Summary report for the recipient audit performed on Nigigoonsiminikaaning First Nation
Name: Nigigoonsiminikaaning First Nation
Location: Ontario
Population: 168 on reserve; 388 total registered
Default status at time of audit: not in default
Current default status: not in default
Current Grand Chief: William Windego
Time period covered by audit: April 1, 2015 to March 31, 2017
Amount of ISC funding audited: $4,836,301
Background
Indigenous Services Canada (ISC) selected the Nigigoonsiminikaaning First Nation (recipient) 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 2015 to 2016 fiscal year and 2016 to 2017 fiscal year funding agreements. The objective was achieved through:
- reviewing the recipient program management and financial control practices in relation with the funding agreements
- conducting 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, 2018 to February 10, 2018. The auditors were able to obtain sufficient and appropriate evidence to support their conclusions.
Overall assessment
Other than the observations and the audit adjustments in the audit report, the audit concluded that the recipient complied with the terms and conditions contained in the agreement.
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 program administration, and financial management. Addressing these internal controls will 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.
Program administration
There is an organizational chart showing the structure and the relationships between the organization's various positions. Boards meeting are held on a regular basis. Management participates in weekly meetings to discuss programs strategic direction, and any other support required enabling them to fulfill their roles and responsibilities. The audit also identified areas where there are opportunities to improve governance and administration. The Chief and Council did not have terms of reference. The recipient should ensure that terms of reference are developed, adhered to and communicated. Review of all institutional files indicated that, even though the institutions were eligible and recognized provincial education institutions, the file did not have an official copy of the approved enrollment letters. The recipient should ensure that an official copy of the approved enrollment letter be present in all students files as defined in the Annex 3 of ISC's Post-Secondary Guidelines. There was no salary grid maintained contrary to the requirements of the recipient's Policy and Procedures Manual. The recipient should comply with its Policy and Procedures Manual with regards to maintaining a salary grid.
Financial management
The recipient has segregation of duties however, the audit also identified areas where there are opportunities to improve band financial management procedures. ISC program expenditures transactions being funded under the fixed, flexible, grant and set funding approaches were recorded under the same general ledger account. The recipient's chart of accounts should be modified to enable the recording of transactions under each individual program being funded through set and grant funding approaches. Expenses claimed were supported by only travel claim, cheque requisition, etc. with no additional documentation such as invoices or receipts to support the amount paid. The recipient should ensure that all expenses claimed are supported by appropriate documentation to ensure the validity of the expense.
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. The recipient was given a verbal briefing of the audit results.
Disclaimer: This audit summary was prepared based on information contained in a recipient audit report on the recipient. 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.