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

Marginal note:Review and monitoring

• 50.01 (1) On the request of a First Nation or under the terms of an agreement between a First Nation and any level of government, the Board may review or monitor

  • (a) the implementation of laws of the First Nation respecting financial administration;

  • (b) the compliance of those laws with the standards established under paragraph 55(1)(a); and

  • (c) the First Nation’s compliance with the standards established under paragraph 55(1)(c) or (d).

• Marginal note:Report

  (2) On completion of a review, or from time to time while carrying out monitoring, the Board shall provide to the First Nation a report setting out its findings and any recommendations.

• Marginal note:Procedures

  (3) The Board may establish procedures respecting

  • (a) the requests for review and monitoring referred to in subsection (1);

  • (b) the review and monitoring referred to in subsection (1); and

  • (c) the reports referred to in subsection (2).

• Marginal note:Statutory Instruments Act

  (4) The Statutory Instruments Act does not apply in respect of procedures established under subsection (3).

Marginal note:Review of financial management system — non-scheduled entities

• 50.1 (1) On the request of any of the following entities, the Board may review the entity’s financial management system, financial performance or laws or by-laws respecting financial administration to determine whether it is in compliance, in all material respects, with the standards established under subsection (3):

  • (a) a band that is not named in the schedule;

  • (b) a tribal council;

  • (c) an Indigenous group that is a party to a treaty, land claims agreement or self-government agreement with Canada or with a province, or an entity established under, or as a result of, such a treaty or agreement;

  • (d) an entity — owned or controlled by one or more First Nations or entities referred to in paragraph (a), (b) or (c) — whose mandate is primarily to promote the well-being or advancement of Indigenous people; or

  • (e) a not-for-profit organization established to provide public services to Indigenous groups or Indigenous persons, including services with respect to social welfare, infrastructure, housing, recreational or cultural activities, health or education.

• Marginal note:Report

  (2) On completion of a review under subsection (1), the Board shall provide to the entity a report setting out

  • (a) the scope of the review undertaken; and

  • (b) an opinion as to whether the entity was in compliance, in all material respects, with the standards or as to which aspects of the standards were not complied with by the entity.

• Marginal note:Standards

  (3) The Board may establish standards, not inconsistent with the regulations, respecting

  • (a) financial management systems and financial performance of entities referred to in subsection (1); and

  • (b) the form and content of laws or by-laws respecting financial administration of entities referred to in subsection (1).

• Marginal note:Procedures

  (4) The Board may establish procedures respecting the review referred to in subsection (1).

• Marginal note:Statutory Instruments Act

  (5) The Statutory Instruments Act does not apply to a standard established under subsection (3) or a procedure established under subsection (4).

• Marginal note:First Nations Gazette

  (6) All standards established by the Board under subsection (3) shall be published in the First Nations Gazette.

Marginal note:Review and monitoring

• 50.2 (1) On the request of an entity referred to in subsection 50.1(1) or under the terms of an agreement between such an entity and any level of government, the Board may review or monitor

  • (a) the implementation of laws or by-laws made by the entity respecting financial administration;

  • (b) the compliance of those laws or by-laws with the standards established under paragraph 50.1(3)(b); and

  • (c) the entity’s compliance with the standards established under paragraph 50.1(3)(a).

• Marginal note:Report

  (2) On completion of a review, or from time to time while carrying out monitoring, the Board shall provide to the entity a report setting out its findings and any recommendations.

• Marginal note:Procedures

  (3) The Board may establish procedures respecting

  • (a) the requests for review and monitoring referred to in subsection (1);

  • (b) the review and monitoring referred to in subsection (1); and

  • (c) the reports referred to in subsection (2).

• Marginal note:Statutory Instruments Act

  (4) The Statutory Instruments Act does not apply in respect of procedures established under subsection (3).

Marginal note:Required intervention — local revenues

• 51 (1) On receipt of a notice from the First Nations Tax Commission under paragraph 33(3)(b) or from the First Nations Finance Authority under subsection 86(4), the Board shall either require the First Nation to enter into a co-management arrangement in accordance with section 52 or assume third-party management in accordance with section 53, as the Board sees fit.

• Marginal note:Required intervention — other revenues

  (2) On receipt of a notice from the First Nations Finance Authority under subsection 86(5), the Board shall either require the First Nation to enter into a co-management arrangement in accordance with section 52.1 or assume third-party management in accordance with section 53.1, as the Board sees fit.

Marginal note:Imposed co-management — local revenues

• 52 (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,

  • (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 relating to a loan secured by local revenues; or

  • (b) if the Board has received a notice under paragraph 33(3)(b) or subsection 86(4).

• Marginal note:Powers

  (2) Under the co-management arrangement, the Board may

  • (a) recommend amendments to a law of the First Nation made under any of paragraphs 5(1)(a) to (f) or subsection 9(1);

  • (b) recommend changes to the First Nation’s expenditures or budgets with respect to its local revenues;

  • (c) recommend improvements to the First Nation’s financial management system with respect to its local revenues;

  • (d) recommend changes to the delivery of programs and services paid for out of the First Nation’s local revenues;

  • (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

  • (f) with respect to local revenues, 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.

• Marginal note:Termination by Board

  (3) The Board may terminate the co-management arrangement on giving notice to the council of the First Nation that the Board is of the opinion that

  • (a) there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues;

  • (b) in the case of a First Nation that was in default of a payment obligation to the First Nations Finance Authority relating to a loan secured by local revenues, the First Nation has remedied the default;

  • (c) the co-management arrangement is no longer required; or

  • (d) third-party management of the First Nation’s local revenues is required.

• Marginal note:Opinion final

  (4) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

• Marginal note:Notice

  (5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of the co-management arrangement.

Marginal note:Imposed co-management — other revenues

• 52.1 (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 other revenues, including those that have not been used as security for a loan from the First Nations Finance Authority,

  • (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 relating to a loan secured by other revenues; or

  • (b) if the Board has received a notice under subsection 86(5).

• Marginal note:Powers

  (2) Under the co-management arrangement, the Board may

  • (a) recommend amendments to a law of the First Nation made under any of paragraphs 8.1(1)(a) or (b) or subsection 9(1);

  • (b) recommend changes to the First Nation’s expenditures or budgets with respect to its other revenues;

  • (c) recommend improvements to the First Nation’s financial management system with respect to its other revenues;

  • (d) recommend changes to the delivery of programs and services that are paid for out of the First Nation’s other revenues;

  • (e) order that expenditures of other revenues of the First Nation be approved by, or paid with cheques co-signed by, a manager appointed by the Board; and

  • (f) with respect to other revenues, 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.

• Marginal note:Termination by Board

  (3) The Board may terminate the co-management arrangement on giving notice to the council of the First Nation that the Board is of the opinion that

  • (a) there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues;

  • (b) in the case of a First Nation that was in default of a payment obligation to the First Nations Finance Authority relating to a loan secured by other revenues, the First Nation has remedied the default;

  • (c) the co-management arrangement is no longer required; or

  • (d) third-party management of the First Nation’s other revenues is required.

• Marginal note:Opinion final

  (4) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

• Marginal note:Notice

  (5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of the co-management arrangement.

Marginal note:Third-party management — local revenues

• 53 (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,

  • (a) if, in the opinion of the Board, the co-management arrangement entered into under section 52 has not been effective;

  • (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 relating to a loan secured by local revenues; or

  • (c) if the Board has received a notice under paragraph 33(3)(b) or subsection 86(4).

• Marginal note:Powers

  (2) If the Board assumes third-party management of the local revenues of a First Nation, the Board has the exclusive authority to

  • (a) subject to subsection (3), act in the place of the council of the First Nation to make laws under paragraphs 5(1)(a) to (f) and subsection 9(1);

  • (b) act in the place of the council of the First Nation to

    • (i) with respect to local revenues, exercise any powers and fulfil any obligations of the council under this Act, including under the regulations made under this Act, or under any laws made under paragraphs 5(1)(a) to (e) and 9(1)(a),

    • (ii) manage the First Nation’s local revenues, including the local revenue account,

    • (iii) undertake any necessary borrowing for the purpose of remedying the situation for which third-party management was required, and

    • (iv) provide for the delivery of programs and services that are paid for out of the First Nation’s local revenues, manage assets related to those programs and services and enter into or terminate agreements in respect of those programs, services and assets;

  • (b.1) [Repealed, 2018, c. 27, s. 399]

  • (c) assign interests or rights under subsection 5(7); and

  • (d) with respect to local revenues, exercise any powers or fulfil any obligations 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.

  • (e) [Repealed, 2018, c. 27, s. 399]

• Marginal note:Delegation — consent of council required

  (3) The Board shall not make a law under paragraph 5(1)(f) or 9(1)(b) 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.

• Marginal note:Prohibition

  (4) 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 5(1)(g).

• Marginal note:Review every six months

  (5) 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.

• Marginal note:Board not agent or mandatary

  (5.1) For greater certainty, the Board is not an agent or mandatary of the First Nations Finance Authority or the First Nations Tax Commission while exercising its exclusive authority under subsection (2).

• Marginal note:Termination by Board

  (6) 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

  • (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 relating to a loan secured by local revenues and the Authority consents to the termination in writing;

  • (b) in the case of a First Nation that was in default of an obligation to the First Nations Finance Authority relating to a loan secured by local revenues, it is of the opinion that the First Nation has remedied the default and the Authority consents to the termination in writing;

  • (c) it is of the opinion that the situation for which third-party management of the First Nation’s local revenues was required has been remedied; or

  • (d) in the case of third-party management that was assumed by the Board following receipt of a notice under subsection 86(4), the First Nations Finance Authority has, in writing, requested the termination and stated its reasons for the request.

• Marginal note:Opinion final

  (7) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

• Marginal note:Notice

  (8) 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.