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
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:
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.
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:
