Finance Report 2016-2017 CONTENTS Message from the Director of Finance ............. 04 Finance Department Function ........................................................ 05 Objectives .................................................... 06 Meet our Team ...................................................... 07 Finance Information.............................................. 15 MFNERC Financial Statements .......................... 16 Independent Auditors’ Report .................. 17 Statement of Financial Position ................ 18 Statement of Operations ............................ 19 Statement of Changes in Net Assets ....... 20 Statement of Cash Flows ........................... 21 Notes to the Financial Statements ........... 22 Schedule 1 - Schedule of Revenue and Expenses - Administration ................. 29 Schedule 2 - Schedule of Revenue and Expenses - Roseau River Anishinabe First Nation Ginew School .............................................. 30 MESSAGE FROM THE DIRECTOR OF FINANCE On behalf of MFNERC’s Board of Directors, we welcome opinion on the March 31, 2017 MFNERC Financial you to preview our 2016-17 Financial Audit. Together we Statements, which represents the highest standard for a value education. A positive educational process is our first financial audit. priority. We are constantly looking for ways to work more efficiently, at the same time ensuring a quality education MFNERC received $6,106,595 from INAC under New Paths for First Nations Students in Manitoba. Program as well as $3,870,655 for Special Education and $1,444,035 for other proposal driven education This Audit report reflects Manitoba First Nations programs. INAC also provided $1,363,993 for Education Education Resource Centre’s (MFNERC) on-going Partnerships Program and $20,203,165 for the First Nation commitment to improving both its performance and its Student Success Program and $2,782,977 for Roseau financial and fiscal accountability. River Anishinabe First Nation Ginew School. In total INAC provided $35,711,420 to MFNERC which represented 97% MNP LLP Chartered Accountants conducted the audit of overall funding. of the MFNERC’s Financial Statements for the fiscal year ending March 31, 2017. Total revenue was $36,982,320 Overall, Finance ensured that all requirements of a and total expenses were $36,610,090. We are pleased to project’s Contribution Agreement were being compiled report positive operating results for MFNERC for fiscal year with authorized expenditures as well as ensured that the 2016-2017. MFNERC’s success in 2016-2017 demonstrated deliverables were being adhered to. the strength and importance of sound management execution and the value of financial discipline. George Merasty B.Comm (Hons.), CA, CPA, CAFM Director of Finance The management letter from MNP LLP, MFNERC’s auditing firm, made no significant suggestions for operational or procedural changes and they issued an “unqualified” 04 | Finance Report 2016-2017 FINANCE DEPARTMENT - FUNCTIONS AND OBJECTIVES FUNCTION Finance manages the implementation of the financial plans and policies of MFNERC. The financial strategic objectives of MFNERC is to manage the funds it has been entrusted with. Finance carries out this objective through cost effective management of MFNERC’s internal financial operations, efficient negotiations, monitoring of funded projects, and strategic management of the organization’s investments. Finance is responsible for three main areas: 1. Project funding • Financial review and monitoring of all budgets for all projects administered by MFNERC 2. Organizational finances and administration • General Expense (Salaries, insurance, office supplies, training etc…) • Investments • Financial Reporting • Financial advice to the Board of Directors 3. Monitoring • Processing cheque requisitions submitted by departmental managers • Assessment of budget to actual expenditures on a monthly basis • Analysis of project performance to ensure deliverables are adhered to Finance Report 2016-2017 | 05 FINANCE DEPARTMENT - FUNCTIONS AND OBJECTIVES OBJECTIVE To fulfill all financial functions and execute its responsibilities, the Finance department has identified the following objectives and strategies: FINANCE DEPARTMENT - FUNCTIONS AND OBJECTIVES 1. Ensure the integrity, reliability and transparency of all the financial operations of MFNERC STRATEGY: To establish budgeting control and reporting systems, applied both to the internal and financial operations of all funded projects. Finance achieves the following objectives: • Assisting in the development of policies and budgets, and providing the necessary information and financial analysis required. • Control and monitor the operational budget that has been approved by the Board of Directors. • Assisting Management in discharging its responsibilities for Financial Reporting. • Implementing and maintaining the accounting system (Sage 300). • Ensuring the Reporting and Auditing procedures are carried out. • Administrating the investments on behalf of MFNERC. The Financial statements of MFNERC are prepared in accordance with generally accepted accounting principles, including the accounting recommendations for not-for-profit organizations in Canada. 2. Ensuring that funding expenditures are in accordance with the terms and conditions of all Contribution Agreements. STRATEGY: To conduct a financial assessment of the progress of funded projects in conjunction with departmental managers, ensuring project expenditures are measured against project work-plans, goals and objectives. 3. To ensure the integrity and reliability of data STRATEGY: Implementing and maintaining the accounting system (Sage 300) / HRMS EXPECTED RESULTS: • Ensuring that all requirements of a project’s Contribution Agreement are being compiled with authorized expenditures. • Refining the overall project as necessary to compile with the funding agreements. • Reducing a risk of unauthorized expenditures. • Ensuring that adequate resources continue to be available for the continuation of planned projects. 06 | Finance Report 2016-2017 MEET OUR TEAM Born and raised on the Flying Dust First Nation in northern Saskatchewan, George Merasty went on to become the Director of Finance for MFNERC as of 2007. In the past, he also served as the Director of Finance for the Assembly of Manitoba Chiefs from 1997 to 2007. After graduating from the University of Manitoba with a Bachelor of Commerce Honours degree with a major in Accounting, he obtained his Chartered Accountant designation in 2000. GEORGE MERASTY George has been married for 22 years to his wife, Marla, and they have two teenage B.Comm. (Hons.), CA, CPA, CAFM Director of Finance boys—Kaeden and Brenden. Sarah Cook is the Assistant Director of Finance at MFNERC. She graduated from the University of Manitoba with a Bachelor of Commerce Honours degree with majors in Accounting and Aboriginal Business Studies. In 2011, she obtained her Chartered Accountant designation. As a chartered accountant, Sarah has worked with a variety of charitable, non-profit and First Nation organizations to meet their reporting requirements. In the past, she has served as a Staff Accountant and Audit Manager at BDO Canada LLP and as a Finance Officer at Indigenous Management Group. Sarah is a proud member of the Misipawistik Cree Nation. She enjoys giving back to her SARAH COOK community and has been a member of United Way Winnipeg’s Council for Indigenous B.Comm. (Hons.), CA, CPA Assistant Director of Finance Relations since 2015. Finance Report 2016-2017 | 07 MEET OUR TEAM Curtis Carriere has worked in Finance at MFNERC since 2005, where he has occupied a variety of roles within the department—Accounts Payable, Receivable, Bank Reconciliations, and the General Ledger. He is currently working within the Manitoba First Nations School System (MFNSS). Curtis was born in raised in Winnipeg and spent many summer and winter months in and around Cranberry Portage, Manitoba. The nearby First Nation of Opaskwayak Cree Nation is where he has treaty status. He went on to graduate from the University of Manitoba with a Bachelor of Arts degree with a major in Economics and minor CURTIS CARRIERE in Business. Senior Finance Assistant Donna McCorrister has been working in the Finance Department at MFNERC since September 2016. She has worked in various organizations and businesses within the Peguis First Nation over the years. She graduated from Red River College with a Business Accounting and Management Studies Certificate. Donna originates from Brokenhead Ojibway Nation but transferred to Peguis First Nation at a young age. She and her husband Marshall have three adult children— Matthew, Brittany, and Ashton—and one 13 year old son, Presley. Family is very important to Donna, she spends most of her evenings and weekends watching her DONNA MCCORRISTER teenage son play various sports such as football in the summer, then hockey in the Accounts Receivable winter. She also enjoys playing golf with her husband. 08 | Finance Report 2016-2017 MEET OUR TEAM Bryanna Kirkness (McKay) has been employed with MFNERC since 2002, working as an administrative secretary and in the Finance Department as Finance Assistant for the past 14 years. Bryanna graduated from Success Business College in 2002 and received a Business Administration diploma (with honours). Born in Grandview and raised in Thompson, Manitoba, she has lived in Winnipeg since 1999 and treaty to Tootinaowaziibeeng Treaty Reserve. BRYANNA KIRKNESS Bryanna recently married her long-time