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2000 October Report of the Auditor General of Canada

October 2000 Report—Chapter 11

Exhibit 11.16—Approval Not Based on Established Procedures—The 1999 Brott Music Festival, Hamilton, Ontario

In February 1999, HRDC approved funding of $750,000 to support the 1999 Brott Summer Music Festival in Hamilton for the National Academy Orchestra. The Brott Music Festival received $300,000 in funding from HRDC in 1997, $450,000 in 1998 and $750,000 in 1999. The 1999 Music Festival received additional funding of about $534,000 from other sources, including Heritage Canada and various non-federal partners.

The project's purpose was to prepare young orchestral musicians from across Canada to enter the field of professional music. The expected outcome was that a minimum of 75 percent of the 45 participants would find and keep full-time employment in orchestral music.

Information on file shows that a letter of request for funding was sent to the Minister's office on 7 October 1998. The project files contain no record of assessment against eligibility criteria. A 25 January 1999 recommendation for approval from HRDC's Ontario regional office notes, "This is a pan-Canadian project which received ministerial approval upon direct request from the sponsor." The Minister signed the approval on 1 February 1999.

Information in project files indicates that regional and local HRDC officials have consistently been of the view that this project does not meet eligibility criteria as it does not create permanent employment and provides only limited experience for participants. Follow-up of the 1999 project by project officers indicated that a quarter to a third were repeat participants, having been involved in previous music festivals funded in part by HRDC. The follow-up also indicated that most of those who had completed the program were either freelancing or self-employed.

The project was funded again the next year. In October 1999, the sponsor sent a letter of request to the Minister's office for funding of $791,700. Upon request, the sponsor submitted a proposal for assessment by HRDC headquarters officials, who recommended funding of $460,000 with new stipulations to limit the cost per participant and overhead costs. However, although headquarters' analysis indicated that only first-time participants would be eligible, this requirement was not included in the terms and conditions of the contribution agreement. In June 2000, the Minister approved the recommended funding.

The Department told us that the issue of repeat participants for the 2000 project will be addressed through regular monitoring.

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