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NTI Moves to Zero-Based Budgeting Process

NR 05-22 ZER ENG Zero Based Budgeting.doc

(June 8, 2005 -Cambridge Bay, Nunavut) Nunavut Tunngavik Inc. 1st Vice-President and Vice-President of Finance James Eetoolook announced today the NTI Board of Directors unanimously passed a resolution directing the organization to adopt a zero-based budgeting process effective fiscal 2006/07. The Board passed the resolution during their quarterly board meeting in Grise Fiord last week.

Our primary goal in moving to zero-based budgeting is to ensure that Inuit money is well managed, said Eetoolook. “We are clearly demonstrating to Inuit that NTI is extremely responsible with our finances, and that we are committed to developing and maintaining a solid plan for managing our budget and other financial affairs, he said.

Zero-based budgeting examines all expenses from the perspective of whether the program, activity or item to which the expense is attached is required, and to what extent should it be funded. Traditional budgeting generally accepts the funding levels of prior periods and builds upon them. This results in a tendency for budget levels to increase each year.

Annual assessments of the zero-based budgeting process will be conducted by NTI to ensure the new system is operating properly. Necessary adjustments will be made accordingly.

The zero-based budgeting process will also be coordinated with NTI’s strategic plan to ensure that the organization remains focused on its mandate under the Nunavut Land Claims Agreement, explained Eetoolook. We are doing everything we can to streamline NTI to better meet the needs of the Beneficiaries we serve.

The resolution also recommended the Regional Inuit Associations and the Inuit Heritage Trust adopt a zero-based budgeting process by fiscal 2007/08. Further, the Board directed NTI President Paul Kaludjak to communicate this request to the other organizations, and to report back to the Board during the September 2005 quarterly Board meeting as to whether they agreed to adopt the process.

For further information:

Kerry McCluskey
Director of Communications
Nunavut Tunngavik Incorporated
Tel: (867) 975-4914
Cell: (867) 975-1337
Toll-free: 1-888-646-0006