Thank you, Mr. Moses. The honourable Member for Hay River North, Mr. Bouchard.

Thank you, Mr. Speaker. Today I'd like to revisit an issue I've brought forward to this House before, bariatric surgery. As Members know, over the last two years I've been working hard to lose weight. I've lost just over 200 pounds.

---Applause

I appreciate that, but I'm working to pay it forward to the people that are still in the situation where they are seriously overweight. In my discussions with the Minister of Health and the Department of Health, they've told me the department is working on lifestyle choices, healthy lifestyle choices, and that they have lots of support out there for people who want to lose weight. I don't disagree with that. I know, as that individual two years ago, I had lots of support. I had nutritionists, dieticians, diabetic nurses that helped me out as much as they could.

But I'm not talking about people who need to lose 20 or 30 pounds, people who are slightly overweight. I'm talking about people who need to lose 50, 100, 200 pounds just to be in the normal weight category. It's not just a matter of just saying if you eat a little more veggies and exercise. When you're 403 pounds, you go and exercise one day, you have that ability, the next day it hurts, it hurts a lot, so you can't do this on a steady basis.

There are people out there who need this kind of weight loss and need additional help. Bariatric surgery provides that help, allows them to limit their food intake and assists them in losing weight, so when they do exercise, they see the results immediately.

The department has told me that they have done a cost estimate of the nutrition program and the costs attached to it. I understand that, but the costs that I'm talking about are other costs involved.

When I was 403 pounds, I was on insulin, Metformin, blood pressure pills, water pills and the GNWT was getting charged anywhere from $800 to $1,000 a month.

Mr. Speaker, I seek unanimous consent to conclude my speech.

---Unanimous consent granted

At that cost of $800 to $1,000 a month, which I was costing the GNWT every month, I have since then been able to get off of insulin, I haven't eliminated Metformin yet, I have gotten rid of water pills, and because I am on Metformin still, I need a blood pressure pill. Most of those costs are gone, Mr. Speaker. So the costs associated that are saved could be put towards bariatric surgery. That would be repaid within a year to two years, depending on the types of medications an individual is on.

I will have questions for the Minister of Health today to convince him and the department that this is a necessity for people who are seriously overweight. Thank you, Mr. Speaker.

Thank you, Mr. Bouchard. The honourable Member for Sahtu, Mr. Yakeleya.

Thank you, Mr. Speaker. I want to pass on my heartfelt appreciation for my friend here. He is walking his talk and it is much appreciated. The last years with my grandfather, the last 10 or 15 years or so, he spent in a wheelchair, so I appreciate what he's doing here.

I want to do my Member's statement on the synthetic natural gas in Norman Wells. Yesterday Member Bisaro talked about you can't get what you always want, the Rolling Stones tune. Mr. R.C. McLeod followed up with another line from the Rolling Stones: If you try some time, you might just find you get what you need. I like the Rolling Stones, so I'm going to do my Member's statement as: you can't get any satisfaction here.

The Town of Norman Wells has entered into an MOU with Dalkia Canada to provide a heating solution for the residents who will completely lose their natural gas source by this time next year. Dalkia has agreed to supply the community with synthetic natural gas for two years, until the town and the company decide on the best long-term heating solutions for Norman Wells. No one is really saying how much Dalkia's plan will cost. They have an estimate, so the residents of Norman Wells already know they're going to pay more to heat their homes. Some people have gone off the grid.

Norman Wells is a big part of the Northwest Territories renewable energy plan. Many people ask for subsidies to be able to afford to heat their homes. The Government of the Northwest Territories pays millions of dollars in energy subsidies. These costs have a huge impact on the fiscal framework. They affect our ability to provide programs and services and move forward on important initiatives.

Norman Wells isn't the only community facing an energy crisis. Between 2012 and 2014, this government will spend at least $300,000 on exploring long-term energy solutions for Inuvik. Again, we need to invest in long-term solutions for Norman Wells, just as does our sister community in Inuvik. The Department of Public Works plans major investments in biomass in our airports and our schools. Biomass and district heating systems are among the options the community has proposed for long-term solutions. These efforts should be expanded and built upon to ensure a sustainable future for our community and natural resources.

I seek unanimous consent to conclude my Member's statement.

---Unanimous consent granted

The government needs to step up as an active player now and find long-term energy solutions for Norman Wells. We must fully support the residents' efforts to convert sustainable energy sources like biomass, hydro or solar power. We need to do this before our people go south or go broke. I'm looking for satisfaction.

Thank you, Mr. Yakeleya. I just thank God you didn't sing it for us today. The Member for Yellowknife Centre, Mr. Hawkins.

Thank you, Mr. Speaker. I want to use today's Member's statement to revisit the health care card issue as it continues to be a bit of a frantic issue out there. Some people are defining it as maybe a mini scandal of some sort, and others say maybe an inquiry of some sort, as well, needs to be considered.

The fact that people have been e-mailing, whether they've been faxing or even mailing in their applications, they don't know where the information is going and it really continues to call into question the integrity of the system as well as the safety of that information being sent out there. Often enough we hear about how people are preyed upon when they have private information. Here we're talking about elder abuse. We have elders here who have often been targeted as people to get their private information so nefarious people out there do nasty, nasty things.

The point here is we've got two issues. One, what's going to be done about the health care card application process. Is it a scandal? Is it a problem? We don't know how big the problem is because we can't even define how many applications have gone in there and where they've gone. We don't know who to contact because we don't know if we've processed them. By the time we finish this application process, it's going to be a year or two away. We're going to require immediate action.

But, as always, I try to bring a solution to the table at the same time. I've been looking at this issue from a different perspective. First of all, why do we renew health care cards? Well, one of the obvious reasons is we have to ensure Northerner's are getting a northern health care card. In other words, we're not having the fly-in/fly-out workers using northern health care. We all know at length on how short or not available, that is, dollars are when it comes to paying for health care initiatives and how challenging that always is, so we want to ensure Northerners are getting health care that Northerners rightly deserve.

One of the solutions I'd like to propose is, because we have a DMV in many areas, whether they're in small communities, large regions or even in Yellowknife, why don't we look at considering the situation of providing a photo health care card? I'm not suggesting we stop, pull all the brakes out at this particular moment, but this is the type of initiative we could start planning for today. Kind of like a Service Canada model with the federal government where when you go into one stop, you can do a little bit of one-stop shopping.

If we had a photo ID, that would help protect the integrity of the system because you can demonstrate fully that that is you on the picture, and that is you getting northern health care, and that is you who is a true Northerner and you deserve that. That may not be the perfect solution, but we can work with ways moving forward. Again, I don't expect it now, but I do say this is something we can work towards.

That said, I will have questions for the Minister of Health about this potential scandalous situation and how we can solve some of the things going forward. Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Member for Mackenzie Delta, Mr. Blake.

Thank you, Mr. Speaker. The RCMP has been part of our lives in the North since their arrival in 1904. We are proud of the relationships that our communities and the RCMP have built over the years. It is important that leaders support communities and the RCMP to continue to build on these positive working relationships. Our leaders and communities want to work alongside the RCMP to make our homes and communities a safer place to live.

Over the last couple of years, I have made a number of statements in this House concerning the lack of policing in Tsiigehtchic. There is no question in my mind that a police detachment in Tsiigehtchic is necessary and must be a part of this government's long-term plan. I do, however, recognize the reality and know that a detachment isn't going to happen tomorrow. I know a detachment is a ways off. It could be years. This is an unfortunate reality.

The problem is that, as I fight for my constituents and champion for a detachment, the needs of my people continue. The issues don't take a break because there is no detachment. In fact, it only gets worse.

Today I want to work with the Minister of Justice on some interim solutions to policing and public safety that can exist in Tsiigehtchic.

Our world is constantly changing. Today we are dealing with factors we did not traditionally see, such as drugs. Our elders are worried about how to deal with this and how to help our youth. We need to work together to explore all options, especially in our communities that do not have detachments.

I know that we have many committed people who will dedicate their time to help those who come into conflict with the law. There are community justice committees, victim service workers, volunteers for crime prevention activities and other community events. They require our ongoing support, as do the RCMP members who are working in our communities.

I want to explore all of the options to create links with the RCMP, recruitment, Aboriginal community constable programs, programs for the youth that may help address community safety and support policing in Tsiigehtchic.

Later today I will ask the Minister of Justice questions on what we can do while we are waiting for a detachment to become a reality in Tsiigehtchic, working together on these types of initiatives to help my constituents feel safe in their homes and in the community. Thank you, Mr. Speaker.

Thank you, Mr. Blake. The honourable Member for Yellowknife South, Mr. McLeod.

Thank you, Mr. McLeod. The Member for Tu Nedhe, Mr. Beaulieu.

Mahsi cho, Mr. Speaker. I'd like to congratulate Adrian Lizotte, originally from Tu Nedhe, for receiving the Premier's Award yesterday for his work on anthrax.

It is with great sadness that I send my condolences to the family of the late Grant Giroux. He passed away on March 24, 2013, at age 58. He was born in Rocher River on February 18, 1955.

Grant was a hardworking, dedicated man and was dedicated to his seven children and 10 grandchildren. His work was always focused on the benefits for the people that he loved. He was a great father and grandfather and loved to show his love, and this will keep his memory strong.

Grant was a hunter and trapper, and also a heavy equipment operator instructor. All his life he always shared what he had with elders, friends and family. His life was always to help people. He had a great sense of humour and people would always surround him because he showed compassion to everyone he met.

Grant was predeceased by his parents, Wilfred and Elizabeth Giroux, and his sister, Violet Giroux-Bailey. My condolences go out to Grant's seven children, 10 grandchildren, his brothers, George, Raymond, Robert, David, Velmore, Carl and Justin, and his sisters, Edith and Dianne, and his many nephews, nieces, cousins and friends.

I also would like to send my deepest condolences to the family and friends of Mr. Barry Sanderson of Deninu K'ue, who passed away this year and had the funeral on May 14, 2013.

Barry was born November 25, 1966. He was a hardworking person with a loving heart and he loved his two children, Craig and Roberta, and his mother, Mary. He did the best he could for them.

He is survived by his mother, his brother, James, and sister, Cyndi. Barry had a great sense of humour and wanted to see family and friends smile and laugh. He loved life and always had a helping hand for those in need.

My sincerest condolences go out to his two children, Roberta and Craig, his mother, who will miss him dearly, his sister, Cyndi, and his brother, James, many nieces, nephews, cousins and many, many friends. Thank you.

Thank you, Mr. Beaulieu. Item 4, reports of standing and special committees. Mr. Nadli.

Thank you, Mr. Speaker. The Standing Committee on Government Operations is pleased to provide its report on the Report of the Auditor General of Canada on the 2013 Northwest Territories Income Security Programs and commends it to this House.

Thank you, Mr. Nadli. You may proceed.

Introduction

Thank you, Mr. Speaker. The Standing Committee on Government Operations held its public review of the 2013 Report of the Auditor General of Canada on April 16 and 17, 2013.

The standing committee thanks assistant auditor general Ronnie Campbell, principal Glenn Wheeler, and lead auditor Erin Jellinek for preparing the report and assisting the committee during the public review. The committee also thanks the associate deputy minister of Education, Culture and Employment, Mr. Dana Heide; Deputy Minister Gabriella Eggenhofer; and the director of income security, Ms. Lois Walbourne, for appearing as witnesses at the review.

Role of the Auditor General of Canada in the NWT

The Auditor General of Canada conducts financial and performance audits in all three northern territories. Financial audits tell the Legislative Assembly and the public whether the government is keeping proper accounts and records and presenting its financial information fairly. Performance audits consider whether programs are being run with due regard for economy, efficiency, effectiveness and environmental impacts. Since 2006, the Auditor General has conducted seven performance audits in the Northwest Territories and issued one status report covering progress on the recommendations of previous audits.

The Legislative Assembly's Standing Committee on Government Operations is mandated to review the reports of the Auditor General and make recommendations to the Government of the Northwest Territories.

Members look for efficiencies, best practices, and gaps, with the intent of improving services to residents. The Auditor General's reports are essential tools in Members' scrutiny of government spending and performance.

I will now hand the report over to my colleague Ms. Bisaro.

Thank you, Mr. Nadli. Ms. Bisaro.

Northwest Territories Income Security Programs Delivered by the Department of Education, Culture and Employment

Thank you, Mr. Speaker. The Auditor General's report was tabled in the Legislative Assembly on March 7, 2013. This year's performance audit focused on four income security programs delivered by the Northwest Territories Department of Education, Culture and Employment (ECE): Income Assistance, Student Financial Assistance, the Child Care User Subsidy, and the Senior Home Heating Subsidy.

All of these programs are directly related to the 17^th Assembly's goal of “healthy, educated people free from poverty.”

In the past, northern indigenous peoples survived by following traditional laws of sharing, caring, and mutual respect. If someone was in need, they received help. There was no shame in that. Everyone had a contribution to make, and everyone was worthy of respect. Today Northwest Territories income security programs help meet the basic needs of individuals and families for food, shelter, clothing and warmth. Members believe such programs should be delivered not only in compliance with modern-day statutes and regulations, but also in the spirit and with the intent of the traditional laws.

Northerners also strongly value self-reliance. Since 2007 this value has been explicitly reflected in Northwest Territories income security programs delivered by the Department of Education, Culture and Employment. These programs reduce dependency on government by encouraging people who are able to enter or remain in the workforce, supporting students in post-secondary education, subsidizing child care to help parents become or stay employed, and helping seniors stay in their own homes through assistance with heating costs.

These are large and important programs. The number of people who received benefits under one of ECE's four programs in 2010-11 totalled 5,455, or roughly one in every eight Northwest Territories residents. The Government of the Northwest Territories spends about $30 million per year on these programs.

The Auditor General's 2013 Report

The Auditor General's performance audit covered program delivery between April 2009 and September 2012. Client files from April 2009 to June 2012 were sampled to determine if applicants were assessed and benefits paid according to requirements. ECE's efforts to assess program performance between January 2007 and September 2012 were examined, in order to include changes to the programs made in 2007.

The audit focused on two main questions. The first was whether the department was delivering its programs according to key elements of legislation and policies. The second was whether the department was collecting data and assessing program performance to ensure objectives are met.

The Standing Committee on Government Operations was dismayed to learn from the Auditor General's report that there are serious systemic problems with the delivery of income security programs by the Department of Education, Culture and Employment.

According to the Auditor General, the department is providing reasonable access to these programs and has established the required appeals processes.

However, the Auditor General also found that many client files are not managed according to requirements: processes are unclear, not followed or incomplete; monitoring is inconsistent; financial oversight is sometimes lacking; employees are not sufficiently trained; and there is limited assessment of program performance. These issues are significant.

In delivering income security, the right amounts must go to the right people, at the right time, otherwise someone could be out on the street trying to collect enough pop bottles to pay for their next meal. A disabled person might not be able to meet their rent. A student could drop out, or an elder could get sick because their house is too cold. Behind the income security numbers are some of the most vulnerable people in our society.

Observations and Recommendations

The Auditor General's observations on ECE income security programs, and the committee's ratings based on the audit, can be summarized as follows.

Access to income security programs?

• ECE promotes its programs through the media.
• Program information sessions are held.
• Routine visits to small/remote communities are made.
• Local Aboriginal language services are used.
• There have been improvements to appeal processes.

The committee considers this satisfactory.

Program delivery in accordance with requirements?

• Fifty-nine percent of 65 files reviewed did not meet one or more key requirements.
• Income Assistance had the most unsatisfactory files (90 percent)
  • Client eligibility was not consistently verified
    • regarding client income
    • regarding participation in required activities (“productive choices”)
  • Payments were inaccurate
• Student Financial Assistance did better, but:
  • correctly determining residency was a problem
• Senior Home Heating and Child Care User Subsidy payments were not made within the required time frames.

The committee considers this unsatisfactory.

Processes and systems to support program delivery?

• Required processes are not consistently followed.
• Guidance to front-line workers is not clear.
• The training provided may not be adequate.
• There is insufficient monitoring of program delivery against requirements.

The committee considers this unsatisfactory.

Data collection and analysis?

• Data collected is not used to analyze program performance and modify programming.
• There has been no formal overall assessment of whether the programs are meeting their objectives.

The committee considers this unsatisfactory.

1. General Considerations
   1. Integrated continuum of services

The standing committee is concerned about the coordination of income security programs within the GNWT and the coordination of income security and other services to residents in need.

The scope of the Auditor General's performance audit was limited to the four income security programs delivered by ECE. However, there is a larger context to consider. The department's income security programs are part of a network of 16 GNWT programs totalling $140 million per year. The committee was told during the hearing that subsidy and benefit programs to help meet residents' income security needs are offered by the NWT Housing Corporation, Health and Social Services, Justice, and Municipal and Community Affairs, among others. Some programs are delivered through the tax system in conjunction with the federal government. The committee did not receive a complete inventory of these programs during the review.

From another perspective, the people who apply for ECE's income support programs are more than their bank accounts. They are whole human beings, with a wide range of needs and capabilities. During the public review, ECE's associate deputy minister suggested that as many as 30 percent of income assistance clients, in particular, might be more appropriately case-managed by another department or agency. ECE's programs are heavily oriented towards the labour market. Its client service officers operate in conjunction with regional service centres that also house career development officers. Client service officers are not social workers. While they can refer people to counselling, for example, as a productive choice, the client must self-identify.

The Government of the Northwest Territories is collaborating with Aboriginal governments and non-governmental organizations (NGOs) in the development and implementation of a poverty-free NWT strategy. As the department moves to implement the Auditor General's recommendations, its officials will need to consider how these actions will impact the strategy and its implementation.

One of the pillars of the proposed Anti-Poverty Strategy is an integrated continuum of services. While the vision of the strategy is more wide-ranging, the standing committee would like to know, at a minimum, how ECE's income security programs complement other GNWT income security programs. The committee also encourages ECE to work with other GNWT social envelope departments and other service providers towards the development of an integrated case management system or team approach, consistent with its commitment to a culture of client service.

Recommendation 1

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment take the lead in working with other GNWT social envelope departments and other service providers towards the development of an integrated case management system, consistent with its commitment to a culture of client service.

Mr. Speaker, I would now like to hand the reading of the report over to my colleague Mr. Dolynny. Thank you.

Thank you, Ms. Bisaro. Mr. Dolynny.

Thank you, Mr. Speaker. Thank you, Ms. Bisaro.

• 1. Program accountability and reporting relationships in ECE

The Auditor General's report briefly outlines how the Department of Education, Culture and Employment is organized to deliver its four income security programs. The associate deputy minister stated that he was ultimately accountable for these programs and their performance. The standing committee appreciates this statement. However, Members found they could not readily discern the reporting relationships and accountabilities of staff delivering income security programs at regional and community offices, regional superintendents of ECE, and managers and senior managers at headquarters.

Recommendation 2

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment clarify the reporting relationships of staff involved in the delivery of its income security programs with a view to making their accountability evident, and provide this information to the standing committee at the earliest opportunity.

• 1. Front-line staff are concerned about workloads and safety

The Auditor General's observations conclude with a section on the workload and safety concerns of front-line income security workers. These observations were outside the scope of the audit, but they are clearly important. The standing committee has stressed the need for staff to treat Income Security clients with respect and compassion. Front-line workers deserve the same treatment.

Client service officers, or CSOs, are the front-line workers who deliver the Income Assistance, Senior Home Heating and Child Care Assistance programs. CSO caseloads can be very heavy. Large numbers of cases leave the CSOs with little time to work with clients to provide services such as career planning. The Auditor General determined that in 2011, CSOs handled an average of 34 files a month. However, in some communities, CSOs are administering 65 to 119 files per month. These figures do not take into account Senior Home Heating or Child Care User Subsidy.

The department has not officially identified a standard for monthly caseloads. The standing committee learned during the hearing that ECE is working on its CSO training effort first, which may improve these workers' efficiency. The committee suggests trying another measure, as well, that may save both the CSOs and their clients some time. The regulatory framework for income assistance already permits ongoing clients to report their income at longer intervals, rather than having to provide documentation every month. This feature of the program is underutilized, perhaps owing to concern about overpayments.

Recommendation 3

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment set a standard for monthly client service officer caseloads, review staffing levels and rebalance workloads as needed. A backup system should be in place to provide additional experienced staff support where there is a temporary overload.

The committee learned that the turnover rate for CSOs is approximately 50 percent annually. Such a high level of turnover is costly, and it impacts the quality and efficiency of service to clients. The Auditor General's staff and the associate deputy minister of ECE consider that better training will help retention, as will the development of caseload standards. The committee highlighted the need for mentoring of new staff, not only by supervisors but by more experienced colleagues. An improved turnover rate would be a helpful indicator of whether working conditions and morale have improved, and whether training and caseload standards have been effectively implemented.

Recommendation 4

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment report the turnover rate for its client service officers annually as a performance measure in the department's business plan.

Finally, some CSOs expressed safety concerns during the audit. Sadly, employees do not feel adequately protected from hostile clients. The department has provided a workplace protocol for hostile behaviour, and some offices have glass partitions and alternative exits. While physical measures like partitions may help with worker safety, they may not be welcoming for clients. It is also difficult to create safer conditions in smaller communities with one-person offices. Nevertheless, the standing committee believes front-line workers deserve a safer workplace. Solutions can and must be found to make their offices both safe and welcoming.

Recommendation 5

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment prioritize the establishment of safe workplaces for its front-line Income Security workers, bearing in mind the need to retain a welcoming atmosphere for clients, and report on client service officers' satisfaction with safety measures annually as a performance measure in the department's business plan.

1. Access to income security programs
   1. The Auditor General found that the Department provides reasonable access to its income security programs

The standing committee was glad to hear that access to income security programs is provided across the Northwest Territories in a wide variety of ways and commends the department on its efforts in this area.

However, the statement in the Auditor General's report that “the department has worked with hamlet councils to implement a voucher system for the Income Assistance program” raised questions for the committee. Members recognize that vouchers were mentioned in connection with the department's ongoing efforts to respond to First Nations and community governments. Providing vouchers instead of cash is intended to help address community social issues by ensuring that income assistance is spent on basic family needs.

Members learned at the public review that voucher systems are now in place in several Northwest Territories communities, and that the department has attempted to evaluate them, with inconclusive results. The committee would like to confirm that vouchers are not limiting eligible clients' access to income assistance, that they are being provided fairly and with due respect for the dignity of clients, that the system is not subject to abuse, and that vouchers are having the intended effect of reducing community social problems.

Recommendation 6

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment report to the Standing Committee on Social Programs on the use of voucher systems for income assistance in Northwest Territories communities, noting locations, numbers of clients, features of the systems, monitoring by the department, performance measures and evaluation results.

• 1. The Auditor General found that the department has processes in place to administer client appeals

All four of ECE's income security programs require that there be an appeal process for clients who feel they have been treated unfairly. By 2010 ECE had established the required appeal committees and boards for income assistance. The department has also been following the required SFA appeal processes. An appeals coordinator has been hired to organize appeals for all income security programs and to assist clients. The Auditor General reviewed proceedings from 36 of 136 appeals (78 income assistance and 58 student financial assistance) and found that appeals committees and boards generally conduct them in an appropriate and timely manner.

The standing committee concurs that having all required appeals processes in place is a significant improvement. However, Members had concerns about the underlying fairness of the appeals processes. Currently, an appellant may be left without financial support until such time as the appeal is heard. While most appeals are now heard in a timely manner, it can take as long as a month to get a hearing. The committee believes appellants should be given the benefit of the doubt and that support should be provided at least until the hearing, in the case of both new and existing Income Assistance clients and for ongoing Student Financial Assistance clients.

Recommendation 7

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment provide support to income security appellants at least until the hearing, in the case of both new and existing Income Assistance clients and for ongoing Student Financial Assistance clients.

Mr. Speaker, I would like to pass on the report to my colleague Mr. Moses. Thank you.

Thank you, Mr. Dolynny. Mr. Moses.

Thank you, Mr. Speaker. Thank you, Mr. Dolynny.

1. Program delivery in accordance with requirements

The Auditor General found that the majority of income security client files reviewed were not managed according to one or more program requirements.

The Auditor General's staff sampled client files from April 2009 to June 2012 to determine if applicants were assessed and benefits paid according to requirements. A random sample of 65 client files from all four programs was used, from both regional and small community service centres. The file review focused mainly on compliance with eligibility requirements and timely and accurate payments.

On the positive side, there were numerous examples of good case management practices, and requirements were consistently met in some areas. The Auditor General's staff also saw many examples of client service officers providing active help to clients, including home visits, help completing applications, alternative payment methods, and help with financial management. The standing committee recognizes and applauds the many CSOs who are putting great effort, compassion and respect into helping their clients.

However, the overall results of the file audit must be considered unsatisfactory. Key program requirements were not met in nearly 60 percent of the files. The review found significant issues with the delivery of the four programs in accordance with their governing legislation and regulations. As the report states, “Not complying with these requirements means the department may not be making effective use of public funds and may be compromising its commitments to support vulnerable residents and to help them become more self-reliant.”

The Income Assistance program was clearly the most problematic of the four programs audited. Key requirements were not met in 90 percent of income assistance files audited. A substantial proportion of the files contained inaccurate payments. Worse, CSOs' client assessments and adherence to policies and procedures were inconsistent. Some CSOs verified clients' income, while others did not. Some tracked participation in productive choices and paid or refused benefits accordingly, while others did not. This means clients received different benefits depending on which CSO was processing their file. The standing committee finds these results unacceptable. Moreover, Members are aware of other issues not highlighted in the audit, including lost documents and late payments. The department must improve in all these areas.

The Student Financial Assistance program, which is centrally administered from headquarters, had better results. About 35 percent of the files audited did not meet key requirements. One important finding was that student case officers did not make consistent decisions on student residency, and decisions did not always comply with program eligibility requirements. The standing committee expects the department to clarify Student Financial Assistance program guidelines on residency and eligibility not only for student case officers but also for students and the public, especially on the department's website.

Forty percent of Senior Home Heating Subsidy files did not meet one or more key requirements. One issue specific to this program is clients not receiving the amount of subsidy to which they were entitled. In some cases this was because seniors were granted the subsidy for a limited time, usually September to March, rather than over the full fiscal year. The Auditor General encouraged the department to consider options to ensure that recipients have the opportunity to use their full subsidy amount, but did not make a recommendation. The committee wants the department to take action and report back.

Recommendation 8

The Standing Committee on Government Operations recommends that the Department of Education, Culture and Employment consider options to ensure that Senior Home Heating Subsidy recipients have the opportunity to use their full subsidy amount, and that the department present these options to the Standing Committee on Social Programs within the 2013-2014 fiscal year.

Seventy percent of the Child Care User Subsidy files examined by the auditors did not meet requirements. Here, delays in payments to parents or child care providers were a significant problem. The Auditor General found that CSOs were often unclear about the required verification process and failed to meet required timelines for the payments. The Child Care User Subsidy was incorporated into the Income Assistance program in September 2012. As with student financial assistance, the standing committee is concerned not only with clear guidelines for staff but also for the general public. The department assured the committee during the review that the necessary information is publicly available.

The committee will make a formal recommendation concurring with the Auditor General's recommendation on this subject later in this report.

1. Factors in the delivery and management of programs

The Auditor General identified six main factors in the department's difficulties in delivering and managing its income security programs according to the requirements of legislation, policies and guidelines. The standing committee concurs with all of the Auditor General's recommendations in these areas, including better monitoring, training and support to staff. The committee is pleased to note that the Minister and the Department of Education, Culture and Employment have accepted these recommendations and are working towards implementing them.

1. Processes to support program delivery are unclear in some areas

The Auditor General found that the department has processes and tools in place to support the delivery of income security programs, including detailed policies, procedures, guidelines and standard templates. In some instances, however, these are unclear. For example:

• For Income Assistance, processes are unclear in that policies and procedures do not provide clear instructions for CSOs on how to confirm clients' incomes when they apply and each month thereafter.
• For Student Financial Assistance, lack of clarity in the eligibility criteria related to student residency led to inconsistent decisions.
• For Senior Home Heating Subsidy, processes are unclear in that ECE's guidelines do not explain how to verify homeownership and who resides in the applicant's home. ECE in some regions also had difficulty tracking how much of the subsidy some clients used, because they did not get individual client invoices.
• For the Child Care User Subsidy, policies, procedures and guidelines did not provide clear guidance for verifying child care costs.

The Auditor General had two recommendations with respect to clarifying program guidelines, one general and one specific to the Child Care User Subsidy. The standing committee concurs with both.

Recommendation 9

The Standing Committee on Government Operations concurs with the Auditor General of Canada and recommends that the Department of Education, Culture and Employment should clarify policies, procedures and guidelines outlining Income Security Program delivery requirements and how to meet them. It should ensure staff understand and are following these procedures and guidelines.

Recommendation 10

The Standing Committee on Government Operations concurs with the Auditor General of Canada and recommends that, as the Department of Education, Culture and Employment introduces its revised Child Care User Subsidy within the Income Assistance Program, it should develop clear guidelines that are consistent with program requirements and clearly communicate these requirements to front-line staff and potential applicants.

1. Lack of oversight increases risk in the use of the Client Management and Administration System (CMAS)

The CMAS database was used to support delivery of all four of the department's income security programs. The system is built on the assumption that CSOs verify client information before it is entered, and that they enter the information correctly.

However, the Auditor General's review found that errors do occur, CSOs do not verify client information in all files, and they do not always understand or apply program requirements in the same way.

For income assistance, CSOs also use the CMAS system to issue monthly payments. In ECE community service centres, CSOs can both commit and release payments through CMAS without sign-off by a second party. There is a risk ECE may not have the appropriate controls in place to help stop errors in payments to Income Assistance clients, or potential fraud. This issue was noted in a 2009 review, but as of September 2012 no action had been taken.

Payments under the other three programs are issued out of the GNWT's SAM financial system.

The Auditor General did not provide a recommendation. The standing committee heard during the review that ECE has not been able to find an acceptable solution with its existing CMAS system and limited staffing in small communities. The department is concerned about limiting CSOs' ability to provide emergency income assistance. The committee expects the department to develop a plan to provide the necessary oversight. The department would do well to consult with the Department of Finance on audit and accounting protocols.

Mr. Speaker, I would like to turn over the reading of the report to Mr. Yakeleya.