Summary report on recipient audit performed on Chipewyan Prairie First Nation
Name: Chipewyan Prairie First Nation
Population: 393 on reserve; 982 total registered
Location: Alberta
Default status at time of audit: recipient-managed
Current default status: co-managed
Current Chief: Vern Janvier
Time period covered by audit: April 1, 2014 to March 31, 2016
Amount of ISC funding audited: $4,266,109
Background
Indigenous Services Canada (ISC) selected the Chipewyan Prairie First Nation (recipient) in Alberta for a Recipient audit based on their 2016 to 2017 fiscal year 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 of Canada was spent from its intended purposes and is in compliance with the terms and conditions of the 2014 to 2015 fiscal year and 2015 to 2016 fiscal year funding agreements with ISC. The objective was achieved through:
- examination of the operations of the financial management control framework in place at the recipient
- conduct of audit procedures on the eligibility of the expenditures claimed under the terms and conditions of the funding agreements with ISC
Deloitte LLP, an independent audit firm, was commissioned by ISC to undertake the recipient audit. The audit procedures were performed from March 5, 2017 to March 10, 2017. The audit was completed with only limited success as the auditors did not have sufficient evidence to support their conclusions for all programs/activities and the recipient was unable to provide details to support the funded activity in some cases. There is a significant need to build capacity in the financial areas. If this capacity is not improved and if significant changes are not made to policies and procedures, the external auditor will continue to have problems in rendering an unqualified audit opinion.
Findings
The procedures performed identified that the recipient maintained sufficient supporting documentation for substantially all of the expenditures incurred and claimed, and that substantially all expenditures selected for testing relate to valid expenditures under the terms and conditions of the agreement.
Overall assessment
Based on the audit results, the recipient maintained sufficient supporting documentation for substantially all of the expenditures incurred and claimed and that substantially all expenditures selected for testing relate to valid expenditures under the terms and conditions of the funding agreement.
Governance by Chief and Council
The procedures performed identified that the organizational chart was lacking information around roles and responsibilities of individuals. Chief and council hold formal meetings on a regular basis throughout the year where they often discuss the overall financial performance of the First Nation. They also hold an Annual General Meeting that provides details on programs available and highlights of activities during the year.
Band management
The procedures performed also identified the following observations and areas of improvements with respect to band financial management procedures: it is recommended that the First Nation implement job descriptions for each job position, programs should be monitored on regularly on both a financial and non-financial basis, develop and implement a financial policy that includes the design of key controls in relation to the financial reporting system and improve its overall financial controls around expenditures and payroll.
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 the recipient by ISC and 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 or findings. Consequently, this summary may not be appropriate for the purposes and use of the reader.