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2000 October Report of the Auditor General of Canada

October 2000 Report—Chapter 11

Exhibit 11.15—Inconsistent With Program's Aims—UBI Soft Divertissements Inc., Montreal, Quebec

In this project, YIC funds were used to assist an employer in the computer software industry to expand operations in Canada. HRDC agreed to provide a 33.3 percent wage subsidy to assist in creating about 120 jobs; this represented a financial commitment of $2.3 million. Other proposed funding for the project included $1.2 million from the provincial government.

In discussions with regional HRDC officials, we questioned whether this project fully met the YIC eligibility criteria. HRDC officials told us that because of the limited availability of other program alternatives to the Department, the YIC program had been used as part of a financial package to assist an employer to expand into the local area.

In our judgment, the primary focus of this project was on economic development and job creation, rather than on providing needed assistance to youth facing difficulties in making the transition into the job market.

In the Department's view, the records demonstrate that participants in this project met the eligibility criteria of being unemployed or underemployed.

We could find no evidence in the project documentation that individuals selected for assistance were experiencing "transition" problems. Neither was there any assessment on the project file to indicate how internships under the program would help the participants.

Source: Analysis based on departmental records and interviews with HRDC staff