Report on Recipient Audit Performed on Saulteaux First Nation
Name: Saulteaux First Nation
Population: 627 on reserve; 1,267 total registered
Default status at time of audit: Recipient Managed
Current default status: Recipient Managed
Current Chief: Kenny Moccasin
Time period covered by audit: April 1, 2011 to March 31, 2013
Amount of AANDC funding audited: $11,039,178
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Saulteaux First Nation in Saskatchewan for a recipient audit based on their 2012-2013 risk assessment score and other risk factors.
The objective of the recipient audit was to provide assurance that funding provided to the recipient by INAC was spent for its intended purposes and is in compliance with the terms and conditions of the 2011-2012 and 2012-2013 Funding Agreements. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the Saulteaux First Nation;
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with INAC.
Spearhead Canada Management Ltd, an independent audit firm, was commissioned by INAC to undertake the recipient audit. The audit procedures were performed from January 27, 2014 to February 7, 2014. The audited amounts detailed in the audit report present fairly, in all material respects, the costs eligible for the period of April 1, 2011 to March 31, 2013 under the financial terms and conditions of the Funding Agreements and its amendments.
The procedures performed identified that internal financial control processes are mostly in place, and well managed. There are, however, a few procedures that identified control weaknesses within governance, program administration, and financial management. Addressing these internal controls will strengthen how the Recipient manages and allocates its funds in accordance to the agreement. The following are some key findings and key recommendations identified in the audit report.
Governance by Chief and Council
The procedures performed identified areas where there are opportunities to improve governance and administration in support of programs funded by INAC. It is recommended to formalize all decisions through approved minutes. Saulteaux First Nation's Band Manager should consider updating the Band's existing policies and procedure manuals periodically. It is recommended that the Band Manager share budgets with staff to support accountability at all levels.
The procedures performed also identified the following observations and areas of improvements with Band financial management procedures. The First Nation's Financial Controller should keep track of funds by the type of funding to ensure that funds are available when needed. This will allow the recipient and the department to account for unexpended funds appropriately. It is recommended that the Financial Controller ensure that all accounting transactions are processed in a timely fashion, and that bank reconciliations are completed on a monthly basis. It is recommended that the Financial Controller develop a Travel report summary form and a Travel Advance form to confirm if the travel has been taken and if the money that was advanced has been spent. This recommendation has been addressed by the recipient as they have developed a travel claim summary form.
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 Saulteaux First Nation 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.
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