Summary of Analysis Conducted

Information gathered throughout the engagement was organized into two types of matrices for assessment purposes. The Management Control Assessment Tool was used to organize the results of analyses of policies, procedures and practices, while the Loan Testing Matrix was used to organize the results of loan sampling and testing procedures. Each matrix is described below.

Analysis of Policies, Procedures and Practices

KPMG utilized a Management Control Assessment Tool (MCA Tool) to organize the results of the analyses conducted. The MCA Tool is based on the COSO framework¹, which is recognized and widely used guidance for leading practices on internal controls. More specifically the MCA Tool includes 30 entity-level and management controls. The MCA Tool details the control being assessed, provides assessment guidance to the auditor, and aligns findings, conclusions and recommendations. Please see Appendix B for the complete MCA Tool prepared for each WEI centre.

The Management Control Assessment Tool contains 30 controls in the following sections:

• Integrity and Ethical Values
• Commitment to Competence
• Oversight Body
• Management Philosophy and Operating Style
• Organizational Structure
• Assignment of Authority and Responsibility
• Human Resource Policies and Practices
• Organizational Objectives
• Departmental Objectives
• Control Activities
• Information
• Communication
• Ongoing Monitoring
• Separate Evaluation
• Loan Policy and Procedure Compliance.

Analysis of Loan Documentation

Loan documentation was assessed against the criteria in the WD Contribution Agreement. Results were organized in a Loan Testing Matrix. Please see Appendix C for the complete Loan Testing Matrix.

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