A number of territorial boards of health and social services are in a deficit situation. At the time of the public review of the 1999 Auditor General's Report on Other Matters on April 3, 2001, the cumulative net deficit of all health and social services boards was $3,100,000. Members of the Standing Committee on Accountability and Oversight are especially concerned whether there will be an effect on the levels of programs and services available at facilities managed by boards that have incurred deficits. Further, committee members expressed concern that funding to boards are linked to their traditional spending patterns rather than tied to actual program and service requirements.

Committee members stated that funding concerns must be linked to any third-party accountability framework. Budgeting and evaluation can be enhanced with better coordination of the different information databases used by various boards and the department. Without a uniform system, committee members note it is difficult to obtain accurate and timely information. The Standing Committee on Accountability and Oversight notes some health and social services boards have gone entire years without an approved budget in place.

The Auditor General also noted that the boards' inability to produce a timely budget may be compounded by the lack of a uniform accounting system. The Standing Committee on Accountability and Oversight concurred with the Auditor General and, in addition, believe that a budget must be established and reviewed prior to the annual allocation of funding for each board.

The Department of Health and Social Services budget represents almost 25 percent of the Government of the Northwest Territories overall spending. Committee members stated that given our limited revenue growth, program and service demands in other areas such as education and housing, and an increasing accumulated debt, responsible budgeting and evaluation and an effective third-party accountability framework become increasingly important.

The Standing Committee on Accountability and Oversight is of the position that the budgeting, funding, and evaluation, as well as the delivery of programs and services, are a shared responsibility between the department and its boards of health and social services. The committee noted that the boards and the department do not operate in isolation.

The Standing Committee on Accountability and Oversight further notes that ultimately, the Government of the Northwest Territories is accountable for the financial health of the department and its boards of health and social services and at the end of the day, the territorial government is responsible for the delivery of health and social services to the people of the Northwest Territories.