Thank you, Mr. Chair.
We thank you for this opportunity to discuss chapter 4 of our May 2008 report on the first nations child and family services program. I should note that the audit work for this chapter was substantially completed in November 2007.
Joining me at the table are assistant auditors general Ronnie Campbell and Jerome Berthelette, both of whom were responsible for our audit.
The audit examined how Indian and Northern Affairs Canada manages its first nations child and family services program. John Doyle, the Auditor General of British Columbia, conducted a concurrent audit covering child welfare services for aboriginal people in B.C., and we prepared a joint foreword to our reports.
Some of the most vulnerable children in Canada are first nations children. At the end of March 2007, there were about 8,300 on-reserve children in care. This represents more than 5% of all children living on reserves, and this percentage is almost eight times higher than the percentage of children living off reserves who are in care.
A 2003 study found that the higher incidence of child neglect occurring on reserves is largely attributable to poverty, inadequate housing, and substance misuse by caregivers. This indicates that the resulting problems experienced by children in care cannot be resolved solely by child welfare services.
In 2007, Indian and Northern Affairs Canada spent $450 million on this program, $270 million on direct support for first nations children in care, and another $180 million on the operations and administration of child welfare services provided to first nations.
In 1990, the federal government adopted a policy requiring that child welfare services provided to first nations children on reserves meet provincial standards, be reasonably comparable with services for children off reserves, and be culturally appropriate. Over the years, this policy has been confirmed through several government and Treasury Board decisions.
However, we found that the department had not defined the meaning of “reasonably comparable” and “culturally appropriate”. We also found that the department had not analyzed and compared the child welfare services available on reserves with those in neighbouring communities off reserve.
Department officials and staff from first nations agencies told us that the child welfare services in first nations communities are not comparable with off-reserve services. Furthermore, we found the department had not sufficiently taken into account provincial standards and other policy requirements when it established levels of funding for first nations agencies to operate child welfare services on reserve.
At the time of our audit, the funding formula dated from 1988 and had not been significantly changed since then to reflect variations in provincial legislations and the evolution of child welfare services. In addition, the funding formula assumed that all first nations agencies have the same percentage of children in care--that was 6%--and that the children all have similar needs. This assumption led to funding inequities, because the percentage of children in care, as well as their needs, vary widely among first nations.
Mr. Chair, in 2007, through the cooperation of federal, provincial, and first nations parties, the funding formula was revised in Alberta. This revision links the funding provided to first nation agencies in Alberta to provincial legislation. Although the new formula does not address the inequities of the existing formula, when fully implemented it will provide 74% more funds for the agencies' operations and prevention services. As you may be aware, the federal government has signed similar agreements with five other provinces since then.
Indian and Northern Affairs Canada agreed with the recommendations in our audit report and made several commitments in its response. It also prepared an action plan.
Following the tabling of our audit report, your committee, as well as the Senate Standing Committee on Aboriginal Issues and the House of Commons Standing Committee on Public Accounts all held hearings on this audit. The public accounts committee also issued its own report on this issue.
Your committee may wish to note that we are currently working on a follow-up audit of some of the key issues from seven previous chapters including this one on child and family services.
This audit report will be tabled next spring. We would welcome a request to appear before your committee in the spring to present our audit findings on this issue and other issues.
Mr. Chair, this concludes my opening remarks. We would be pleased to answer any questions.
Thank you.