Summary Report on Recipient Audit Performed on Gitsegukla Indian Band
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Name: Gitsegukla Indian Band Location: British Columbia Population: 413 on reserve; 1,000 total registered (Feb 2017) Default status at time of audit: Recipient Managed and Recipient-Appointed Advisor (previously known as Co-Management) Current default status: Third-Party Funding Agreement Management Current Chief: William Blackwater Time period covered by audit: April 1, 2011 to March 31, 2013 Amount of AANDC funding audited: $6,951,993
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Gitsegukla Indian Band in British Columbia for a Recipient audit based on their 2011-12 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 2011-2012 and 2012-2013 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 Gitsegukla 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 on March 10, 2014 to March 20, 2014. The auditor gave a mix of no opinion and unqualified opinions for Grants, Set Contributions and Fixed Contributions, for the period of April 1, 2011 to March 31, 2013 under the financial terms and conditions of the Funding Agreements.
The procedures performed identified that internal financial control processes are not properly put into place for program administration, financial management and reporting systems. As a result, the Recipient was unable to properly manage their expenditures in accordance with the Funding Agreements.
Governance by Chief and Council
The procedures performed identified opportunities to improve governance in support of programs funded by INAC. The controls surrounding governance were determined to be inadequate. A key recommendation was that the Recipient should take minutes of all Chief and Council meetings to maintain a record of decisions made by the Chief and Council. Another key recommendation was that the Recipient should provide Program Directors and Coordinators with their annual budget and a monthly summary of the corresponding expenses by program area and ensure that Directors and Coordinators are made accountable to manage their program budgets.
The procedures performed identified areas where there are opportunities to improve band management in support of programs funded by INAC. The financial controls surrounding band management were determined to be inadequate. A key recommendation is that the recipient should update financial and operations policy manuals. In addition, it is recommended that the payroll register be approved by a manager with appropriate delegation. This will assist in ensuring that costs reported to INAC are supported by adequate documentation.
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 Gitsegukla 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.