2009-2010 Annual Report Ofcontents Table Our Mission & Values 1

2009-2010 Annual Report ofContents Table Our Mission & Values 1

Message from the Interim Chairperson 2

Board of Trustees 3

Role of the Trust & Trustees 6

First Nations Trust: A Timeline of its Development 8

A Commitment to Community Development 10

North: Map & Population 13 First Nations Determined Use of First Nations Trust Funds 14 Expenditures by Purpose 15

Central: Map & Population 16 First Nations Determined Use of First Nations Trust Funds 17 Expenditures by Purpose 18

South: Map & Population 19 First Nations Determined Use of First Nations Trust Funds 20 Expenditures by Purpose 21

Designated Allocations 22

Financial Statements 24 Our Mission & Values Our Mission FNT will strive to maintain a trusting relationship with First Nations based on integrity, confidentiality and mutual respect in order to assist them in making a positive difference in the lives of First Nations people, their children and their children’s children.

Our Values Integrity The First Nations Trust conducts business with uncompromising integrity. Effectiveness The First Nations Trust has an intense focus on understanding and meeting the needs of our beneficiaries. Quality Teamwork We work as a team to fulfill expectations and to protect the interests of our beneficiaries.

1 Message from the Interim Chairperson

The Board of Trustees is pleased to present the During the course of the 2009-2010 fiscal year 2 Annual Report covering operations of the First Trustee vacancies were filled. The current Board Nations Trust for the 2009-2010 fiscal year, ending of Trustees consists of Velma Wuttunee, Sheila March 31, 2010. Sutherland, Brenda Stevenson, Druscilla Stanley, The purpose of the First Nations Trust remains “to Everette Bear, Nolan Henderson, and Ray Gamble. effect the distribution of the monies due to First There is currently a full complement of Trustees, Nations from, inter alia, the profits of the Saskatchewan however, three Trustee Positions are due for gaming Authority Casinos and Saskatchewan Gaming re-appointment in the near future. Corporation Casinos.” While the task appears simple Although the 2010-2011 forecasts have resulted enough, Trustees have been challenged with in a reduction in distributions the requirement for complexities in administrative issues as well as diligence and compliance does not diminish. fluctuations in amounts available for distribution Accordingly, Trustees do not forecast any reduction to Beneficiaries. Trustees recognize our fiduciary in the Administration Costs for the Trust. The Trust obligation and every action taken is with an eye to will continue to provide accountability for those the best interests of the Beneficiaries. necessary expenses. The 2003 Trust Indenture outlines the permitted The staff compliment consists of Leila Nashacappo uses of Trust Revenues. This Annual Report includes and Darlene Krabseth, both recent additions to the information about income and distribution of Trust FNT office who handle the administrative duties of funds including financial statements of the Trust, the Trust. FSIN Senator Aubrey Goforth is assigned tables, graphs, and a detail of the distributions made to assist the Trust and provide general advice and to Beneficiaries of the Trust. guidance gleaned from his years of experience. John Trustees recognize the need for continued Hill, LLB. Provides legal advice in matters related to improvement and have initiated measures to Gaming and the Trust. Trustees wish to acknowledge enhance interaction and communication with the the value of the support provided by all of the above FSIN Executive Office and Affiliated Organizations to the Trust and its Beneficiaries. to the fullest extent without compromising Ray Gamble confidentiality. Trust business is conducted on the Interim Chairperson, First Nations Trust Asimakanissekan Askiy Reserve, which is located in close proximity to FSIN Executive Offices and facilitates the necessary communication.

2 Board OFTrustees

The requirement that the majority of the Board of Commission. He has been Vice-Chair of the of Trustees reside on-reserve was again met during the the Agricultural Council of Saskatchewan and 2009-2010 fiscal year. This fiscal year came to an end Vice-Chair of the Board of Directors of the with a search to fill current vacancies on the Board of Saskatchewan Indian Equity Foundation. Everette is Trustees. The process for appointment to the Board an experienced farmer, small business owner and has of Trustees is in part through recommendations of held school bus contracts for many years. Everette the Executive Council and the Indian Government says he particularly enjoys working in an atmosphere Commission, as well as the Economic Development where the best interests of the people come first. and Community Development Commission and an FNT Committee. The final appointment of the Trustees lies with the FSIN Chiefs-in-Assembly.

Ray Gamble served as Interim Chair of the First Nations Trust during 2009-2010. He has served as member of the Board of Trustees since May, 2003 as one of the founding Trustees. Ray holds a CIM Everette Bear has served on the First Nations designation through the Canadian Institute of Trust Board of Trustees since its inception in 2003. He Management and a Certificate in Business came to the FNT with valuable experience in both Administration from the University of Saskatchewan. the public and private sectors. In the past, he served He brings to the Board of Trustees extensive four years as Councillor and six years as Chief of experience in the administration of Federal Muskoday First Nation. Everette has extensive Board Government Programs, the Private Sector, as well and Commission service, having served with The Commercial Banking. Ray is retired and currently Saskatchewan Indian Loan Company (SILCO), resides on Beardy’s and Okemasis Reserve. Saskatchewan Wheat Board, the Agricultural Credit Corporation (ACC), Enterprise Saskatchewan, and the Saskatchewan Liquor and Gaming

3 Board OFTrustees Cont’d

Noland Henderson was appointed to the First Druscilla Stanley worked in the area of Nations Trust, Board of Trustees in 2003. Speaking Finance throughout her career. She held the post of about the Trust, he believes that, “this group of Director of Finance at the Prince Albert Student Trustees and our staff, have come along way in Residence for a number of years. Later she held the establishing confidence in the Trust.” Noland brings position of Band Administrator and then moved a lot of experience to the Trust in a variety of ways. on to become the Manager of her First Nation: The He has served as police officer with the RCMP, Ahtahkakoop Cree Nation. Druscilla made her rise seven years as a school principal in Montreal Lake and through finance related positions while taking sitting on the Sasktel Board of Directors for 6 various courses at the University of Saskatchewan years. Noland served as Commissioner for the as well as workshops on finance related topics. Saskatchewan Police Commission until May 2009 Druscilla completed a number of courses toward the which he ended after two three year terms. His other designation Certificate in Aboriginal Financial achievements include serving three terms as Chief Management. After retiring from financial work, and four as a band councilor for Montreal lake Cree she returned to sewing, designing ribbon shirts and Nation. He is actively involved in other boards and starblankets. Druscilla and her husband are raising committees such as First Vice-Chair of the Board of their grandson. Governors for Northern Teacher Education Program (NORTEP). As a member of the Montreal Lake Cree Nation, Noland holds the position of Director for the Lands and Resources program to this date.

Brenda Stevenson attained a Master of Sheila Sutherland has been employed in Education (M.Ed.) from Harvard University and two financial management for the past 15 years for Bachelor degrees (Business Administration [B.B.A.] various First Nations in Saskatchewan. Sheila and Arts [B.A.]) as well as a Certificate of Native attended the University of Saskatchewan where American Studies from the University of she graduated with a Bachelor of Commerce and Massachusetts-Amherst. She also has a Diploma in majoring in Accounting. She also completed a Religious Education and a Certificate of Achievement number of courses toward the designation Certificate in accounting. Brenda is a member of the Carry in Aboriginal Financial Management. Sheila joined the Kettle First Nation (CTK) and is presently the First Nations Trust as a trustee in November 2009. Director of Operations at CTK. Brenda has worked She is a member of the Beardy’s and Okemasis for First Nations communities for many years in First Nation. economic development and education. Brenda and her husband drafted the “Teaching Treaties in the Classroom (K-6)” curriculum, a joint project with the Federation of Saskatchewan Indian Nations (FSIN) and the Office of the Treaty Commission, and drafted the “Treaty Essential Learning (TELs)” handbook to be used in all provincial schools. Brenda is currently a member of the Board of Governors of Saskatchewan Institute of Applied Science and Technology (SIAST) and serves on the Southeast Regional College Board of Governors. Velma Wuttunee has held positions in finance Brenda is the daughter of Bill and Cora Thomson, throughout her career bringing extensive experience S.O.M. of Carry the Kettle First Nation, as well as the to the Trust in financial matters having provided daughter-in-law of FSIN Senator Theresa Stevenson, advice and assistance to First Nations under third O.C, S.O.M. and Robert Stevenson of Cowessess First party management, as well as Tribal Councils. Velma Nation. She currently resides on Cowessess First was asked to accept an appointment to the Board Nation and is married with three children and one of Trustees for the First Nations Trust, when the Trust grandson. Indenture was put in place and is one of the founding Trustees.

5 Role of the Trust & Trustees

The Purpose of a trust is that it provides a way A Beneficiary of the Trust is defined in the2003 of having property held for an individual or a group. Trust indenture as a First Nation, an Indian Band or the Federation of Saskatchewan Indian Nations. A Trust is often established because it allows for management of the trust property by a trustee Trustee Obligations include holding ownership or trustees. and legal control of the property of the trust. The law Regardless of the nature of the property held by the requires that the Trustee of the First Nations Trust act trust, the trustees must manage the trust so that only in the best interests of the beneficiaries of the Trust. decisions made about the trust property are made in What the Trustees can and cannot do with the the best interests of the beneficiaries of the trust. property held by the Trust is defined by the 2003 Trust Frequently, a trust is defined in a written agreement Indenture, in conjunction with The Trustees Act, R.S.S or trust document. In the case of the First Nations 1978. The law also imposes certain obligations on the Trust, the Trust is defined by the2003 Trust Indenture. Trustees, even if these duties are not specifically set The Indenture is an agreement made in 2003 out in the Trust Agreement. between the FSIN and the Province of Saskatchewan. The obligations of the Board of Trustees include: the appointment of a qualified independent auditor to The property held by the First Nations Trust is examine the books and records of the First Nations defined in the 2003 Trust Indenture and that property Trust at the end of each fiscal year. The Board of is money. The money is received from the net profits Trustees are required to ensure that an Annual Report of eight casinos, six are under First Nation control and is prepared each fiscal year. The Annual Report must two are under the control of the Province. include the audited financial statements of theFirst Nations Trust for that fiscal year. The Purpose of the First Nations Trust is to effect the distribution of the monies due to First Nations from, amount other things, the profits from both SIGA and SGC casinos.

6 The Power and Authority of the trustees The First Nations Trust Process is set out in section 8 of the 2003 Trust Indenture, April 1st is the beginning of the fiscal year and the including authority to pay authorized expenses; to fiscal year ends March 31st of the following year. retain the services of advisors, professionals or others During each quarter of the fiscal year, starting to assist the Trustees in the performance of their with the end of the 1st quarter, the province of duties; to pay reasonable remuneration to the Board Saskatchewan pays one-fourth of the estimated for the performance of their duties; to follow valid profits from gaming due to the First Nations Trust in direction from the Chiefs-in-Assembly (Legislative accordance with the 2002 Framework Agreement. Assembly of the FSIN); and except as limited by the At the end of the fiscal year, after the actual profit 2003 Trust Indenture, pay out the Trust property for from the Casinos is calculated, the Province makes an the benefit of anyone or more the beneficiaries, or for adjustment to the amount that they paid to the First the benefit of First Nations peoples. Nations Trust during the previous four quarters. This is Permitted Uses of the First Nations Trust because the four payments must be estimated at the property - The 2003 Trust Indenture is very clear time the transfer is made, since the actual profits due about the uses of Trust monies. For the First Nations to the FNT are not known until the end of fiscal year. Trust monies distributed by the Board of Trustees, The “correction” to payments made to First Nations is The Trust Indenture requires that the funds must be by way of an Adjustment Payment made by FNT each used for specified purposes for First Nations and First fiscal year. Nations peoples. The specified purposes that funds The First Nations Trust Board of Trustees must meet distributed to beneficiaries may be used are stated at least quarterly to distribute the Trust property in in section 5.01 of the 2003 Trust Indenture. Those accordance with the 2003 Trust Indenture. When the purposes are: Trustees distribute Trust property, they must take into • Economic development, account any properly received directions from the • Social programs, FSIN Chiefs-in-Assembly. • Justice initiatives, At the end of each fiscal year, March 31st, the Board • Education and education facilities, of Trustees is responsible for ensuring that all the • Development and operation of recreational facilities, beneficiaries ofTrust monies properly account for • Senior and youth programs, how these funds were spent. • Cultural and spiritual development, Section 9 of the 2003 Trust Indenture sets out the • Development and maintenance of accountability provisions. In the event that a recipient community infrastructure, or beneficiary of Trust property is not able to properly • Health initiatives, account for the monies, or spent the monies in an • Governance activities, inappropriate manner, the Trustees have a fiduciary • Treaty protection, and obligation to the other beneficiaries to take whatever • Any other charitable purpose steps are necessary, including withholding future payments, to ensure appropriate accountability by the beneficiaries.

7 First Nations Trust A Timeline of its Development

The First Nations Trust was established in 2003 by the 1994 Saskatoon Referendum Chiefs-in-Assembly during their legislative gathering. Development of a casino in Saskatoon was under Many years of discussion and development paved consideration. In the fall of 1994, the City of the way for the Trust. Historically, hand games passed Saskatoon held a plebiscite for its voters to consider from one generation to the next. As time passed dice, the question as to their interest in having a casino card and electronic games became popular. in the downtown core. The result of the referendum Matters related to gaming have been a frequent vote was rejection of the proposed provincially-run topic of discussion for years at FSIN Assemblies. The casino in the City. Chiefs-in-Assembly established the First Nations Trust by way of an Assembly resolution. The 1995 Gaming Agreement following timeline includes some of the events When the City of Saskatoon referendum results and documents that were significant in the determined that the Province should operate only establishment and growth of the First Nations Trust. one government-run Casino, the parties negotiated the 1995 Gaming Agreement. 1994 Gaming Agreement The Province and the FSIN developed the 1995 A partnership was established in 1994 about gaming Gaming Agreement, in which the Province matters between the Federation of Saskatchewan acknowledged it would not open a government-run Indian Nations and the Saskatchewan Gaming casino in Saskatoon, as outlined in the 1994 Gaming Corporation (SGC). The SGC is a Crown Corporation Agreement. In addition, the 1995 Gaming Agreement that was established by the Provincial Treasury Board authorized the operation of four First Nation-run to operate casinos in Saskatchewan. casinos in Saskatchewan. The new casinos would The FSIN entered into the 1994 Gaming Agreement be under the auspices of the Saskatchewan Indian with the Government of Saskatchewan. The Gaming Authority (SIGA). The 1995 Gaming Agreement Agreement provided for the revenue sharing remained the framework for development of First arrangement between the two governments, that is, Nation-run gaming within the Province. the First Nation and the Provincial government. 1995 The First Nations Fund Under the 1994 Gaming Agreement, the FSIN and the Province agreed that the First Nations in By September 1995, the First Nations Fund was Saskatchewan would receive 25 percent of the net established pursuant to the Saskatchewan Gaming revenues from two proposed government-run Corporation Act, 1994. The First Nations Fund casinos. At the time, casinos were operating in distributed a portion of the net profits from both the Regina and Saskatoon. province and SIGA-run casinos. The Fund was active for several years, and dissolved shortly after the First Nations Trust was established. Since then, distribution of the First Nation portion of net profits from gaming has been managed by the First Nations Trust.

8 1995 Flip Clause 2003 First Nations Trust The success of the SIGA-run casinos caused the The FNT was formally established when the 2003 Province to activate the flip-clause in the 1995 Trust Indenture was signed. Parties to this agreement Gaming Agreement. The effect of the flip-clause was were the FSIN and the incoming Board of Trustees of it changed net revenues from SIGA-run casinos to 25 the First Nations Trust. percent. The parties signed an Amending Agreement in 1995 that provided for both First Nations and the 2004 Amendment to 2002 Gaming Province to receive 37.5 percent of the net proceeds Agreement from SIGA-run casinos. This amendment was signed during the fall of 2004. The purpose of the change was to permit the 1995 Agreement Extended development of a new casino on-reserve at the The parties agreed that the 1995 Gaming Agreement Whitecap Dakota First Nation. should be extended until December 2000 without 2005 File Hills Qu’appelle Tribal Council 2004 changing either its terms or conditions. Amending Agreement 2002 Gaming Agreement The FHQ Amending Agreement was signed in During 2002, the FSIN and the Province mutually January 2005. It superceded previous arrangements agreed to replace their earlier arrangement. The and provided for a new casino in Swift Current that earlier 1995 Gaming Agreement was set aside and would be overseen by SIGA. the 2002 Gaming Agreement replaced it. The duration 2007 Amending Agreement of the Agreement was extended to 25 years with reviews every five years. The 2007 Amending Agreement made further changes to the 2002 Gaming Agreement. Both The new arrangement provided annual funding parties, the Government of Saskatchewan and the to deal with problem gambling. In addition, FSIN, agreed to amend the 2002 Gaming Agreement amendments provided for designated funding to to include providing for: continue the joint effort between FSIN and the Province concerning matters related to on-reserve • A process for new Gaming Ventures; gaming jurisdiction. • Changing the designated payouts made by First Nations Trust (s.4.1); 2003 Referendum • A five-year designated allocation to FSIN for Gaming The Saskatchewan Indian Gamin Authority and the Activities (s. 4.b.1); Centennial Auditorium Board both made an effort to • Changing the percentage of the net profits due to facilitate development of a new casino in Saskatoon. First Nations Trust; The civic election and the Casino referendum • Amending the funding amount due to SLGA question were on the same ballot. The referendum from SIGA; defeated development of a new casino in Saskatoon. • Revising the designated allocation to the First Nations Addiction Rehabilitation Foundation 2003 FNF Replaced (FNARF); and • Changing the requirement for fidelity bonds for the The First Nations Fund, which previously administered Board of Trustees of the First Nations Trust. First Nations’ share of the net proceed from casinos run by the Saskatchewan Gaming Corporation (SGC) and casinos under the authority of SIGA, was replaced by the First Nations Trust.

9 A Committment TO Community Development

Net Profits to the First Nations Trust. The standard practice of Each year since the Gaming Agreement was signed, quarterly payments continues. the agreed on portion of the net profits from In 2009-2010, monies received came from two gaming have been distributed to the First Nations levels of government contributing a portion of the Trust through the Saskatchewan Ministry of First net profits from their casinos. Two organizations, Nations and Métis Relations. As the parties also Saskatchewan Indian Gaming Authority (SIGA) and agreed, every five years they will review the the provincial Saskatchewan Gaming Corporation Gaming Agreement. (SGC) contribute a portion of the net profits from eight Saskatchewan casinos. Agreement Review The first five-year review took place last fiscal year; it resulted in an adjustment to the net profits due

10 First Nation Run Casinos: Beneficiary Reports to the The casinos operating under the Saskatchewan First Nations Trust Indian Gaming Authority contributed 50 percent of Beneficiaries are required to report to theFirst Nations the net profits from gaming in the following casinos, Trust each fiscal year. Before the end of the fiscal each including the new casino in Swift Current: First Nation and Designated Beneficiary is reminded • Bear Claw Casino of their reporting requirements. The beneficiary must • Dakota Dunes Casino provide their audited financial statement concerning • Gold Eagle Casino funds received from the First Nations Trust. In • Living Skies Casino addition to the audit statement, the beneficiaries • Northern Lights Casino remit the supporting Schedules outlining how the • Painted Hand Casino funds received from the Trust were used. Each Auditor’s Report presented to FNT expresses Provincial Government Casinos: an opinion as to whether the expenditure of funds There are currently two Casinos operated by the distributed by the FNT were used in compliance Saskatchewan Gaming Corporation that contribute with section 5.01 of the Trust Indenture. Section 5.01 to the First Nations Trust: specifies the categories Trust funds may be used for • Casino Moose Jaw by the beneficiaries. • Casino Regina Benefits Distributed The portion of the net-profits contributed to the by First Nations Trust First Nations Trust from the two SGC-run casinos was A steady rise in the benefits that the First Nations Trust 25 percent. Each of the six First Nation-run casinos has distributed is evident in annual figures released. contributed 50 percent of their net profits to the First Nations Trust. 2003-04* $ 15,745,296 2004-05 $ 22,508,242 Net Profits Received by the 2005-06 $ 22,622,795 First Nations Trust 2009-2010 2006-07 $ 28,299,186 The contributions to the First Nations Trust transfer 2007-08 $ 35,452,261 from the Saskatchewan Ministry of First Nations and 2008-09 $ 51,471,841 Métis Relations to the First Nations Trust. Funds are 2009-10 $ 50,996,383 provided to the FNT in five transfer payments. * Note only three quarterly payments were received and distributed by FNT in 2003-2004. Net Profits Distributed by the First Nations Trust 2009-2010

2009-10 Fiscal Year Total Distribution 1st Quarter $ 12,468,875 June 2009 2nd Quarter $ 12,468,875 September 2009 3rd Quarter $ 11,543,923 December 2009 4th Quarter $ 11,126,000 March 2010 Adjustment $ 3,388,710 December 2009 2009-2010 $ 50,996,383

11 12 North: Map & Population

0 0 0 0 0 0 0 0 0 Surplus / Deficit 26,835 73,751 34,403 21,257 18,275 (2,240) (5,818) (9,401) (31,031) (19,653) (38,186) (153,783) (186,556) 1,531,528 (1,981,413)

Total Expenditures North 675,613 238,396 701,691 589,998 394,127 491,524 603,665 490,938 242,928 332,350 507,003 620,468 706,456 511,467 550,635 288,188 902,290 650,056 188,336 434,096 2,397,314 2,989,864 1,411,138 3,211,795 20,130,336

------Any Other Charitable Purpose 16,400 35,113 39,965 72,107 123,500 468,262 221,278 135,549 1,112,174 ------Treaty Protection 5,000 63,725 68,725 . Each table presents the expenditures expenditures the table presents Each . ------Governance Activities 3,859 3,200 40,919 88,710 52,171 22,627 221,149 151,260 155,593 105,684 215,173 546,000 225,456 222,406 2,054,207 ------Health Initiatives 3,146 9,254 7,556 8,400 21,481 - 45,056 15,392 11,049 121,334 First Nations Trust First ------The Development & Maintenance - 723

of Community Infrastructure 9,825 1,630 29,049 36,009 120,428 124,136 152,982 135,000 582,222 452,901 196,616 496,846 132,841 384,135 2,855,343 - - Cultural & Spiritual Development - - - - 8,800 5,241 2,400 2,790 4,029 35,842 28,255 30,963 14,549 27,855 53,057 16,898 19,297 32,666 987,655 112,422 417,723 174,868 ------Senior & Youth Programs 5,948 - 6,437 47,012 94,984 10,060 19,525 31,381 44,647 44,765 40,019 30,460 32,600 10,990 202,413 122,213 134,592 107,902 213,941 1,199,889 ------The Development & Operation - - - 5,330 8,650 2,150 of Recreational Facilities 7,137 83,884 83,144 54,725 61,119 43,579 51,769 30,453 150,617 245,470 352,875 2,553,382 1,372,480 ------

Education & Education Facilities 800 4,490 1,200 2,020 1,758 64,882 31,100 41,366 41,202 28,000 158,559 200,000 124,716 119,664 2,410,798 1,591,041 ------Justice Initiatives 1,090 22,472 190,984 214,546 ------Social Programs 2,553 94,175 27,831 19,000 48,899 88,161 21,443 50,013 59,079 31,216 88,480 215,885 468,027 282,361 211,443 590,679 4,965,040 2,665,795 ------Economic Development 2,000 7,000 4,102 63,785 21,350 82,800 39,506 87,000 136,549 134,496 247,539 539,829 115,464 105,823 1,587,243 ------08-09 Surplus 23,285 25,925 144,364 164,128 1,356,064 1,713,766

First Nations Trust Revenue 242,928 679,163 434,096 366,753 701,691 584,180 363,096 420,911 507,003 415,901 620,468 542,328 449,882 491,814 490,938 236,156 512,449 309,445 892,889 650,056 180,686 3,165,328 1,224,582 3,211,795 17,694,538 FNT had not received this First Nations Audited Report at the time this Annual Report was published. For an up-to-date list of reported “Use of Funds” derived from First Nation’s Audited Reports for 2009-2010 log onto our website at at Reports website our onto Audited log 2009-2010 for Nation’s First from derived Funds” of “Use Report up-to-datean Audited ReportAnnual Nations this time the reportedof list at For published. First this was received not had FNT www.firstnationstrust.com. First Nations Determined Use of First Nations Trust Funds: Funds: Trust Nations First of Use Determined Nations First the community northerneach by Nation distributed funds expended how look at a First provides table This dollar. the nearest to rounded are Figures Note: the FNT requirements. to according be used for the purposes monies may by Nation First Narrows Nation First Birch DenesulineBlack Lake Nation First Nation Buffalo River Nation Cree Big Island Lake Nation Cree Lake Canoe Clearwater River Dene Nation Nation Chakastaypaysin Cree Nation House Cree Cumberland Nation English River First Nation Dust First Flying Denesuline Du Lac Nation Fond Denesuline Lake Nation Hatchet Nation First Island Lake Nation James Smith Cree Ronge La IndianLac Band Nation Makwa Sahgaiehcan First Nation Cree Lake Montreal Nation Ballantyne Cree Peter Nation Cree Chapman Peter Red Earth Nation Cree Nation Cree Shoal Lake Nation First Lake Sturgeon Nation First Lake Waterhen Nation Dakota First Wahpeton Totals North Area *

14 Northern Expendituresby Purpose: North

The following chart illustrates how northern First Nations communities expended funds distributed by the First Nations Trust by the purposes monies may be used according to the FNT requirements.

0% 5% 8%

10% 1%

North 25%

14% 0% 5% 8%

10% 1%

5% 25%

14% 1%

6% 12%

5% 13% 1% 6% 12%

13% Economic Development Social Programs Economic Development Social Programs Justice Initiatives Justice Initiatives EducationEducation & Education facilities & Education facilities The development & operation of recreational facilities Senior & Youth Programs The development & operation Culturalof recreational & Spiritual Development facilities The developmentSenior & maintenance & Youth of community Programs infrastructure Health Initiatives Governance Activities Cultural & Spiritual DevelopmentTreaty Protection Any otherThe Charitable development Purpose & maintenance of community infrastructure Health Initiatives Governance Activities Treaty Protection Any other Charitable Purpose 15 Central: Map & Population

0 0 0 0 0 0 0 0 0 0 0 (0) (3) (2)

Surplus / Deficit (63) 28,608 (5,500) 710,956 190,338 (48,088) (24,205) (23,029) (25,766) (140,340)

Total Expenditures 10,000 51,981 10,063 655,014 334,714 856,976 697,591 443,144 631,648 549,821 487,684 551,062 863,004 450,450 145,869 204,002 261,799 652,108 898,175 1,063,567 1,085,961 1,077,280 1,713,814 1,027,747 14,723,475 Central

------Any Other Charitable Purpose 54,837 38,603 62,863 160,666 316,969 ------Treaty Protection 46,350 100,000 146,350 ------

. Each table presents the expenditures by by the expenditures . Each table presents Governance Activities 5,392 4,258 10,000 61,615 73,518 77,752 343,653 230,000 106,250 431,500 308,757 115,000 490,000 563,535 221,764 332,787 3,375,781 ------Health Initiatives 3,086 10,498 20,243 56,210 90,037 ------The Development & Maintenance - First Nations Trust First 7,605 of Community Infrastructure 1,303 42,370 38,101 78,147 58,736 10,385 258,379 337,518 549,821 330,955 545,670 110,000 390,064 2,759,054 - - - - Cultural & Spiritual Development - - - - - 2,905 26,777 12,989 60,961 82,899 88,317 46,648 34,316 15,874 34,333 60,933 13,834 137,937 156,088 878,625 103,814 ------Senior & Youth Programs 700 16,250 97,650 76,929 20,913 98,171 71,984 79,907 13,599 39,801 222,142 300,000 1,038,046 ------The Development & Operation ------

of Recreational Facilities 6,481 21,822 43,329 19,552 81,000 22,737 23,632 597,828 100,000 108,808 1,025,189 ------Education & Education Facilities 4,095 3,815 1,945 3,250 81,887 82,755 21,399 51,981 21,811 150,399 423,337 ------

Justice Initiatives 300 1,700 24,480 70,000 196,480 100,000 ------Social Programs 4,746 58,747 30,112 12,911 18,792 43,075 23,970 675,654 505,514 425,795 348,422 104,868 440,400 289,400 370,000 3,352,406 ------

Economic Development 255 9,000 2,524 4,200 4,430 76,500 13,900 69,735 30,000 97,500 197,418 465,739 150,000 1,121,201 ------08-09 Surplus 10,400 127,221 244,811 274,660 657,092

First Nations Trust Revenue 10,000 51,981 10,000 334,711 626,342 856,976 557,251 443,144 655,014 583,560 549,821 487,684 540,660 764,391 426,245 612,014 898,175 198,502 238,770 943,425 1,077,280 1,063,567 1,085,961 1,713,814 14,729,288

FNT had not received this First Nations Audited Report at the time this Annual Report was published. For an up-to-date list of reported “Use of Funds” derived from First Nation’s Audited Reports for 2008-2009 log onto our website at at Reports website our onto Audited log 2008-2009 for Nation’s First from derived Funds” of “Use Report up-to-datean Audited ReportAnnual Nations this time the reportedof list at For published. First this was received not had FNT www.firstnationstrust.com. First Nation First Nation Ahtahkakoop First Nation & Okemasis First Beardy’s Nation Big River First Big Bear Chief Nation Nation Kinistin First Nation First Little Pine Nation Man Lucky Cree Nation Mistawasis First Nation Moosomin First GrizzlyMosquito Bear Head Nation Man First Lean Nation Cree Muskeg Lake Nation First Muskoday Nation First One Arrow Nation First Onion Lake Nation First Lake Pelican Nation Cree Poundmaker Nation First Red Pheasant Nation First Saulteaux Nation First Sweetgrass Nation First Thunderchild Nation First Sioux Dakota Whitecap Nation First Lake Witchekan Nation Quill First Yellow Chipewayan Young Totals Area Central * First Nations Determined Use of First Nations Trust Funds: Funds: Trust Nations First of Use Determined Nations First communitythe Nation by expended funds distributed First each central how a look at table provides This dollar. the nearest to rounded are Figures Note: the FNT requirements. to according be used for the purposes monies may

17 Central Expendituresby Purpose: Central

The following chart illustrates how central First Nations communities expended funds distributed by the First Nations Trust by the purposes monies may be used according to the FNT requirements.

1% 2%

23%

Central 23%

1% 2%

0% 8%

23% 23% 3% 1% 19% 0% 7%

3% 1% 19% 6% 7% 7%

6% 7%

Economic Development Economic Development Social ProgramsSocial Programs Justice Initiatives Education & Education facilities

Justice Initiatives The development & operation of recreational facilities Senior & YouthEducation Programs & Education facilities

Cultural & Spiritual Development The development & maintenance of community infrastructure

The development & operationHealth of Initiativesrecreational facilities GovernanceSenior Activities & Youth Programs

Treaty Protection Any other Charitable Purpose Cultural & Spiritual Development The development & maintenance of community infrastructure

Health Initiatives 18 Governance Activities Treaty Protection Any other Charitable Purpose South: Map & Population

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Surplus / Deficit (565) 166,296 155,532 214,622 401,556 (15,582) (68,944) (15,318) (10,185) (202,688) - Total Expenditures South 10,000 90,580 773,610 194,586 158,598 176,076 565,723 563,496 532,782 655,214 940,055 417,869 219,987 868,697 713,414 624,279 957,406 409,581 508,153 188,450 240,224 494,522 1,111,137 1,117,471 1,057,757 1,309,163 14,898,830

$ ------Any Other Charitable Purpose 5,000 5,950 36,213 62,997 29,128 23,363 34,026 196,677 ------Treaty Protection 9,600 20,066 96,360 126,026 . Each table presents the expenditures the expenditures . Each table presents ------Governance Activities 10,000 29,594 82,576 15,932 15,031 35,259 80,000 63,078 85,363 90,580 159,117 275,000 170,389 487,697 129,481 189,467 300,329 107,030 156,986 180,728 2,663,637 ------Health Initiatives 2,933 4,407 17,500 42,765 67,605 First Nations Trust First - - - - - The Development & Maintenance - of Community Infrastructure 56,300 72,529 38,721 42,619 31,193 86,310 38,835 22,276 62,668 20,000 21,850 180,000 376,000 178,584 177,929 239,351 252,224 160,000 215,000 148,000 2,420,389 ------Cultural & Spiritual Development - 9,000 7,737 18,856 48,771 31,000 41,032 15,314 20,800 103,620 202,819 151,960 111,799 110,121 872,829 ------Senior & Youth Programs 13,245 31,552 36,726 89,319 43,256 10,452 33,320 23,560 46,222 36,000 134,249 208,528 158,809 112,979 156,979 204,735 1,339,931 - - - - - The Development & Operation ------of Recreational Facilities 19,700 96,951 79,000 16,000 38,205 85,000 470,782 292,285 171,763 1,269,686 ------Education & Education Facilities 2,457 7,826 9,470 63,799 12,781 75,000 53,637 25,300 66,717 26,007 47,586 159,080 549,660 ------Justice Initiatives 6,924 10,716 24,850 42,490 ------Social Programs 5,938 1,650 4,350 39,476 20,201 23,729 223,414 413,258 102,278 154,128 154,533 211,166 377,344 411,305 282,568 799,796 199,381 3,424,515 ------Economic Development 5,162 10,000 21,067 62,000 311,503 232,051 266,527 103,555 194,388 311,958 100,000 156,674 150,500 1,925,385 ------08-09 Surplus 18,719 198,201 200,277 383,090 800,287

First Nations Trust Revenue 10,000 90,015 868,946 176,076 565,723 624,279 973,827 773,610 409,581 194,586 439,209 563,496 166,296 173,132 532,782 230,039 655,214 857,480 143,016 737,367 512,988 417,869 219,987 849,978 1,309,163 1,111,137 1,117,471 14,723,267

FNT had not received this First Nations Audited Report at the time this Annual Report was published. For an up-to-date list of reported “Use of Funds” derived from First Nation’s Audited Reports for 2009-2010 log onto our website at at Reports our website Audited 2009-2010 log onto for Nation’s First from derived of Funds” “Use Report an up-to-date Audited Nations the time this Annual Report at list of reported For this First published. was FNT had not received www.firstnationstrust.com. First Nation First Nation Carry the Kettle First Nation First Chacachas Nation First Cowessess Nation First Cote Nation First Star Day Nation First Lake Fishing Nation First Gordon George Nation Kahkewistahaw First Nation First Kawacatoose Nation Keeseekoose First Nation Key First Nation Little Black Bear First Nation First Muscowpetung Nation First Muskowekwan Nation* Nekaneet First Nation Ocean Man First Nation First Ochapowace Nation Okanese First Nation First Pasqua Nation First Peepeekisis Nation First Nakota Rump Pheasant Nation First Piapot Nation Sakimay First Nation Bufflao Dakota Standing Nation Blanket First Star Nation Bear First White Mountain Wood Totals South Area * First Nations Determined Use of First Nations Trust Funds: Funds: Trust Nations First of Use Determined Nations First communitythe Nation by expended funds distributed each southern First how a look at table provides This dollar. the nearest to rounded are Figures Note: the FNT requirements. to according be used for the purposes monies may by

20 Southern Expendituresby Purpose:

The following chart illustrates how southern First Nations communities expended funds distributed by the First Nations Trust by the purposes moniesSouth may be used according to the FNT requirements.

1% 13% 18%

23% 16%

6% 4% 9% 9%

Economic Development Social Programs

Justice Initiatives Education & Education facilities

The development & operation of recreational facilities Senior & Youth Programs

Cultural & Spiritual Development The development & maintenance of community infrastructure

Health Initiatives Governance Activities

Treaty Protection Any other Charitable Purpose

21 Designated Allocations

The First Nations Trust (FNT) distributes mandatory Development Commission (HSDC). Administration allocations each fiscal year in accordance with of the FNARF is provided by the FSIN Health and the 2002 Framework Agreement and its subsequent Social Development Secretariat. A working group of amendments. representatives from the independent First Nations The designated funding continued for the and Tribal Councils provide Technical support for the FNARF Board of Directors. • First Nations Addiction Rehabilitation Foundation, • FSIN Gaming Jurisdiction Issues, FSIN Gaming Jurisdiction Issues • FSIN First Nations Treaty Rights Protection Fund, and As was the case in previous years, the designated • FSIN New Gaming Activities. allocation to FSIN Gaming Jurisdiction Issues FSIN Gaming Activities continued. It was established pursuant to the 1995 Framework Agreement. The more recent 2002 Through the amendments to the 2002 Framework Framework Agreement specified in section 2.1 Agreement Amendment, the allocation is set at that the First Nations Trust would distribute the $250,000 per fiscal year from the FNT for FSIN Gaming designated amount of $250,000 each year for a Activities. The FSIN report to FNT reporting receipt of period of five years. the annualized designation was received as required. The Gaming Jurisdiction Project mandate is to obtain First Nations Addiction recognition of First Nations’ jurisdiction in relation to Rehabilitation Foundation gaming. FNARF was established in 1995 by the FSIN First Nation Treaty Rights in accordance with the instructions of the Protection Fund Chiefs-in-Assembly. The mandate of FNARF is set out in section 35 of the First Nations Gaming Act (FSIN, The FSIN Chiefs-in-Assembly established the First 1995) as well as the 2002 Framework Agreement, Nations Treaty Rights Protection Fund (FNTRPF) in which provide FNARF is to ensure effective and 1983 pursuant to FSIN Resolution #007 and again in accessible education, prevention, and treatment Resolution #597. The established objective of FNTRPF programs about problem gambling are available to is the protection, promotion and enhancement of First Nation people. Treaty and Inherent Rights of all First Nation peoples in Saskatchewan. The funds received by FNARF by way of the designated allocation from the First Nations Trust Such designated distributions are permitted as a use are redistributed annually for local programming by of funds under the terms specified in section 5.1 of FNARF to both Tribal Councils and the independent the 2003 Trust Indenture. As is the case with the First First Nations in Saskatchewan. Nation distributions, the designated allocation uses the population count provided by each First Nation. Membership on the FNARF Board of Directors is The FNT determines the FNTRPF allocation based on restricted to current Chiefs in Saskatchewan, who five dollars per capita multiplied by the sum of all the are also members of the FSIN Health and Social First Nation population counts reported.

22 23 Financial Statements of

FIRST NATIONS TRUST

Year ended March 31, 2010

KPMG LLP Telephone (306) 934-6200 Chartered Accountants Fax (306) 934-6233 600-128 4th Avenue South Internet www.kpmg.ca Saskatoon Saskatchewan S7K 1M8 Canada

AUDITORS' REPORT TO THE TRUST BENEFICIARIES

We have audited the statement of financial position of First Nations Trust as at March 31, 2010 and the statements of revenue and expenditures and surplus and cash flows for the year then ended. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Trust as at March 31, 2010 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants

Saskatoon, Canada May 10, 2010

KPMG LLP, is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. 25 FIRST NATIONS TRUST Statement of Financial Position

March 31, 2010, with comparative figures for 2009

2010 2009

Assets

Current assets: Cash $ 389,715 $ 376,978 Accounts receivable 13,936 10,821 403,651 387,799

Equipment, net of accumulated amortization of $22,713 (2009 - $21,585) - 1,128

$ 403,651 $ 388,927

Liabilities and Surplus

Current liabilities: Accounts payable and accrued liabilities $ 1,237 $ 5,069 Distribution to First Nations held in trust (note 3) 290,632 288,902 291,869 293,971

Surplus: Unrestricted - - Administration 111,782 94,956

$ 403,651 $ 388,927

See accompanying notes to financial statements.

On behalf of the Trustees:

Trustee

1 26 FIRST NATIONS TRUST Statement of Revenue and Expenditures and Surplus

Year ended March 31, 2010, with comparative figures for 2009

2010 2009 Unrestricted Administration Total Total

Revenue: Gaming revenue $ 50,996,383 $ - $ 50,996,383 $ 51,471,841 Interest - - - 13,912 50,996,383 - 50,996,383 51,485,753

Expenditures: Allocations under Framework Agreement (note 1): First Nations Addictions Rehabilitation Foundation 2,250,000 - 2,250,000 2,187,500 FSIN - jurisdictional discussions 250,000 - 250,000 250,000 FSIN - gaming activities 250,000 - 250,000 250,000 First Nations Treaty Right Protection Fund (note 1) 649,295 - 649,295 633,350 FSIN - Special investigations unit (note 1) - - - 100,000 Distributions to First Nations 46,997,088 - 46,997,088 47,663,588 Trust administration (schedule 1) - 583,174 583,174 411,448 50,396,383 583,174 50,979,557 51,495,886

Excess (deficiency) of revenue over expenditures before undernoted 600,000 (583,174) 16,826 (10,133)

Transfer for administration (600,000) 600,000 - -

Surplus, beginning of year - 94,956 94,956 105,089

Surplus, end of year $ - $ 111,782 $ 111,782 $ 94,956

See accompanying notes to financial statements.

2 27 FIRST NATIONS TRUST Statement of Cash Flows

Year ended March 31, 2010, with comparative figures for 2009

2010 2009

Cash flows from (used in):

Operations: Excess (deficiency) of revenue over expenditures $ 16,826 $ (10,133) Item not involving cash: Amortization 1,128 1,933 Change in non-cash operating working capital: Accounts receivable (3,115) (1,826) Gaming revenue receivable - 12,729,344 Accounts payable and accrued liabilities (3,832) (398) Gaming revenue payable - (12,729,344) Distribution to First Nations held in trust 1,730 267,394 12,737 256,970

Increase in cash 12,737 256,970

Cash, beginning of year 376,978 120,008

Cash, end of year $ 389,715 $ 376,978

See accompanying notes to financial statements.

3 28 FIRST NATIONS TRUST Notes to Financial Statements

Year ended March 31, 2010

1. General Information:

The First Nations Trust (the “Trust”) is a trust created by the Federation of Saskatchewan Indian Nations (“FSIN”) pursuant to a Trust Indenture dated May 26, 2003. The Trust Indenture was created through negotiations between the FSIN and the Government of Saskatchewan.

The Trust Indenture sets out the purpose for establishing a trust and also sets out the roles and responsibilities of the Board of Trustees.

Article 4.01 of the Trust Indenture establishes the purpose of the Trust as follows:

The purpose of this Trust is to effect the distribution of the monies due to First Nations from, inter alia, the profits from SIGA (Saskatchewan Indian Gaming Authority, Inc.) casinos and SGC (Saskatchewan Gaming Corporation) casinos.

The sole purpose of the Trust is to distribute First Nations’ share of gaming proceeds due to them pursuant to the 1994 Framework Agreement and the 2002 Framework Agreement (and amendments) between the FSIN and the Government of Saskatchewan. Amendments to the 2002 Framework Agreement were signed between the parties on November 10, 2004, January 13, 2005 and June 11, 2007.

The Trustees receive First Nations’ share of gaming profits on a quarterly basis directly from the Ministry of First Nations and Métis Relations of the Government of Saskatchewan. The Trustees meet to review and approve distributions from the Trust to Saskatchewan First Nations in accordance with the distribution formula approved by the FSIN Chiefs in Assembly.

The Trustees, in signing the Trust Indenture, have agreed to hold the Trust property in trust and may make distributions from the Trust for the following purposes for First Nations and First Nations people;

 economic development;  social programs;  justice initiatives;  education and education facilities;  the development and operation of recreational facilities  senior and youth programs;  cultural and spiritual development;  the development and maintenance of community infrastructure;  health initiatives;  governance activities;  Treaty protection; and  any other charitable purpose.

The Trustees are also required to administer distributions made under part 4 of the amended

4 29 FIRST NATIONS TRUST Notes to Financial Statements (continued)

Year ended March 31, 2010

1. General Information (continued):

2002 Framework Agreement which provides that, starting with the 2007-2008 fiscal year, a portion of the annual net profits of the SIGA casinos shall be distributed as follows:

a) the sum of $2,250,000 shall be allocated to First Nations Addiction Rehabilitation Foundation (“FNARF”), for funding of FNARF’s activities relating to problem gambling pursuant to Part 8 of the 2002 Framework Agreement. Part 8 states that the FSIN has established FNARF to ensure that effective and accessible education, prevention and treatment programs about problem gambling are available to First Nations People.

b) the sum of $250,000 shall be allocated to the FSIN, through the First Nations Trust, for funding of the FSIN’s activities pursuant to Part 2, for each of five years. Part 2 states that “the parties agree to work together to develop and present to the Government of Canada proposals which would allow First Nations full jurisdiction in relation to all forms of gaming on reserves, either through amendments to the Criminal Code or new federal legislation.”

c) the sum of $250,000 shall be allocated to the FSIN through the First Nations Trust, for funding of the FSIN’s gaming activities pursuant to this Agreement, for each of five fiscal years.

On June 9, 2004, the FSIN Chiefs-in-Assembly passed a resolution directing the Trustees of the Trust to deduct “the amount of $5 per capita per annum to be taken from the First Nations Trust” for the First Nations Treaty Rights Protection Fund (“FNTRPF”). The Trustees take this deduction off of each First Nation’s quarterly distribution in four proportional amounts.

2. Significant accounting policies:

(a) Use of estimates:

The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenditures during the reporting period. Actual results could differ from these estimates.

5 30 FIRST NATIONS TRUST Notes to Financial Statements (continued)

Year ended March 31, 2010

2. Significant accounting policies (continued):

(b) Gaming revenues:

Gaming revenues are recorded when received from the Province of Saskatchewan; General Revenue Fund. Distributions of gaming revenue are made to the Trust in quarterly installments based on estimates by Saskatchewan Liquor and Gaming Authority of net profits at the SIGA and SGA casinos. A final adjustment to the Trust is made by the Province once the SIGA and SGC actual net profits have been determined.

The Trust maintained a separate fund for administration costs. An allocation for administration is transferred from the Trust on the approval of the Trustees. Any monies that are not utilized remain property of the Trust and are available for distribution to First Nations.

(d) Distributions to First Nations:

Distributions to First Nations are made based on guidelines and a formula approved by the FSIN Chiefs-in-Assembly.

6 31 FIRST NATIONS TRUST Notes to Financial Statements (continued)

Year ended March 31, 2010

3. Distributions to First Nations held in trust:

2010 2009

Little Pine First Nation $ 137,550 $ - Fishing Lake First Nation 124,692 - Wood Mountain First Nation 19,285 - Neekaneet First Nation - 129,797 Interest and other 9,105 159,105

$ 290,632 $ 288,902

Distributions to First Nations were contingent upon the First Nation meeting all applicable policies of the Trust including the FNT Reporting Policy.

4. Related party transactions:

Related parties to the Trust include the FSIN and First Nations in the Saskatchewan region.

Occasionally cheques are distributed to Tribal/Grand Councils on behalf of their member First Nations when First Nations have provided the Trustees with written directions supported by a lawful Band Council Resolution.

5. Comparative figures:

Certain comparative figures have been reclassified to conform with the financial statement presentation adopted in the current year.

7 32 FIRST NATIONS TRUST Schedule of Administration Expenses

Year ended March 31, 2010, with comparative figures for 2009

2010 2009

Salaries and benefits $ 161,707 $ 121,656 Trustee per diems 117,458 65,109 Professional fees 111,361 103,987 Office and general 82,558 66,599 Trustee travel, accommodations and sustenance 79,526 35,066 Staff travel 18,904 12,046 Trustee communication allowance 8,400 4,500 Bank charges and other 2,132 552 Amortization of equipment 1,128 1,933

$ 583,174 $ 411,448

8 33 Asimakaniseekan Askiy Reserve 202E Joseph Okemasis Drive Saskatoon, Saskatchewan S7N 1B1 e-mail: [email protected] Phone: 306 931-4424 Fax: 306 931-4425 http://www.firstnationstrust.com