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

PART 3First Nations Financial Management Board

Interpretation

Definition of Board

37 In this Part, Board means the First Nations Financial Management Board.

Establishment and Organization of Board

Marginal note:Establishment

• 38 (1) There is established a board, to be known as the First Nations Financial Management Board, to be managed by a board of directors consisting of a minimum of nine and a maximum of 13 directors, including a Chairperson and Vice-Chairperson.

• Marginal note:Capacity, rights, powers and privileges

  (2) The Board has the capacity, rights, powers and privileges of a natural person, including the capacity to

  • (a) enter into contracts;

  • (b) acquire, hold and dispose of property or an interest or right in property, or lease property;

  • (c) raise, invest or borrow money; and

  • (d) sue and be sued.

Marginal note:Not agent of Her Majesty

39 The Board is not an agent of Her Majesty.

Marginal note:Appointment of Chairperson

40 On the recommendation of the Minister, the Governor in Council shall appoint a Chairperson to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

Marginal note:Appointment of additional directors

• 41 (1) The Governor in Council, on the recommendation of the Minister, shall appoint a minimum of five, and a maximum of nine, other directors to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

• Marginal note:Indigenous directors

  (1.1) The Governor in Council shall endeavour to ensure that the majority of the directors are Indigenous.

• Marginal note:Appointment by AFOA Canada

  (2) AFOA Canada, or any other body prescribed by regulation, shall appoint up to three additional directors to hold office during pleasure for a term not exceeding five years.

• Marginal note:Staggered terms

  (3) In determining the term of appointment of directors, the Governor in Council shall endeavour to ensure that the terms of no more than three directors expire in any one calendar year.

• Marginal note:Qualifications

  (4) The board of directors shall be composed of individuals from across Canada, including members of First Nations, who are committed to the strengthening of the financial management of First Nations or of entities referred to in paragraphs 50.1(1)(a) to (c) and who have the experience or capacity to enable the Board to fulfil its mandate.

Marginal note:Election of Vice-Chairperson

• 42 (1) The board of directors shall elect a Vice-Chairperson from among the directors.

• Marginal note:Functions

  (2) In the event of the absence or incapacity of the Chairperson, or if the office of Chairperson is vacant, the Vice-Chairperson shall assume the duties and functions of the Chairperson.

Marginal note:Reappointment

43 Directors may be reappointed for a second or subsequent term of office.

Marginal note:Status

44 The Chairperson shall hold office on a full-time basis and the other directors shall hold office on a part-time basis.

Marginal note:Remuneration

• 45 (1) Directors shall be paid the remuneration determined by the Governor in Council.

• Marginal note:Expenses

  (2) The Chairperson shall be reimbursed for reasonable travel and other expenses incurred in performing duties while absent from their ordinary place of work. Other directors shall be reimbursed for such expenses incurred in performing duties while absent from their ordinary place of residence.

Marginal note:Rules of procedure

46 The board of directors may make any rules that it considers necessary for the conduct of its meetings.

Marginal note:Head office

47 The head office of the Board shall be at a location determined by the Governor in Council.

Marginal note:Staff

• 48 (1) The board of directors may

  • (a) hire any staff that is necessary to conduct the work of the Board; and

  • (b) determine the duties of those persons and the conditions of their employment.

• Marginal note:Salaries and benefits

  (2) Persons hired under subsection (1) shall be paid the salary and benefits fixed by the board of directors.

Purposes

Marginal note:Mandate

49 The purposes of the Board are to

• (a) assist First Nations and entities referred to in subsection 50.1(1) in developing the capacity to meet their financial management requirements;

• (a.1) assist First Nations and entities referred to in subsection 50.1(1) in developing and implementing laws and by-laws respecting financial administration;

• (b) assist First Nations and entities referred to in paragraphs 50.1(1)(a) to (c) in their dealings with different levels of governments respecting financial management, including matters of accountability and shared fiscal responsibility;

• (c) assist First Nations and entities referred to in paragraphs 50.1(1)(a) to (c) in the development, implementation and improvement of financial relationships with financial institutions, business partners and different levels of governments, to enable the economic and social development of First Nations and of those entities;

• (d) develop and support the application of general credit rating criteria to First Nations;

• (e) provide review and audit services respecting First Nation financial management;

• (f) provide assessment and certification services respecting First Nation financial management and financial performance;

• (g) provide monitoring and reporting services respecting financial management systems and financial performance;

• (g.1) provide First Nations and entities referred to in subsection 50.1(1) with monitoring and reporting services respecting the implementation of laws and by-laws respecting financial administration and the compliance of those laws and by-laws with applicable standards;

• (h) provide services respecting the co-management and third-party management of local revenues and other revenues;

• (i) provide advice, policy research and review and evaluative services on the development of fiscal arrangements between different levels of governments and First Nations, as well as on the development of fiscal arrangements between different levels of governments and entities referred to in paragraphs 50.1(1)(a) to (c);

• (j) develop, implement, test and evaluate, as well as conduct research with respect to, proposals and pilot projects related to the purposes set out in the other paragraphs of this section;

• (k) assist First Nations, entities referred to in subsection 50.1(1), other levels of government and public and private organizations in the development and implementation of fiscal and economic proposals that contribute to responding to the Truth and Reconciliation Commission of Canada’s Calls to Action and to implementing the United Nations Declaration on the Rights of Indigenous Peoples; and

• (l) collect data, publish statistical information and conduct research and analysis on matters related to the purposes set out in the other paragraphs of this section.

Functions and Powers

Marginal note:Review of financial management system

• 50 (1) On the request of the council of a First Nation, the Board may review the First Nation’s financial management system or financial performance for compliance with the standards established under subsection 55(1).

• Marginal note:Report

  (2) On completion of a review under subsection (1), the Board shall provide to the First Nation a report setting out

  • (a) the scope of the review undertaken; and

  • (b) an opinion as to whether the First Nation was in compliance with the standards or as to which aspects of the standards were not complied with by the First Nation.

• Marginal note:Issuance of certificate

  (3) If after completing a review under subsection (1) the Board is of the opinion that the First Nation was in compliance, in all material respects, with the standards, it shall issue to the First Nation a certificate to that effect.

• Marginal note:Revocation of certificate

  (4) The Board may, on giving notice to a council, revoke a certificate issued under subsection (3) if, on the basis of financial or other information available to the Board, it is of the opinion that

  • (a) the basis on which the certificate was issued has materially changed;

  • (b) the First Nation provided information that is incomplete or incorrect or made misrepresentations to the Board; or

  • (c) the First Nation is no longer in compliance, in all material respects, with the standards.

• Marginal note:Form and content

  (5) The Board may determine the form and content of certificates issued under subsection (3), including any restrictions as to the purposes for which, and the persons by whom, they are intended to be used.

• Marginal note:Remedial measures required

  (6) If a borrowing member’s certificate is revoked, the borrowing member shall, without delay, take any measures required to re-establish its certification.

• Marginal note:Opinion final

  (7) An opinion of the Board referred to in this section is final and conclusive and is not subject to appeal.

Marginal note:Review and monitoring

• 50.01 (1) On the request of a First Nation or under the terms of an agreement between a First Nation and any level of government, the Board may review or monitor

  • (a) the implementation of laws of the First Nation respecting financial administration;

  • (b) the compliance of those laws with the standards established under paragraph 55(1)(a); and

  • (c) the First Nation’s compliance with the standards established under paragraph 55(1)(c) or (d).

• Marginal note:Report

  (2) On completion of a review, or from time to time while carrying out monitoring, the Board shall provide to the First Nation a report setting out its findings and any recommendations.

• Marginal note:Procedures

  (3) The Board may establish procedures respecting

  • (a) the requests for review and monitoring referred to in subsection (1);

  • (b) the review and monitoring referred to in subsection (1); and

  • (c) the reports referred to in subsection (2).

• Marginal note:Statutory Instruments Act

  (4) The Statutory Instruments Act does not apply in respect of procedures established under subsection (3).

Marginal note:Review of financial management system — non-scheduled entities

• 50.1 (1) On the request of any of the following entities, the Board may review the entity’s financial management system, financial performance or laws or by-laws respecting financial administration to determine whether it is in compliance, in all material respects, with the standards established under subsection (3):

  • (a) a band that is not named in the schedule;

  • (b) a tribal council;

  • (c) an Indigenous group that is a party to a treaty, land claims agreement or self-government agreement with Canada or with a province, or an entity established under, or as a result of, such a treaty or agreement;

  • (d) an entity — owned or controlled by one or more First Nations or entities referred to in paragraph (a), (b) or (c) — whose mandate is primarily to promote the well-being or advancement of Indigenous people; or

  • (e) a not-for-profit organization established to provide public services to Indigenous groups or Indigenous persons, including services with respect to social welfare, infrastructure, housing, recreational or cultural activities, health or education.

• Marginal note:Report

  (2) On completion of a review under subsection (1), the Board shall provide to the entity a report setting out

  • (a) the scope of the review undertaken; and

  • (b) an opinion as to whether the entity was in compliance, in all material respects, with the standards or as to which aspects of the standards were not complied with by the entity.

• Marginal note:Standards

  (3) The Board may establish standards, not inconsistent with the regulations, respecting

  • (a) financial management systems and financial performance of entities referred to in subsection (1); and

  • (b) the form and content of laws or by-laws respecting financial administration of entities referred to in subsection (1).

• Marginal note:Procedures

  (4) The Board may establish procedures respecting the review referred to in subsection (1).

• Marginal note:Statutory Instruments Act

  (5) The Statutory Instruments Act does not apply to a standard established under subsection (3) or a procedure established under subsection (4).

• Marginal note:First Nations Gazette

  (6) All standards established by the Board under subsection (3) shall be published in the First Nations Gazette.