Summary report on recipient audit Performed on Tribal Chief Child and Family Services (East) Society
Name: Tribal Chief Child and family Services (East) Society
Location: Alberta
Population: 3,007 on Reserve; 5,552 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Executive Director: Kathleen Gadwa
Time period covered by audit: April 1, 2014 – March 31, 2016
Amount of AANDC funding audited: $9,665,085
Background
Indigenous Services Canada (ISC), formally Indigenous and Northern Affairs Canada (INAC), selected the Tribal Chief Child and Family Services (East) Society in Alberta for a recipient audit based on their 2016-2017 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 is in compliance with the terms and conditions of the 2014-2015 and 2015-2016 Funding Agreements with ISC. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the Tribal Chief Child and Family Services (East) Society; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with ISC.
Ernst & Young (EY), an independent audit firm, was commissioned by ISC to undertake the recipient audit. The audit procedures were performed from February 13, 2017 to February 15, 2017. The audit was completed and the auditors have examined sufficient and appropriate evidence to support their conclusions.
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 audit procedures performed resulted in identification of key areas, highlighted below, where there are opportunities to improve governance and administration, in support of programs funded by ISC.
Governance by Boards of Directors
Tribal Chief Child and Family (East) Society has its Articles of Corporation in order as the index includes its mission, values, accountability, code of conducts, etc. The minutes for the monthly board meeting are recorded. The Recipient also has an organization chart, employee handbook and a financial administration policies and procedures Manual. It addresses the roles and responsibilities of the members, clears the lines of responsibilities and accountability as well as ensures the proper administration of the program. The submission date for the Annual Audited Financial Statements for 2015-16 was past due as per the Agreement. It is recommended that the Board of Directors monitors the reporting requirements and deadlines to ensure that the required documents/contents are delivered to ISC on a timely basis.
Band Management
The Recipient has established and maintained accounting systems and procedures needed to implement the Agreement. Finance policies are well documented in the Recipient's Manual and is amended accordingly if required by operational challenges. It is reviewed and approved by the Board of Directors periodically. In addition, all expenditures are approved and signed by the Finance Department and the Executive Director. Certain expenditures incurred were deemed ineligible as they did not support the programs objectives. It is recommended that the Senior Finance Officer ensure that adequate documentation such as invoices, receipts, approval, etc. are maintained and kept on file to corroborate the purchase of goods and services delivery before they are processed and paid.
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. In addition, the Recipient was provided with a verbal briefing on the results of the audit.
Disclaimer: This audit summary was prepared based on information contained in a Recipient Audit Report on Tribal Chief Child and Family Services (East) Society for ISC. The report produced for ISC 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.