Question Period Note: Fall 2025 Auditor General Report: Follow-up on Programs for First Nations

N.A.

• Indigenous Services Canada (ISC) thanks the Auditor General for the follow-up report on programs for First Nations, some also impacting Inuit.

• ISC appreciates the opportunity to strengthen how we serve communities in critical areas such as health, education, emergency response, and clean water. These are the bedrock of safe, thriving communities—and they are central to our shared path toward equity and reconciliation.

• The Auditor General’s follow-up report is clear: there is real progress, and there is work we must accelerate.

• Significant work is already underway to expand the front-line health workforce, improve access to culturally appropriate dental care, strengthen emergency management, and support access to safe, clean drinking water.

• ISC will continue working together with First Nations to make progress in these key areas, guided by community priorities and a shared commitment to improving essential services.

On Tuesday, October 21, 2025, the Auditor General of Canada will deliver six performance audit reports to the House of Commons, including the Follow-up Report on Programs for First Nations.
This audit report focuses on whether Indigenous Services Canada made satisfactory progress in implementing the actions needed to address the recommendations included in six previous audit reports of the Office of the Auditor General of Canada issued between 2015 and 2022.
The Auditor General of Canada’s Follow-up Report on Programs for First Nations looks back on a total of 34 recommendations from six previous audit reports published from 2015 to 2022:
• Audit of Access to Health Services for Remote First Nations Communities (2015)
• Audit of Oral Health Programs for First Nations and Inuit (2017)
• Audit of Socio-Economic Gaps for First nations Reserves (2018)
• Audit of Access to Safe Drinking Water in First Nations Communities (2021)
• Audit of Health Resources for Indigenous Communities (2021)
• Audit of Emergency Management in First Nations Communities (2022)
The audit shares several findings related to Indigenous Service Canada’s progress on 34 recommendations from the previous six Auditor General reports. Sixteen of the recommendations from those reports were deemed to have achieved satisfactory progress. For example, the department made satisfactory progress in implementing all three of the recommendations from the OAG 2018 report, including improving the way education data was collected, used, and shared.
Progress on the remaining eighteen recommendations was found to be unsatisfactory. There were no new recommendations stemming from this follow-up audit.

If pressed on Indigenous Health Services
• Delivering culturally safe and appropriate healthcare to First Nations communities and peoples is of utmost importance to our government.

• Significant progress has been made on many of the recommendations in the report but ISC agrees that more work remains.

• Together with First Nations and guided by community priorities and a shared commitment to improving health services and outcomes, ISC will continue to make progress in these key areas.

• Our ongoing partnership with First Nations communities has been central to this progress and has led to tangible improvements in health services, infrastructure and oral health, while fostering trust and acccountability. If pressed on Nursing workforce
• ISC made significant progress on targeted goals for health staffing in remote and isolated First Nations communities.

• ISC is implementing a Nursing Health Human Resources Framework to stabilize and grow the workforce, supported by investments in Budget 2021 ($354 million), Budget 2022 ($40.5 million) and Budget 2024 ($90.5 million).

• ISC has tripled recruitment and retention allowances, expanded the types of health professionals who can be hired, beyond registered nurses, to improve and augment the workforce. This has been done in recognition of the national nursing shortage and the increasing health needs of the communities we serve.

• The implementation of these measures has resulted in the number of frontline nurses within the Department increasing from 593 in 2021 to 692 in 2024.

• ISC is working with First Nations partners to identify viable solutions to address staffing shortages when they occur.

• ISC has contracts for the services of relief healthcare providers to augment our workforce and maintain access to services in 50 remote and isolated First Nation communities.

• ISC is working collaboratively with First Nations partners to ensure services and programs are culturally appropriate, responsive, and community-driven.

• To support this essential goal, ISC has been working to make sure that nursing staff in remote First Nations communities receive adequate training.

• ISC has updated policies, established training targets and quarterly reporting, and implemented a new national learning management system for consistent tracking.

• By the end of 2024, the numbers showed great improvement: 79 per cent of existing nurses and 65 per cent of new nurses had received mandatory training. If pressed on Health Resources (2021 OAG Audit)

• Provinces, territories and the Public Health Agency of Canada’s National Emergency Strategic Stockpile (PHAC NESS) remain the primary source of meeting the personal protective equipment needs of all Canadians, and those working in the health care field. ISC’s maintains a tertiary backstop role.

• ISC has implemented significant enhancement of our Personal Protective Equipment (PPE) stockpile and inventory management system, to better respond to surges in demand and we are consistently meeting 100% of the on-reserve PPE requests for health services.

• During the COVID-19 pandemic, ISC processed over 1,600 PPE requests and distributed more than three million items to over 450 communities and organizations, often reaching remote and fly-in communities within 10 days despite national supply chain disruptions. If pressed on Health Infrastructure

• Dedicated and culturally appropriate health infrastructure is an essential part of ensuring access to health services and programs in First Nations communities.

• ISC has taken continuous measures to strengthen the management and implementation of its Health Facilities Program and address the 2015 OAG audit recommendations.

• The department has increased the frequency of inspections of nursing stations from every 5 years to every 3 years. Measures have also been introduced to better track and support First Nations in addressing any deficiencies identified during these inspections.

• ISC continue to ensure new nursing stations are built according to applicable building codes. ISC remains committed to maintaining and building upon the progress to date which includes continued updates to internal program documentation and processes.

• The department acknowledges that more can be done. There are further opportunities for the Health Facilities Program to add greater clarity to its program management documentation related to roles and responsibilities to address findings from inspections, as well as to outline exceptions to the eligibility for inspections to occur every 3 years. If pressed on Oral Health

• Good oral health contributes to overall health and quality of life. ISC helps to provide access to culturally appropriate oral health services to First Nations and Inuit through the Community Oral Health Services and the Non-Insured Benefits (NIHB) Program.

• The Department has implemented all recommendations of the OAG to improve the oral health data strategy, in addition to several other program improvements and enhancements

• ISC’s Non-Insured Health Benefits Program is considered one of the most comprehensive public dental benefit programs in Canada. The program has worked to strengthen relationships with Indigenous partners and organizations as well as dental providers and dental associations to explore best practices for dental benefits and oral health services.

• ISC supported the establishment of a new school of dental therapy by providing $2.1M to the University of Saskatchewan. This will increase the number of newly trained dental therapists who could be hired to support the delivery of Community Oral Health Services.

• The department has also implemented a strategy to Improve Oral Health Data Collection Analysis and Reporting.

• In response to the OAG recommendation, the Non-Insured Health Benefits Program took steps to strengthen the management of documentation to comply with Treasury Board Directive on Recordkeeping.

• The department acknowledges that the data currently captured in the Medical Transportation Record System is incomplete. Steps are being taken to address this finding through system modernization and process standardization.
If pressed on closing socio-economic gaps:

• ISC is committed to being accountable to Indigenous people and all Canadians for working collaboratively to improve well-being in Indigenous communities.

• Indigenous governments require tailored, sustainable supports to build Indigenous-led data capacity for effective service delivery and outcome-based reporting to citizens.

• ISC is committed to shifting from government prescribed reporting to Indigenous-led, outcome-based reporting, supporting Indigenous communities in delivering effective services, telling their own stories, and realizing their visions for self-determination.

• ISC has seen some notable progress in the area of education data—improving how it is collected, used, and shared to support better decisions and outcomes. If pressed on clean and safe drinking water
• Everyone in Canada should have access to clean and safe drinking water and ISC agrees that more needs to be done to support First Nations’ access to clean and safe drinking water on reserves.

• ISC is working with First Nations to support effective management and maintenance of existing water systems on reserves, and new water infrastructure to better meet the needs of communities.

• The Department recognizes that sustainable funding is needed to support First Nations to plan and implement infrastructure projects.

• Since 2015, ISC has committed over $7 billion to support First Nations for water and wastewater infrastructure and operations and maintenance, including over $5 billion to support 1,545 water and wastewater projects that will benefit 595 communities serving approximately 481,000 people, 725 of which are completed.

• As of October 14, 2025, First Nations, with support from ISC, have lifted 149 long-term drinking water advisories, providing access to clean water for over nine thousand homes and 650 buildings, and prevented over 315 short-term advisories from becoming long-term. If pressed on Efforts to Eliminate all Long-term Drinking Water Advisories
• There is more work to do, ISC has significantly supported First Nations to address long-term drinking water advisories.

• Between 2016 and 2025, approximately $1.1 billion has been invested in 162 infrastructure projects to address long-term drinking water advisories in First Nations communities.

• Since the 2020 OAG audit, 52 long-term drinking water advisories have been lifted. Ninety five percent of First Nations systems are not affected by a long-term advisory.

• Of the remaining advisories identified in the report, a total of 19 affect systems where the infrastructure in place is capable of providing potable water, but other issues—such as operational considerations—are impacting the ability to lift the advisory.

• Based on the 2023-2024 annual performance inspections, 97.5% of public water systems on reserve produce treated water that meets the prescribed standards in the Guidelines for Canadian Drinking Water Quality.

• Resolving short-term advisories before they become long-term is an important part of the overall work to eliminate long-term drinking water advisories. Over 315 short-term drinking water advisories (in effect for 2-12 months) have been lifted, including 147 since the 2020 OAG audit, preventing them from becoming long-term.

• There are currently no long-term drinking water advisories affecting public systems in BC, Alberta and Quebec.
If pressed on Long-term Solutions for Ongoing Access to Safe Drinking Water
• ISC has worked work closely with First Nations to implement long-term solutions to ensure sustainable access to safe drinking water.

• In 2024-2025, ISC invested approximately $1.1 billion in water and wastewater infrastructure and is on track for spending a similar amount this year.

• First Nations are implementing, with ISC support, long-term solutions for every long-term drinking water advisory impacting public systems on reserves. Progress continues, with solutions at varying stages of implementation, including the majority which are under construction or have been completed.

• Long-term solutions, such as completing major upgrades to a water system or constructing a new water treatment plant, can take several years to complete. Where possible, communities can choose to implement interim measures that allow them to ensure clean drinking water for their members faster while long-term work is being completed.

• Operational capacity is also critical to implementing long-term infrastructure solutions. ISC provides support directly or funds First Nations organizations, such as tribal councils, to support the community in providing further training or assistance to operators.

• Approximately half of the remaining advisories are impacted by operational challenges. ISC supports operator training and capacity building through programs like the Circuit Rider Training Program and the Ontario Water and Wastewater Hubs, which provide hands-on training and support to operators. ISC is also supporting First Nations to use third party operator services where requested by the First Nation. If pressed on Preventing Recurring Advisories
• ISC has worked proactively with First Nations to address deficiencies and prevent recurring advisories.

• Drinking water advisories can recur from time to time. They are public health protection measures, are generally precautionary, and are typically issued for various reasons such as water line breaks or equipment failure.

• ISC supports First Nations to address advisories before they become long-term, however in some cases the nature of the issue requires longer than one year to address, such as when a large project is needed or when there are complex challenges to address. Since 2015, over 315 short-term advisories have been lifted, preventing them from becoming long-term.

• Of the 9 long-term drinking water advisories that have recurred since 2020, 4 have since been lifted. Of the remaining advisories, 3 are being addressed by infrastructure projects while 2 are impacted by operator capacity challenges and support is being provided.

• Annual Performance Inspections are conducted on each system by a qualified inspector, identifying deficiencies that may need to be addressed. Extended Asset Condition reports are conducted by a third party every 3 years and provide a comprehensive assessment of condition and identify deficiencies with project descriptions and cost estimates.

• Inspection findings are leveraged by First Nations to address the condition of assets; projects identified are submitted to ISC through the First Nation Infrastructure Investment Plan process. If pressed on Identifying Funding Needed for Drinking Water Infrastructure
• ISC has made changes to improve operations and maintenance funding for water and wastewater systems.

• In 2022-2023, ISC regularized operations and maintenance funding based on 100 per cent of an updated and modernized funding formula. By 2025, with new investments from Budget 2019 and Fall Economic Statement 2020, ISC has increased the annual funding it provides to support the operations and maintenance of water and wastewater systems on a permanent basis by almost four times. 

• Each First Nation’s water system is unique. Operations and maintenance funding, informed by engineering studies that assessed funding needed to operate systems, accounts for each First Nation’s asset inventory adjusted for location.

• If a First Nation identifies a funding need that is greater than the amount provided by the formula, they can request additional funding which is reviewed and funded through the ISC regional office.

• Operations and maintenance funding is intended to cover the day-to-day or routine costs required to operate and maintain water systems and associated equipment. This includes activities such as, normal operations; routine maintenance; minor repairs; inspecting; painting; servicing; cleaning; flushing of pipes, valves, and tanks; and sampling, testing, and recording. If pressed on a Regulatory Regime for Safe Drinking Water for First Nations
• ISC agrees that First Nations currently lack legally enforceable protections comparable to those in provinces and territories, despite the significant and on-going efforts to address this issue.

• Since 2018, ISC has engaged with First Nations and First Nations representative organizations to develop a water legislation that would be the basis on which a regulatory regime could be developed.

• On December 11, 2023, the proposed First Nations Clean Water Act (Bill C-61) was introduced in Parliament. It advanced through first and second reading, along with consideration by the Indigenous and Northern Affairs Parliamentary Committee until January 2025 when Parliament was prorogued.

• All reasonable efforts were made by ISC to put in place legislation, working with First Nations, but its progress through the Parliamentary process was out of ISC’s control.

• ISC has announced the intention to introduce water legislation in Parliament in the fall of 2025. If pressed on the 2022 audit of emergency management
• Since the 2022 OAG audit, ISC has implemented measures to strengthen preparedness, coordination, and accountability in emergency management.

• The Department is working with First Nations, provinces, territories and other partners to enhance emergency management for First Nations communities in areas such as multilateral emergency management service agreements, community preparedness and capacity and mitigation initiatives.

• First Nations communities across the country can be assured that measures are in place to support their communities in the event of an emergency. If pressed on Multilateral Emergency Management Service Agreements
• ISC is advancing new multilateral emergency management service agreements that bring First Nations together as equal partners with provinces and the federal government to strengthen coordination, accountability, and culturally appropriate supports.

• These multilateral agreements will include wildfire and evacuation service standards, co-developed with First Nation partners, ensuring equitable emergency management services developed in partnership with First Nations.

• Significant progress has been made across the country, keeping ISC on track to meet its April 2027 commitment to have new multilateral emergency agreements in place. If pressed on Progress against the United Nations’ Sustainable Development Goals
• To directly respond to the Auditor General’s recommendation, ISC has developed 14 new performance indicators aligned with the United Nations’ Sustainable Development Goals to better track outcomes in emergency management and community resilience.

• These indicators were co-developed with First Nations partners and are now undergoing validation, with public reporting planned in this fall.

• ISC is already using the indicators internally to guide decision-making and strengthen transparency and accountability in emergency management programs. If pressed on Comparable Service for Emergency Management
• ISC is supporting First Nations-led, regionally co-developed service standards to be embedded in new multilateral agreements, ensuring comparability with non-Indigenous communities while respecting self-determination.

• Interim service standards and after-action tools are already in place, and lessons learned exercises, including those led by First Nations, have driven concrete improvements to emergency management services supporting First Nations.

• Collaboration with provinces, territories and service providers continues to support comprehensive, culturally appropriate, and equitable emergency management services for First Nations. If pressed on First Nations access to Emergency Management Services
• All eligible First Nations communities have access to ISC’s Emergency Management Assistance Program.

• ISC provides advance payments for imminent threats and reimburses one hundred percent of all eligible emergency costs.

• Provinces and territories hold primary responsibility for emergency management within their jurisdictions and we work with First Nations, provinces, territories, and partners to ensure timely, culturally safe, and effective emergency supports.

• First Nations communities can be assured that measures are in place to support communities in the event of an emergency.