The Financial Administration Act states a department cannot spend more than its approved budget, including supplementary appropriations. Any overexpenditures are in violation of the Financial Administration Act.
The Standing Committee on Accountability and Oversight expressed concern that the Department of Health and Social Services has repeatedly overexpended its budget for the same reasons every year. These reasons are increases in non-insured health benefits, out of NWT hospitals, physician services, children in care programs, and independent living.
The Auditor General's Office noted that these expenditures could be avoided or minimized if the department incorporated models or made educated assumptions that take into account potential or anticipated expenditures. The Auditor General added that the department should extend their outlook and plan in advance of expected expenditures. However, the department has repeatedly replied that it does not know the full extent of all its expenditures until "all the bills are in."