Compliance Assessment Summary Report: Public Meat Ltd.

For Funding Agreement no. 1819-HQ-000037 and funding agreement no. 2021-HQ-000031 between Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) and Public Meat Ltd.

Name: Public Meat Ltd.
Location: desk audit
Time period covered by audit: April 1, 2018 until March 31, 2021
Total amount of CIRNAC funding received from 2018 to 2021: $54,509


At the request of the Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), Spearhead Management Canada Ltd. performed a desk compliance assessment of the Funding Agreement between Nutrition North Canada (NNC or the 'Program') and Public Meat Ltd. (Recipient). Nutrition North Canada is a Government of Canada Program that helps make nutritious food and some essential items more affordable and more accessible to northern communities. The purpose of the assessment, in accordance with our engagement with NNC, was to provide information on:

The period covered by the compliance assessment is from April 1, 2018 until March 31, 2021. We determined our sample size by applying professional judgement based on the frequency of claims and the number of items in each claim.

Due to the Covid-19 travel restrictions, no on-site was performed and our compliance assessment was performed as a desk audit. As a result, our interviews were performed based on electronic communication with the Recipient to identify and document their key control activities, their procedures and processes related to the claim of funds to NNC, program delivery and reporting. In addition, due to the travel restriction we were unable to verify the accuracy of the weighting system used by the Recipient.

We subsequently performed detailed audit procedures on the accuracy and validity of the Recipient's claims and on the margin earned by the Recipient on the subsidized products.

Based on the procedures performed and as more fully described in our report, we did not find any significant deviations in the samples we selected; however, we identified improvements in the form of recommendations to improve the Recipient's control environment in relation to the Program.


Overall, we are of the opinion that the funding provided to the Recipient was spent for the intended purposes and in compliance with the terms and conditions for the 2018-19 to 2020-21 Funding Agreements signed with the Department.

The table below summarizes the recommendations identified by the auditor, the actioned measures required to be undertaken by the retailer/supplier, and their status.

Auditors Recommendation for Public Meat Public Meat Action Plan Status
Ensure a contract is in place with each third-party retailer in order for the program requirements be respected. After the review of the management letter, the Recipient as put in place a contract with all third-party retailers. Complete
Implement a review of the claim preparation process to increase accuracy and completeness of the data recorded in the shipment report. After the review of the management letter, the Recipient is personally collecting all receipts for the shipment report in order to ensure accuracy. Complete
Implement a second review process to ensure all required documents are submitted with the monthly claim. After the review of the management letter, the Recipient added another employee to review the claims prior to submission. Complete
Implement a review of the invoicing system to ensure accuracy in the subsidy transferred. After the review of the management letter, the Recipient as created a process where the NNC file sent is merged with the recipients invoicing system. This will ensure accuracy. Complete

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