Report of the Auditor General of Canada to the Legislative Assembly of Nunavut—2005

Auditor General calls for strong measures to improve Nunavut's financial management

Ottawa, 21 February 2006—The need to improve financial management is the Auditor General of Canada, Sheila Fraser's central message in her fourth report to the Nunavut Legislative Assembly, being tabled today. The report looks at the government's financial management and offers concrete recommendations to improve it.

"Financial management is certainly stronger now than when Nunavut was created," says Ms. Fraser in the report's preface. "However, overall, financial management is weak and fragile. It has not adequately reduced the risk of error, bad decisions, or fraud."

The Auditor General's report documents many weaknesses in financial controls that jeopardize the prudent management of public funds. Even though the Nunavut government is a billion dollar a year operation, many key financial systems are still not computerized, and the government does not have enough professional accountants.

Ms. Fraser calls for strong solutions. "The government could continue to try small changes as it has done for the past six years," she says. "However, this approach has not worked so far, and there is no reason to believe that it will work in the future."

The report contains three key recommendations to strengthen financial controls and improve Nunavut's financial management. According to the report, the government needs to

• close gaps in its accounting systems;
• review its accounting structures, including the physical location of staff—centralizing accounting functions to deal with the root causes of poor financial management; and
• develop training programs that will give Land Claims Agreement beneficiaries the opportunity to become professional accountants and prepare for senior financial management positions.

"Ultimately, good financial management is part of the foundation of good government," stresses the Auditor General. "The government should take steps now to implement the controls it needs to provide high-quality services to all Nunavummiut for years to come."

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The Report of the Auditor General of Canada to the Legislative Assembly of Nunavut—2005 is available on the Office of the Auditor General of Canada Web site.

Information:

Communications
Tel.: (613) 952-0213, ext. 6292
E-mail: communications@oag-bvg.gc.ca