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Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Spuzzum Indian Band in British Columbia for a Recipient audit based on their 2012-13 risk assessment score and other risk factors.
The objective of the Recipient audit was to provide assurance that funding provided to the Recipient by Canada was spent for its intended purposes and was in compliance with the terms and conditions of the 2010-2011 and 2011-2012 Funding Agreements with INAC. The objective was achieved through:
Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the Spuzzum Indian Band; and
Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with INAC.
Samson & Associates, an independent audit firm, was commissioned by INAC to undertake the Recipient audit. The audit procedures were performed from March 13, 2013 to March 20, 2013. Subsequent audit work was performed, where the potential recoverable was reduced.
The procedures performed identified weaknesses within internal controls, expenditures oversight and financial management that, if well designed and operating effectively, would help ensure that funds were spent for the intended purposes and in compliance with Funding Agreements.
Governance by Chief and Council
There were no governance issues noted.
The procedures performed identified areas where there are opportunities to improve band management in support of programs funded by INAC. A key recommendation was that the Recipient should ensure that supporting documentation is complete and properly filed and that the general ledger reconciles to the annual audited financial statements. Another key recommendation was that the Recipient should perform month end accounting procedures to ensure that all expenses are accounted for and that expenses are allocated to the proper fund. Finally, it was recommended that the Recipient should document and approve a tendering policy that ensures the Band receives multiple bids for significant purchases and should also maintain all bids on file where tenders or quotes are required.
A copy of the final report has been sent to the Recipient. INAC and the Recipient are working together to address the findings.
Disclaimer: This audit summary was prepared based on information contained in a Recipient Audit Report on Spuzzum Indian Band for INAC. The report produced for INAC is intended solely for the information and use of the Recipient and INAC Management. The audit summary only presents limited information on the general findings based on the audit procedures performed and does not provide information on the detailed procedures of findings. Consequently, this summary may not be appropriate for the purpose and use of the reader.