SOMBA K'E/YELLOWKNIFE - The Centre for Northern Families has been chronically underfunded since its inception, according to executive director Arlene Hache, who said she is worried its doors might be finally forced to close.

The mounting debt for the Centre for Northern Families may soon force it to close, according to executive director Arlene Hache. The centre has debts amounting to $350,000, $200,000 of which is owed to Revenue Canada. - Andrew Livingstone/NNSL photo

Arlene Hache said the drop-in centre for women seeking shelter from abusive home situations has been underfunded for almost 20 years, forcing the organization to take on a deficit.

The centre has received $30,000 in core funding from the territorial government since 1995, but Hache said that's not enough.

"The government has consistently not funded the core costs of running the centre," Hache said Monday in the legislative assembly, adding the territorial government has told the organization that it doesn't know how to manage its finances.

"We've consistently asked for more core funding and they consistently said no."

Weledeh MLA Bob Bromley raised concerns in the legislative assembly about the centre's financial crisis. The centre currently has a debt of approximately $350,000, with $200,000 of that owing to Revenue Canada.

Hache said the centre is "hanging on by a thread" and at any day now, it could be forced to close its doors if Revenue Canada chose to freeze its bank accounts and come looking for money.

"It's very severe when you owe money to Revenue Canada," said Hache. "They can freeze whatever you are doing with the snap of a finger. They want answers on how they are going to get paid and I don't have any answers."

The centre has been refused emergency funding from the GNWT and has been told by the government on numerous occasions to manage its deficit, Bromley said, while pointing out that the government is currently reviewing capital estimates that show cost overruns, reaching into the millions in some departments.

"It's not good," Bromley said of the cost overruns. "But these things happen and sometimes we have to look at how we fix a critical problem, not point fingers of blame."

Hache said the organization has told the government what it needs in order to operate without incurring a deficit.

"They deliberately choose not to fund the centre for what it should be," Hache said. "I don't even know why this would be happening. We do great, important work.

"I think that, to me, the women that stay there are treated as the most marginalized in the community and I think the centre is being treated the same way."

Bromley asked Sandy Lee, minister of Health and Social Services, what she plans to do to help the 23 women who use the centre on a nightly basis if it has to close its doors, and what the government will do to prevent this from happening.

Lee said her department, along with Education, Culture and Employment, will continue to work with the centre to figure out how to reduce its debt, and help it run more efficiently.

"The financial difficulties of the centre is an issue that has been on going for many, many years," said Lee. "We very much value the services they provide. What we need to do is work with them … to find out more of the details of their financial difficulties and … we need to determine what is being underfunded and what options we have to secure their financial stability."

Lee said her department doesn't have details on the centre's finances and what led to its deficit.

Hache said she isn't happy with the answers she's been getting from Lee and her department.

"We've been meeting constantly for three years," said Hache. "If they aren't able to come to the table and say 'we agree you are in a deficit' and 'we agree that paying $200,000 to you today would help,' then I don't know what we've been talking about for three years. It's been a pointless conversation."

Hache was in Ottawa yesterday to receive a Governor-General's award for her work with the centre.

"It will be a shame if her appearance on the national stage coincides with the forced closure of the Centre for Northern Families," said Bromley.