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- calendar_today November 2, 2026
Audit Reveals Oversight Gaps in Child-Care Funding
The Government of the Northwest Territories (N.W.T.) is making changes to how it oversees payments to licensed child-care providers following an audit that uncovered significant gaps in its verification processes. Over the past two years, the territorial Department of Education distributed millions of dollars in funding to early learning and childcare facilities without confirming the accuracy of attendance, staff hours, or parent fee data before issuing payments.
Reliance on Self-Reported Data Questioned
According to the October audit, the department relied on attestations from facilities rather than verifying reported staff hours against timesheets or ensuring that the parent fees matched actual invoices. The intention was to avoid placing additional administrative burdens on child-care workers. However, this approach raised concerns about accountability and the use of public funds.
New Requirements for Licensed Child-Care Providers
As of November 1, the Department of Education is requiring all licensed facilities to submit receipts and documentation covering the last two years. These new obligations include data on attendance, staff, closure days, and other eligible expenses paid with government funding. The department's director of early learning and child care, Matthew Milovanovic, stated that providers would first be asked for attendance records before requests for further information.
Facilities to Submit Detailed Documentation
Operators must now provide verifiable documentation for staff wages, parent fee structures, and other expenses, in addition to continued quarterly and annual reports. Moving forward, annual submissions of attendance and closure days will also be required from licensed facilities.
Concerns Around Funding Calculations and Overpayments
The audit highlighted that some facilities received payments based on outdated or assumed attendance figures. Notably, newly opened daycares after April 1, 2023, were funded assuming full enrolment, as attendance verification was not conducted in advance. The department also has rules to reduce funding if attendance drops below 50% of enrollment, but due to data collection lapses, some facilities may have received more money than eligible.
Audit Calls for Greater Transparency
Deputy Auditor General Andrew Hayes, the report's author, explained that while the audit did not find any deliberate misuse of funds by facilities, the lack of rigorous checks means the government cannot guarantee that public money was spent as intended. "This information is important to make sure that value for money is achieved, that public funds are being used in the right way," Hayes told CBC's The Trailbreaker radio program.
He also noted that calculations supporting the territorial government’s advertised average daily $10 parent fee were based on the assumption of full enrolment at all times, rather than real attendance data. "We can't say that it has improved the affordability," Hayes said, adding that the department should collect accurate information and be more transparent about program results.
Future Funding and Accountability Measures
The Department of Education had a budget of approximately $34 million for 2024-2025, with more than $27 million—about 80%—directed to early child-care funding. Similar figures are anticipated for 2025-2026. The new accountability measures introduced this month will continue into the spring, with licensed providers expected to submit retrospective and regular documentation to support their use of public funds.
Source: cbc.ca.
