Iqaluit (Apr 14/03) - Nunavut's Department of Health has failed to provide effective fiscal management in the past, but changes in administration are hoped to correct the problem.

"We've been monitoring health for a couple of years now," said Bob Vardy, the GN's deputy minister of finance.

That monitoring has identified a need to strengthen the health department's financial management.

"The biggest concern with the department is it has gone over their budget allocation without being able to predict in advance the extent they would be doing so," said Vardy.

He admits there are problems in every government department, but he referred to the difficulties in the Department of Health as "extreme."

The department has recorded a deficit every year since 1999, ranging from $10 million to $25 million.

The problem, according to Vardy, is the fact they have been unable to forecast such sizeable deficits until, at times, as late as two weeks before year-end.

"You shouldn't be walking in two weeks before year's end and saying 'Well we're going to be $10 million over," he said.

He added that the lack of fiscal accountability has meant the department continues to spend without knowing their financial status.

Better accounting would help the department know what their financial outlook is and reduce the level of deficit spending.

"They could impose some restraint measures knowing in advance. For example, some departments ban travel for three months," said Vardy.

The GN has taken some steps to improve the situation.

Victor Tootoo, who worked in the finance department for five years and is a certified general accountant, has been appointed assistant deputy minister of the department.

As well an accountant from the finance department is on loan to the health department to assist with financial management.

"The emphasis has been on delivery of services. The public needs to feel comfortable the money is being spent in an efficient and effective manner and I don't think they can demonstrate that," said Vardy.

He added the steps taken will lead to better fiscal responsibility and tighter financial management.