Mr. Speaker, I have a return to written question asked by Mr. Charles Dent on July 6, 2000, regarding departmental expenditures related to treatment facilities.
1. Q. After the contract with Northern Addictions Services (NAS) was canceled, did Health and Social Services make any payments related to the contract, and if so, how much?
A. Following the expiry of the 1998-99 agreement, the department entered into two contribution agreements with NAS, as follows:
(1) A Contribution Agreement, for the period April 1 - June 30, 1999, in the amount of $341,499; the purpose of which was to wind down existing programs; conduct an outcome study of NAS clients for the previous three years; complete an assets inventory; develop an accurate operating budget; identify the NAS debt: and participate in the joint department-board-NGOs consultation process to review alternative programming options for addictions.
(2) A Contribution Agreement, for the period May 27 to June 12, 1999, in the amount of $14,520.00; the purpose of which was to cover the costs of meals, accommodations and (local) transportation for 41 community alcohol and drug workers to participate in training workshops at the Dettah facility.
2. Q. Has the Department of Health and Social Services paid any rent, lease or mortgage payments, and-or utility costs for the Franklin Avenue Detox Centre or the Dettah Road facility known as the Somba K'e Healing Lodge since April 1, 1999? If so, how much?
A. (1) The department, through the April 1-June 30, 1999 Contribution Agreement, indirectly contributed $21,096.67 towards mortgage and utility payments for both the Franklin Avenue and Dettah Road facilities.
(2) The department entered into a tenancy-at-will arrangement with NAS and the NWT Housing Corporation for the Franklin Avenue facility for the period July 1,1999 to April 14, 2000.
- • Mortgage payments in the amount of $23,633.11 were transferred directly to the NWT Housing Corporation, the mortgage holder, for the period July 1, 1999 to March 31, 2000.
- • Utilities and taxes In the amount of $21,829.14 were paid directly to the utility companies and the City of Yellowknife by the Yellowknife Health and Social Services Board.
- • An invoice for approximately $2,625.90, representing a pro-rated mortgage payment for the period April 1 to 14, 2000, will be received from the NWT Housing Corporation in the near future.
(3) The department has not made any direct or indirect rent, lease, mortgage or utilities payments for the Dettah Road facility since the expiry of the April - June 1999 Contribution Agreement.
3. Q. How much did Health and Social Services pay in salaries and training for staff from these facilities after April 1,1999?
A. An employee-employer relationship did not exist between the department and NAS. The April 1 to June 30, 1999 Contribution Agreement, however, included a budgeted amount of $246,889.96 for salaries and benefits.
Indirectly, the department also made in-kind contributions through the facilitation and delivery of specific sections of the training workshops held in May and June, 1999.
4. Q. Under the terms of the contribution agreement, ownership of the furnishings should have passed to the GNWT when NAS ceased operating the facilities. Did the GNWT take possession of all furnishings? If not, what is the value of the furnishings taken over?
A. Under the terms of the contribution agreement, the furniture, furnishings and non-fixed capital items did not have to be returned to the department unless the termination clauses of the Agreement were invoked. Since the Agreement simply expired on June 30, 1999, NAS did not have any legal obligation to return the assets to the department.
In compliance with the terms of the April to June 1999 contribution agreement, NAS did conduct an inventory of assets for both facilities. The inventory, however, did not include a replacement or depreciated value for the assets.
5. Q. If furnishings were missing, what was their value, based on original purchase price? Has any effort been made to recover any missing assets?
A. It cannot be said that any of the furniture, furnishings and non-fixed capital assets are missing. NAS purchased the assets in the Franklin Avenue facility with funding from a second mortgage with one of the local banks. NAS continues to be financially responsible for the second mortgage. As the non-fixed assets in that facility belong to NAS, no effort can be made to recover them.