Summary report for the recipient audit performed on Annapolis Valley Band Council
Name: Annapolis Valley band Council
Location: Nova Scotia
Population: 119 on reserve; 292 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Chief: Gerald B. Toney
Time period covered by audit: April 1st, 2014 to March 31st, 2016
Amount of AANDC funding audited: $1,692,034
Background
Indigenous Services Canada (ISC), formally Indigenous and Northern Affairs Canada (INAC), selected the Annapolis Valley Band 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 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. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the Annapolis Valley Band Council; 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 January 11th to January 19th, 2017. The audit was completed and the auditors obtained 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 following are some key findings and key recommendations identified in the audit report.
Governance by Chief and Council
Annapolis Valley held Boards meetings on a regular basis and minutes are taken. The governance structure is clearly established through an organizational chart which shows the relationships between the various positions of staff. As required by its Personnel policy, the Recipient did not complete performance evaluation of its personnel. It is recommended that the Chief and Council ensure that staff complies with the Personnel policy, that employee’s performance evaluation are performed yearly and properly documented in each employee’s file. Personnel policy should be updated regularly.
Financial Management
The Recipient could not provide the auditor with attendance sheets for its personnel. Consequently, the auditor had a disclaimed opinion on the wages and benefits for the full-time employees for the period audited. It is recommended that the Financial Comptroller ensures that attendance sheet and leave forms are retained for subsequent review and audit purposes. Documents should be retained for a period of five (5) to seven (7) years. The refundable GST was claimed to INAC programs since the Recipient was not registered with the Canada Revenue Agency (CRA) for claiming the GST. It is recommended that the Recipient register with CRA to obtain a GST number and claim the appropriate GST rebate. This will increase the amount available to be spent on ISC programs.
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 The Annapolis Valley Band Council. 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.