fNFMB HEADLINE BUILDING HERE CAPACITY EBB AND FLOW fIRST NATIONMANITOBA ur vision at Ebb and Flow is to build a prosperous and healthy community for our people and the surrounding area. Th e First Nations Financial Management Board’s (“the FNFMB”) certifi cation has allowed us to access low cost long-term fi nancing Oand undertake economic development and infrastructure improvement projects. “ Furthermore, FNFMB certifi cation serves as a great evidence of accountability and fi nancial transparency at Ebb and Flow. Business community leaders and funders view Ebb and Flow as a desirable partner due to FNFMB certifi cation. Establishing new processes and policies for accountability and fi nancial transparency can be challenging like any major changes. We found that working with FNFMB made implementing the changes easier for a number of reasons: 1. Resources available through FNFMB such as sample policies and helpful staff at FNFMB that understand the unique nature of the First Nations environment. 2. Community members buy-in. Our people understand the benefi ts of low-cost fi nancing for economic development and infrastructure improvement. Having FNFMB involved resulted in greater motivation and acceptance by our people of implementing new policies and procedures. We also found the certifi cation is very benefi cial for our community’s reputation in the business community and among funders. We have been approached by business leaders and funders to consider new opportunities more frequently since obtaining FNFMB certifi cation. Chief Nelson Houle Ebb and Flow First Nation 2014/15 FNFMB ANNUAL REPORT 3 Table of Contents 4 Operational Update 5 FNFMB Clients 6 Message from the Executive Chair 7 Message from the Director of Standards and Certification 7 Message from the Director of Relationships and Market Development 8 Community Profile 10 What is the FNFMB? 11 What We Do 11 Our Core Functions 11 FNFMB Services 13 Our Core Documents 14 Our Mission, Values and Mandate 15 Proposed Changes to the First Nations Fiscal Management Act 16 Borrowing through the First Nations Fiscal Management Act 18 Major Projects 19 Our Corporate Profile 19 Organizational Structure 20 Board of Directors 24 Our Business Lines 25 Standards and Certification 25 Relationships and Market Development 26 Legal and Info Management 26 Financial Results 34 Corporate Information fNFMB HEADLINEOpeRational HERE Update First Nations that have achieved FNFMB Financial Performance Certifi cation during the year: 2011-12 5 2012-13 14 2013-14 18 2014-15 15 First Nations that have passed Financial Administration Laws (“FAL”) that meet FNFMB FAL Standards during the year: 2011-12 5 2012-13 16 2013-14 17 2014-15 20 Total First Nations in FAL development: 2011-12 29 2012-13 35 2013-14 38 2014-15 49 Total First Nations that are active FNFMB clients: 2011-12 45 2012-13 48 2013-14 91 2014-15 109 Count of First Nations on the FIRST NATIONS Fiscal Management Act (“the FMA”) Schedule, with A FAL, and with a FINANCIAL PERFORMANCE Certificate: 160 140 FMA Schedule FAL 120 Financial Performance Certicate 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2014/15 FNFMB ANNUAL REPORT 5 fNFMB FNFMBHEADLINE Clients HERE Certifi ed by the FNFMB as of March 31, 2015 Scheduled to the FMA as of March 31, 2015 MESSAGEExecutive fROm tHE Chair ver 2014-2015, the FNFMB has once again seen considerable growth in its First Nations client base, FNFMB-certified First Nations and First Nations that have been added to the FMA schedule. In order to support our growing number of First Nations Oclients, the FNFMB added 6 new staff positions to our team. We expect to see this growth continue over the coming year as a result of our enhanced marketing and outreach efforts and additional staffing resources. The past year also saw the inaugural work contemplates how First Nations bond debenture from the First Nations may be able to work together to deter- Finance Authority (“the FNFA”). This mine the impacts of proposed projects. was a tremendous milestone for the Where First Nations have indicated an FMA, its institutions, and all First interest in equity participation (owner- Nations in Canada. For the FNFMB, ship) in projects, we are examining how the debenture has started the clock to access the capital and the support ticking for all borrowing member First required to assure there is access. Over Nations to achieve a FNFMB Financial 2014-2015, two gatherings were held in Management Systems Certificate within northern British Columbia attended by the required 36-month timeframe. elected and hereditary chiefs and elders, With this in mind, we concentrated and a working group of First Nations much of our focus over 2014-2015 on representatives has been appointed to building capacity. This not only speaks further this work with continued to supporting our First Nations clients support from the FNFMB. in building the capacity required to strengthen their financial management systems, but also building our internal capacity to provide the required support Sincerely, to our First Nations clients. Along this theme, we provided financial manage- ment system capacity funding to 26 First Nations totalling over $380,000 of direct support. Harold G. Calla, CPA, FCGA, CAFM The FNFMB also continued its Executive Chair efforts in supporting First Nations in maximizing economic opportunities arising from major projects occurring within their traditional territories. This 2014/15 FNFMB ANNUAL REPORT 7 MESSAGE fROm thE DIRECTOR OF STANDARDS AND CERTIFICATION uring 2014-2015 achieving Financial reduce costs for our First Nation clients, many of our Management Sys- clarifying the concept of independence clients, including tem Certifi cation for committee members, and enhancing Dthe 13 First Na- will bring with it risk management standards to specifi cally tions that participated changes—to people, consider risks related to fraud. We also in the FNFA’s inau- processes and, in redesigned our Sample FAL by creating gural bond issuance, some cases, technol- a new version that excludes any reference began the journey ogy. To support our to local revenues, providing a new option of working towards clients to develop the for those First Nations that have not Financial Management capacity necessary to chosen to enter the fi eld of property System Certifi cation. manage this change taxation. In doing so, these First eff ectively, we were With the addition of several new Nations are demonstrating pleased this year to staff during the year the Standards and their commitment to bring together 52 Certifi cation team is more prepared and fully implementing their delegates from 36 eager than ever to work with our clients respective FAL’s. We con- First Nations at our and support them as they work towards tinue to believe that the two day Financial the achievement of FNFMB certifi cation. implementation of a FAL and therefore Management System Conference and the development of a robust fi nancial Workshop, where we shared best practic- Th ank you, management system is vital to a First es related to change management. Nation being able to take full control of As part of our commitment to be its fi nancial aff airs while managing risk in responsive to the feedback and needs of an ever-changing environment. First Nations, we made some limited but Scott Munro, CPA, CA, CAFM While some of our clients have had substantial amendments to our standards. elements of a fi nancial management Th ese changes included: harmonising system in place for many years, we rec- certain reporting obligations with other ognise that the decision to work towards pre-existing statutory requirements to MESSAGE fROm thE DIRECTOR OF RELATIONSHIPS AND MARKET DEVELOPMENT ver 2014-2015, the growth of certifi cation demands of our clients. new clients speaks to the ded- Th is involves working more closely with ication and team spirit that the other two FMA institutions (FNFA Oexists here at the FNFMB. We and the First Nation Tax Commission expect to see this growth not only (“FNTC”)) and connecting with continue, but to do so in a more FNFMB certifi cation staff regularly as be developing communication materials balanced manner in all regions of FNFMB continues to fi nd new ways to outlining our services to eff ectively assist Canada with support from our streamline their approach to supporting communities in aligning our services with recently established marketing and their First Nations clients. their community’s objectives and vision. capacity building strategies. Over the next year, we will be Th e newly created team in the Re- concentrating our eff orts on building Sincerely, lationships and Marketing development trusting relationships with our clients, unit will be working to streamline both to ensure good communication, and to internal and external relationships in or- develop a better understanding of our Sara Neuert, MA der to more eff ectively meet the growing clients’ needs and expectations. We will CERTIFIED fIRST NATIONS COMMUNITY PROFILE KANAKAfIRST NATION, BAR BrITISH COLUMBIA eing a vibrant community, Kanaka Bar believes in creating self-suffi ciency by taking foundational steps today to build community capacity for the future. FNFMB’s certifi - cation program is one of those foundational steps that has that tremendous potential of Bboth building capacity within the community plus helping achieve the desired goals of transparency and accountability. “ Certifi cation also allows the community to access fi nancing below prime through FNFA and at the same time the process itself actually is helping to build a solid and sustainable fi nancial management framework. Th us, Kanaka Bar is using the certifi cation process to overhaul the communities overall fi nancial manage- ment and administration system by incrementally developing new policies, practices and procedures. Th e results of this exercise will lead to a strengthened and sustainable fi nancial management system that is fully endorsed by the community.