The purpose of the Framework Agreement was to recognize the inherent
right of First Nations to resume control over their lands and resources for
the use and benefit of their members without Government interference, by
replacing the land provisions of the Indian Act with First Nation made laws.
The Framework Agreement provides First Nations with the option to govern
their reserve lands outside the Indian Act. The option to regain control of
their lands and resources can only be undertaken with the consent of
the community.
Having the proper controls around information management will support Council and the administration in maintaining the required levels of confidentiality and security of data.
Information management involves:
the gathering of information from one or more sources
the sorting and distributing of that information to those who need it
the management of that information through record keeping
Reporting to the First Nation on money paid to and money expensed by each Councillor is part of sound governance practices and reinforces Council’s accountability to its members. This report is to be completed yearly.
The FAL requires that Council create a policy on this that includes the steps for:
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:
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)
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
Governance is the process of how your First Nation manages decision-making. Governance describes who has power, who makes decisions, how others make their voices heard, and what goes into reports and financial statements. The policies and activities of a First Nation flow from its governance structure.
Policies and procedures make sure everyone is on the same page on how things get done at a Nation.
They provide confidence to members that everyone is treated fairly and equally and may protect a Nation against possible legal action and loss of money and property.
The FMB has developed 4 sample policies to assist First Nations with bringing their FAL to life and becoming FMS certified.
While these sample policies and procedures meet the FMB's Standards, they should be adapted to fit the specific needs of your First Nation as well as your FAL.
The First Nations Financial Management Board (FMB) supports First Nations across Canada to build good governance and finance practices.
About FMB
We are a non-profit, First Nation organization.
Our services come at no cost to First Nations.
We only provide services when asked to by our First Nations clients.
We are independent of the Crown.
“Our team of experts help our clients' Finance and Operational departments optimize organizational performance. We identify process gaps and inefficiencies as well as mitigating actions to help our clients achieve their organizational goals. Our team has expertise in business planning, key performance indicators (KPIs), business case development, financial governance structures, including the Government of Canada's Program Activity Architecture (PAA) and performance management frameworks such as the Balanced Scorecard.”
