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Format: 2019
Format: 2019

External Audit [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

An external audit is the process of having someone independent review an organization’s financial statements and form a view as to whether or not they reflect the actual state of the money and property of the organization.

The independent reviewer (known as the auditor ) must follow certain standards known as auditing standards. The external audit provides reassurance to the First Nation and other readers of the financial statements that what they are reading reflects reality.

Appointment of the First Nation's Officers [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

There are certain key tasks that need to get done in every First Nation. These involve managing the overall day-to-day operations of the First Nation that include specific tasks around finances and reporting.

The FAL requires that these be assigned to specific individuals to make sure that they get done.

Therefore Council must create a policy outlining the duties and roles of the First Nation’s officers which include the senior manager, the senior financial officer and the tax administrator (if the First Nation is collecting local revenues).

FAC Meetings [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

The Finance and Audit Committee policy must also include the steps for committee meetings, including that:

FAC Members [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

The FAL requires that a policy is created and followed that includes procedures around Finance and Audit Committee member appointment, eligibility, removal, replacement and substitution.

Sample Terms of Reference - 1 (DOCX)
Sample Terms of Reference - 2 (DOCX)
Sample FAC Member Financial Competency Guidelines (DOCX

FAC Roles and Responsibilities [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

The Finance and Audit Committee reports to Council and has a financial and audit oversight role. These must be defined in the terms of reference for the Finance and Audit Committee that must include the financial and audit oversight responsibilities listed below.

The Finance and Audit Committee must review and recommend the following to Council:

Finance and Audit Committee [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

A Finance & Audit Committee (FAC) is a committee that oversees the financial reporting and audit functions of a First Nation. It provides forward-thinking oversight of the investments of a First Nation and supports Council in making good financial decisions.

The Finance and Audit Committee reinforces Council’s accountability and transparency to its members. It is important to understand that it is a recommending committee only and has no decision-making authority.

Committees [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

A First Nation may choose to form a committee to perform a task more efficiently or with expertise in relation to a specific matter. Terms of reference allow for the smooth functioning of the committee and Council must create these for each committee.

The terms of reference for each committee must set out:

Code of Conduct [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

A code of conduct is an important element of good governance because it acts as a guideline for ethical decision making. It also encourages positive working relationships and acts as a reference for solving ethical issues in the workplace.

The code of conduct applies to Council, officers, employees, committee members, contractors, and agents of the First Nation and must be included in employee contracts, contracts for service, and when approving someone as an agent or to serve on the Finance and Audit Committee.

Delegation of Responsibilities [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

An organization runs more smoothly if it is clear who has the authority to do what and when. To do this, Council must create a policy for the delegation of responsibilities for people involved with the First Nation including an officer, employee, committee, contractor, or agent.

Council is still responsible for the First Nation’s administration even if some responsibilities are delegated to others.

Sample Authorization and Delegation table (DOCX)
Sample Council Delegation of Duty (DOCX)
Sample Implementation Notes (DOCX)

Policies and Procedures [First Nations Financial Management Board, FNFMB]

Publisher: 
First Nations Financial Management Board
Year of publication: 
2019

As part of a sound governance structure, Council will need to create a policy that describes how all policies and procedures of the First Nation will be created and put into practice.

Under the FAL, only Council can approve financial administration policies and Council must keep a current list of these. Also, all financial administration policies of the First Nation must

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by Dr. Radut