Value-for-money audits for First Nations to begin
Updated Sun. Jun. 22 2008 4:32 PM ET
The Canadian Press
New value-for-money audits to better track how Indian Affairs spends billions of dollars will catch misappropriation, lax reporting and -- in rare cases -- fraud, says the minister in charge.
Chuck Strahl says most First Nations properly use federal cash, much of it paid to uphold historic treaties. But more stringent assessments of the roughly $6 billion that flows through his department each year will tighten accounting and give concerned band members answers, he said in an interview.
"I'm convinced that the overwhelming majority of First Nations do the best they can with the money they've got. You could debate whether the money is adequate or not,'' he added. "But there's the odd one out there, just like there always is in any public government ... that needs to be called to task.
"In extreme cases, of course, somebody could be taking money out of the till and not reporting it.''
Audit results "could be anything from an illegal action to simply a change in book-keeping requirements,'' Strahl said.
As of July 1, transfers to reserves for education, housing and other programs will contain a clause allowing Indian Affairs to later analyze whether they were well spent.
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