A new federal audit has found Ottawa's on-reserve education system continues to suffer from poor oversight and weak student outcomes despite spending billions of dollars annually and providing significantly more funding per student than the national average.Blacklock's Reporter says the audit marks the second time in five years that Indigenous Services Canada has been criticized for shortcomings in its management of First Nations elementary and secondary education."No formal oversight body exists at the national level," auditors wrote in the Audit of Elementary and Secondary Education. "Oversight is essential to monitor program results, ensure alignment with policies and support informed decision-making."The department, now headed by Indigenous Services Minister Mandy Gull-Masty, is responsible for education on First Nations reserves across Canada.According to the audit, the department's funding model does not adequately account for students requiring special education services, prioritizes communities that already have schools over those with inadequate facilities and fails to track how operations and maintenance funding has been spent."The department is accountable for demonstrating progress in First Nations education outcomes," the report states. "Supporting the education of students on-reserve requires a coordinated approach."Federal spending on on-reserve education averages about $2.6 billion annually for roughly 118,000 students, or about $22,034 per student.Statistics Canada reported average public education spending across Canada was $17,130 per student in 2025, about 29% lower than federal spending on reserve schools. Provincial averages ranged from $14,563 in Newfoundland and Labrador to $14,785 in Alberta and $14,719 in British Columbia..The latest audit echoes concerns raised in a 2021 departmental evaluation that found increased funding had failed to produce better educational outcomes."The status quo of the approach to education program support will not lead to desired outcomes and will not support reconciliation and self-determination," that report concluded.Auditors also found little evidence student performance had improved despite substantial increases in federal spending."Results for First Nation learners have not shown improvements over recent years juxtaposed against significant funding increases in that time," the 2021 evaluation stated.The earlier review also challenged the department's reported graduation rates.While Indigenous Services Canada had reported a graduation rate of 45%, auditors found actual graduation rates at on-reserve schools were considerably lower in several provinces.Graduation rates were reported at 15% in Manitoba, 20% in Ontario, 24% in Saskatchewan, 25% in Quebec, 29% in Alberta, 39% in Atlantic Canada and 44% in British Columbia.Auditors also said the department understated dropout rates by counting only students who had attended at least one year of high school. Including students who left school before Grade 9 produced significantly worse results."There has not been measurable improvement over time," the 2021 report concluded.
