March 25, 2004
Testimony at the Standing Committee on Aboriginal Affairs . . .
http://www.turtleisland.org/news/audgeneral.htm
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Auditor General Sees Benefits of Working with First Nations
"Results matter above all." . . Auditor General Sheila Fraser February 2004
News and Comment
by Tehaliwaskenhas - Bob Kennedy
Copyright
Turtle Island Native Network
http://www.turtleisland.org
February 11, 2004
"INAC seems focussed on fulfilling the letter of the land claims implementation plans but not the spirit. Officials may believe that they have met their obligations, but in fact they have not worked to support the full intent of the land claims agreements. INAC should focus on lasting benefits of land claim agreements", according to the latest report from the Auditor General.
http://www.oag-bvg.gc.ca/domino/reports ... 108ce.html
In her report tabled in the House of Commons, Sheila Fraser said, "Indian and Northern Affairs Canada does not know if it is fulfilling all of its responsibilities spelled out in two land claim agreements in the North - the Gwich'in in the Northwest Territories and the Inuit in Nunavut.
The audit found that INAC generally meets its specific obligations under the land claim agreements, but does not measure its performance in achieving the objectives that were agreed upon by the federal and territorial governments and Aboriginal groups.
For example, the Nunavut land claim calls for increasing Inuit participation in government employment and spells out specific steps to be taken by the federal government. Yet 10 years after the agreement came into force, the Department still has not measured the impact of federal actions to increase Inuit participation in government.
Similarly, the Gwich'in claim calls for strengthening the Gwich in economy and encouraging economic self-sufficiency. It also calls for a review by the parties every three years to assess the effectiveness of ongoing government programs to make this happen. Yet in 10 years, there has never been such an assessment.
'In its response, the Department fundamentally disagreed with our view of the way success in implementing land claims should be measured. The Department defines success as fulfilling the specific obligations as set out in the agreements. We believe that success is more than meeting obligations", said Ms. Fraser. "Results matter above all."
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Canadas Auditor General says federal organizations need to rethink how they support First Nations economic development.
http://www.oag-bvg.gc.ca/domino/reports ... 109ce.html
Her report dated November 2003 was released this week, a delay because of the change in government from Chretien to Martin.
Her report on First Nations includes, "There are substantial gaps in key economic indicators such as employment and income between Aboriginal and non-Aboriginal people in Canada. Closing these gaps would help reduce poverty among Aboriginal people, resulting in lower social and financial costs. However, First Nations told us they face barriers to accessing natural resources and capital, to accessing federal business support programs, and to benefiting from federal institutional development programs. These barriers increase their costs of doing business and impede their economic development".
There are some familiar themes in the latest report about how government works with First Nations, including her recommendations, "Federal organizations need to consolidate the administrative requirements and improve the adaptability of business support programs, help First Nations identify and build consistent and fair institutional arrangements in a timely way, and use a more horizontal approach for economic development programming". The Auditor General received the assistance of 13 First Nations and 4 tribal councils and governments in 5 provinces in conducting its study.
AFN National Chief Phil Fontaine, said "We need to work in partnership with the federal government to streamline programs and policies and increase coordination across federal agencies in order to support First Nations economic development. "
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The Auditor General also looked at the department of Indian Affairs and said, "The Department needs to improve third-party intervention."
http://www.oag-bvg.gc.ca/domino/reports ... l#ch10hd3c
The audit found that before April 2003, ". . . the selection of third-party managers who administer bands in financial difficulty did not follow the basic principles of openness and transparency required by the governments policy on transfer payments and also found several weaknesses in the Departments administration of the third-party management process".
The Department approved the Third Party Manager Policy in April 2003—a new policy aimed at improving the process.
The audit reviewed the policy and found that it does not address some of the weaknesses identified.
"The Department needs to address the gaps in the new policy and develop a strategy and an action plan for implementing the policy throughout its regions".
AFN National Chief Phil Fontaine said,"Clearly, accountability and transparency are a two-way street."
"The Auditor General's report shows that third-party management is not necessarily an indication of problems within First Nations, but instead points to the governments' lack of transparency and accountability," said the National Chief. "We endorse the recommendations that First Nations must be involved in designing policies and implementing new approaches, and that training and capacity-building are the best way to address this issue."
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Assembly of First Nations National Chief Responds to Auditor Generals' November Report: Federal Government's Use of Third Party Management Lacks Openness and Transparency
February 10th, 2004
Reviewing the federal Auditor General's report for November 2003, Assembly of First Nations National Chief Phil Fontaine noted that, "Clearly, accountability and transparency are a two-way street."
While media and the public are focused on the section dealing with the
federal sponsorship programs, the Auditor General's November report included three sections dealing with First Nations and related issues.
National Chief Fontaine stated: "Taken together, the Auditor General's
findings and recommendations support what First Nations have been saying for a long time. We need to work in partnership with the federal government to streamline programs and policies and increase coordination across federal agencies in order to support First Nations economic development.
The Auditor General found that First Nations see many federal policies as actually impeding development and governance when it is clearly in everyone's interests to improve the social and economic conditions amongst our people. We need to act on the Prime Minister's commitments to partnership and collaboration with First Nations as the best path forward."
The November report includes chapters on "Indian and Northern Affairs
Canada - Transferring Federal Responsibilities to the North" (Chapter
Arrangements" (Chapter 9). Both chapters outline recommendations for a more coherent and coordinated approach to First Nations initiatives, and call for First Nations to be directly involved in this work.
The most troubling section of the report, according to the National
Chief, is the section on third-party management in Chapter 10. Third-party
management occurs when Indian and Northern Affairs Canada imposes a third party to take over the management of First Nations funding arrangements. It is the highest form of intervention and is intended to be used only in the most serious cases.
The Auditor General examined ten cases in four regions, and visited one
of those regions specifically. The Auditor General found that:
- Selection of third party managers did not follow an open and
transparent process
- Indian and Northern Affairs Canada did not adequately monitor and
assess the performance of third-party managers, even though third-party
managers in the region examined are responsible for up $50 million per
year,
- Third-party managers charge between $195,000 to $312,000 per year,
which is paid from First Nations funds, but First Nations are excluded
from the selection process
- Only 32 First Nations - less than 5% - were under third-party
management at the time of the report
"The Auditor General's report shows that third-party management is not
necessarily an indication of problems within First Nations, but instead points to the governments' lack of transparency and accountability," said the National Chief. "We endorse the recommendations that First Nations must be involved in designing policies and implementing new approaches, and that training and capacity-building are the best way to address this issue."
The National Chief stated that: "Once again, the Auditor General has
demonstrated the benefits of working with First Nations to identify the real
problems and real solutions. We hope other agencies realize the benefits of working together in a collaborative and cooperative manner. We are awaiting a full response from the federal government to the Auditor General's recommendations in this report and to the recommendations in earlier reports on financial reporting, housing and others. The Auditor General has provided some solid recommendations. What is important now is to move forward and work together to bring about real change."
The Assembly of First Nations is the national organization representing
First Nations in Canada.
For further information: Don Kelly, AFN Communications Director,
613-241-6789 ext. 320 or cell 613-292-2787; Ian McLeod, AFN Communications Officer (Bilingual), 613-241-6789 ext. 336 or cell 613-859-4335; Nancy Pine, AFN Communications Advisor,613-241-6789 ext. 243 or cell 613-298-6382


