Summary report for the recipient audit performed on Cayoose Creek Band
Name: Cayoose Creek Band
Location: British Columbia
Default status at time of audit: not in default
Current default status: not in default
Current Chief: Michelle Edwards
Time period covered by audit: April 1, 2015 to March 31, 2017
Amount of ISC funding audited: $1,480,196
Background
Indigenous Services Canada (ISC) selected the recipient for a recipient audit as part of the fiscal year 2017 to 2018 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 2015 to 2016 and fiscal year 2016 to 2017 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
Samson & Associates, an independent audit firm, was commissioned to undertake the recipient audit. The audit procedures were performed from January 28 to February 2, 2018.
Overall assessment
Overall, except for the observations contained within the audit report and the amounts reported as ineligible and disclaimed, the auditors are of the opinion that the recipient has complied with the financial and non-financial terms and conditions of the Agreements.
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 organizational chart that formalizes the lines of responsibility, a conflict of interest policy and Band governance policy. However, it is recommended that the recipient develops a tendering policy that includes the principles of equality, confidentiality and appropriate safeguards.
Financial management
The recipient preforms a bank reconciliation on a monthly basis. However, the audit testing revealed some payments were not being used for purposes described in the funding agreement. It is recommended that the recipient implement controls to ensure that expenses claimed against the Funding Agreements are for the intended outcomes in the Funding Agreement.
Management reporting systems
The audit revealed that the audited financial statements were prepared in accordance with Canadian Audit Standards. However, the audit indicated that the Capital Report is overdue as per the Funding Agreement requirements and recommend that all reports are provided within the specified timeframe in the Funding 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.