Summary report for the recipient audit performed on Red Pheasant Band
Name: Red Pheasant Band
Location: Saskatchewan
Population: 682 on reserve; 2209 total registered
Default status at time of audit: not in default
Current default status: not in default
Current Chief: Clint Wuttunee
Time period covered by audit: April 1, 2014 to March 31, 2016
Amount of ISC funding audited: $2,340,300
Background
Indigenous Services Canada (ISC) selected the recipient for a recipient audit as part of the fiscal year 2016 to 2017 Recipient Audit Plan.
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 fiscal year 2014 to 2015 and fiscal year 2015 to 2016 funding agreement. The objective was achieved through:
- reviewing the recipient program management and financial 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
Ernst & Young LLP, an independent audit firm, was commissioned to undertake the recipient audit. The audit procedures were performed from March 6 to March 9, 2017.
Overall assessment
The audit firm was unable to complete the audit as sufficient and appropriate audit evidence was not available for a number of the samples selected for testing. All adjustments identified as a result of the procedures performed were included in the audit report.
Findings
The procedures performed identified that internal financial control processes are mostly in place, and well managed. However, a few procedures 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
The recipient has an approved Financial Management Act approved by the chief and council that outlines membership requirements and the roles and responsibilities. The recipient holds quarterly meetings with the department, including the support of the Director of Finance and the accounting team. However, it is recommended that minutes of the meetings should be retained and prepared throughout the year.
Financial management
The financial policies of the recipient are documented formally in the Financial Management Act (2011) and Red Pheasant Cree Nation Financial Administration Policy (2015). However, it is recommended that physical evidence of approvals and for claimed expenditures should be retained. Procedures have been established to review expenditures prior to issuing payment. However, it is recommended that the general ledger should be segregated and maintained in order to track the contribution agreement.
Current status
A copy of the final report has been sent to the recipient and will work with ISC 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 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.