SoVote

Decentralized Democracy

First Nations Financial Management Board

44th Parl. 1st Sess.
May 1, 2023
Context: Subject Matter of Bill C-45, An Act to amend the First Nations Fiscal Management Act (INAN) - May/1/23
Mr. Harold Calla (Executive Chair, First Nations Financial Management Board)
  • 03:33:33 p.m.
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Thank you for the opportunity to be here today. As you said, my name is Harold Calla. I'm the executive chair of the First Nations Financial Management Board and a member of the Squamish nation. For those who don't know, I've been the executive chair of the First Nations Financial Management Board since its inception some 15 years ago. Prior to that, I spent many years championing the passage of the First Nations Fiscal Management Act. It took three attempts. I hope today's amendments to the act have a much speedier passage and are through the House and the Senate by the end of June. These amendments build on the achievements of Canada's most successful piece of indigenous-led legislation. A huge part of this success lies in the FMA's optionality for first nations that choose, on an individual basis by band council resolution, to be scheduled to the act. There are no financial enticements to do so, just an individual nation's desire to have good financial management that is recognized to meet international standards, to be able to borrow from the First Nations Finance Authority or to levy local revenues to fund first nations government services. With the passage of these amendments, nations will be able to choose expert advice and support for building and maintaining infrastructure. The optionality of this legislation also provides evidence of its success. Nearly 350 first nations have chosen, one by one, to be scheduled to the FMA. That is over 60% of the first nations that are part of the Indian Act. The vast majority of these first nations work with the First Nations Financial Management Board. Like the other FMA institutions, the FMB is indigenous-led, accountable to a board that is primarily indigenous and has a staff that is mostly indigenous. We are an indigenous-driven solution that supports communities in getting the results an Ottawa-driven approach never could. The FMA is a success and we need to build on it. That is what these amendments are about today. For the FMB, the amendments will enable us to work with modern-day treaties and tribal councils, something communities have been asking for for years. The amendments will mean we can build on the statistical work we have been doing so that chiefs and councils have better facts to inform their decision-making. The amendments bring some of our operations into the modern day, such as allowing us to hold our AGM virtually, when appropriate. The FMB supports nations in developing financial administration laws to enshrine transparency and good governance. We provide capacity support so nations can bring their laws into practice. We award financial performance certifications to qualified first nations that meet the standards, so they can borrow from the FNFA. When we award a financial management system certification, first nations can use this to show to their community and business partners that their financial practices meet high standards internationally—standards most municipalities in Canada actually don't meet. Over the years, our functions at FMB have grown in response to nations' needs. We lead the way in providing the capacity supports first nations need to get out and stay out of third party management. We provide opinions on whether or not first nations have met standards for the eligibility of 10-year grants. We did the research on the size of the first nations economy, which allowed necessary supports to be distributed to first nations government owned businesses during the pandemic. We are now piloting a program to provide backup supports, such as bookkeeping for rural and remote communities that have trouble attracting and retaining staff. The nations that work with the FMB enjoy both improved economic development and greater trust in their communities. Our records and research show that first nations that have achieved their FMS certification have seen their own-source revenue grow significantly and enjoy higher community well-being index scores. Before I end my comments, I want to note that first nations were heavily engaged in the consultation on these amendments to the act. Every single first nation currently scheduled to the act was contacted by FMB staff and invited to an across-the-country town hall on the amendments. The responses we heard at the town hall were overwhelmingly positive. In particular, there was tremendous support for the centrepiece of these amendments, the creation of a First Nations Infrastructure Institute. We did the same thing for modern-day treaties and tribal councils. These amendments will allow us to work with them. In short, indigenous institutions are providing solutions and support to first nations that the current federal system never could. More and more first nations are choosing to work with these institutions. Nations are asking us to do more, and we are prepared to respond. Pass these amendments so that we can continue down the path of options that actually work for nations. Thank you.
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Mr. Grant Christoff (General Counsel, First Nations Financial Management Board)
  • 04:38:17 p.m.
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Thank you for punting that one to me. Thank you for the opportunity to speak in this room. With respect to the development of regulations, we do have to develop regulations in support of broadening the definition of “borrowing members”. As Ernie mentioned previously, that work is under way. I hope that work will be completed as well as the regulations in support of supporting the non-profit organizations that we talked about here. The legislative basis is created through these amendments. Regulatory work is required to support full access to the FMA. I'll just note for the committee here that we have the ability to work with these organizations now. We can issue compliance opinions, but what we are talking about is financial performance certification and financial management system certification, so a lot more work. I'm not sure if that responds to your question, though, Lori.
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