Summary report for the recipient audit performed on Stoney Band (Chiniki)
Name: Stoney Band (Chiniki)
Location: Alberta
Population: 1,807
Default status at time of audit: not in default
Current default status: not in default
Current executive (s): Council
Time period covered by audit: April 1, 2012 to March 31, 2014
Amount of INAC funding audited: $2,276,172
Background
Indigenous Services Canada (ISC), formerly Indigenous and Northern Affairs Canada (INAC), selected Stoney Band (Chiniki) for a recipient audit.
The objective of the recipient audit was to provide assurance that funding provided to the recipient by the Government of Canada was spent for its intended purposes and compliant with the terms and conditions of the 2012 to 2013 fiscal year and 2013 to 2014 fiscal year funding agreement. The objective was achieved through:
- reviewing the Recipient Program Management and Financial Framework Control practices in relation to the funding agreement
- conducting audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the funding agreement with ISC
Ernst & Young LLP, an independent audit firm, was commissioned by ISC to undertake the recipient audit. The audit procedures were performed from March 2, 2015 to March 6, 2015. The audit was completed and the auditors have examined sufficient and appropriate evidence to support their conclusions.
Findings
The audit procedures performed identified best practices, as well as control weaknesses in governance and band management under program administration, expenditure oversight and financial management. If well designed and operating effectively, they 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.
Program administration
The band is comprised of three First Nations, each with a Chief and four council members. Procedures are adopted and set out by the Stoney Tribal Administration practices. While these practices were developed, the policy was last updated in 1999 and many aspects of the policy are no longer relevant.
Financial management
The recipient uses First Nation specific financial software to track and record expenditures. However, the general ledger accounts are not always segregated to identify expenditures for each program funded. It is recommended that the recipient revisit their chart of accounts to ensure that their general ledger is appropriately segregated to identify expenditures for each program funded.
Management reporting systems
There does not appear to be appropriate reporting systems and procedures in place to ensure the agreements requirements are met. Accurate and timely reporting both internally and externally have not been met. It is recommended that the recipient uses appropriate reporting systems and procedures to ensure Agreements are met and to ensure reporting is both accurate and timely.
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 Stoney Band (Chiniki) 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.