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Bill C-19

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	Offences
Offence	109. Every person who, after making an oath or solemn affirmation under section 101,
	(a) wilfully makes a false declaration, statement or return in the performance of his or her duties,
	(b) in the pretended performance of his or her duties, obtains or seeks to obtain information that the person is not authorized to obtain, or
	(c) contravenes section 106,
	is guilty of an offence and liable on summary conviction to a fine not exceeding $1,000 or to imprisonment for a term not exceeding six months, or to both.
Secret information	110. Every person who, after making an oath or solemn affirmation under section 101,
	(a) wilfully discloses, directly or indirectly, information obtained in the course of his or her duties that might affect the market value of a security or commodity, including any information referred to in subsection 106(2), to any person who has not been sworn or affirmed under section 101, or
	(b) uses any information described in paragraph (a) for the purpose of speculating in a security or commodity,
	is guilty of an offence and liable on summary conviction to a fine not exceeding the aggregate of $5,000 and double the amount of any benefit obtained from speculation referred to in paragraph (b) or to imprisonment for a term not exceeding five years, or to both.
	Regulations
Regulations	111. The Governor in Council may, on the recommendation of the Minister made having regard to any representations by the Institute, make regulations prescribing anything to be prescribed under paragraph 103(2)(q) or subsection 105(1).
	PART 6
	FINANCIAL MANAGEMENT AND CONTROL
Definitions	112. The following definitions apply in this Part.
``board of directors'' « conseil d'administrati on »	``board of directors'' includes,
	(a) in respect of the First Nations Tax Commission, the commissioners referred to in section 15; and
	(b) in respect of the First Nations Financial Management Board, the directors referred to in section 36.
``institution'' « institution »	``institution'' means the First Nations Tax Commission or the First Nations Financial Management Board.
Exclusion from public service	113. (1) The officers and employees of an institution are not part of the public service of Canada.
No guarantees	(2) No person shall give a guarantee on behalf of Her Majesty for the discharge of an obligation or liability of an institution.
Financial year	114. The financial year of each institution is the period from April 1 to March 31, unless otherwise prescribed by regulation.
Expenditure of revenues	115. Subject to such terms and conditions as the Treasury Board may direct, for the purposes of the institution, an institution may expend, during a financial year or the following year, any revenues that it receives in that financial year through the conduct of its operations.
Corporate plans	116. (1) Each institution shall, in accordance with any directions given by the Minister, establish a corporate plan and budget for each financial year and submit them to the Minister for approval.
Scope and contents of corporate plan	(2) The corporate plan of each institution shall encompass all of the businesses and activities of the institution and include a statement of
	(a) the objects or purposes of the institution;
	(b) the institution's objectives for the financial year and the strategy it intends to employ to achieve those objectives; and
	(c) the institution's expected performance for the financial year as compared to its objectives for that year as set out in the last corporate plan.
Contents of budget	(3) The budget of each institution must include a statement of the institution's projected revenues and expenses for the financial year on account of capital and operations.
Form of corporate plan	(4) The corporate plan of each institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.
Restriction on business or activity	(5) No institution may carry on any business or activity in any financial year in a manner that is not consistent with its corporate plan for that year.
Amendment	(6) Any amendment by an institution to its corporate plan or budget shall be submitted to the Minister for approval.
Books and systems	117. (1) Each institution shall
	(a) keep books of account and records in relation to them; and
	(b) maintain financial and management control and information systems.
Books and systems	(2) The books, records and systems referred to in subsection (1) shall be kept and maintained in such a manner as will provide reasonable assurance that
	(a) the institution's assets are safeguarded and controlled;
	(b) its transactions are in accordance with this Act;
	(c) its financial, human and physical resources are managed economically and efficiently; and
	(d) its operations are carried out effectively.
Internal audit	(3) An institution may cause internal audits to be conducted to assess compliance with subsections (1) and (2).
Financial statements	(4) Each institution shall annually prepare financial statements, in accordance with generally accepted accounting principles, as supplemented by any directions given by the Minister under subsection (6).
Form of financial statements	(5) The financial statements of an institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution.
Directions	(6) The Minister may give directions respecting the preparation of financial statements, to supplement generally accepted accounting principles.
Annual auditor's report	118. (1) Each institution shall cause an annual auditor's report to be prepared in accordance with any directions of the Minister, on
	(a) its financial statements; and
	(b) any quantitative information required to be audited under subsection (3).
Contents	(2) A report under subsection (1) shall
	(a) include separate statements as to whether in the auditor's opinion
	(i) the financial statements are presented fairly, in accordance with generally accepted accounting principles, applied on a basis consistent with that of the preceding year,
	(ii) the quantitative information is accurate in all material respects and, if applicable, was prepared on a basis consistent with that of the preceding year, and
	(iii) the transactions of the institution that have come to the auditor's notice in the course of his or her examination for the report were carried out in accordance with this Act; and
	(b) call attention to any other matter falling within the scope of the auditor's examination for the report that, in his or her opinion, should be brought to the attention of the institution or the Minister.
Audit of quantitative information	(3) The Minister may require that any quantitative information required to be included in an institution's annual report pursuant to paragraph (2)(a) be audited.
Presentation to Minister	(4) Each institution shall submit its audited financial statements to the Minister at least 30 days before the day of its annual meeting.
Special examination	119. (1) Each institution shall, at least once every five years and at any other time required by its board of directors or by the Minister, cause a special examination to be carried out in respect of its operations to determine if the books, records, systems and practices referred to in section 117 were, in the period under examination, maintained in a manner that met the requirements of that section.
Plan	(2) Before commencing a special examination, an examiner shall survey the systems and practices of the institution to be examined and submit a plan for the examination, including a statement of the criteria to be applied in the examination, to the audit committee of the institution.
Resolution of disagreements	(3) Any disagreement between the examiner and the audit committee or board of directors of an institution with respect to a plan referred to in subsection (2) shall be resolved by the Minister.
Reliance on internal audit	(4) An examiner shall, as far as is practicable, rely on any internal audit conducted pursuant to subsection 117(3) in respect of the institution being examined.
Report	120. (1) An examiner shall, on completion of a special examination in respect of an institution, submit a report on his or her findings, and a summary of that report, to the Minister and to the board of directors of the institution.
Contents	(2) The report of an examiner shall include
	(a) a statement whether in the examiner's opinion, having regard to the criteria referred to in subsection 117(2), there is a reasonable assurance that there are no significant deficiencies in the systems and practices examined; and
	(b) a statement of the extent to which the examiner relied on internal audits.
Posting of report	(3) An institution shall, as soon as possible after receipt of an examiner's report, post a summary of the report on an Internet website maintained by the institution.
Examiner	121. (1) Subject to subsection (2), a special examination shall be carried out by the auditor of the institution.
Other auditor	(2) Where, in the opinion of the Minister, a person other than the auditor of an institution should carry out a special examination in respect of the institution, the Minister may, after consulting with the board of directors of the institution, direct that the examination be carried out by another auditor who is qualified for the purpose.
Consultation with Auditor General	122. The auditor or examiner of an institution may at any time consult the Auditor General of Canada on any matter relating to an audit or special examination.
Right to information	123. (1) At the request of the auditor or examiner of an institution, the present or former commissioners, directors, officers, employees or agents of the institution shall provide any information and explanations, and give access to any records, documents, books, accounts and vouchers of the institution that are under their control, that the auditor or examiner considers necessary to prepare a report required under this Act.
Obligation to inform	(2) Where a commissioner or director of an institution does not have information or an explanation requested by an auditor or examiner under subsection (1), the commissioner or director shall obtain the information or explanation and provide it to the auditor or examiner.
Restriction	124. Nothing in this Part or in any directions of the Minister shall be construed as authorizing the auditor or examiner of an institution to express any opinion on the merits of matters of policy, including the merits of
	(a) the objects or purposes for which the institution was established or the restrictions on the businesses or activities that it may carry on, as set out in this Act; or
	(b) any business or policy decision of the institution.
Qualified privilege	125. An oral or written statement or report made under this Part by an auditor or examiner has qualified privilege.
Audit committee	126. (1) Each institution shall establish an audit committee composed of not less than three commissioners or directors who are not officers of the institution and who are competent to perform the duties set out in subsection (2).
Duties	(2) An audit committee shall
	(a) review, and advise the board of directors in respect of, the financial statements that are to be included in the annual report of the institution;
	(b) oversee any internal audit of the institution;
	(c) review, and advise the board of directors in respect of, the annual auditor's report in respect of the institution;
	(d) review, and advise the board of directors in respect of, any plan and report of a special examiner; and
	(e) perform such other functions as are assigned to it by the board of directors of the institution.
Auditor's or examiner's attendance	(3) An auditor and any examiner of an institution are entitled to receive notice of every meeting of the audit committee and, at the expense of the institution, to attend and be heard at each such meeting.
Required attendance	(4) The auditor or examiner of an institution shall attend any meeting of the institution's audit committee at which he or she is requested to attend by a member of that committee.
Calling meeting	(5) The auditor or examiner of an institution or a member of the institution's audit committee may call a meeting of that committee.
Disclosure of material developments	127. The chief executive officer of an institution shall, as soon as reasonably practicable, notify the Minister and any commissioner or director of the institution not already aware of them of any financial or other developments that, in the chief executive officer's opinion, are likely to have a material effect on the performance of the institution, relative to its objectives or requirements for funding.
Annual report	128. (1) Each institution shall, within four months after the end of each financial year, submit to the Minister an annual report on the operations of the institution in that year.
Form and contents	(2) The annual report of an institution shall be prepared in a form that clearly sets out information according to the major businesses or activities of the institution and shall include
	(a) the financial statements of the institution;
	(b) the annual auditor's report;
	(c) a statement on the extent to which the institution has met its objectives for the financial year;
	(d) such quantitative information respecting the performance of the institution as the Minister may require to be included; and
	(e) such other information as is required under this Act or any other Act of Parliament.
Annual meeting	129. (1) The board of directors of an institution shall call an annual meeting not later than 18 months after the institution is established and subsequently not later than 15 months after the preceding annual meeting.

Bill C-19

Offences

Regulations

PART 6

FINANCIAL MANAGEMENT AND CONTROL