program's intent could be clarified if the Department would set clear objectives for it and specify the results that would indicate its success. Currently the information on the program's performance is limited to the number of students who have applied to and enrolled in it. The Department does not know how many of those have completed a program of post-secondary education or have found jobs after their studies. The audit also found a need for improvement in the management of information—from filing practices to the automated systems used to manage the program; in the payment of travel benefits; and in the management of student loans. The Report makes several recommendations to address these shortcomings.
"Education is key to meeting the growing demand for qualified workers as Nunavut's economic outlook improves, and the FANS program is an important part of providing access to education," said Ms. Fraser. "I'm pleased that the Department of Education has agreed with all of our recommendations."
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The report "Financial Assistance for Nunavut Students" is available on the Office of the Auditor General of Canada Web site.
Information:
Margot Booth, Communications
Tel.: (613) 952-0213, ext. 6292
E-mail: margot.booth@oag-bvg.gc.ca

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Financial Assistance for Nunavut Students Program - Management Improvements Needed to Ensure Program's Success

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