First Nations Fiscal Management Act (S.C. 2005, c. 9)

Marginal note:Approval by members

• 91 (1) If the council of a First Nation intends to request the payment of moneys under subsection 90(1), the council shall conduct a vote among the First Nation’s eligible voters on the approval of the payment of the moneys.

• Marginal note:Eligible voters

  (2) Every First Nation member, whether resident on a reserve of the First Nation or not, is an eligible voter if the member is at least 18 years old on the date of the vote.

• Marginal note:Independent legal and financial advice

  (3) Before conducting the vote under subsection (1), the council shall obtain independent legal advice and independent financial advice with respect to the risks of the payment of the moneys to the First Nation.

• Marginal note:Information to be provided

  (4) Before conducting the vote under subsection (1), the council shall also take reasonable measures that are in accordance with the First Nation’s practices to inform eligible voters of

  • (a) their right to vote and the means of exercising that right;

  • (b) the fact that council has obtained the legal and financial advice referred to in subsection (3);

  • (c) the implications of the payment of the moneys and the reasons why the payment is for the benefit of the First Nation; and

  • (d) the fact that the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a).

• Marginal note:Majority approval

  (5) The payment of the moneys to the First Nation is approved if a majority of eligible voters who participated voted to approve the payment.

• Marginal note:Minimum participation

  (6) Despite subsection (5), the payment is not approved unless at least 25% of all eligible voters participated in the vote.

• Marginal note:Increased percentage

  (7) The council may, by resolution adopted before the vote, increase the percentage of eligible voters required under subsection (6).

Marginal note:Initial payment of moneys

• 92 (1) After the resolution is submitted to the Minister by the council of the First Nation under subsection 90(1), the moneys held by Her Majesty for the First Nation’s use and benefit shall be paid to the First Nation out of the Consolidated Revenue Fund, if the Minister is satisfied that

  • (a) the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a) and the law has been approved by the First Nations Financial Management Board;

  • (b) the council has obtained independent legal advice and independent financial advice with respect to the risks of the payment of the moneys to the First Nation; and

  • (c) the payment of the moneys to the First Nation has been approved under section 91.

• Marginal note:Subsequent payment

  (2) Following a payment of moneys under subsection (1), all moneys subsequently collected or received by Her Majesty for the use and benefit of the First Nation shall be paid out of the Consolidated Revenue Fund to the First Nation.

• Marginal note:Subsection (2) ceases to apply

  (3) Subsection (2) shall cease to apply if the law referred to in paragraph (1)(a) is repealed, and at the time of its repeal, it is not concurrently replaced by a law respecting the financial administration of the First Nation made under paragraph 9(1)(a) that has been approved by the First Nations Financial Management Board.

Marginal note:Liability for future management

93 Following the payment of moneys under section 92, Her Majesty is not liable for the management of those moneys.

Marginal note:Past liability

94 This Act does not affect the liability of Her Majesty or a First Nation for any act or omission in respect of moneys occurring before a payment referred to in section 93.

Marginal note:Indian Act

95 Sections 61 to 69 of the Indian Act do not apply in respect of moneys paid to a First Nation under section 92 of this Act.

96 [Repealed, 2012, c. 19, s. 660]

97 [Repealed, 2012, c. 19, s. 660]

98 [Repealed, 2012, c. 19, s. 660]

99 [Repealed, 2012, c. 19, s. 660]

100 [Repealed, 2012, c. 19, s. 660]

101 [Repealed, 2012, c. 19, s. 660]

102 [Repealed, 2012, c. 19, s. 660]

103 [Repealed, 2012, c. 19, s. 660]

104 [Repealed, 2012, c. 19, s. 660]

105 [Repealed, 2012, c. 19, s. 660]

106 [Repealed, 2012, c. 19, s. 660]

107 [Repealed, 2012, c. 19, s. 660]

108 [Repealed, 2012, c. 19, s. 660]

109 [Repealed, 2012, c. 19, s. 660]

110 [Repealed, 2012, c. 19, s. 660]

111 [Repealed, 2012, c. 19, s. 660]

112 [Repealed, 2012, c. 19, s. 660]

113 [Repealed, 2012, c. 19, s. 660]

PART 6Financial Management and Control

Marginal note:Definitions

114 The following definitions apply in this Part.

board of directors

board of directors includes

• (a) in respect of the First Nations Tax Commission, the commissioners referred to in section 17; and

• (b) in respect of the First Nations Financial Management Board, the directors referred to in section 38. (conseil d’administra­tion)

institution

institution means the First Nations Tax Commission or the First Nations Financial Management Board. (institution)

Marginal note:Exclusion from federal public administration

• 115 (1) The officers and employees of an institution are not part of the federal public administration.

• Marginal note:No guarantees

  (2) No person shall give a guarantee on behalf of Her Majesty for the discharge of an obligation or liability of an institution.

Marginal note:Financial year

116 The financial year of each institution is the period from April 1 to March 31, unless otherwise prescribed by regulation.

Marginal note:Expenditure of revenues

117 Subject to any terms and conditions that the Treasury Board may direct, for the purposes of the institution, an institution may expend, during a financial year or the following year, any revenues that it receives in that financial year through the conduct of its operations.

Marginal note:Corporate plans

• 118 (1) Each institution shall, in accordance with any directions given by the Minister, establish a corporate plan and budget for each financial year and submit them to the Minister for approval.

• Marginal note:Scope and contents of corporate plan

  (2) The corporate plan of each institution shall encompass all of the businesses and activities of the institution and include a statement of

  • (a) the objects or purposes of the institution;

  • (b) the institution’s objectives for the financial year and the strategy it intends to employ to achieve those objectives; and

  • (c) the institution’s expected performance for the financial year as compared to its objectives for that year as set out in the last corporate plan.

• Marginal note:Contents of budget

  (3) The budget of each institution must include a statement of the institution’s projected revenues and expenses for the financial year on account of capital and operations.

• Marginal note:Form of corporate plan

  (4) The corporate plan of each institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.

• Marginal note:Restriction on business or activity

  (5) No institution may carry on any business or activity in any financial year in a manner that is not consistent with its corporate plan for that year.

• Marginal note:Amendment

  (6) Any amendment by an institution to its corporate plan or budget shall be submitted to the Minister for approval.

Marginal note:Books and systems

• 119 (1) Each institution shall

  • (a) keep books of account and records in relation to them; and

  • (b) maintain financial and management control and information systems.

• Marginal note:Books and systems

  (2) The books, records and systems referred to in subsection (1) shall be kept and maintained in such a manner as will provide reasonable assurance that

  • (a) the institution’s assets are safeguarded and controlled;

  • (b) its transactions are in accordance with this Act;

  • (c) its financial, human and physical resources are managed economically and efficiently; and

  • (d) its operations are carried out effectively.

• Marginal note:Internal audit

  (3) An institution may cause internal audits to be conducted to assess compliance with subsections (1) and (2).

• Marginal note:Financial statements

  (4) Each institution shall annually prepare financial statements, in accordance with generally accepted accounting principles, as supplemented by any directions given by the Minister under subsection (6).

• Marginal note:Form of financial statements

  (5) The financial statements of an institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.

• Marginal note:Directions

  (6) The Minister may give directions respecting the preparation of financial statements, to supplement generally accepted accounting principles.

Marginal note:Annual auditor’s report

• 120 (1) Each institution shall cause an annual auditor’s report to be prepared in accordance with any directions of the Minister, on

  • (a) its financial statements; and

  • (b) any quantitative information required to be audited under subsection (3).

• Marginal note:Contents

  (2) A report under subsection (1) shall

  • (a) include separate statements as to whether in the auditor’s opinion

    • (i) the financial statements are presented fairly, in accordance with generally accepted accounting principles, applied on a basis consistent with that of the preceding year,

    • (ii) the quantitative information is accurate in all material respects and, if applicable, was prepared on a basis consistent with that of the preceding year, and

    • (iii) the transactions of the institution that have come to the auditor’s notice in the course of his or her examination for the report were carried out in accordance with this Act; and

  • (b) call attention to any other matter falling within the scope of the auditor’s examination for the report that, in his or her opinion, should be brought to the attention of the institution or the Minister.

• Marginal note:Audit of quantitative information

  (3) The Minister may require that any quantitative information required to be included in an institution’s annual report pursuant to paragraph (2)(a) be audited.

• Marginal note:Presentation to Minister

  (4) Each institution shall submit its audited financial statements to the Minister at least 30 days before the day of its annual meeting.

Marginal note:Special examination

• 121 (1) Each institution shall, at least once every five years and at any other time required by its board of directors or by the Minister, cause a special examination to be carried out in respect of its operations to determine if the books, records, systems and practices referred to in section 119 were, in the period under examination, maintained in a manner that met the requirements of that section.

• Marginal note:Plan

  (2) Before commencing a special examination, an examiner shall survey the systems and practices of the institution to be examined and submit a plan for the examination, including a statement of the criteria to be applied in the examination, to the audit committee of the institution.

• Marginal note:Resolution of disagreements

  (3) Any disagreement between the examiner and the audit committee or board of directors of an institution with respect to a plan referred to in subsection (2) shall be resolved by the Minister.

• Marginal note:Reliance on internal audit

  (4) An examiner shall, as far as is practica­ble, rely on any internal audit conducted pursuant to subsection 119(3) in respect of the institution being examined.

Marginal note:Report

• 122 (1) An examiner shall, on completion of a special examination in respect of an institution, submit a report on his or her findings, and a summary of that report, to the Minister and to the board of directors of the institution.

• Marginal note:Contents

  (2) The report of an examiner shall include

  • (a) a statement whether in the examiner’s opinion, having regard to the criteria referred to in subsection 119(2), there is a reasonable assurance that there are no significant deficiencies in the systems and practices examined; and

  • (b) a statement of the extent to which the examiner relied on internal audits.

• Marginal note:Posting of report

  (3) An institution shall, as soon as possible after receipt of an examiner’s report, post a summary of the report on an Internet website maintained by the institution.