Auditor general’s report questions Frulla’s proposed plans for CTF

Measures have already been suggested to improve the efficiency of the Canadian Television Fund (CTF), but a report released last week by the auditor general questions some of those proposals. Sheila Fraser’s report (CCR Update, Nov. 22/05) is cautious about a proposal announced in June by Canadian Heritage minister Liza Frulla that calls for the CTF board to control the fund’s direction but to contract out its administration to Telefilm Canada (CCR, June 24/05). The proposal was made because the department, like Fraser, found the administration and governance of the CTF too complex. "In our view, Canadian Heritage must rigorously assess the impact of its June 2005 proposal to simplify the operations and structure of the on Telefilm Canada – in particular, Telefilm Canada’s ability to implement Parliament’s March 2005 decision to give Telefilm Canada the mandate to promote and foster the development of the audiovisual industry in Canada," reads the report. Fraser’s report also notes the proposal would relegate Telefilm to a role of selecting and administering projects in accordance with CTF criteria. "Telefilm Canada would have little influence on the design and orientation of television support programs," the document states, adding the proposal could "significantly limit" the government agency’s ability to develop the TV industry and to account to Parliament on that part of its mandate. In response, Canadian Heritage says it will clarify Telefilm’s role in its proposal to improve the governance of the CTF. However, Telefilm seems undisturbed that Frulla’s recommendation might limit its function as a developer of policies to support Canadian TV. Telefilm states in a November 24 media release that it "will benefit from the ’s best practices for management and control" and "is pleased with this approach, which draws on its role as a strong administrator." CRTC vice-chair of broadcasting Michel Arpin says that the CTF is putting in place a system that will ensure it has access to commission data. "An example that raised was that the CRTC is getting information from the distributors of how much money they send to the CTF, and we have audited that," Arpin says. "But the CTF did not put in place processes to acquire that information from the CRTC…And the CTF has no way to make sure that the money that they received is what the CRTC directed." The auditor general’s report also charges that the structure of the CTF board "opens the door to potential conflicts of interest, because the majority of the board directors are nominated by associations whose members receive CTF program funding or have direct or indirect interests in the broadcasting or production of television programs." The CTF board consists of 20 directors – five appointed by the government, 14 appointed by industry associations and one chair. The chair can be selected from among the directors or can come from outside the board. Fraser also questions the presence of a Canadian Heritage representative and the Telefilm Canada chair on the CTF board because they would have a fiduciary duty to the CTF but would have to remain accountable to Canadian Heritage and the Telefilm board respectively. The report also notes that the CTF objectives are unclear. "We found that the CTF program objectives are broad and lack precision," states the report. "For example, it is not clear whether a regional production is a production made in a particular region or one that depicts a particular region."

Auditor general’s report questions Frulla’s proposed plans for CTF

Broadcast | November 29, 2005

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