Financial Review of Background Indigenous and Northern Affairs (INAC) contracted KPMG to complete a financial review of Norway House Cree Nation in relation to allegations regarding:

. Monthly stipends received by the Chief and Councillors to use at their own discretion; . Per diem allowances for mileage received by the Chief for travelling, despite frequently flying with (whose policy is to fly Chiefs at no charge); . Per diem allowances received by Chief when travelling to , despite owning a personal residence there; . Amount of annual leave taken by the Chief.

The period reviewed was from April 1, 2013 to March 31, 2015.

2 Findings: Salaries and Travel Expenses

. The procedures for in-province travel reimbursement were amended from per-event reimbursement to a monthly stipend. The purpose of this amendment was to reduce the amount of administrative time required for processing travel claims.

. Both methods revealed a lack of supporting documentation that increases the risk of payments for travel that did not occur.

3 Findings: Travel by the Chief on Perimeter Aviation

. The Chief can fly for free with Perimeter Aviation. The Chief may choose to drive as opposed to flying but because of the monthly stipend for travel expenses, the Chief does not receive a per diem for kilometres driven within .

4 Findings: Travel Expense Claims When Travelling to Winnipeg

. Norway House Cree Nation does not have a policy limiting per diem for lodging when community members have a residence outside of the community. The Chief and Councillors receive a monthly stipend for travel expenses, and as a result do not receive a per diem for lodging within Manitoba.

5 Findings: Annual Leave

. Norway House Cree Nation does not have a policy with respect to tracking the annual leave of Chief and Councillors. As the annual leave is not tracked, KPMG cannot comment on the amount of leave taken by the Chief.

. The monthly stipend provided to the Chief and Councillors takes into consideration annual leave and other commitments.

6 Recommendations

. The financial review highlighted the need for Norway House Cree Nation to improve its procedures for in-province travel reimbursement. Norway House should consider using a per-event reimbursement method, which provides greater accountability for actual travel incurred.

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