Summary Report on Recipient Audit Performed on the Nunatukavut Community Council
Name: Nunatukavut Community Council
Location: Newfoundland and Labrador
Default status at time of audit: Not in default
Current default status: Not in default
Current President: Todd Russell
Time period covered by audit: April 1st, 2014 to March 31st, 2016
Amount of AANDC funding audited: $1,378,449
Background
Crown Indigenous Relations and Northern Affairs (CIRNA) formally Indigenous and Northern Affairs Canada (INAC), selected the Nunatukavut Community Council for a recipient audit based on their 2015-2016 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 2014-2015 and 2015-2016 Funding Agreements. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the Nunatukavut Community Council; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with CIRNA.
Samson & Associates, an independent audit firm, was commissioned by CIRNA to undertake the recipient audit. The audit procedures were performed from January 29th, 2017 to February 3rd, 2017. The audited amounts of this report present fairly, in all material respects, the costs eligible and the audit adjustments of the Nunatukavut Community Council for the provision of programs, services and activities to its members for the period audited.
Findings
The procedures performed identified that internal financial control processes are mostly in place, and well managed. There are, however, some procedures that identified control weaknesses within governance, program administration, and financial management. Addressing these internal controls will strengthen how the Recipient manages and allocates it funds in accordance to the agreement. The following are some key findings and key recommendations identified in the audit report.
Governance by Board of Directors
The procedures performed identified areas where there are opportunities to improve governance and administration in support of programs funded by CIRNA. The recipient should engage with department sooner when remedial action plans are needed to address changes in planned activity as per the funding agreement. The recipient should comply with its governance policy by completing performance evaluations for all personnel on an annual basis.
Program Management
The procedures performed identified the following observations and areas of improvement with respect to the organization's financial management procedures.
It is recommended that the board of directors ascertain the remedial outcome when approving the use of funds outside their intended purposes. Travel expense reports should provide more details specifically as it relates to the purpose of the travel. The recipient should keep and correctly complete all documentation related to travel expenses. It is recommended that the organization improve filing procedures so that documents that support expenses are available for audit.
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 Nunatukavut Community Council. The report produced for CIRNA 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.