The Fiscal Plan is a consolidated, program by program budget. The fiscal plan lays out the overall Band Council budget for the new fiscal year and is based upon approved Program Work Plans. Program budgets set out expected financial activities during the fiscal year. They are based on an analysis of revenues and expenditures and include both capital and operational expenditures.
A Revenue Forecast is a realistic summary of anticipated income from all sources including federal government departments, provincial ministries, community-based royalties, trusts and foundations, and private agreements.
A Capital Plan is a prioritized listing (including cost estimates) for major capital projects that the community would like to undertake over the next five years. The Capital Plan includes both mandatory and optional capital projects, as well as funded and unfunded projects. Capital Projects are usually defined as projects related to the planning, design, construction, renovation or purchase of facilities for education, housing, or community infrastructure purposes. Capital assets are permanent resources in the community such as buildings, roads, utilities, land, and equipment.
Preliminary Program Budgets outline the activities that will be undertaken on a program-by-program basis. These Budgets effectively implement the priorities established and approved by Band Council while meeting minimum program standards. Program budgets are costed plans. That means they not only establish what the program will do, but also estimates the funds required to carry out those activities.
Priorization is listing, in order of importance, the activities to be undertaken in the upcoming fiscal year. It means striking a balance between obligations to the funding agency and community, needs of the community, and the resources available to the Band Council.
Mandate Objectives are specific, achievable, and measurable goals that the Chief and Council wish to accomplish during their current tenure as political leaders in the community. Mandate Objectives are established to fulfill election promises, to address priority concerns and to set new directions. Mandate Objectives provide direction to the Band Manager and the Program Directors to take into consideration in developing their Preliminary Program Budgets.
A funding agreement is a document containing terms and conditions by which a transfer payment is made by the Crown to First Nations for delivery of programs and services. Funding agreements are negotiated with various government departments, often on a multi-year basis. Funding Agreements are legal documents through which a First Nation commits to deliver specific programs and services while meeting minimum program standards. Rules regarding the flexibility in the use of the funding, cash flow, and adjustment methodology are included.
The planning framework provides the structure that will facilitate decision-making in the organization. For fiscal planning, the planning framework will outline two major processes: one for matching revenues with expenditures; and the other for determining priorities between the program and service needs that almost always exceed available budgets.
Community accountability means direct communication with the people to provide information to and to receive feedback and input from Band Members. It provides an opportunity to discuss Band Council business in an open and transparent manner. Community Accountability is achieved through a number of processes including the Annual Report, the audit, and the Annual General Meeting (AGM).
Appropriations are the process of allocating anticipated revenues (see Revenue Forecast) to Band programs and agencies. Program Work Plans outline exactly how much money is to be transferred to each program and when.
