This News Release is also available in Inuktitut (PDF 115 KB)
Today the Auditor General of Canada, Sheila Fraser, issued two reports to the Nunavut Legislative Assembly on financial management practices in the Government of Nunavut. Both reports demonstrate that financial management continues to be weak.
In one of the reports—on the financial management practices of the Department of Health and Social Services—the Auditor General noted that the Department has a history of overspending its budget and needing more funds from the Legislature to provide required services.
“The Department receives about one quarter of the Territory’s entire budget to provide health and social services. Given the amount of money involved, good financial management is essential to delivering these services,” said Ms. Fraser.
The audit found that the Department’s annual budgets do not reflect how and when the Department actually intends to spend its funds. Its budgeting process does not use work plans to determine what services will be provided, what they will cost, and whether choices will have to be made to stay within its spending target.
The audit also found that there are long delays in paying suppliers. Several have put the Department’s credit on hold, and one pharmaceutical supplier has stopped doing business with the Department. Other vendors will no longer supply the Department unless paid in advance.
In today’s other report, which follows up on her 2005 Report to the Legislative Assembly on financial management practices of the Nunavut Government, Ms. Fraser says that while the Government has taken some steps to strengthen financial management, its progress since 2005 has been unsatisfactory.
The follow-up audit found that problems start with day-to-day processing of transactions—procedures are not followed consistently across the Government, leading to errors. Accurate financial information is difficult to obtain, leading to inadequate monitoring and delays in reporting.
“In our view, Government doesn’t have enough qualified financial personnel to properly carry out these basic functions,” said Ms. Fraser. “This is the fundamental reason for its lack of progress.”
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"Financial Management Practices—Department of Health and Social Services" and "Financial Management Practices—Follow-up on the 2005 Report to the Legislative Assembly of Nunavut" are available on the Office of the Auditor General of Canada Website.
For more information, please click here.
