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3TuesdayMay132014CanNorunawareofimpactsofitsfundingauditByMEAGANWOHLBERGTheCanadianNorthernEco-nomicDevelopmentAgencyCanNordoesnotknowforcertainwhetherits52millioninfundingforprojectsacrossthethreeNorthernterritoriesisactuallyworkingeffectivelyCanadasauditorgeneralre-vealedinareportlastweek.AuditorGeneralMichaelFergusonsaidlastTuesdayatanewsconferencethatCanNorestablishedin2008asawaytoboosteconomicdevelopmentinCanadasNorthisnotad-equatelymonitoringthecontri-butionsitpaysoutanddoesntknowwhetherthefundingtheyareprovidingismakingadif-ferencetoeconomicdevelop-mentintheNorth.AccordingtothereportCanNorhasfailedtoman-ageanddeliveritstransferpaymentprogramsinaccor-dancewithkeyrequirementsforaccountabilityincludingthewayprojectsareassessedandgrantsaremonitored.TheAgencysadminis-trationofcontributionagree-mentsisweakmonitoringofrecipientsisinadequateandtheAgencyhasnotmeasuredandreportedonwhetheritsprogramsareachievingtheirobjectivesstatesthereport.InparticularFergusonfoundonlythreeof11projectsfundedthroughtheCommu-nityEconomicDevelopmentProgramCEDPwereprop-erlyassessedtoseeiftheyortheiractivitiescostsorrecip-ientswereeligibleandthatapplicationswerecomplete.Forexampleoneapplica-tionsimplystatedthatfund-ingwasforbusinesssupportforaconveniencestoremotelandgasbarwithoutspecifyingtheactivitiestobecarriedoutortheexpectedresults.TheAgencydidnotasktheappli-canttoprovidethemissingin-formationbeforecompletingtheassessmentandfundingtheprojectFergusonfound.BecausetheapplicationwasincompletetheAgencydidnothaveassurancethatsupportingthisprojectwasconsistentwiththeprogramsobjectivesorthateligibleac-tivitieswerebeingfunded.Otherprojectswerefundedbeforeapplicationswerere-ceivedwhilemostdidnotreceivefundinguntilninemonthsaftertheapplicationwasreceivedleavinglittletimetousethemoney.UpongrantingfundstheauditorgeneralfoundCanNordidnotadequatelymonitorcompliancewiththecontri-butionagreements.About15percentofthere-portsdueforthe201011and201112scalyearshadnotbeenreceived.About75percentofthereportsduefor201213wereoutstandingattheendoftheaudit.KeypositionsremaininsouthDespiteitsmandatetofunc-tionasaNorthernagencyFer-gusonsreportindicatesCan-NorisstrugglingtollitsIqa-luitofceandstillmaintainsitschiefpositionsinOttawaratherthantheNorthwhilehavingnoplantoremedythesituation.Keypositionsofpresidentvicepresidentforpolicyplan-ningandcommunicationsandtheNorthernProjectManage-mentOfceandthesenioradvisorforInuitcommunityrelationsarebasedinOttawa.AccordingtotheauditCan-NorcurrentlyhasnoplantorelocatethosekeypositionstotheNorth.Thehumanresourcesplanfortheagencyrequiresthat45percentofemployeesworkatCanNorsheadquartersandNunavutregionalofcebothlocatedinIqaluitwithanother45percentattheYellowknifeandWhitehorseofcesandthenal10percentassignedtoaliaisonofceinOttawa.ThoughthenumberofemployeesbasedinIqaluitdoubledfrom2010asofAu-gust2013only30percentofemployeesworkedinIqaluitdespiteconcertedrecruit-mentefforts.TheAgencytoldusthatof32positionsadvertisedfortheIqaluitofceonly15havebeenstaffedincludingsometemporarypositions.There-mainingpositionswerenotlledsixcompetitionswerestillinprogressattheendofourauditthereportstated.Thereportalsofoundprob-lemswiththeagencyscompli-ancewiththeNunavutLandClaimsAgreementwhichstipulatesthatorganizationsmustestablishandmaintaintheemploymentofInuitpeo-pleatarepresentativelevel.Thoughtheagencyhasatargetof50percentInuitrepresentationasofAugust2013only25percentofCan-NoremployeesinIqaluitwereInuitandtheagencyhadnotyetnalizeditsInuitemploy-mentplan.FederalOppositionNorth-erncriticDennisBevingtonwhoraisedconcernspreviouslyabouthavingthecentralCan-NorofcelocatedinIqaluitsaidthereportisnotsurprising.NowondertheagencyisindisarrayallthedecisionsarebeingmadeinOttawanottheNorthBevingtonsaidinapressrelease.Thereisonlyonepersonresponsibleforthisincompetenceandthatstheminister.CanNorofcialsagreedtoalltherecommendationsmadeintheauditorgeneralsreportstatingthatitsqualityassuranceandperformancemeasurementstrategiesarebeingupdatedwitheachprogramrenewal.Theagencysaiditiscom-mittedtofullystafngitsIqa-luitheadquartersandmeetingtheNunavutclaimsagree-mentbytheendofrstquar-ter2014andwillincreaseitscurrentIqaluitworkforcebynineadditionalpositionsbytheendofthe2014-15s-calyearbeforegraduallytransferringmoreinternalservicesfromOttawa.EmploymentatCanNorsheadquartersinIqaluitNunavutisthesubjectofcriticisminanewreportbyfederalAuditorGeneralMichaelFerguson.PhotoGov.ofCanadaPoliticsEconomicDevelopmentContinuedfrompage1.TheGNWTrecentlysignedcontractswithboththeNa-tionalEnergyBoardNEBandtheAlbertaEnergyRegu-latortoprovidetechnicalsup-porttothenewNWTregu-latorandisintheprocessofdevelopingitsownfrackingguidelinestoaccompanythenewNEBlingrequirementsitinheritedasofApr.1.ThoughtheCouncilofAcademiesreportfoundthatregulationsinotherjurisdic-tionswherefrackingisongo-ingsuchasAlbertaarenotbasedonstrongscienceandre-mainuntestedMiltenbergersaidtheNWTwillbeadapt-ingitsrulesasnewtechnicalinformationarisesontheareasofleakywellcasingsfrack-inguidswastewaterandairqualityaggedbythereport.TodatetheGNWThasspent1milliontoinitiategroundwa-termappingandcollectbaselinedataonwildlifethroughouttheSahturegionwherethefrack-ingisoccurring.ThoughtheGNWTsownpolicyguide-linesonfrackinghaveyettobecompletedthoseareexpectedtocomeoutbyearlywinter.NWTfrackingguidelinesstillintheworksWevebeenworkingfortwoyearsnowongettingourthinkingclearonwhatimprovementsareneededtothelingrequirementssothatwhenitcomestofrack-ingwearelookingatbestpractices...andwecontinuetoadjustastechnologyandsci-enceimprovesinthisareaMiltenbergersaid.IndustryTourismandInvestmentMinisterDavidRamsaywhoservesasheadofthenewNWTregulatorsaidmovementonfrackingisbeingdonecautiouslyintheterritoryastheGNWTsettlesintoitsbrand-newroleasregulator.Wedontwanttobemakingdecisionsthatweregoingtoregret.Weneedtoensurethatwereabletobet-terunderstandthenewrolesandresponsibilitiesthatwehaveandthenwecanmakechangeshesaid.Thatwasthereasonfordevolutionsothatpolicydi-rectionthelegislationthewaythingsworkwouldbeinourhandsanditisinourhands.Wewilllookatwayswecanimprovethesystemaswegoforward.Wedontwanttobemakingdecisionsthatweregoingtoregret.Weneedtoen-surethatwereabletobetterunderstandthenewrolesandresponsibilitiesthatwehaveandthenwecanmakechanges.MinisterDavidRamsayIndustryTourismandInvestmentPoliticsRegulatory