The Government of the Northwest Territories accrued $25,000,000 in 1997-1998 and another $8,000,000 in 1998-1999 as an estimated provision to settle the pay equity dispute. However, in accruing the provision, the government did not comply with the authorization process as set out in the FAA, which requires the government to request a supplementary appropriation within 15 days of tabling its public accounts, which it did not in either year.
The Auditor General's Office recognized the actions of the government were based on practicality, but believes the government should have adhered to the FAA and obtained the necessary authority. Although this was primarily a technical issue, the Auditor General's Office and the Standing Committee on Accountability and Oversight encourage the government to either follow the FAA in the future or prepare amendments to the act to better reflect the actual operating environment.
During the recent review of the government's main estimates for 2001-2002, the government reported an 83 percent settlement rate of $27,390,000. The government commented that close to a 100 percent acceptance rate could be achieved if they could locate all remaining employees.