2004 November Report of the Auditor General of Canada

Assistance to post-secondary students was formalized for the first time with a program to encourage registered Canadian Indians and Inuit to acquire university and professional qualifications. In 1977–78, $9 million was provided to support 3,500 students. Funds were paid directly to post-secondary institutions (tuition fees) and to eligible students (living allowances).

The Department introduced the University and College Entrance Preparation Program to recognize mature students and others who did not have secondary school education. Bill C-31, which reinstated people who had lost their Indian status, contributed to an increase in the number of First Nations student enrolments.

First Nations and government engaged in major reviews of the initial program. The Auditor General of Canada reported that the program did not clearly define management roles and responsibilities, maintain program consistency, or provide adequate management information with which to measure program effectiveness.

The Department was funding 15,000 students and providing $130 million in fundings. Concern about the unpredictable and rapid growth of program expenditures prompted the Department to introduce a revised program, the Post-Secondary Student Support Program, on 20 March 1989. New rules were introduced. For example, funding would no longer be based on demand but on a fixed budget. If the number of eligible applicants were to exceed the budget, applications would be deferred. Program administration was transferred to First Nations and their organizations, and flexibility to modify program rules was confirmed.

The government approved incremental funding of $320 million for the program for 1991–92 to 1995–96. In 1991–92, $193 million was provided to support 21,440 students.

In 1992–93, the Department completed a strategic review of the program and found that resources were not being provided to meet all First Nations needs. It recommended that a system of block budgeting be used to enable First Nations to set their own student support priorities, control resources in their allocated budget, and optimize the use of educational and training funds from other sources.

Funding for the program became part of block-funding multi-year arrangements with First Nations. This program was completed in 1997.

The number of students funded under the program in 1993–1994 grew to 23,000. An additional $20.3 million was provided in 1994–95, and $20.0 million for each of the years 1995–96 to 1998–99. This increased the total program funding to $247.3 million for 1994–95 and $262.3 million for the remaining four years.

Block-funding envelopes were capped with annual increases to be allotted according to Treasury Board directives.

The Treasury Board approved renewed authorities for the program. One of the most notable changes was that maximum living allowances were to be tied to the Canada Student Loan Program. The Department intended to complete, in co-operation with First Nations, a review of the program by 2003.

The Treasury Board approved an extension of the authorities until 31 March 2005, with slight revisions. The Department intends to implement these authorities in 2004–05.