Management Letter - Roseau River Anishinabe First Nation Government

Chief
Roseau River Anishinabe First Nation Government
P.O. Box 30,
GINEW, MB  R0A 2R0

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

Dear Chief:

Aboriginal Affairs and Northern Development Canada (AANDC) conducted a number of recipient audits in fiscal year 2012-13, including an audit of Roseau River Anishinabe First Nation Government. 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.

As a result of this recipient audit, a non-compliant amount of $18,093 has been identified and is subject to recovery, unless additional evidence is provided within 30 days. A representative of AANDC will contact you shortly to follow up on recovery/repayment arrangements.

The audit report also included the following recommendations, which we advise you and your organization to address:

1. The Chief and Council should improve the governance and oversight of the funding provided by AANDC through:
   • Completion of the custom election code and approval by the community;
   • Regular review of financial information (quarterly at a minimum, monthly is optimal) to assess actual program and administration expenditures compared to the budgeted amounts;
   • Documentation of minutes for all Chief and Council meetings and provision of minutes for review by Members, AANDC, auditors and other stakeholders as appropriate; and
   • Completion and presentation of annual budgets and consolidated audited financial statements to Members.
2. The Chief and Council, in conjunction with the Third-Party Manager, should prepare a strategic plan to communicate the strategic objectives of the Band over the next one to three years.
3. The Chief and Council, with the assistance of the Third-Party Manager, should prepare operational plans for the significant programs managed and administered. Based on the current programs, significant programs may include: education, social, facilities Operation & Maintenance and housing, and Band support.
4. The Chief and Council, in conjunction with the Third-Party Manager, should improve the financial administration and management of First Nation funding provided by AANDC in order to help Band Management be self-managed without the need for Third-Party Management through:
   • Building capacity in the areas of financial management;
   • Reviewing financial information on a regular basis that includes budget and actual results with explanations for significant variances over and under budget and prepare consolidated financial statements on an annual basis;
   • Documenting financial policies including the requirements for cash receipts, cash disbursements, accounting and record keeping, and financial reporting. These policies should be communicated and implemented with appropriate training provided as needed; and
   • Secondary review of all bank reconciliations prepared by the Third-Party Manager for the social programs.
5. The Third-Party Manager should ensure that all disbursements are properly supported by documentation. The key financial controls related to the disbursement of funds provided by AANDC should include, at a minimum, the following requirements: original invoices and contracts must be provided or available to support all cheque requisitions; receipt of goods or services must be approved by the proper delegated authority; cheque requisitions must be approved by authorized individuals only; and a list of individuals authorized to approve cheque requisitions, sign cheques, and issue bank transfers must be maintained.

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

Sincerely,

Pamela d'Eon, B.COM, B.ED,MBA
A/Chief Financial Officer

c.c.: Anna Fontaine
Sue MacGowan
Brahim Achtoutal
Spearhead Management Canada Limited
Indigenous Management Group Inc.