Transcript Document
ABORIGINAL LEADERSHIP AND MANAGEMENT WISE PRACTICES IN INDIGENOUS COMMUNITY DEVELOPMENT SYMPOSIUM PANEL 3: “GOVERNANCE AND ADMINISTRATION” SEPTEMBER 15, 2012 HAROLD CALLA EXECUTIVE CHAIR FIRST NATIONS FINANCIAL MANAGEMENT BOARD 1 OVERVIEW - THE IMPORTANCE OF STRONG FINANCIAL MANAGEMENT • • • • • • • • Good Governance, Management and Administration Need For a Community Vision/Plan Opportunities in Our Traditional Territories Role of Capital Markets and Private Sector FMB Role FMB Standards and Access to Capital Certification for First Nations FMB Course – Approach to Learning 2 GOOD GOVERNANCE, MANAGEMENT AND ADMINISTRATION • Good Governance Matters • Presence of Good Governance Practices clarifies authority, ensures the appropriate models for decision-making are in place and ensures accountability for actions and decisions – Improves Administration • Good Governments need Solvent Governments • Improves financial stability – Strong Financial Management 3 NEED FOR A COMMUNITY VISION / PLAN • • • • • • 4 Membership, Council, Administration need to be on the same path. Accountability and transparency through a process based decision making model. Recognize the role of that capital markets play in securing the debt and equity needed to develop an economy. Planning is a requirement – Economic, fiscal, financial. Identify where internal capacity building is required. Risk Management integral to successful implementation. FIRST NATIONS FINANCIAL MANAGEMENT BOARD (FMB) ROLE • First Nations led initiative created Federal Legislation, the First Nations Fiscal and Statistical Management Act (FSMA). • The FMB is a non-profit institution that certifies financial management systems and financial performance of First Nations based on FMB standards, which are consistent with recognized international control frameworks. 5 FMB ROLE IN THE FSMA BORROWING • Standards for financial administration law, financial management systems, financial performance. • Capacity development - support First Nations to meet standards. • Certification that a First Nation has and is continuing to meet standards – Access to capital 6 FMB STANDARDS SUPPORT FIRST NATIONS ACCESS TO CAPITAL Building Confidence & Credibility with Investors Opens the Door to the Private Sector Private Investors Are People With Money • • • • 7 Capital Markets First Nation Governments Need Infrastructure Financing FMB standards consider needs of First Nations and investors. Provide important information to potential investors and thus access to capital. Standards have been reviewed by investment banks and rating agencies. Can be used with other tools to support economic development. 7 FMB CERTIFICATION FOR FIRST NATIONS 1) Financial Administration Law; and One of the two Certificates: 1) 2) Financial Management System Certificate, or Financial Performance Certificate 8 FMB COURSE – APPROACH TO LEARNING • FMB has developed a course, “The First Nations Fiscal and Statistical Management Act” that is designed to be delivered online and in classroom. • The course will provide an opportunity for participants to learn how the enabling tools may be used to strengthen the financial administration and economic development capacities of First Nation communities in Canada. • Currently, the course is offered online through the Aboriginal Financial Officers Association of Canada’s (AFOA) delivery platform (Fall 2012). • In November 2012, the course will be offered as a pilot through NVIT in Merritt, BC. 9 THE IMPORTANCE OF FINANCIAL MANAGEMENT PRACTICES Financial Management - Strong financial management is necessary for success. - Financial Administration Law Good Governance - Improved management and administration practices - Accountability, Transparency Capacity and Opportunities - Relationship btw financial management, good governance and economic development – increased capacity. - Creates opportunities for the community and success. 10 FOR MORE INFORMATION Harold Calla, Executive Chair First Nations Financial Management Board Suite 905 – 100 Park Royal West Vancouver, BC V7T 1A2 Phone: 604-925-6665 Website - www.fnfmb.com Facebook - www.facebook/fnfmb Twitter - www.twitter.com/fnfmb YouTube – www.youtube.com/fnfmb 11 11