1. Mutual Transparency and Accountability
First Nations Engagement Sessions
Winter/Spring 2017

2. Engagement Principles:
Objective
Engagement Principles:
Respectful
Accessible
Flexible
Transparent
To engage in discussion and obtain feedback with respect to financial transparency and accountability needs; and
To explore ways in which mutual transparency and accountability may be achieved, and where possible, identify recommendations on a way forward.

3. Background
First Nations have had a long-standing requirement to provide financial and non-financial information including plans, reports and financial documents to the Department and to their membership.
The First Nations Financial Transparency Act (FNFTA) came into force March 27, and requires First Nations to:
provide audited consolidated financial statements and schedule of remuneration and expenses for Chief and Councillors to their membership, and
to publish these documents on a website.
The act also provides additional authorities with respect to the application of administrative measures and court remedies for failure to comply with these requirements.
In her December 18, 2015 statement, the Minister of Indigenous and Northern Affairs:
announced the suspension of Federal Government initiated court actions against First Nations that have not complied with the FNFTA,
directed the cessation of other discretionary compliance measures related to the FNFTA,
reinstated funding withheld from First Nations under the compliance measures, and
committed to a dialogue with First Nations on transparency and accountability more broadly, in order to move forward in a way that respects the nation-to-nation relationship.

4. Review and Reset
On December 18, 2015, the Minister committed to work in full partnership with First Nations leadership and organizations …
Engagement Strategy:
Face to Face with First Nations Government (Political / Administrative leaders);
Discussions with Aboriginal Representative Organizations and Key First Nations Institutions;
Outreach to First Nation members including on-line / paper survey, , phone line; and
Survey, and phone line available to other parties interested in participating in the engagement
“…These initial steps will enable us to engage in discussions on transparency and accountability that are based on recognition of rights, respect, co-operation, and partnership and that build towards a renewed, nation-to-nation relationship with Indigenous Peoples.“ The Honourable Carolyn Bennett, Minister of Indigenous and Northern Affairs

5. Mutual transparency and accountability – a nation-to-nation relationship
Holistic
No incremental reporting burden
Considers existing First Nations policies practices and institutions
Respects First Nations accountability to membership
First Nations provide information on the financial decisions they make, and the programs and services they deliver:
To their First Nation members, and
To the Federal Government, specific to federal investments in First Nation programs and services.
The Federal Government provides information on the financial decisions it makes, and the programs and services it invests in:
To the Canadian Public, and
To First Nations, specific to federal investments in Indigenous programs and services.

6. Examples of First Nation Transparency and Accountability
Government of Canada accountability requirements:
Funding Agreements (Accountability Framework)
Reporting Guide – Financial and Program Reporting Requirements
First Nations Financial Transparency Act
Other examples of transparency and accountability:
Self Government Agreements
First Nations Financial Management Board (FNFMB) certification
Financial Administration Law compliance approval (FNFMB)
First Nation Financial Bylaws
Other Standards / Best Practices?

7. Other design considerations
Should the same reporting standards apply to all First Nations, regardless of size and complexity of operations? Should there be flexibility in how First Nations communicate financial results to their membership?
Should the federal government play a role in First Nations accountability to their membership?
What about the Federal accountability relationship with Canadians? Is there a better way to manage this relationship and report on investments in First Nation communities to Canadians generally, and to First Nations more specifically?

8. Your Recommendations
What does a mutual transparency and accountability framework look like in the context of a nation-to-nation relationship?
Is there a need to create new First Nation institutions? e.g.:
Aboriginal auditor general
Aboriginal ombudsman
Others?
Should existing advocacy groups / other institutions play a role?
National and regional political advocacy organizations, tribal councils, advisory organizations
Professional / educational institutions (AFOA, CPA, others?)
First Nations institutions (First Nations Finance Authority, First Nations Financial Management Board, First Nations Tax Commission, others?)
Is there a role for federal legislation (to facilitate the creation of institutions, for example)
Is there a role for federal institutions (e.g. Auditor General)? What would this be (mentorship, oversight, other)?

9. Next Steps Let’s continue the dialogue…
Visit our Departmental engagement web page, or follow the link from the main page to see what’s new and to complete the on-line survey:
Provide feedback through dedicated phone line:
us at:
Additional hard-copies of the survey are available, and can be mailed to your INAC regional office once complete.