Summary Report on Recipient Audit Performed on Alexander Band
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Name: Alexander Band Location: Alberta Population: 1,111 on reserve; 2,172 total registered Default status at time of audit: Not in default Current default status: Recipient Managed Current Chief: Kurt Burnstick Time period covered by audit: April 1, 2011 to March 31, 2013 Amount of AANDC funding audited: $16,731,872
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Alexander Band 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 Alexander Band;
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 February 17, 2014 to February 25, 2014. The audit was completed with success and Spearhead Canada Management has examined sufficient evidence to support their conclusions. The Recipient complied with the Terms and Conditions of the Agreements with some exceptions noted in the report.
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 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 funded by INAC. Creation of formal work plans are recommended to assist management in the measurement of performance against planned goals and objectives. It was recommended that the recipient review their financial management policy more frequently, and that they develop budgets based on their individual programs to facilitate monitoring activities.
The procedures performed identified the following areas for improvement with respect to Band financial management procedures. Alexander Band should consider creating a centralized human resources group whose function would include supporting management of all personnel working for the band, and to assist in day to day administration of personnel issues. The recipient is recommended to maintain documentation for all financial transactions. Alexander Band was also recommended to have a payroll procedure where employees are required to get their timesheets approved and signed off by a manager.
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 Alexander 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.