Summary Report on Recipient Audit Performed on Sheguiandah First Nation
Name: Sheguiandah First Nation
Location: Ontario
Population: 150 on Reserve; 408 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Chief: Andrew Aguonia
Time period covered by audit: Audit period April 1, 2011 to March 31, 2013
Amount of AANDC funding: $2,908,924
Background
Indigenous and Northern Affairs Canada (INAC), formally known as Aboriginal Affairs and Northern Development Canada (AANDC), selected the Sheguiandah First Nation in Ontario for a Recipient audit based on their 2014-15 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 2011-2012 and 2012-2013 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 Sheguiandah 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.
Ernst & Young LLP, an independent audit firm, was commissioned by INAC to undertake the Recipient audit. The audit procedures were performed from June 16, 2014 to June 19, 2014.
Findings
The procedures performed identified some weaknesses in the internal financial control processes that are in place for program administration, financial management and reporting systems. As a result, there were 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 Council and management should develop formal policies and procedures, including accounting and tendering policies and procedures, that are explicitly documented and communicated to employees. Once implemented these policies and procedures should be monitored on a regular basis. Another key recommendation was that the Recipient should put in place a timely review process to assess program performance in relation to program objectives.
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 document the confirmation of employment, salary and job descriptions for all current employees. In addition, new employees should be required to sign an employment contract detailing the terms of their employment including salary information. Another key recommendation was that purchase orders, invoices and packing slips (where applicable) be reviewed and signed by an appropriate level of management to verify validity and eligibility of expense against the Program guidelines.
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 Sheguiandah 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.