OTTAWA (Sun Media) -- An audit of nearly $200 million in Natural Resources Canada funding to outside groups found significant gaps in reporting and auditing intended to ensure the money was spent properly.
The internal study, completed last November but only recently posted on the department web site, also points out a department policy for transfers was still in draft form last year, despite total contributions growing by 227% to $198 million in 2005-'06.
The report, completed by Natural Resources' audit and evaluation branch, says a formal monitoring framework has not been put in place and that training and guidance for the funding recipients' own audits remains limited.
"These deficiencies compromise NRCan's ability to provide assurance that there is appropriate stewardship of contribution funds, including assurance that recipient contribution funding is used for intended purposes and consistent with (terms and conditions) of contribution agreements," the audit concludes.
Canadian Taxpayers' Federation federal director John Williamson points out the findings don't bode well when Natural Resources MInister Gary Lunn is set to make a major announcement on new energy use programs this morning. "If the department can't manage money in the past, according to this audit, it doesn't give great hope to taxpayers it will do so with additional programs."
The funding flows through a variety of department programs aimed at such initiatives as more efficient, renewable energy sources, combating the mountain pine beetle infestation, and making homes more energy efficient.
Recent recipients include Loblaws and Rogers Video for retrofitting and constructing energy efficient buildings.
The transfers to 1,700 "active recipients" represent approximately 22% of the department's total budget.
Department managers say they are establishing a review committee to ensure audits are conducted.
A centre of excellence that would beef up monitoring of transfers was expected to be staffed as of this month, but only three of six positions have been filled, a spokesman said.
