Summary Report on Recipient Audit Performed on Lubicon Lake Band
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Name: Lubicon Lake Band Location: Alberta Population: 326 on reserve; 533 total registered Default status at time of audit: Not in default Current default status: Not in default Current Chief: Billy Joe Laboucan Time period covered by audit: April 1, 2011 to March 31, 2013 Amount of AANDC funding audited: $3,005,427
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Lubicon Lake Nation in Alberta 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 Lubicon Lake Nation; and
Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with INAC.
Deloitte LLP, an independent audit firm, was commissioned by INAC to undertake the recipient audit. The audit procedures were performed from January 20, 2014 to January 24, 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 Agreement and its amendments.
The procedures performed identified that internal financial control processes are in place and well managed. This enables the recipient to properly manage their expenditures according 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 that Lubicon Lake Band develop their policies and procedures to support their processes. Lubicon Lake Band should also develop an approach to governance which includes recording and approving meeting minutes and creating strategic plans. At the time of the audit, Lubicon Lake Band was not in any type of default management program (previously were in Third Party Management), thus going forward, the Band should develop strategic plans, work plans and administrative policies for various programs.
The procedures performed identified the following observations and areas of improvement with respect to Band financial management procedures. It is recommended that Lubicon Lake Band develop formal accounting policies and procedures in accordance with the Canadian Public Sector Accounting Standards.
It is recommended to keep all supporting documentations relating to financial, administrative and human resources processes. The recipient should ensure that financial policies are documented and communicated to employees to ensure proper audit trail.
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 Lubicon Lake Band for INAC. The report produced for INAC is intended solely for the information and use of the Recipient and INAC Management. This 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 or findings. Consequently, this summary may not be appropriate for the purposes and use of the reader.