The CRTC said Tuesday an independent external audit of Broadband Fund recipient Broadband Communications North (BCN) has found BCN was non-compliant with a specific condition of the funding and was over-reimbursed for a satellite project in northern Manitoba.
The project, which was approved for $9.9 million in funding in 2020, was to improve satellite capacity for the remote communities of Barren Lands, Lac Brochet, Pukatawagan, Shamattawa First Nation and Tadoule Lake.
The external auditor’s report submitted to the CRTC in July 2025 found that BCN received third-party funding, in addition to the CRTC’s funding, that resulted in an over-reimbursement to BCN for the project.
The CRTC had appointed the external auditor in October 2024 to review BCN’s compliance with conditions of funding in response to potential financial irregularities identified by one of BCN’s vendors.
On Tuesday, the CRTC said it is notifying the Central Fund Administrator (CFA) that an over-reimbursement in the amount of $701,422 was to be returned to the National Contribution Fund. The CFA may use one or more of the remedies available under Telecom Decision 2019-382 to address the overpayment, the CRTC said. The commission is also directing the CFA to make an additional payment of $248,611.92 to the vendor, in accordance with an approved rate adjustment.
In an emailed statement to Cartt on Tuesday, BCN’s interim executive director, Disa Haldorson, said BCN is aware of the CRTC’s decision regarding the external auditor’s report.
“We are disappointed that the Commission released its decision adopting the auditor’s findings without first notifying BCN or meaningfully addressing BCN’s documented concerns regarding the report and its interpretation of the original funding arrangement,” Haldorson wrote.
“Over the past several months, BCN has repeatedly engaged with the CRTC regarding the auditor’s interpretation of the original funding arrangement, including what BCN believes to be an incomplete assessment of the project’s eligible expenses, the subsequent re-examination of previously approved claims, and the resulting retroactive adjustment of the project’s funding methodology. BCN has consistently advised the CRTC that applying a new interpretation to claims that had previously been approved has significant financial implications for a not-for-profit organization that delivered the project in accordance with the funding arrangement in place at the time.
“The report omits important financial context, including subsequent funding calculations and related correspondence between BCN and the CRTC regarding the administration of the Broadband Fund. BCN believes this information is essential to understanding the complete financial position and the funding decisions made throughout the project. While the Commission met with BCN and maintained its position, BCN’s substantive concerns regarding the auditor’s interpretation of the funding arrangement, and the broader financial context were not addressed in the Commission’s final decision.
“BCN remains committed to transparency and accountability and welcomes an objective review of all relevant information. However, we believe it is important that any public reporting reflects the complete factual record, including the concerns BCN has consistently raised with the CRTC that remain unanswered,” Haldorson wrote.
