Summary Report on Recipient Audit Performed on Ts'kw'aylaxw First Nation
Name: Ts'kw'aylaxw First Nation
Location: British Columbia
Population: 196 on reserve; 573 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Chief(s): Francis Alec
Time period covered by audit: April 1, 2011 to March 31, 2013
Amount of AANDC funding audited: $3,168,594
Background
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Ts'kw'aylaxw First Nation in British Columbia 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 Ts'kw'aylaxw First Nation; 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 audit procedures were performed from January 14, 2013 to January 25, 2013. The auditor gave a qualified opinion for the period of April 1, 2011 to March 31, 2013 under the financial terms and conditions of the Funding Agreements. Subsequent audit work was performed, where it was concluded that there was no change to the final report issued.
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, some of the expenditures examined as part of the recipient audit did not comply with the terms and conditions of the Funding Agreements.
Governance by Chief and Council
The procedures performed identified opportunities to improve governance in support of programs funded by INAC. A key recommendation was that the Recipient provide the Program Directors and Coordinators with their annual budget and a monthly summary of the corresponding expenses and ensure that Directors and Coordinators are held accountable to manage their budgets.
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 ensure that all journal entries posted are adequately supported with appropriate documents to justify the journal entry. Another key recommendation was that the Recipient should establish a leave schedule to keep track of vacation leave, sick leave and other personnel leave to ensure that employee attendance is accurately recorded.
Currents 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 Ts'kw'aylaxw First Nation 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.