Summary Report on Recipient Audit Performed on Dease River First Nation
Name: Dease River First Nation
Location: British Columbia
Population: 37 on reserve; 182 total registered (as at Dec 2017)
Default status at time of audit: Recipient Managed
Current default status: None
Current Chief: Ruby Johnny
Time period covered by audit: April 1, 2010 to March 31, 2012
Amount of AANDC funding audited: $3,066,273
Background
Indigenous Services Canada (ISC), formally known as Indigenous and Northern Affairs Canada (INAC), selected the Dease River First Nation in British Columbia for a recipient audit based on ISC's 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 ISC was spent for its intended purposes and is in compliance with the terms and conditions of the 2010-11 and 2011-12 Funding Agreements. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the Recipient; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with ISC.
Samson & Associates, an independent audit firm, was commissioned by ISC to undertake the recipient audit. The audit procedures were performed from February 26, 2013 to March 7, 2013. As per the audit report, the amounts as per the auditor, present fairly, in all material respects, the costs eligible for the period of April 1, 2010 to March 31, 2012 under the financial terms and conditions of the Funding Agreement and its amendments.
Findings
The procedures performed identified that some internal control processes were not properly put in place for program administration, financial management and reporting systems. Addressing these internal controls will strengthen how the recipient manages and allocates its funds in accordance with the agreement. The following are some key findings and key recommendations identified in the Recipient audit report.
Governance by Chief and Council
The procedures performed identified areas where there are opportunities to improve governance in support of programs funded by ISC. It is recommended that Dease River establish a code of ethics for the Chief and Council that would cover roles and responsibilities and a dispute resolution mechanism. It is also recommended that the recipient record and retain minutes of all council meetings to document decisions. This would allow for more transparency with community members.
Band Management
The procedures performed identified the following opportunities for improvement with respect to Band financial management procedures. It is recommended that the recipient update all their financial and operational policy manuals to reflect current best practices. These updated policies should be approved by Chief and Council and communicated to all employees in the organization. It is also recommended that all employee files contain basic information such as job descriptions, employment contracts, annual performance appraisals and proper documentation for authorization of changes in compensation. It is also recommended that the recipient's internal financial reporting should include budget information. This would allow management to more effectively monitor spending and improve cash flow management.
Current Status
A copy of the final report has been sent to the Recipient. ISC 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 Dease River First Nation for ISC. The report produced for ISC is intended solely for the information and use of the Recipient and ISC 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.