Management Letter - Lac La Croix First Nation

Chief and Council
Lac La Croix First Nation
PO BOX 640
FORT FRANCES ON P9A 3M9

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 Lac La Croix First Nation. Please find attached 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 me, pertaining to this audit within 30 days. Your response will also be posted.

As a result of this recipient audit, a non-compliant amount of $108,525 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 Lac La Croix First Nation should implement appropriate procedures and financial controls, including documentation retention procedures, to enable it to demonstrate that expenditures incurred are supported by appropriate documentation and that expenditures funded by the Government of Canada were incurred in accordance with the terms and conditions of the funding agreements between Lac La Croix First Nation and the Government of Canada.
2. The Lac La Croix First Nation should develop, approve and implement a Strategic Governance Plan and implement policies and/or codes that include roles and responsibilities for Chief and Council.
   
3. The Lac La Croix First Nation should submit required reports in a timely manner and as described in the Contribution Agreements.
   
4. The Chief and Council should implement a budget for all programs that is aligned with the requirements of the Contribution Agreements. On a regular basis, Lac La Croix First Nation should conduct budget to actual variance analysis and ensure significant variances are substantiated by Program Managers.
5. The Lac La Croix First Nation should develop, approve and implement an Accountability Framework, as well as policies and codes as required by the Contribution Agreements.
6. The Lac La Croix First Nation should ensure proper access to technical support for its accounting system, and that a backup process should be developed to ensure the integrity of the financial data.

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
Acting Chief Financial Officer

c.c.: Anne Scotton
Scott Stevenson
Mauricette Howlett
Deloitte LLP