2012-2013 Compliance Review Action Plan - Labrador Investments Ltd.

• The recipient ensures that the full subsidy value be passed on to the purchaser of eligible NNC products.

• The three stores have verified that they are passing on the full subsidy. The full subsidy amount is used to offset the airfreight amount, which is higher than the subsidy amount. The rates are as follows:
  • Nain: Food Rate per kg $2.94 – NNC Subsidy $2.50 per kg
  • Hopedale: Food Rate per kg $1.88 – NNC Subsidy $1.70 per kg
  • Makkovik: Food rate per kg $1.88 – NNC Subsidy $1.50 per kg.
• The difference in the air freight costs, the Nav Canada charges that are on every airway bill, and the ground transportation charges from the airport to the store are the freight charges to which the auditor refers.

• The recipient ensures that the subsidy rates are written on cash receipts for all stores that are part of the NNC program.

• A new cash register, which is in compliance with the Auditor's recommendation, was purchased in September 2014. 
• The new cash register in the Makkovik store is now operational, and subsidy rates are written on the cash receipts.

• The recipient reconciles the total weight indicated on the air waybill with individual invoices in order to provide assurance that the weight on the invoice is accurate. Any differences should be investigated and explained.

• The invoices and the waybills now balance out with no issues.

• The recipient uses the appropriate distinct NNC item code for each product when preparing its itemized shipment report to NNC .

When reports are prepared, the right item codes are used. The only time this does not happen is when bread is ordered for our stores. Sometimes it comes in mixed in the boxes. That is why the item code (bread) is used instead of both bread & bread other.

Action Plan Developed

• Working with the supplier to address the issue in the future

• The recipient ensures that the prices indicated on the price report reflect the actual selling price on the day the report is produced.

• The stores ensure that the prices on their food pricing report are what are on the products the day the report is done.

• The recipient establishes a formal communication process when changes occur in the program to adequately inform its store managers and ultimately clients of program changes.

• A formal process is in place. Whenever new information about Nutrition North is received, an email and fax with the new information are sent out to the three stores. Copies are kept on file. In addition, a call is made to confirm that they received the information.