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| Mandate
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47. The purposes of the Board are to
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(a) assist first nations in developing the
capacity to meet their financial
management requirements;
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(b) assist first nations in their dealings with
other governments respecting financial
management, including matters of
accountability and shared fiscal
responsibility;
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(c) assist first nations in the development,
implementation and improvement of
financial relationships with financial
institutions, business partners and other
governments, to enable the economic and
social development of first nations;
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(d) develop and support the application of
general credit rating criteria to first nations;
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(e) provide review and audit services
respecting first nation financial
management;
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(f) provide assessment and certification
services respecting first nation financial
management and financial performance;
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(g) provide financial monitoring services
respecting first nation financial
management and financial performance;
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(h) provide co-management and third-party
management services; and
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(i) provide advice, policy research and
review and evaluative services on the
development of fiscal arrangements
between first nations' governments and
other governments.
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| Review of
financial
management
system
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48. (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 53(1).
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| Report
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(2) On completion of a review under
subsection (1), the Board shall provide to the
first nation a report setting out
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(a) the scope of the review undertaken; and
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(b) an opinion as to the extent to which the
first nation was in compliance with the
standards.
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| Certificate
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(3) Where after completing a review under
subsection (1) the Board is of the opinion that
the first nation was in compliance with the
standards, it shall issue to the first nation a
certificate to that effect.
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| Revocation of
certificate
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(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 the basis upon which the
certificate was issued has materially changed.
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| Form and
content
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(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.
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| Remedial
measures
required
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(6) If a borrowing member's certificate is
revoked, the borrowing member shall, without
delay, take such measures as are required to
re-establish its certification.
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| Opinion final
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(7) An opinion of the Board referred to in
this section is final and conclusive and is not
subject to appeal.
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| Required
intervention
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49. On receipt of a notice from the First
Nations Tax Commission under paragraph
31(3)(b) or from the First Nations Finance
Authority under subsection 84(4), the Board
shall either require the first nation to enter into
a co-management arrangement in accordance
with section 50 or assume third-party
management of the first nation's local
revenues in accordance with section 51, as the
Board sees fit.
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| Imposed
co-manageme
nt
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50. (1) The Board may, on giving notice to
the council of a first nation, require the first
nation to enter into a co-management
arrangement in respect of the first nation's
local revenues, including its local revenue
account,
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(a) if, in the opinion of the Board, there is
a serious risk that the first nation will
default on an obligation to the First Nations
Finance Authority; or
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(b) on receipt of a request or demand to do
so under paragraph 31(3)(b) or subsection
84(4).
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| Powers
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(2) Under a co-management arrangement,
the Board may
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(a) recommend amendments to a law of the
first nation made under this Act;
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(b) recommend changes to the first nation's
expenditures or budgets;
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(c) recommend improvements to the first
nation's financial management system;
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(d) recommend changes to the delivery of
programs and services;
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(e) order that expenditures of local revenues
of the first nation be approved by, or paid
with cheques co-signed by, a manager
appointed by the Board; and
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(f) exercise any powers delegated to the
Board under a law of the first nation or
under an agreement between the first nation
and the Board or the first nation and the First
Nations Finance Authority.
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| Termination
by Board
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(3) The Board may terminate a
co-management arrangement with a first
nation on giving notice to its council that the
Board is of the opinion that
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(a) there is no longer a serious risk that the
first nation will default on an obligation to
the First Nations Finance Authority;
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(b) where the first nation was in default of
a payment obligation to the First Nations
Finance Authority, the first nation has
remedied the default;
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(c) a co-management arrangement
requested or demanded under paragraph
31(3)(b) or subsection 84(4) is no longer
required; or
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(d) third-party management of the first
nation's local revenues is required.
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| Opinion final
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(4) An opinion given by the Board under
this section is final and conclusive and is not
subject to appeal.
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| Notice
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(5) The Board shall advise the First Nations
Finance Authority and the First Nations Tax
Commission of the commencement or
termination of a co-management
arrangement.
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| Third-party
management
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51. (1) The Board may, on giving notice to
the council of a first nation and to the Minister,
assume management of the first nation's local
revenues, including its local revenue account,
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(a) if, in the opinion of the Board, a
co-management arrangement under section
50 has not been effective;
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(b) if, in the opinion of the Board, there is
a serious risk that the first nation will
default on an obligation to the First Nations
Finance Authority; or
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(c) on receipt of a request or demand to do
so under paragraph 31(3)(b) or subsection
84(4).
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| Powers
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(2) Where the Board assumes third-party
management of the local revenues of a first
nation, the Board has the exclusive right to
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(a) subject to subsection (2.1), act in the
place of the council of the first nation to
make laws under paragraphs 4(1)(a) to (f) ;
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(b) act in the place of the council of the first
nation under laws made under paragraphs
4(1)(a) to (e) and manage the first nation's
local revenue account, including any
necessary borrowing;
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(c) provide for the delivery of programs and
services that are paid for out of local
revenues;
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(d) assign rights or interests under
subsection 4(7); and
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(e) exercise any powers delegated to the
Board under a law of the first nation or an
agreement between the first nation and the
Board or between the first nation and the
First Nations Finance Authority.
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| Consent of
council
required
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(2.1) The Board shall not make a law under
paragraph 4(1)(f) that delegates a power to a
person or body to whom a power was not
delegated at the time the Board assumed
third-party management of the local revenues
of a first nation, unless the council of the first
nation gives its consent.
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| Prohibition
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(2.2) The council of the first nation shall
not, during the time that the board assumes
third-party management of the first nation's
local revenues, repeal any law made under
paragraph 4(1)(g).
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| Review every
six months
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(3) Where the Board has assumed
third-party management of a first nation's
local revenues, it shall review the need for
third-party management at least once every
six months and advise the First Nations
Finance Authority, the First Nations Tax
Commission and the council of the first nation
of the results of its review.
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| Termination
by Board
|
(4) The Board may terminate third-party
management of a first nation's local revenues,
on giving notice to the council of the first
nation, if
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(a) it is of the opinion that there is no longer
a serious risk that the first nation will
default on an obligation to the First Nations
Finance Authority and the Authority
consents to the termination in writing;
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(b) where the first nation was in default of
an obligation to the First Nations Finance
Authority, it is of the opinion that the first
nation has remedied the default and the
Authority consents to the termination in
writing; or
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(c) it is of the opinion that the situation for
which third-party management of the first
nation's local revenues was required under
paragraph 31(3)(b) or subsection 84(4) has
been remedied.
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| Opinion final
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(5) An opinion given by the Board under
this section is final and conclusive and is not
subject to appeal.
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| Notice
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(6) The Board shall advise the First Nations
Finance Authority and First Nations Tax
Commission of the assumption or termination
of third-party management of a first nation's
local revenues.
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| Required
information
|
52. At the request of the Board, a first nation
that has made a local revenue law shall
provide to the Board any information about
the first nation's financial management
system and financial performance that the
Board requires for a decision regarding a
co-management arrangement or third-party
management of the first nation's local
revenues.
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| Standards
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53. (1) The Board may establish standards,
not inconsistent with the regulations,
respecting
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(a) the form and content of laws made under
section 8;
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(b) approvals of the Board under Part 1 ;
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(c) certification of first nations under
section 48; and
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(d) financial reporting under subsection
13(1).
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| Procedures
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(2) The Board may establish procedures
respecting
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(a) the submission for approval and
approval of laws made under section 8;
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(b) issuance of a certificate under
subsection 48(3); and
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(c) implementation or termination of a
co-management arrangement or third-party
management of a first nation's local
revenues.
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| Statutory
Instruments
Act
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(3) The Statutory Instruments Act does not
apply to a standard established under
subsection (1) or a procedure established
under subsection (2).
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| First Nations
Gazette
|
(4) All laws made under section 8 and
approved by the Board and all standards
established by the Board under subsection (1)
shall be published in the First Nations
Gazette.
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| Regulations
|
54. The Governor in Council may, on the
recommendation of the Minister made having
regard to any representations by the Board,
make regulations
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(a) respecting the implementation of a
co-management arrangement or third-party
management of a first nation's local
revenues, including the obligations of
affected first nations to provide access to
financial records; and
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(b) fixing fees that the Board may charge for
services, including fees to first nations for
co-management and third-party
management services, and the manner in
which such fees may be recovered.
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