Effective Date: April 1, 2016

Applicable FAM Policies: 805 - Contributions

Applicability: GNWT Departments and Public Agencies

INTERPRETATION

The responsible department/agency should consider the following when setting up requirements for results reporting, financial accountability and audits:

• The level of  reporting, considering the size of transfer, the risk and the continuity and length of the program or project; 
• The beneficiary of the program (e.g., the public, the recipient, or the funder);
• What reporting requirements the funder must fulfill, e.g., through the Public Accounts and reports to the Federal Government for cost-shared programs, etc.; and
• Whether the required information can be collected more economically by departmental inspection of the transfer recipient’s operations and finances.

Every contribution agreement between the Government or Public Agency and the recipient must meet and specify the requirement for a financial audit, for the total project funding from all departments/agencies, as follows:

• < $250,000 - if determined to be required
• $250,000 - $500,000 - every two years minimum
• $500,000 – annually

In addition, instructions to auditors such as disclosure obligations, revenue sources, multi-year agreement carry-overs, etc. must be included.