Compliance Assessment Summary Report: JG Grocery

For Funding Agreement no. 1415-HQ-000032 and 1718-HQ-000061 between Crown-Indigenous Relations and Northern Affairs Canada and JG Grocery
December, 2021

Name: JG Grocery
Location: Chambly, Quebec
Time period covered by audit: April 1, 2016 until March 31, 2019
Total amount of CIRNAC funding received since 2013: $122,702

Executive Summary

At the request of the Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), Samson performed a desk compliance assessment of the Funding Agreement between Nutrition North Canada (NNC or the 'Program’) and JG Grocery (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, 2016 until March 31, 2019. 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 restriction, no on-site was performed and our compliance assessment was performed as a desk assessment. 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 assessment 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.

Our assessment revealed that from our sample of 974 transactions, there were only 10 errors found which resulted in an overpayment of $78.40 to the Recipient. It related to duplicate entries in the compiled shipment report and an addition error of the total eligible subsidy. Therefore, we provided recommendation to ensure amount claimed is accurate.


Recommendation #1: The Recipient should ensure that there is review / approval process in the preparation and submission of monthly claims to ensure amount claimed are accurate.


Based on the sample tests, discussions with the Recipient and the other procedures performed, we can conclude the following:

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 2016-2017 to 2018-2019 Funding Agreements signed with the department.

Action Plan for JG Grocery

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

Action plan for JG Grocery (JGGR)
Auditor’s recommendation(s) Action Plan Status
1. Ensure that there is a review and approval process in the preparation and submission of monthly claims to ensure the amounts claimed are accurate. Following the revision of the Compliance Management Letter, the owner will perform a second review of all customer invoices and monthly claims prior to submission to NNC. Complete

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