Federal funding for Indian Affairs has been steadily increasing over the years as has the level of poverty and waste on native reserves. Data obtained by the CTF through Access to Information reveals that enormous increases in federal funding have done little to improve the financial situation of native bands.

During the nine year period of 1992-93 to 2000-01, federal government spending on Indian programs increased by 64% to more than $7 billion annually. According to the Auditor General 80% of this money is transferred directly to native bands to fund housing, health-care, education and social services.

Nevertheless, of the 630 native bands in Canada almost 30% are in financial difficulty and operating in a deficit. In 1992, 155 bands ran deficits compared to 188 in 2000. Over the same period the cumulative deficit of native bands increased from $132 million to $373 million. This is a massive increase of 182% in nine years.

Despite the huge increases in the financial resources awarded to native bands in Canada, the financial situation of an increasing number of native bands is worsening. If taxpayers ever needed a lesson that gigantic government spending can't solve every problem, this is it. Money isn't the problem, accountability is.

Even though native bands are for the most part publicly funded, Canadian taxpayers cannot obtain the information in native band audits. Once the federal government transfers the money from the federal departments to native bands, the Auditor General of Canada no longer has the authority to audit how and where the money is spent.

The black out exists due to a 1988 Federal Court judgement which shelters the audit information from public scrutiny. This ruling considers native bands to be private economic entities that can keep their finances undisclosed. Audits that include even small amounts of private financial information are excluded from all but band members and government officials. Obviously, without proper checks and balances inefficiencies, redundancies, corruption and abuse often occur.

To ensure the money is being properly and efficiently spent, taxpayers and native Canadians need a system of independent annual financial and operational audits of native bands that are made public to all citizens. This is similar to how federal and provincial auditors conduct their audits of government departments and programs.

For example, expanding the mandate of the current Auditor General of Canada to include native bands, or establishing a separate native auditor general are ways to ensure accountability and transparency. The audits performed would root out waste, mismanagement, and corruption, and will provide band members and taxpayers at large with an indication of the efficiency, effectiveness and the quality of services being offered on reserves.

Life on reserves will improve if native band governments and politicians are subject to the same kind of regulation, scrutiny, and accountability that protects every other Canadian citizen. Native Canadians on reserves deserve nothing less.