Compliance Assessment Management Letter: CHMM
M&M Yellowknife (Cactus Holdings Ltd.)
P.O. Box 1767
YELLOWKNIFE NWT X1A 2P5
a/s Barry Bessette
Dear Mr. Bessette:
Indigenous and Northern Affairs Canada (INAC) recently conducted a compliance review of your organization for the fiscal year 2014-2015. Attached, please find a copy of the compliance assessment report. The report will be published on the Department's website in the coming months, along with this management letter. Please provide a written response within 30 days of the date of this letter with a plan on how your organization has addressed or will be addressing the recommendations below:
- Ineligible Clients: While the Recipient does not maintain a master customer list, we did not observe any instances through our testing that suggests the Recipient is providing and claiming a subsidy on sales to ineligible customers; however, we recommend that the Recipient inform its clients in writing that they cannot sell and/or ship subsidized items to restricted organizations.
- Processing and Reporting Controls: We did not identify any errors in the information produced by the Recipient and provided to INAC; however, we did note that there is a lack of segregation of duties in the Recipient's reporting process as there is no independent review of claims prior to being submitted to INAC. The Recipient should ensure that an independent review process occurs prior to information being submitted to INAC, which will increase the quality of the information provided to INAC.
Please note that your response will also be posted to the Department's website.
Should you have any questions or concerns regarding this compliance review, please do not hesitate to contact your Nutrition North Canada (NNC) representative.
Acting Director, Nutrition North Canada
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