Summary report on Recipient Audit Performed on Tla'amin Nation (formerly Sliammon Indian Band)
Name: Tla'amin Nation
Location: British Columbia
Population: 603 on reserve; 1,121 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Chief: Clint Williams
Time period covered by audit: April 1, 2011 to March 31, 2013
Amount of AANDC funding audited: $9,606,940
Background
Indigenous Services Canada (ISC), formally known as Indigenous and Northern Affairs Canada (INAC), selected the Tla'amin Nation in British Columbia for a recipient audit based on their 2013-2014 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 2011-2012 and 2012-2013 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 Tla'amin Nation; 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 March 3, 2014 to March 7, 2014. The audit was completed and the auditors have examined sufficient evidence to support their conclusions.
Findings
The procedures performed identified certain control weaknesses within governance, program administration, expenditure oversight and financial management that, if well designed and operated effectively, would help ensure that funds were spent for the intended purposes and in compliance with the terms and conditions of the Agreements. The following are some key findings and key recommendations identified in the audit report.
The audit procedures performed resulted in identification of areas, highlighted below, where there are opportunities to improve governance and administration, in support of programs funded by ISC.
Governance by Chief and Council
Tla'amin Nation does not have any policies for collecting accounts receivable, procurement and purchasing. It is recommended that the Chief and Council ensure policies for accounts receivable, procurement and purchasing are developed, approved and communicated to employees. Policies need to be reviewed and updated regularly. Information on housing unit costs was not available. This makes it challenging to budget and plan for future housing maintenance expenditures. It is recommended that the CFO ensures that expense unit cost for housing is captured, to enable adequate financial planning and budgeting for Village Maintenance. Finally, there is no systematic evaluation of employee performance by the Recipient organization. It is recommended that the Chief Administrative Officer ensures employees receive constructive performance feedback and are able to share their concerns, such as training, career development planning, etc.
Band Management
The audit revealed instances where expenditures were claimed without sufficient or no documentation to support the expense. It is recommended that the Finance Manager ensures that proper documentation is obtained and maintained prior to processing claims and payment. In addition, approval from two members of Senior Management needs to be obtained prior to processing a transaction. These control procedures will aid in verifying that expenses are coded under the correct program and reduce and support detection of errors resulting from misstatements. Financial procedures should be developed by the Finance team and presented to the Chief and Council for approval by the Chief Financial Officer. The financial procedures should be updated regularly.
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 Tla’amin 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.