Summary Report on Recipient Audit Performed on Cote First Nation 366

Background

Indigenous and Northern Affairs Canada (INAC) selected the Cote First Nation 366 in Saskatchewan for a recipient audit based on their 2016-2017 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 is in compliance with the terms and conditions of the 2014-2015 and 2015-2016 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 Cote First Nation 366; and
• Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with INAC.

Spearhead Canada Management Ltd, an independent audit firm, was commissioned by INAC to undertake the recipient audit. The audit procedures were performed from January 30, 2017 to February 3, 2017. The audit was completed with success and the auditors have examined sufficient evidence to support their conclusions.

Findings

The procedures performed identified control weaknesses within governance, program administration, expenditure oversight and financial management that, if well designed and operating effectively, would help ensure that funds are spent for their intended purposes and in compliance with the terms and conditions of the Agreement. The audit report noted that the new chief and Council, elected in September 2016, are working with INAC and Treaty 4 Governance Centre to address some of these weaknesses. The following are some key findings and key recommendations identified in the audit report.

Governance by Chief and Council

The procedures performed identified areas where there are opportunities to improve governance and administration in support of programs funded by INAC. It is recommended that the roles and responsibilities of committees, program boards and Program managers be reviewed and communicated to all relevant parties. It is also recommended that all work plans for the various programs be developed and approved by the Chief and Council.

Band Management

The procedures performed identified the following best practices and areas for improvement with respect to Band financial management procedures. As best practice, the auditors noted that all information in relation to financial operation is centralized in the Finance Section work location and that supporting documentation is held in a dedicated document room while previous years financial documents were kept in separate locations. In areas for improvement, it is recommended that Cote First Nation 366 develops a formal training plan to support their employees in the delivery of programs. It is also recommended that all managers be provided with their budget and regular financial reports on the actual expenses to support the accountability process.

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 Cote First Nation 366 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.