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2016/17 ANNUAL REPORT 2 ANNUALANNUAL REPORTREPORT MISSION CONTENTS First Nations Trust is responsible for the distribution of the First Nation’s share of SIGA and SGC Casino profits to Saskatchewan 04 Message from the Chairperson First Nations for specified uses that benefit their communities. 06 Roles of the Trustees 08 A Commitment to First Nations VISION Development First Nations Trust will strive to maintain a trusting relationship 09 First Nations Trust: with First Nations based on integrity, confidentiality and mutual A Timeline of its Development respect in order to assist them in making a positive difference in the lives of First Nations people, their children and their 10 Designated Allocations children’s children. 13 Expenditures by Permitted Purpose / Designated Allocations VALUES 14 Use of First Nations Trust Funds Integrity – The First Nations Trust conducts business with 19 Financial Statements 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. 3 ANNUALANNUAL REPORTREPORT MESSAGE FROM THE CHAIRPERSON On behalf of the Board of Trustees for the First Nations Trust, I am pleased to present the 2016-2017 Annual Report. The Annual Report covers all operations of the Trust for the fiscal period April 1, 2016 to March 31, 2017. Since the Trust’s creation in 2003, this audit marks our 14th consecutive year of receiving yet another unqualified audit. As Trustees, we take seriously our responsibility of fiscal openness, accountability and transparency and fulfilling our fiduciary responsibility to our beneficiaries - the First Nations of Saskatchewan. That is why we are proud to maintain efficient operations while fulfilling our mandate of audit confirmations and oversight so as to maximize the funds available for distribution to our beneficiaries. With focused diligence of our staff and the commitment of all Trustees to deal with all matters in a timely cost-effective manner, we are able to balance these obligations. Casino profits in Saskatchewan fluctuate as the gaming market matures along with economic uncertainties which affects the net proceeds received by the Trust for distribution. However, despite these uncertainties the First Nations Trust received $54.7 million dollars to distribute among our beneficiaries. This was comprised of $39.4 million from Saskatchewan Indian Gaming Authority (SIGA) casinos, $13.1 million from Saskatchewan Gaming Corporation (SGC) casinos and $2.2 million which is allocated to First Nations Addictions Rehabilitation Foundation (FNARF). We would like to thank the Leaders and staff of all the First Nations in Saskatchewan for their compliance with the Trust Indenture and Trust policies and procedures and look forward to their continued cooperation for many years to come. Respectfully, Sheila C. Sutherland Chairperson 4 ANNUALANNUAL REPORTREPORT BOARD OF TRUSTEES DELORIS DELORME BRENDA STEVENSON LINDA OKANEE Trustee, Cowessess First Nation Trustee, Carry the Kettle First Nation Trustee, Thunderchild First Nation NOLAND HENDERSON JOE MUNROE EVERETTE BEAR Trustee, Montreal Lake Cree Nation Trustee, Muskoday First Nation Trustee, Muskoday First Nation 5 ANNUALANNUAL REPORTREPORT ROLES OF THE TRUSTEES A TRUST is often established to provide a way of A Beneficiary of the First Nation Trust is defined in the having property held for an individual or a group and 2003 Trust Indenture as a “First Nation, an Indian Band allows the trust property to be managed by a trustee or or the Federation of Saskatchewan Indian Nations”. group of trustees. THE POWER AND AUTHORITY of the Trustees Regardless of the nature of the property held by the as set out in section 8 of the 2003 Trust Indenture, trust, Trustees must manage the trust so that decisions include authority to pay authorized expenses; to retain made about the trust’s property are made in the best the services of advisors, professionals or others to interests of the beneficiaries of the trust. assist the Trustees in the performance of their duties; to pay reasonable remuneration to the Trustees for THE FIRST NATIONS TRUST was established to performance of their duties; to follow valid direction “effect the distribution of the monies due to First from the Chiefs-in-Assembly (Legislative Assembly Nations from, among other things, the profits from of the FSIN); and except as limited by the 2003 Trust both SIGA and SGC casinos”. Indenture, pay out the trust property for the benefit of any one or more of the beneficiaries, or for the benefit In the case of the First Nations Trust, the Trust is of First Nations peoples. defined by the 2003Trust Indenture. The Indenture is the result of an agreement made in 2002 between the FSIN and the Province of Saskatchewan. The Property PERMITTED USES of the First Nations Trust property held by the First Nations Trust is defined in the 2003 are set out in the 2003 Trust Indenture. For monies Trust Indenture and that property is money. The money distributed by the Trustees, the Trust Indenture requires is received from the net profits of eight casinos, six that the funds must be used for specified purposes for are under First Nation control and two are under the First Nations and First Nations peoples. In accordance control of the Province. with Section 5.01 of the Trust Indenture those permitted uses are: What the Trustees can and cannot do with the property • Economic development; held by the Trust is defined by the 2003Trust Indenture, in conjunction with The Trustees Act, R.S.S 1978. The • Social programs; law also imposes certain obligations on the Trustees, • Justice initiatives; even if these duties are not specifically set out in the • Education and education facilities; Trust Agreement. • Development and operation of recreation facilities; • Senior and youth programs; Trustee obligations include holding ownership and legal control of the property of the trust. The law • Cultural and spiritual development; requires that the Trustees of the First Nations Trust • Development and maintenance of community act only in the best interests of the beneficiaries of the infrastructure; Trust. Another obligation of the Trustees is to appoint • Health initiatives; a qualified independent auditor to examine the books and records of the First Nations Trust at the end of each • Governance activities; fiscal year. The Annual Report must include the audited • Treaty protection, and financial statements of the First Nations Trust for that • Any other charitable purpose. fiscal year. 6 ANNUALANNUAL REPORTREPORT THE FIRST NATIONS TRUST PROCESS The Trust’s fiscal year begins April 1 and runs until March 31 of the following year. Payments are made to First Nations Trust by the Ministry of Government Relations pursuant to formulas contained in the 2002 Framework Agreement and the profits forecasted by the FSIN’s Saskatchewan Indian Gaming Authority (SIGA) casinos and the Province’s Saskatchewan Gaming Corporation (SGC) casinos. One-fourth of those estimated profits are paid to the First Nations Trust at the end of each quarter. After the fiscal year has concluded, the Ministry is required to reconcile the forecasted and actual audited net profits from all Casino operations and either pay amounts due from under-forecasting or recover any overpayments from First Nations Trust. The Trustees must meet at least quarterly to distribute the trust property in accordance with the 2003 Trust Indenture. When the Trustees distribute trust property, they must follow any properly received directions from the FSIN Chief-in-Assembly. At the end of each fiscal year, the Board of Trustees are responsible for ensuring that all the beneficiaries of Trust monies properly account for how these funds were spent. Section 9 of the 2003 Trust Indenture sets out the accountability provisions. In the event that a recipient or beneficiary of trust property is not able to properly account for the monies, or spent the monies in an inappropriate manner, the Trustees have a fiduciary obligation to the other beneficiaries to take whatever steps are necessary, including withholding future payments, to ensure appropriate accountability by the beneficiaries. 7 ANNUALANNUAL REPORTREPORT A COMMITMENT TO FIRST NATIONS DEVELOPMENT NET PROFITS BENEFICIARY REPORTS TO THE The First Nations share of the net profits from gaming FIRST NATIONS TRUST is currently distributed to the First Nations Trust Beneficiaries are required to report to the First Nations through the Saskatchewan Ministry of Government Trust each fiscal year. Before the end of the fiscal Relations. year each First Nation and Designated Beneficiary is reminded of their reporting requirements. Each FIRST NATION RUN CASINOS: beneficiary must provide their audited Schedule The casinos operating under the Saskatchewan Indian concerning funds received from the First Nations Trust. Gaming Authority contribute 50 percent of the net These Schedules outline how the funds received from profits from gaming in the following casinos: the Trust were used. • Bear Claw Casino Each beneficiary must also provide an Auditor’s • Dakota Dunes Casino opinion that confirms that funds were expended by the • Gold Eagle Casino beneficiary in accordance with the “Pemitted Purposes” • Living Skies Casino set out in S. 5.01 of the Trust Indenture. • Northern Lights Casino • Painted Hand Casino PROVINCIAL GOVERNMENT CASINOS: There are currently two Casinos operated by the Saskatchewan Gaming Corporation that contribute to the First Nations Trust: • Casino Moose Jaw • Casino Regina The portion of the net-profits contributed to the First Nations Trust from the two SGC-run casinos was 25 percent of their net annual revenues. NET PROFITS RECEIVED BY THE FIRST NATIONS TRUST 2016-2017 The contributions to the First Nations Trust transfer from the Ministry of Government Relations to the First Nations Trust. Funds are provided to the FNT in four regular quarterly distributions and an annual reconciliation. 8 ANNUALANNUAL REPORTREPORT A TIMELINE OF ITS DEVELOPMENT The First Nations Trust was established in 2003.
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