Dear Community Members,
I want to provide our membership with a clear update on the work currently underway to bring Keeseekoowenin Ojibway First Nation’s financial records and audit preparation up to date.
This work involves reviewing and reconciling numerous Nation bank accounts, payroll records, ISC revenues, supporting documentation and accounting entries across several departments.
There has been progress, particularly in addressing the older financial records. At the same time, considerable work remains before our more recent fiscal years are fully audit ready.
The FY2024 financial work is the furthest along.
Bank reconciliations are reported as 100% complete. Many accounts were either reconciled through the bookkeeping process or completed as part of the MNP audit work.
This includes financial activity involving Social, Education, Health, Housing, Human Resources/Playcare, Operating, Gas Bar and Special Projects accounts.
The current bookkeeping report therefore shows substantial progress in bringing the historical records into order.
FY2025 bank reconciliation work is reported as approximately 90% complete.
The majority of the Nation’s accounts have had 12 months of bank reconciliation work completed. However, several accounting adjustments still need to be entered into SAGE, and remote accounting-system access is identified as necessary to complete some of this work.
Although the bank reconciliation work is substantially advanced, overall FY2025 audit readiness is currently reported at 5% complete.
This difference is important. Reconciling bank accounts is only one part of preparing for an audit. Payroll records, revenue reconciliation, supporting documents and accounting adjustments must also be completed and verified.
FY2026 is at an earlier stage.
Bank reconciliations are currently reported at approximately 50% complete, while overall audit readiness is reported at 5% complete.
Several accounts have already had significant reconciliation work completed, while others remain partially completed or have not yet started.
Payroll documentation is one of the significant areas still requiring completion.
For the Operating account, outstanding information includes pension statements, health benefit statements and payroll registers for several periods covering FY2025 and FY2026.
For Health, the bookkeeping report indicates that payroll registers covering April 1, 2024 through March 31, 2026, along with pension and health benefit statements, are still being requested.
MNP is reported to be reviewing Operating payroll information, but some payroll registers remain missing. Health payroll review has not yet started because the required payroll registers had not been received according to the update.
Obtaining these records is necessary to properly verify payroll expenditures and complete accounting adjustments.
The bookkeeping review has also identified several transactions where additional information or coding is required.
For the Search and Rescue account, supporting information is being requested for:
These transactions are not being presented to membership as findings of wrongdoing. They are transactions that the bookkeeping review has identified as requiring documentation or clarification so they can be properly traced, coded and reconciled.
Additional information is also being requested regarding a $21,500 deposit into Operating Savings and several deposits into the Treaty Days account, including clarification about whether certain amounts were donations, rebates or another form of revenue.
Our immediate priority is to provide and obtain the missing documentation, complete the remaining bank reconciliations, finalize payroll reviews, reconcile ISC revenues and ensure necessary accounting adjustments are properly entered into the financial system.
From there, the objective is to move FY2025 and FY2026 from bookkeeping and reconciliation into full audit readiness.
I want membership to understand that this is a process. We are not going to correct years of financial recordkeeping simply by saying that an audit needs to be completed. The underlying records first have to be organized, supported, reconciled and verified.
Where progress is being made, I will acknowledge it. Where records are missing or questions remain unanswered, I will continue asking for them.
My responsibility as Chief is to ensure that this work continues with proper oversight and that our members receive meaningful information about the financial position of their Nation.
This is about establishing a stronger financial foundation for Keeseekoowenin – one where our records are current, departments are accountable for their budgets and expenditures, and Chief and Council and our membership can make decisions based upon reliable financial information.
I will continue providing updates to membership as significant progress is made.
WITHOUT PREJUDICE. ALL RIGHTS RESERVED