Summary Report on Recipient Audit Performed on Eskasoni First Nation
Name: Eskasoni First Nation
Location: Atlantic
Population: 3,863 on Reserve; 4,543 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Chief: Leroy Denny
Time period covered by audit: April 1, 2015 – March 31, 2017
Amount of AANDC funding audited: $38,713,770
Background
Indigenous Services Canada (ISC), formally Indigenous and Northern Affairs Canada (INAC), selected the Eskasoni First Nation in the Atlantic for a recipient audit based on their 2017-2018 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 2015-2016 and 2016-2017 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 Eskasoni First Nation; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with ISC.
Spearhead Management Canada Ltd, an independent audit firm, was commissioned by ISC to undertake the recipient audit. The audit procedures were performed from February 26, 2018 to March 2, 2018. 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 operating effectively, would help ensure that funds are spent for their intended purposes and in compliance with the terms and conditions of the Agreement. The following are some key best practices, findings and recommendations identified in the audit report.
Governance by Chief and Council
The procedures performed identified best practices and areas where there are opportunities to improve governance and administration in support of programs funded by ISC. The audit identified the following best practices. The controller has confirmed that the Recipient has implemented a financial plan to support the delivery of their programs. Furthermore, the Recipient has implemented a budget preparation process that is supported by rigorous monitoring. However, it is recommended that the Recipient continues the process of developing and revising internal policies and procedural manuals to ensure their relevance and that these get approved by the Chief and Council. Policies and procedures should be revised on a timely basis. In addition, the Recipient should ensure that all expenses claimed are supported by appropriate receipts.
Band Management
The procedures performed identified the following best practices with respect to Band financial management procedures. A best practice that was noted by the auditors was that the Controller downloads actual expenses from the financial system into Excel to help with the preparation of reports. These reports are also presented to the Chief and Council on a monthly basis with corrective measures documented in the minutes. It is also indicated in the audit report that the Recipient maintains an efficient filing system. All documents supporting financial transactions were available on arrival on a timely basis.
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 Eskasoni First 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.