Financial Audit Fynes Public Interest Hearing and Military Police Complaints Commission of Canada File MPCC‑2011‑046

Presented by: Samson & Associates

Presented to: Military Police Complaints Commission of Canada

January 31, 2019


TABLE OF CONTENTS

  1. BACKGROUND
  2. ABOUT THE REVIEW
    1. 2.1 Objective and Scope
    2. 2.2 Team
    3. 2.3 Methodology and Criteria
  3. AUDIT CONCLUSION

1. BACKGROUND

In 1997, the Minister of National Defence introduced legislation in the House of Commons that contained comprehensive amendments to modernize the National Defence Act. The need to clearly separate, on an institutional basis, the system's investigative, prosecutorial, defence and judicial functions were recognized. There was also a requirement to clarify roles and responsibilities of the principal actors in the military justice system and strengthen oversight and review military justice and in particular, the policing duties and functions of military police. These factors led to the establishment of the Military Police Complaints Commission of Canada under the amendment to the Act.

The Commission, which came into force and commenced operations on December 1, 1999, became the first civilian oversight authority which is external, autonomous and independent of the Department of National Defence and the Canadian Forces and whose mandate is to examine complaints arising from either the conduct of military police members in the exercise of their policing duties or functions or from interference in or obstruction of their police investigations. To carry out this mandate, the Chairperson has the power to investigate, to cause the Commission to conduct an investigation, convene public hearings, and report its findings and make recommendations based on those findings.

Fynes Public Interest Hearing (MPCC‑2011‑004)

On April 29, 2011, the MPCC announced the launching of a public interest investigation (PII) pursuant to section 250.38 of the NDA into a complaint regarding the conduct of the Canadian Forces National Investigation Service (NIS) in their interactions with the complainants and three investigations conducted by the NIS.

On September 6, 2011, the Chairperson of the MPCC decided to launch a public interest hearing (PIH) due to the seriousness of the allegations in the complaint based on the results of an interview with the complainants and a review of documentation during the public interest investigation.

File MPCC‑2011‑046

On October 20, 2011, someone (confidential) filed a complaint to the Canadian Forces Provost Marshal who conducted the investigation in the first instance. On November 10, 2011, the Canadian Forces Provost Marshal issued the final disposition of the investigation into the complaint. On December 8, 2011, the complainant replied to the Canadian Forces Provost Marshal raising his concerns regarding the complaint. On December 15, 2011, the Canadian Forces Provost Marshal provided a response. On December 20, 2011, the complainant submitted a "Request for Review" to the Chairperson of the Military Police Complaints Commission of Canada.

On January 5, 2012, the Military Police Complaints Commission of Canada acknowledged receipt of the complainant request and began a review of the documentation and a Phase I Investigation to determine the extent of the Phase II Investigation consisting of interviewing witnesses and subjects located across Canada and possibly abroad.

In 2012‑2013, the MPCC received $4.7M in special purpose funding and $1.3M in r years for the investigation of file MPCC‑2011‑046.

Over the five years of the Fynes PIH, approximately $3.5M (of the $4.7M) was expended. The review of file MPCC‑2011‑046 was also conducted over a five-year period which concluded in September 2016. Over that period, approximately $1.3M (of the $1.7M) was expended. It is important to note that MPCC incurred some expenses related to these two files that exceeded the Treasury Board special funding received. These expenses are not part of this audit and were paid for with the operating funds of the MPCC.

The transactional expenditures (approximately 600 accounts payables transactions) including legal and investigative service contracts, travel and the expenditures to host and conduct the actual hearing and produce various documents including the Interim and Final Reports containing findings and recommendations.

2. ABOUT THE REVIEW

2.1 Objective and Scope

Samson & Associates was mandated to conduct a financial audit of the funding received from Treasury Board for the Fynes Public Interest Hearing (PIH) (Special purpose allotment entitled “Public Interest Hearing”) and related to a multi-jurisdictional investigation file MPCC‑2011‑046 (Special purpose allotment). The audit covered project expenses incurred from April 1, 2011 to March 31, 2017.

The financial compliance audit was conducted in accordance with International Internal Auditing Standards. Its purpose was to assess the MPCC’s compliance with the terms and conditions of the TB Decisions (#836294 and #836657) as well as the existence, accuracy and relevance of expenditures.

2.2 Team

Samson & Associates Team:

Partner/managing director

Mathieu Farley, CPA, CA, CIA, CISA

Senior Auditor

Victor Mbarushimana, CPA, CA

Junior Auditor

Jean-Christophe Martineau

2.3 Methodology and Criteria

The engagement methodology phases detailed below are categorized into three sections:

  1. Preliminary Review and Planning;
  2. On-site Work; and
  3. Analysis, Debriefing and Reporting.

During the initial phase of the engagement, the consultants reviewed relevant documentation to obtain an adequate understanding of the financial expenditures. A meeting was held with The Military Police Complaints Commission of Canada’s representatives.

During the second phase of the engagement, the consultants performed the on-site fieldwork at the offices of the MPCC. The principal activities included interviews with staff, review and assessment of the expenditures and finance files and conducted detailed procedures on a sample of expenditure files.

Once the fieldwork was completed, we conducted the final phase of the engagement, which included an analysis of the findings, the completion of the working paper file and the preparation of a report. In addition, the consultants debriefed the MPCC’s representatives on the results of the engagement.

Sample

SUMMARY OF AMOUNTS REPORTED AND AUDITED File MPCC‑2011‑004 (FYNES)
Expenditures FY 2011/12-2015/16
($)
Total # of transactions Audited amount
($)
# of transaction audited % amount audited
01 -SALARY 127,721 1 24,468 1 19%
02-TRANSPORTATION TELECOMMUNICATION 219,774 234 54,145 22 25%
03-INFORMATION 62,377 82 25,992 16 42%
04-PROFESSIONAL SPECIAL SERVICES 3,015,091 266 1,335,762 42 44%
05-RENTALS 69,365 42 12,523 1 18%
07-UTILITIES, MATERIAL AND SUPPLIES 14,114 28 - - 0%
09-CONSTRUCT OR ACQUISITION MACHINERY 1,256 8 - - 0%
12-ALL OTHER EXPENDITURES 6,211 19 2,148 3 35%
Total 3,515,909 680 1,455,037 85 41%
SUMMARY OF AMOUNTS REPORTED AND AUDITED File MPCC‑2011‑046
  FY 2012/13- 2016/17 Number of transactions Audited amount # of transaction audited % amount audited
01 -SALARY 11,854 1 - - 0%
02-TRANSPORTATION TELECOMMUNICATION 31,291 51 2,924 5 9%
04-PROFESSIONAL SPECIAL SERVICES 1,251,754 87 394,481 16 32%
05-RENTALS 300 2 - - 0%
07-UTILITIES MATERIALS SUPPLIES 343 5 - - 0%
09-CONSTRUCT OR ACQUISITION MACHINERY 484 2 - - 0%
12-ALL OTHER EXPENDITURES 542 5 - - 0%
TOTAL 1,296,568 153 397,404 21 31%
SUMMARY OF AMOUNTS REPORTED AND AUDITED - Grand total for files MPCC‑2011‑004 (FYNES) and MPCC‑2011‑046
GRAND TOTAL 4,812,477 833 1,852,441 106 38%

We performed a review of a statistical sample of transactions (106) selected judgmentally. In our review we looked for evidence of management oversight of spending and of financial authorities.

In particular, we ensured

  1. Appropriate control of the commitments (FAA section 32).
  2. Appropriate procurement controls have been adhered to ensure the goods and services obtained represent the best value for Canada.
  3. Appropriate control over the payments of invoices (FAA section 33).

Our review of the 106 transactions indicated that the financial controls in place to oversee the expenditures were appropriate.

3. AUDIT CONCLUSION

Samson conducted a compliance audit for the expenditures incurred with respect to the funding received from Treasury Board for the Fynes Public Interest Hearing (PIH) and file MPCC‑2011‑046. The audit results are presented in Appendix A.

No errors have been found as part of the audit. Furthermore, we noted that the MPCC has a control framework in place to ensure compliance with purchasing requirements and financial approvals (section 32 and section 34 of the FAA).

Auditor’s Opinion

In our professional opinion, sufficient and appropriate audit procedures have been implemented and evidence has been gathered to support the accuracy of the opinion contained in this report. This opinion is based on a comparison of the conditions as they were at that time with the predetermined verification criteria agreed with management. It focuses only on the processes reviewed. The audit evidence was obtained in accordance with the internal auditing standards of the Institute of Internal Auditors. These elements are sufficient to provide senior management with the rationale for the audit opinion.


APPENDIX A - SUMMARY OF AMOUNTS REPORTED AND AUDITED

(April 1, 2011 to March 31, 2016)

SUMMARY OF AMOUNTS REPORTED AND AUDITED File MPCC‑2011‑004 (Fynes)
Expenditures: 2011-2012
($)
2012-2013
($)
2013-2014
($)
2014-2015
($)
2015-2016
($)
Total Reported Amount
($)
Adjustments
($)
Amount Supported by the Audit
($)
01-SALARY - 127,721 - - - 127,721 - 127,721
02-TRANSPORTATION TELECOMMUNICATION 57,877 128,907 8,326 22,848 1,816 219,774 - 219,493
03-INFORMATION 18,712 6,864 6,885 27,928 1,987 62,376 - 62,376
04-PROFESSIONAL SPECIAL SERVICES 706,319 1,060,575 828,253 394,566 25,377 3,015,090 - 3,015,090
05-RENTALS 6,687 57,453 3,135 2,090 - 69,365 - 69,365
07-UTILITIES MATERIALS SUPPLIES 8,879 5,235 - - - 14,114 - 14,114
09-CONSTRUCT OR ACQUISITION MACHINERY - 1,256 - - - 1,256 - 1,256
12-ALL OTHER EXPENDITURES 1,278 4,934 - - - 6,212 - 6,212
TOTAL 799,752 1,392,945 846,599 447,432 29,180 3,515,908 - 3,515,627
SUMMARY OF AMOUNTS REPORTED AND AUDITED File MPCC‑2011‑046
Expenditures: 2012-2013
($)
2013-2014
($)
2014-2015
($)
2015-2016
($)
2016-2017
($)
Total Reported Amount
($)
Audit Adjustments
($)
Amount Supported by the Audit
($)
01-SALARY 11,854 - - - - 11,854 - 11,854
02-TRANSPORTATION TELECOMMUNICATION 3,567 19,276 8,449 - - 31,292 - 31,292
03-INFORMATION - - - - - - - -
04-PROFESSIONAL SPECIAL SERVICES 319,104 463,990 390,810 77,850 465 1,252,219 - 1,252,219
05-RENTALS - 300 - - - 300 - 300
07-UTILITIES MATERIALS SUPPLIES 189 153 - - - 342 - 342
09-CONSTRUCT OR ACQUISITION MACHINERY 334 151 - - - 485 - 485
12-ALL OTHER EXPENDITURES 97 445 - - - 542 - 542
TOTAL 335,145 484,315 399,259 77,850 465 1,297,034 - 1,297,034
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