GOVERNMENT ACCEPTS RECOMMENDATIONS ON METIS ADDICTIONS COUNCIL

Today the government released a report by the Provincial Auditor on his special assignment to examine whether the Metis Addictions Council of Saskatchewan Inc. (MACSI) appropriately used public funds and whether Saskatchewan Health used sound oversight practices of the agency's spending.

"This report affords us the opportunity to make systemic improvements to ensure public money is protected and used wisely. I acknowledge the deficiencies identified, accept the recommendations and commit to their implementation," Health Minister John Nilson said.

The report found:

· there was no evidence of inappropriate use of money by MACSI between April 1998 to May 2001;

· money was not used appropriately by MACSI between June 2001 to February 2004 including payments made for building repairs and renovations not done, board expenses and vehicle costs, and expenditures made without proper authority;

· MACSI did not maintain essential records and rules and procedures to appropriately safeguard and control public funds between April 1998 to February 2004.

· From April 1998 to March 2003, Saskatchewan Health's oversight processes were not adequate and the department did not always take prompt or appropriate action to remedy all significant problems it knew, or should have known, about.

· the department took prompt and appropriate action to remedy the problems it knew about at MACSI for the period April 2003 to February 18, 2004.

Key actions have included:

1. Replaced MACSI's board of directors;

2. Appointed an interim Executive Director at MACSI;

3. Commissioned a Forensic Audit of MACSI; and

4. Strengthened the contract and annual audit requirements for MACSI.

In the report, the Provincial Auditor also acknowledges the proactive steps taken by Saskatchewan Health to remedy the key oversight deficiencies identified. He provides 13 recommendations on how to improve financial oversight and accountability, with nine of the recommendations directed to MACSI and four to Saskatchewan Health.

"Work is underway or complete on all of the recommendations individually directed to Saskatchewan Health. MACSI has begun or completed work on seven recommendations directed to their operations, work on one is pending, subject to receiving more information, and a final recommendation will be addressed jointly with Saskatchewan Health," Nilson said.

A copy of the Provincial Auditor's report appears on Saskatchewan Health's web site at www.health.gov.sk.ca and a list of the actions that have been taken in response to each of the recommendations it contains.

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For More Information, Contact:

Lindy McIntyre Health Regina Phone: (306) 787-8214