By Mario deSantis, February 14, 2000

On November 17, 1999 Honourable Stewart received a full report of an internal audit of her department, Human Resources Department of Canada (HRDC). This internal audit included the review of 459 approved grant projects out of a total of about 30,000 projects for the period between April, 1997, and April, 1999. The reviewed 459 projects were worth about $200-million, while the total 30,000 projects were worth about $1-billion. The reviewed projects were affected by gross administrative problems and in particular revealed the following facts:

• Of 459 reviewed projects, two-thirds of them did not contain an analysis or a rationale for recommending or accepting the project
• Of 459 reviewed projects, eight out of every ten did not show evidence of financial monitoring
• Of 459 reviewed projects, three out of four had no indication of monitoring for achievement of specific results
• Of 459 reviewed projects, 15% did not contain an application from the sponsor.

Though the administrative problems were widespread among the reviewed 459 projects, the internal audit identified only 37 cases worth $33-million for further analysis.

In regard to this internal audit of 459 projects, Denis Desautels, the Auditor General, has stated that the massive improprieties within the HRDC department are not strictly accounting problem but "...these are procedural problems and management problems... some of the spending was carried out without care and due diligence. So I feel that there were serious shortcomings that need to be fixed right away..."

References

A simple question, no simple answer. Reform MP has Stewart squirming over the basics, Paul Wells, National Post, February 11, 2000 http://www.nationalpost.com

Rot may have spread to 3,000 grants, Luiza Chwialkowska, National Post, February 11, 2000 http://www.nationalpost.com

Desautels wants system overhaul, James Baxter, Southam News, February 11, 2000 http://www.nationalpost.com