Summary Report on Recipient Audit Performed on Mohawks of Kanesatake
Name: Mohawks of Kanesatake
Location: Quebec
Population: 1,384 on reserve; 2,472 total registered
Default status at time of audit: None
Current default status: None
Current Grand Chief: Serge Otsi Simon
Time period covered by the audit: April 1, 2012 to March 31, 2014
Amount of AANDC funding audited: $13,961,467
Background
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Mohawks of Kanesatake located in the Quebec Region for a recipient audit based on their 2013-2014 risk assessment score and other risk factors.
The objective of the recipient audit was to provide assurance that funding provided to the recipient by INAC was spent for its intended purposes and is in compliance with the terms and conditions of the 2012-2013 and 2013-2014 Funding Agreements. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the Mohawks of Kanesatake; 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 February 16, 2015 to February 20, 2015. The audited amounts detailed in the audit report present fairly, in all material respects, the costs eligible for the period of April 1, 2012 to March 31, 2014 under the financial terms and conditions of the Funding Agreements and its amendments.
Findings
The procedures performed identified that internal financial control processes are mostly in place, and well managed. There are, however, a few procedures that identified control weaknesses within governance, program administration, and financial management. Addressing these internal controls will strengthen how the recipient manages and allocates its funds in accordance to the agreement. The recipient has implemented some of the recommendations made by the auditor and is in the process of implementing the remaining recommendations. 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 recipient develop an organization chart which will allow staff to have a better understanding of the roles and responsibilities of each position thus promoting staff accountability. The recipient should develop a standardized process to approve work plans. It is recommended to ensure that policies are reviewed and approved on a regular basis. The recipient plans to implement the recommendations.
Band Management
The procedures performed identified the following areas for improvement with respect to Band financial management procedures. The recipient should properly account for transfers of funding that would more accurately reflect revenues and expenses. It is recommended that Chief and Council ensure that an independent review of payroll is exercised to improve internal financial control related to the payroll function. The recipient has implemented these recommendations.
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 Mohawks of Kanesatake First Nation for INAC. The report produced for INAC is intended solely for the information and use of the Recipient and INAC Management. This 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 or findings. Consequently, this summary may not be appropriate for the purposes and use of the reader.