Summary Report on Recipient Audit Performed on MAMU Tshishkutamashutau / Innu Education Inc.
Name: MAMU Tshishkutamashutau / Innu Education Inc.
Location: Atlantic
Population: N/A
Default status at time of audit: Not in default
Current default status: Not in default
Director of Finances and Board of Directors: Maria Boland
Time period covered by audit: April 1, 2014 – March 31, 2016
Amount of AANDC funding audited: $20,716,541
Background
Indigenous Services Canada (ISC), formally Indigenous and Northern Affairs Canada (INAC), selected the MAMU Tshishkutamashutau / Innu Education Inc. in the Atlantic Region for a recipient audit based on their 2016-2017 risk assessment score and other risk factors.
The objective of the recipient audit was to provide assurance that funding provided to the recipient by the Government 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 with ISC. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the MAMU Tshishkutamashutau / Innu Education Inc.; 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 30, 2017 to February 10, 2017. 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 audit procedures performed identified best practices and areas where there are opportunities to improve governance and administration in support of programs funded by ISC.
Governance by Chief and Council
The audit identified the following best practices. The governance structure of Mamu Tshishkutamashutau – Innu Education (MTIE) is based upon an eight (8) person Board of Trustees (BoT) appointed by the Chief and Council of Sheshatshiu and Natuashish for a three (3) year term. The BOT has responsibility for the oversight and management of MTIE. MTIE established an organization chart with clearly defined lines of authority and detailed job descriptions. However, the auditors noted that not all crucial positions were staffed and not all employees had formal signed employment contracts. MTIE established several policies and procedures; however policies should be finalized and approved by the Board to provide MTIE staff with proper guidance.
Band Management
The audit procedures performed, identified the following best practices with respect to Band management procedures. Work plans have been developed and implemented, in accordance with funding agreements. Variances are discussed with the management team and remedial action is taken. The audit also identified control weaknesses in the area of record retention for tendering and capital asset management. In addition, clear policies, procedures and documentation requirements should be established for honorariums paid out.
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 MAMU Tshishkutamashutau / Innu Education Inc. 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.