Summary Report on Recipient Audit Performed on Pheasant Rump Nakota First Nation
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Name: Pheasant Rump Nakota First Nation Location: Saskatchewan Population: 149 on reserve; 412 total registered Default status at time of audit: Recipient Managed Current default status: Recipient Managed Current Chief: Ira McArthur Time period covered by audit: April 1, 2011 to March 31, 2013 Amount of AANDC funding audited: $1,569,959
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Pheasant Rump Nakota 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 Pheasant Rump Nakota First Nation;
Conduct of audit procedures on the eligibility of the expenditures claimed under theterms and conditions of the Funding Agreements with INAC.
Spearhead Management Canada Ltd, an independent audit firm, was commissioned by INAC to undertake the recipient audit. The audit procedures were performed from March 3, 2014 to March 6, 2014. The audit was completed with success and Spearhead Management Canada has examined sufficient evidence to support their conclusions. The information presents fairly, in all material respects and the recipient is in accordance with the Terms and Conditions of the Agreements.
The procedures performed identified that internal financial control processes are 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 it 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 are funded by INAC. As outlined in the Management Action Plan, it is recommended that the recipient develop an organizational chart which will allow staff to have a better understanding of the roles and responsibilities of each position thus promoting staff accountability.
The procedures performed identified the following areas for improvement with respect to Band financial management procedures. Pheasant Rump Nakota First Nation should consider developing annual work plans that correlate with their strategic plans to ensure long term goals and objectives are met. It is recommended that the recipient maintain documentation related to the purchase and disposal of capital assets to maintain accurate asset inventories.
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 Pheasant Rump Nakota 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.