First Nations Financial Transparency Act
Update
From January 31 to June 30, 2017, Indigenous and Northern Affairs Canada conducted a focused engagement with First Nations to discuss a new approach to mutual transparency and accountability. This process included in-person sessions and an online survey, as well as email, phone and mail-in options. Feedback received is currently being reviewed, and will lay the groundwork for a new way forward. For more information on this engagement, please visit our engagement webpage. As outlined in the minister's December 18, 2015 statement, discretionary compliance measures related to the act have stopped.
On March 27, 2013, the First Nations Financial Transparency Act received Royal Assent in Parliament.
The First Nations Financial Transparency Act requires that 581 First Nations, defined as an Indian band under the Indian Act, make their audited consolidated financial statements and a Schedule of Remuneration and Expenses of chief and council available to their members as well as publish it on a website. These financial documents include:
- audited consolidated financial statements
- the Schedule of Remuneration and Expenses
- the auditor's written report respecting the consolidated financial statements
- the auditor's report or the review engagement report, as the case may be, respecting the Schedule of Remuneration and Expenses
As well, as of 2014-2015 and in compliance with the legislation, the Minister of Indigenous and Northern Affairs is required to publish, on the departmental website, the audited consolidated financial statement and the Schedule of Remuneration and Expenses of chief and council for each First Nation, when received.
The audited consolidated financial statement and Schedule of Remuneration and Expenses for chiefs and councillors will be updated to the First Nation profiles section of the Indigenous and Northern Affairs Canada website as they are received.
On December 18, 2015, the Minister of Indigenous and Northern Affairs issued a statement indicating that the department:
- has stopped all discretionary compliance measures related to the First Nations Financial Transparency Act
- is re-instating funding withheld from First Nations under these measures
- is suspending any court actions against First Nations who have not complied with the act
Find out more:
- A new approach for mutual transparency and accountability between First Nations and the Government of Canada: Engagement 2017
- Questions and Answers Related to the First Nations Financial Transparency Act (FNFTA)
- Read the complete First Nations Financial Transparency Act
- First Nations Profiles – Audited Consolidated Financial Statements and Schedule of Remuneration and Expenses
- Definitions of Key Financial Terms
- How to Choose an Auditor
- How to Record and Maintain Financial Information
- Quick Guide to Understanding Financial Statements
- How to Select a Recipient-Appointed Advisor
- Annotated Guide to Reading Financial Statements
Ask the Experts
Financial Reporting Video 2015
Indigenous and Northern Affairs Canada (INAC) has recorded a 2015 video with a panel of auditing and accounting experts to answer questions on the financial reporting requirements of the First Nations Financial Transparency Act. The questions were developed based on feedback the department received throughout the first year of financial reporting under the act.
Financial Reporting Webinar
The department held a free online webinar to answer questions about the new financial reporting requirements of the First Nations Financial Transparency Act on July 8, 2014. Participants were encouraged to ask questions to the panel of professionals. All questions and answers can be found in the webinar video.
Contact Us
Should you have any questions or comments on the First Nations Financial Transparency Act, please contact us for more information.