Summary Report on Recipient Audit Performed on Marten Falls First Nation
Name: Marten Falls First Nation
Location: Ontario
Population: 349 on Reserve; 779 total registered
Default status at time of audit: Not in default
Current default status: Not in default
Current Chief: Bruce Achneepineskum
Time period covered by audit: April 1, 2011 – March 31, 2013
Amount of AANDC funding audited: $12,883,365
Background
Indigenous Services Canada (ISC), formerly Indigenous and Northern Affairs Canada (INAC), selected the Marten Falls First Nation in Ontario 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 Marten Falls 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 Canada Management Ltd, an independent audit firm, was commissioned by ISC to undertake the recipient audit. The audit procedures were performed from June 16, 2014 to June 20, 2014. The audit was completed with success 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 findings and key recommendations identified in the audit report.
Governance by Chief and Council
The audit procedures performed identified areas where there are opportunities to improve governance and administration in support of programs funded by ISC. The Chief and Council are responsible for the overall administration of band policies while individual Councillors are assigned supervision of specific portfolios. With respect to staffing and human resource management, it is recommended that Marten Falls First Nation ensure that all employees sign employment contracts that clearly identify the terms and conditions of employment and that personnel files are updated and contains information regarding qualifications, training, annual performance assessments and training plans.
Band Management
The procedures performed identified areas for improvement with respect to Band financial management procedures. It is recommended that the Chief and Council ensure that the chart of accounts is in alignment with the Funding Agreement in order to facilitate reconciliation of expenses. It is recommended that bank reconciliations are reviewed on a monthly basis. It is also important that the recipient maintains an inventory of capital assets and record purchases and disposals.
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 Marten Falls 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.