Thank you for inviting my colleagues and I to appear before your committee, Mr. Chair. We have come here today to bring your members up to date on our continuing efforts to improve First Nations Child and Family Services on reserve.
The Auditor General's report of May 2008 raised many serious matters concerning the management of First Nations Child and Family Services and we developed an Action Plan to respond to the Auditor General's recommendations.
In addition, the Standing Committee on Public Accounts made seven recommendations. The first recommendation was to provide the public accounts committee with a detailed action plan on the implementation of the Auditor General's recommendations. In a letter to the committee dated April 30, 2009, Deputy Minister Wernick provided the public accounts committee with the update on implementation we completed on March 31, 2009. The Government of Canada tabled its response to the report of the public accounts committee on August 19, 2009, which indicated that our department had responded to a number of the public accounts committee's recommendations, while others remained under review and analysis.
I can assure committee members that we recognize the seriousness of the matters raised in these reports, and that we are committed to building healthier, stronger first nation families and communities. We are particularly concerned with the safety and well being of first nations children.
I would now like to briefly talk about the partners involved in funding First Nations Child and Family Services and update the committee on what the Department has been doing to address the findings of the Office of the Auditor General's Report recommendations as well as those of the Public Accounts committee.
We do not work alone in supporting the first nations child and family services program. Three parties are involved. Provinces have jurisdiction over child welfare both on and off reserve, and where appropriate they delegate this authority to first nations child and family service agencies and first nations staff.
Indian and Northern Affairs Canada provide funding to first nations, their first nations child and family services agencies, and the provinces to support the delivery of culturally appropriate child welfare services on reserve, including costs related to children brought into care.
INAC is in the process of reforming its first nations child and family services program by implementing an enhanced prevention-focused approach on a province-by-province basis. This new approach provides first nations child and family services agencies with improved capacity to provide prevention-focused services to on-reserve first nation children, and is consistent with the findings in academic literature and with provinces that have largely refocused their child welfare programs from protection to prevention. Studies have shown that early intervention improves family cohesion and stability, leading to better life outcomes for children and families. INAC has made progress in this area through tripartite frameworks in five provinces.
Budget 2006 marked the beginning of the transition of the first nations child and family service program to an enhanced prevention-focused approach with a financial commitment of $98 million over five years for Alberta first nations child and family service agencies. With the new funding for Alberta, reports indicate that there is already a shift in caseloads, an increase in families accessing prevention programming, and a rise in permanent placements. INAC is currently in the early stages of conducting a formative evaluation of the enhanced prevention-focused approach in Alberta, which will be done in collaboration with the Province of Alberta and Alberta first nations.
Budget 2008 provided an additional $115 million over five years to implement the new approach in Nova Scotia and Saskatchewan, and Canada's economic action plan provided an additional $20 million over two years to transition both Quebec and Prince Edward Island to move to the enhanced prevention-focused approach. Total program expenditures are expected to be $560 million in 2009-10, which equates to a funding increase of 190% since 1996-97.
With five provinces under the new approach, 45% of first nation children living on reserve are or will be receiving expanded services. We continue to work with remaining jurisdictions to transition to a prevention-focused and culturally appropriate approach to child welfare on reserve, and the objective is that all will be ready by 2013.
While work is under way on program renovation and the shift to the Enhanced Prevention Focused Approach, we are also working to strengthen program management and accountability to ensure that the funding is leading to improved results for First Nation children and families.
With respect to the Office of the Auditor General report, INAC is now preparing its September 30, 2009 update on progress, which will go to INAC's audit committee on December 8, 2009. The Auditor General made ten recommendations and the department is taking steps to address them all. We have updated the program authorities, introduced new reporting requirements, articulated a guiding principle on culturally appropriate services, worked closely with provinces to ensure agencies are meeting provincial legislation, and increased compliance activities.
As well, we have had a preliminary meeting with our first nation partners to discuss program performance indicators, and preliminary work is under way to develop a national data management system. We are also making progress in implementing Jordan's Principle along with Health Canada. That department has clarified the availability of non-insured health benefits to eligible first nations children in INAC-funded care.
In terms of the seven recommendations of the public accounts committee, we have responded to or addressed three recommendations. As mentioned, we have provided the public accounts committee with an update on implementation of our action plan in response to the Auditor General and have addressed two other recommendations, which are similar to those in the Auditor General's report and relate to culturally appropriate services and the development of performance measures.
Recommendation 2 calls for the department to conduct a comprehensive comparison of its funding to provincial funding by December 31, 2009. The Government of Canada agrees with this recommendation. However, as indicated in our government response, it will be conducted on a phase basis. The first phase will consist of a comparison of jurisdictions that are already under the enhanced prevention-focused approach. The second phase will consist of jurisdictions that have not yet transitioned to the new approach and will require a substantial amount of time and work with the provinces and first nations. This phase is expected to be completed by 2012.
Recommendations 4, 5, and 6 generally concern provincial comparability and funding. The committee recommends revising the funding formula for those first nation agencies or first nations who have not yet transitioned to the new approach, basing the funding formulas on need and fully costing the funding model. With respect to recommendation 4, the revision of funding formula directive 20-1, the department recognizes that there is a greater need for prevention-focused services, and we are exploring options with respect to the funding formula for those jurisdictions that have not yet transitioned to the new approach.
In terms of recommendation 5, on ensuring the funding formula is based on needs, the enhanced prevention-focused approach ensures needs are met by providing stable funding for both protection and prevention services. Also, as outlined in our government response, the direct costs of maintaining children in care out of the parental home are based upon need and not on an assumed percentage of children in care.
With respect to recommendation 6, fully costing the program, this analysis is done on a province-by-province basis as the program is reformed, by taking into account the related costs in caseload ratios in the provinces.
Another issue of concern to the Auditor General and this committee is Jordan's Principle. As you will recall, Jean Crowder's motion on Jordan's Principle was adopted by the House of Commons in December 2007, with the support of all parties. The federal government has defined Jordan's Principle as a child-first approach for children with multiple disabilities in need of multiple service providers. Indian and Northern Affairs Canada and Health Canada are working with provinces to implement Jordan's Principle so that the care of children with multiple disabilities will continue, even if there is a dispute between governments concerning responsibility and payment of service.
In Saskatchewan and Manitoba first nations are actively involved in discussions to implement Jordan's Principle. On September 5, 2008, the Province of Manitoba announced it had reached an agreement with the Government of Canada to implement Jordan's Principle. As part of the agreement, a joint Manitoba and Canada steering committee is working on an implementation framework for Jordan's Principle. This committee has participated in case conferencing for several disabled first nations children and developed both a dispute resolution report and a report on services available to first nations children. They are now actively pursuing engagement with first nations.
On September 16, 2009, Canada, the Province of Saskatchewan, and the Federation of Saskatchewan Indian Nations announced their tripartite document entitled Interim Implementation of Jordan's Principle in Saskatchewan, which sets out the parameters to develop, over the immediate term, a dispute resolution process, and over the longer term to examine broader issues that could have an impact on first nations children with disabilities. Canada is continuing to engage with the remaining provinces in implementing Jordan's Principle.
Only by taking a partnership approach can INAC support services that are provincially comparable and culturally appropriate, in keeping with the needs of communities.
My colleagues and I will do our best to answer any questions about what we have done and our next steps as we move forward.
Thank you very much.