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 17th 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.
- General Considerations
- 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.