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NTI Announces New Fiscally Prudent Policies

NR 05-40 FIS ENG Financial Policies.doc

(November 18, 2005 – Cambridge Bay, Nunavut) Nunavut Tunngavik Inc. Annual General Meeting members today adopted two new policies designed to assist the organization in meeting their objective of having $1.148 billion in the Nunavut Trust at the end of the 2007 fiscal year. Inuit organizations currently derive financial benefits from the capital transfers paid by the Crown to the Nunavut Trust under the Nunavut Land Claims Agreement.

The primary goal of our new financial policies is to ensure Inuit money is well managed, said 1st Vice-President and Vice-President of Finance James Eetoolook. We are demonstrating to Inuit we are fiscally responsible and have plans in place for a solid financial future. This will help align our resources with our planned activities. This has been a recurring theme at NTI this year, he said.

The first policy, the Surplus Revenue Policy, emphasizes how NTI will treat its surplus revenue. Until all outstanding loans by NTI, Regional Inuit Associations and Inuit Heritage Trust are paid in full to Nunavut Trust, surplus revenue at the end of the fiscal year will go toward paying down the outstanding loan balance.

A total of $800,000 will be repaid to the Nunavut Trust this year, Eetoolook said.

I am pleased to inform the AGM membership that after cutting costs in the past fiscal year, we have a surplus of $800,000 we will use to pay down our debt. Inuit should feel secure knowing that NTI continues to pay off their loans, said Eetoolook.

Once all outstanding loans are paid, surplus revenue will be directed to a reserve fund to accommodate future funding shortfalls. When a healthy reserve is developed, any additional surplus can be spent on new expenditures that meet funding guidelines.

The second policy, the Strategic Planning Policy, enables NTI and RIAs to focus on financial strategic planning. Because today’s financial markets are unstable, such Inuit organizations must carry out their financial planning with as much clarity, precision and predictability as possible, while preserving enough flexibility to adjust to changing circumstances. The Strategic Planning Policy will better enable Inuit organizations to plan for the future regardless of market fluctuations.

Eetoolook said the policy will enable a strategic planning working group to question all operational and administrative aspects of Inuit organizations, while focusing resources on annual budgeted activities. The principles of zero-based budgeting will be applied to the strategic planning process.

For further information:

Stephen Innuksuk
Assistant Director of Communications
Nunavut Tunngavik Incorporated
Tel: (867) 975-4922