Summary Report on Recipient Audit Performed on La Première Nation des Montagnais de Pakua Shipi
Name: La Première Nation des Montagnais de Pakua Shipi
Location: Quebec
Population: 5 on reserve; 380 total registered
Default status at time of audit: Recipient-Appointed Advisor - MAP
Current default status: Not in default
Current Chief(s): Denis Mestenapéo
Time period covered by audit: April 1, 2010 to October 31, 2012
Amount of AANDC funding audited: $6,868,837
Background
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected La Première Nation des Montagnais de Pakua Shipi for a Recipient audit based on their 2012-13 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 2010-2011 and 2011-2012 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 Première Nation des Montagnais de Pakua Shipi; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with INAC.
Samson & Associates, an independent audit firm, was commissioned by INAC to undertake the Recipient audit. The auditors were not able to express an opinion on the entire period covered by the agreement due to the details on financial transactions that could not be provided for the period from November 1, 2011 to March 31, 2012.
Findings
The procedures identified a number of weaknesses within governance, financial management and management of the band. However, the Recipient has complied with the terms and conditions set out in the funding agreement.
Governance by Chief and Council
The procedures performed identified opportunities to improve governance in support of programs funded by INAC. It is recommended that the recipient staff fill the vacant Director General position in order to ensure the sound management of day-to-day operations and to support the achievement of organizational objectives. It is also recommended that the recipient identify all positions within the organization and develop a job description, including their requirements. The recipient should also complete a formal performance appraisal report that would be kept on the employees' file for reference. In addition, in order to align management practices with existing policies and directives, the salaries of employees should be approved in writing by the Band Council and the branch.
Band Management
The audit revealed that financial controls related to band management were in place to support programs funded by AANC. However, it is recommended that all supporting documentation be included in relation to reimbursements. The recipient should ensure that its management practices are consistent with what is set out in the Band's financial support policy and that they meet the criteria set out in it. In addition, in order to contribute to the transparency and disclosure of information within the organization, it is recommended that the recipient keep a record of the minutes of decisions taken at meetings and produce and transmit the necessary reports, for example the budget planning document and the audited annual financial statements.
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 the Première Nation des Montagnais de Pakua Shipi 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-*-*.