Audit of the First Nations Policing Program

Audit of the First Nations Policing Program (PDF 307KB)

Executive summary

Mandate

The objectives of the audit were to determine to what extent the management of the First Nation Policing Program (FNPP) was in compliance with the Policy on Transfer Payments (PTP) and that the Aboriginal Policing Directorate (APD) had the capacity to deliver and administer this program effectively.

General assessment

Guidelines and procedures for the FNPP negotiation process were adequate.

The following requirements need to be strengthened in order to conform with the PTP:

• Guidelines and procedures specific to FNPP administration and monitoring;
• Inclusion of standard clauses in all contribution agreements pertaining to FNPP, as prescribed by the PTP;
• Reporting requirements to measure performance objectives achieved by recipients;
• Maintaining proper program records and relevant documents to provide evidence that recipients have complied with the terms set in contribution agreements prior to the payment issuance; and
• Integration of monitoring activities within a formal risk management framework.

Program administration

The First Nation Policing Policy should be updated and the Standard Operating Procedures should be completed to cover all phases of the program life cycle and describe controls and processes required to ensure a proper program administration.

The self-administered contribution agreements should include a description of the eligible expenses prescribed in the terms and conditions of the program.

The reporting requirements varied significantly among contribution agreements examined.

A lack of uniformity was observed in the documentation maintained in the contribution agreement files, due to the absence of guidelines and controls in place.

Financial administration

Commitment and certification of payment requests related to FNPP were, overall, in conformity with sections 32 and 34 of the Financial Administration Act.

Negotiations should be undertaken with RCMP authorities in order to obtain, on a quarterly basis, actual expenditures incurred in the name of the FNPP, rather than estimates. These actual costs should be validated by APD on a timely basis.

The APD database used to manage the FNPP contribution was not reconciled periodically with the departmental financial system.

Funding limits set in the terms and conditions of the program were not formally followed up by APD.

The annual budget process of the FNPP could be improved if supported by annual regional business plans providing forecasted cash flows on a recipient basis.

Program monitoring

The integrated RBAF/RMAF was found to be adequate.

The monitoring activities were in place, however, some elements need to be strengthened, such as a better documentation of community on-site visits.

The review process of recipients' financial statements was not formally documented and followed up adequately to ensure the proper monitoring of the program.

The follow-up on non-conformity issues and financial adjustments raised further to comprehensive audits should be improved through the Management Action Plans.