Summary Report on Recipient Audit Performed on Cowessess Band

Background

Indigenous and Northern Affairs Canada (INAC) selected the Cowessess Band 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 Cowessess Band; 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 23, 2017 to January 30, 2017.

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 following are some key findings and key recommendations identified in the audit report.

Governance by Chief and Council

The procedures performed identified best practices and areas where there are opportunities to improve governance and administration in support of programs funded by INAC. A new Chief and six councilors were elected in April 2016. The Chief has created Councilor Portfolio Committees to address areas requiring elected leadership attention. In addition, the Chief and Council have put together a strategic plan for both short and long term initiatives. It is recommended that the Chief and council update the governance, financial and personnel policies and procedures to support a stronger management framework. These policies and procedures should be reviewed periodically. The recipient should also ensure that all reports are filed as required to avoid funding being withheld.

Band Management

The procedures performed identified the following areas for improvement with respect to Band financial management procedures. The Chief and Council should work with its team to further revise the existing chart of accounts to match INAC funding models' various components. This would improve efficiency in the preparation of their annual financial statements and facilitate the budget monitoring process. It is also recommended that the Senior Accountant perform monthly bank reconciliations which are reviewed and approved by a supervisor. The Recipient should continue with the implementation of the accounts payable module to ensure there will be accuracy in the financial information reported to management and INAC.

Current Status

A copy of the final report will be 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 Cowessess Band 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.