Summary Report on Recipient Audit Performed on Liard First Nation
Name: Liard First Nation
Location: Yukon
Population: 124 on reserve; 1 191 total registered
Default status at time of audit: Third Party Manager (2014-2015)
Current default status: Third Party Manager
Current Chief: George Morgan
Time period covered by audit: April 1, 2012 to March 31, 2014
Amount of AANDC funding audited: $9,129,670
Background
Crown-Indigenous Relations and Northern Affairs (CIRNA), formally known as Indigenous and Northern Affairs Canada (INAC), selected the Liard First Nation in Yukon for a recipient audit based on INAC's 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 CIRNA 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 Recipient; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with CIRNA.
Hallux Consulting Inc., an independent audit firm, was commissioned by CIRNA to undertake the recipient audit. The audit procedures were performed from September 18, 2014 to September 25, 2014. Due to a lack of supporting documentation for the expenditures claimed under the financial terms and conditions of the Funding Agreements, the auditor was not able to express an opinion, in all material respects, as to whether the financial information was presented fairly for the period of April 1, 2012 to March 31, 2014.
Findings
The procedures performed identified that internal financial 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 to the agreement. 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 in support of programs funded by CIRNA. It is recommended that the Recipient should develop an organizational chart which will allow staff to have a better understanding of the roles and responsibilities of each position thus promoting staff accountability. It is recommended that the Recipient should review its policy framework to ensure completeness (e.g. covers administrative, finance and personnel), and have it approved by Chief and Council.
Band Management
The procedures performed identified areas where there are opportunities to improve band management in support of programs funded by CIRNA. It is recommended that the Recipient should review and amends as required its chart of accounts to ensure that it adequately supports its reporting requirements to CIRNA. It is recommended that the Recipient should ensure that detailed budgets, by program, are entered in the accounting system so that comparisons of budgets versus expenditures can be readily made. Another recommendation was that the Recipient should ensure that their approved financial policies and procedures include a description of the documentation required to support any financial transaction.
Current Status
A copy of the final report has been sent to the Recipient. CIRNA 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 Liard First Nation for CIRNA. The report produced for INAC is intended solely for the information and use of the Recipient and CIRNA 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.