Report on Recipient Audit Performed on Obashkandagaang First Nation
Name: Obashkandagaang First Nation
Population: 145 on reserve; 330 total registered
Location: Ontario
Default status at time of audit: Third Party Manager
Current default status: Co-Managed
Current Chief: Marilyn Sinclair
Time period covered by audit: April 1, 2010 to March 31, 2012
Amount of ISC funding audited: $2,892,270
Background
Indigenous Services Canada (ISC), formally Indigenous and Northern Development Canada (INAC) selected the Obashkandagaang First Nation in Ontario for a recipient audit in 2012-2013 based on their 2011-2012 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 from its intended purposes and is in compliance with the terms and conditions of the 2010-2011 and 2011-2012 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 Obashkandagaang 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 January 14, 2013 to January 23, 2013. The audit was completed with success as the auditor was able to examine 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 areas where there are opportunities to improve governance and administration of Band programs, to strengthen entry level controls and to support governance and administration with the Funding Agreement with ISC. Areas identified to support governance and planning included updating, expanding, approving and implementing the Policy and Procedure Manuals necessary to manage the affairs of the Band appropriately, formalizing the departmental organizational charts and job descriptions on a regular basis to support overall accountability, evidence of approval of budgets, documentation of minutes of meetings, documentation and evidence of approval of management action plans, and development of a strategic and operational plan for relevant programs.
Band Management
The procedures performed also identified the following observations and areas of improvements with respect to Band financial management procedures: considering the establishment of permanent management committees reporting directly to the Chief and Council to address the operational issues that arise in the administration of the affairs of the Band, documentation and implementation management of financial policies and procedures related to cash management, accounting, record keeping and financial management, implementation of vendor invoice and receipt filing system, timesheets to track hours worked by program, assessing the program capacity needs and formally assigns Band Members to be responsible for each specific program and preparation of annual budgets.
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 Obashkandagaang 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.