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First Nations Fiscal Management Act (S.C. 2005, c. 9)

Act current to 2020-09-09 and last amended on 2020-07-20. Previous Versions

PART 6Financial Management and Control (continued)

Marginal note:Special examination

  •  (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 119 were, in the period under examination, maintained in a manner that met the requirements of that section.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note:Reliance on internal audit

    (4) An examiner shall, as far as is practica­ble, rely on any internal audit conducted pursuant to subsection 119(3) in respect of the institution being examined.

Marginal note:Report

  •  (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.

  • Marginal note: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 119(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.

  • Marginal note: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.

Marginal note:Examiner

  •  (1) Subject to subsection (2), a special examination shall be carried out by the auditor of the institution.

  • Marginal note:Other auditor

    (2) If, 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.

Marginal note:Consultation with Auditor General

 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.

Marginal note:Right to information

  •  (1) At the request of the auditor or examiner of an institution, the present or former commissioners, directors, officers, employees or agents or mandataries 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.

  • Marginal note:Obligation to inform

    (2) If 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.

  • 2005, c. 9, s. 125
  • 2018, c. 27, s. 409(E)

Marginal note:Restriction

 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.

Marginal note:Qualified privilege

 An oral or written statement or report made under this Part by an auditor or examiner has qualified privilege.

Marginal note:Audit committee

  •  (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).

  • Marginal note: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 any other functions that are assigned to it by the board of directors of the institution.

  • Marginal note: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 meeting.

  • Marginal note: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.

  • Marginal note: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.

Marginal note:Disclosure of material developments

 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.

Marginal note:Annual report

  •  (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.

  • Marginal note: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) any quantitative information respecting the performance of the institution that the Minister may require to be included; and

    • (e) any other information that is required under this Act or any other Act of Parliament.

Marginal note:Annual meeting

  •  (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.

  • Marginal note:Notice of meeting

    (2) An institution shall, at least 30 days before the annual meeting, publish a notice in a major newspaper setting out the time and location of the meeting and specifying that the institution’s annual report may be accessed on an Internet website to be maintained by the institution.

  • Marginal note:Availability to public

    (3) At the annual meeting, the board of directors shall ensure that

    • (a) there are available a sufficient number of copies of the institution’s most recent annual report for those present at the meeting; and

    • (b) the chief executive officer and the commissioners or directors of the institution are available to those present at the meeting to answer any questions about the institution’s operations.

 
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