Management Letter - Audit of Webequie First Nation

Chief and Council
Webequie First Nation
P.O. Box 268
Webequie ON P0T 3A0

Ref:  2012-13 Recipient Audit Results and Follow-Up

Dear Chief and Council:

Aboriginal Affairs and Northern Development Canada (AANDC) conducted a number of recipient audits in fiscal year 2012-13, including an audit of the Webequie First Nation. Attached please find a copy of the full audit report and a summary of the report. The summary will be published on the department's website in the coming weeks, along with this management letter. Should you wish to, you may provide a written response to the audit to me within 30 days. Your response will also be posted.

No recoverable amount has been identified as a result of this recipient audit. The audit report included the following recommendations, which we advise you and your organization to address:

• It is recommended that the recipient document decisions by Chief & Council;
• It is recommended that all expenses reports submitted by employees be reviewed by a superior within Webequie First Nation.
• It is recommended that the payroll report be reviewed and approved by the Finance Officer or the Chief prior to payment to ensure payroll expenses are accurate and valid.
• It is recommended that the implementation of the governance functions identified in the Strategic Governance Plan continue.
• It is recommended that the Administration Code be approved and implemented to clearly define roles and responsibilities of Chief and Council, management and administrative employees.
• It is recommended that a budget for all programs that is aligned with financial terms and conditions of the contribution agreement be developed and implemented. It is also recommended that a variance analysis between budget to actual be conducted and significant variances be substantiated by the Program Managers.
• It is recommended that a single accounting application be used to integrate all program general ledgers.
• A back-up of the financial information should be done on a regular basis and the information should be stored off-site.
• Financial and administrative policies should be finalized and approved in order to strengthen financial controls.

Please contact your regional AANDC representative to discuss any questions or concerns you may have about this audit.

Sincerely,

Susan MacGowan, CMA
Chief Financial Officer

c.c.:  Anne Scotton, Acting Regional Director General, Ontario Region
Ron Hallman, Senior Assistant Deputy Minister, Regional Operations
Brahim Achtoutal, Acting Chief Audit and Evaluation Executive
Deloitte LLP