The DevCorp may subsidize its subsidiaries' operating costs based on jobs created directly or indirectly, up to an amount prescribed by regulations under the NWT Development Corporation Act. Until recently, no such regulations existed. Since 1989, the Financial Management Board (FMB) had set an upper limit of $10,000 per annum per job created.

The act also allowed the DevCorp to make an initial investment in a subsidiary based on jobs created directly or indirectly. The FMB had set the initial investment limit at $100,000 per job created.

The committee was informed that regulations are now in place, but they allow $25,000 in annual contribution per job created, a significant increase from the previous $10,000 as the upper limit per annum per job; and initial investment limits per job created remain at $100,000 per job created.

The corporation for the fiscal year 1998-1999 was not in compliance with the FAA, as it did not collect information on jobs to demonstrate that subsidies did not exceed the maximum set by the FMB. The Auditor's Report on the financial statements for the years ended March 31, 1997 and 1998 was qualified for the same reasons.

The Standing Committee on Accountability and Oversight and the Office of the Auditor General noted that the DevCorp has undergone a complete turnover of senior management in April 1999, and the current management is making progress on correcting past reporting and management difficulties. The committee members encourage the DevCorp management to continue its efforts to diligently meet its mandate.