Recently, Aboriginal Services Canada (SAC) announced that, effective April 1, 2019, 10-year grant funding would be provided to First Nations who would submit a written application and meet the eligibility requirements. These requirements were developed jointly with the Assembly of First Nations (AFN) and the First Nations Financial Management Board (FNFMB).
In order to qualify for this 10-year grant, a First Nation must have legislation in place (First Nations Financial Management Act) or Financial Administration (Indian Act) By-Law. If the First Nation decides to make a financial administration by-law, it must be approved by the minister. The same standards will apply for a law or administrative regulation on financial administration.
Currently, under the current Memorandum of Understanding (MOU) with the Minister of Indigenous and Northern Affairs (INAC), the FNTC is solely responsible for providing advice to the Minister regarding the approval of all by-laws. under section 83 of the Indian Act. However, as a result of the new requirements, the FNTC is working to transfer the specific responsibility for financial administration bylaws to the FNFMB. The latter would be responsible for setting standards and policies for all financial administration bylaws, developing a model of
By-law fully complying with these standards, reviewing all bylaws on financial administration submitted by First Nations, and recommending, as appropriate, ministerial approval of these by-laws. The FNTC will continue to support the policy, review and recommendation requirements for taxation under section 83 of the Indian Act.
In August 2018, the FNTC and FNFMB met to discuss issues related to the transfer of this responsibility to be finalized by the end of the year. This includes making an amendment to the current FNTC MOU and drafting a separate MOU between FNFMB and INAC to cover recommendations for ministerial approval of financial administration bylaws. Under the new agreement, financial administration bylaws would still be registered by the FNTC and published in the First Nations Gazette.
Work continues to ensure that First Nations that have already adopted Section 83 financial administration bylaws are supported and informed in advance of the transfer of responsibility for these regulations. to the FNFMB.