Compliance Assessment Summary Report: Rampart Rentals
For Funding Agreement no. 1718-HQ-000073 and funding agreement no. 2021-HQ-000028 between Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) and Rampart Rentals.
Name: Rampart Rentals
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: $823,423
At the request of the Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), Samson & Associés CPA / Consultation Inc. performed a desk compliance assessment of the Funding Agreement between Nutrition North Canada (NNC or the 'Program') and Rampart Rentals (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:
- Whether the Recipient is passing on the full value of the subsidy to consumers;
- Whether the amounts disbursed to the Recipient through the fiscal years 2018/2019 through 2020/2021 were appropriately claimed in compliance with the Terms and Conditions of the Recipient's Funding Agreement;
- Whether program visibility requirements are met and that the subsidy is transparent to consumers;
- The Recipient's reporting and claiming systems and procedures with regard to gaps and controls issues; and
- Whether the Recipient respected program rules in regard to sales to ineligible clients.
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.
- In general, the amounts disbursed to the Recipient over three fiscal years (2018/19 – 2020/21) were appropriately claimed in compliance with the terms and conditions of the Recipient's Funding Agreement.
- The Recipient is adhering to and is in compliance with the visibility requirements detailed in the Recipient Program Manual. In addition, in relation to Objective #2 a), there was no requirement for the monthly food price reports to be presented to NNC.
- Based on discussions with the Recipient, they are aware of the requirements preventing the sale of subsidized products to ineligible businesses and establishments and the review did not find any sales to ineligible businesses.
- The Recipient is using the most effective and cost-effective supply chain arrangements and routes.
- subject to the limitations as described in this audit2, in our opinion, the Recipient passed on the subsidy to eligible clients and the value of the subsidy is not being eroded by the Recipient's profit margin practices.
- Three recommendations were identified to improve the Recipient's management systems, processes and practices in order to address the deficiencies noted.
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 Rampart Rentals||Rampart Rentals Action Plan||Status|
|Request that The Grocery People3 review its methodology/software to ensure the appropriate weight is claimed on the itemized shipment report and that all items are eligible.||After the review of the management letter , the Recipient has contacted TGP regarding this. They said they continually update the weight of the products that appear on their invoices and will continue to do so in the future here. Any requests given by the RCGT will be sent to TGP and corrected properly. If anything also seems to be off we (Ramparts) will inquire with TGP to make sure that the correct weight is actually claimed as well as only products that are eligible are claimed.||Complete|
|Implement a review process prior to the submission of the itemized shipment report to ensure accuracy of the report and reduce the number of errors and/or deficiencies.||After the review of the management letter , the Recipient has just implemented a system where both I (Josh the owner) as well as my general manager will be looking at reviewing the itemized shipment report before sending it in. We believe with this extra set of eyes going through the submission that this should help reduce and alleviate the number of errors and deficiencies.||Complete|
|Ensure that all claims are submitted on the set date established in the contribution agreement.||After the review of the management letter, the Recipient has implemented a new system where we are going to submit our claims at least 24 hours in advance. This should allow us to never go beyond the set date of the contribution agreement.||Complete|
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