Report on Recipient Audit Performed on the National Association of Friendship Centres
Name: National Association of Friendship Centres
Location: Ottawa, Ontario
Default status at time of audit: Not in default
Current default status: Not in default
Current Executive Director: Erin Corston
Time period covered by audit: April 1, 2014 to March 31, 2015
Amount of AANDC funding audited: $86,354,718
Background
Indigenous and Northern Affairs Canada (INAC), selected the National Association of Friendship Centres in Ontario for a recipient audit based on their 2014-2015 risk assessment score and other risk factors.
The objective of the recipient audit was to provide assurance that funding provided to the recipient by INAC was spent for its intended purposes and is in compliance with the terms and conditions of the 2014-2015 Funding Agreement. The objective was achieved through:
- Examination of the effectiveness of the operations of the Financial Management Control Framework in place at the National Association of Friendship Centres; and
- Conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the Funding Agreements with INAC.
Samson & Associates, an independent audit firm, was commissioned by INAC to undertake the recipient audit. The audit procedures were performed from February 13, 2017 to February 24, 2017. The audited amounts of this report present fairly, in all material respects, the costs eligible and the audit adjustments of the National Association of Friendship Centres for the provision of programs, services and activities to its members for the period audited. The National Association of Friendship Centres reviewed the audit report and provided feedback to the recommendations in the recipient audit report.
Findings
The procedures performed identified that internal financial control processes are mostly in place, and well managed. There are, however, a few procedures that identified control weaknesses within governance, program administration, and financial management. Addressing these internal controls wills strengthen how the Recipient manages and allocates its funds in accordance to the agreement. The following are some key findings and key recommendations identified in the audit report.
Organization's Governance
The procedures performed identified areas where there are opportunities to improve governance and administration in support of programs funded by INAC. It is recommended that the recipient standardize program documents to keep them consistent from province to province. The recipient should create program guides to assist in the methodology when performing financial reviews. National Association of Friendship Centres acknowledges these recommendations and is working to address these issues by March 31, 2018.
Organization's Financial Management
The procedures performed identified the following observations and areas of improvement with respect to Band financial management procedures. A key recommendation is that the recipient should ensure that funds are used for their intended purposes according to the funding agreement. It is recommended that salaries are properly allocated based on funding received for each program. The National Association of Friendship Centres concurs with these recommendations and has set internal controls, policies and procedures to prevent this from happening going forward.
Current Status
A copy of the final report has been sent to the recipient. INAC and the recipient are working together to address all the findings.
Disclaimer: This audit summary was prepared based on information contained in a Recipient Audit Report on National Association of Friendship Centres for INAC. The report produced for INAC is intended solely for the information and use of the Recipient and INAC 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.