Summary Report on Recipient Audit Performed on Anishinaabeg of Naongashiing
Name: Anishinaabeg of Naongashiing
Location: Ontario
Population: 177 on reserve; 428 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Chief(s): Patricia Big George
Time period covered by audit: April 1, 2012 to March 31, 2014
Amount of AANDC funding audited: $4,301,177
Background
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Anishinaabeg of Naongashiing in Ontario for a Recipient audit based on their 2014-15 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 2012-2013 and 2013-2014 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 Anishinaabeg of Naongashiing; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with INAC.
Ernst & Young LLP, an independent audit firm, was commissioned by INAC to undertake the Recipient audit. The audit procedures were performed from February 23, 2015 to February 27, 2015.
Findings
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 establish and implement an organization chart, along with clear roles and responsibilities for all staff positions. Another key recommendation was that the Recipient should develop a risk management framework to assess its risk exposure and governance structure.
Band Management
The procedures performed identified areas where there are opportunities to improve band management in support of programs funded by INAC. A key recommendation was that the Recipient should put in place accounting policies and procedures that are explicitly documented, communicated to employees, implemented, and monitored on a regular basis. Another key recommendation was that the Recipient should ensure that all significant purchases follow the contract tendering process established in the Finance Manual to ensure the optimal value is being obtained by the Recipient.
Current Status
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 Anishinaabeg of Naongashiing 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.