Good Governance and Effective Financial Management

1. “Working Together to Build Stronger Communities” Good Governance and Effective Financial Management GOVERNANCE DEVELOPMENT NETWORK AND AFOA ONTARIO

2. GOVERNANCE DEVELOPMENT NETWORK What is the Governance Development Network? The Governance Development Network (GDN) is an organization that promotes the sharing of information and experiences in governance development amongst all First Nations. The organization takes pride in providing accessible governance tools and mechanisms within First Nation communities through empowerment and networking.

3. GOVERNANCE DEVELOPMENT NETWORK Mission “To plan and facilitate a governance network for all First Nation Communities interested in supporting each other in the development of effective governance tools and processes.”

4. GOVERNANCE DEVELOPMENT NETWORK Vision “All First Nations are self sufficient and have the capacity and understanding to develop and achieve strong protocols that support transparency and accountability to their membership.”

5. GOVERNANCE DEVELOPMENT NETWORK Where The Governance Development Network Began • Networking workshops were held in Ontario to provide an opportunity for Leadership and Administration to network and determine if there was a need for accessible governance mechanisms. • Following discussions with various First Nations communities and organizations, the participants felt it was necessary to establish a governance networking committee that will continue to host community networking forums in governance development.

6. GOVERNANCE DEVELOPMENT NETWORK Gathering Information Following the workshops, the participants identified: • The need to move forward in building governance capacity for their communities. • An interest in networking to share, learn from one another and find support and reinforcement. • The need for assistance with developing processes other than those in the Indian Act to move forward in taking back jurisdiction over their own affairs • The desire to move toward self-government and sustainability. • The common interest and similar challenges while they developed their governance tools and processes; • That all communities are different and that community involvement is a key element in developing effective and sustainable governance mechanisms.

7. GOVERNANCE DEVELOPMENT NETWORK Active listening, Active Learning The GDN focuses on all aspects of governance and interactively engages participants and provides an environment that encourages professional skill development through: • Hands on exercises • Youth involvement • Round Table discussions • Cultural presentations by Elders linking traditional governance with modern day applications • Networking and sharing of experiences • Presentations by organizations • Community highlights from various First Nations

8. GOVERNANCE DEVELOPMENT NETWORK Setting Goals The core of every First Nation, is the people. Setting goals and implementing policies and codes developed and endorsed by your community, provides positive outcomes such as: • Effective Leadership • Skilled and Motivated Administration • Community empowerment • Administrative Tools i.e. codes, policies • Community Tools – i.e. laws, standards • Sound, Sustainable and accountable foundation to direct and guide the community. • Results that the community can measure.

9. GOVERNANCE DEVELOPMENT NETWORK Relationship Building The Governance Development Network and AFOA Ontario recently signed a Memorandum of Understanding (MOU) in June 2011 to: • Work together to assist First Nations in Ontario • Develop financial codes and policies for community governance; • Improve financial management within communities by implementing sound governance tools.

10. GOVERNANCE DEVELOPMENT NETWORK National Involvement The GDN has identified the need to expand its outreach beyond Ontario to explore models of good governance and promote nation to nation networking. Why? • To assist and provide guidance for First Nations who want to achieve long term sustainability. • To promote best practices from other communities. • To assist with incorporation of traditional governance with modern day applications • To obtain and share resource/research materials from First Nations across Canada to include on our website.

11. GOVERNANCE DEVELOPMENT NETWORK Why Good Governance? • Financial management is ineffective without sound governance mechanisms in place to influence and motivate a transparent and accountable framework within administration for First Nation Communities. • The GDN facilitates sessions geared towards building capacity, and developing professional skills through: • Empowerment • Nation to nation networking • Education • Providing accessible tools and models that are easily adaptable within First Nation communities • An online database of resources and completed initiatives

12. GOVERNANCE DEVELOPMENT NETWORK Good Governance and Financial Management Good governance influences the overall design, operational techniques, and procedures of administration. Implementing sound policies and codes within First Nations: • Increases transparency and accountability • Strengthens the ability of managing their affairs, including financial management • Introduces quality performance management • Improves policies to enhance fiscal management • Improves financial policies and practices • Enhances and promotes a strong governance and accountable framework • Promotes efficient reporting practices • Creates an environment based on integrity, core ethical values and competence

13. GOVERNANCE DEVELOPMENT NETWORK Purpose of a Financial Policy • A financial policy is used to clearly communicate with the membership if there are ever questions about how the Financial Manager is dealing with the financial affairs of the First Nation. • The political body of the First Nation approves the policy which outlines the details to support a Financial Code. • Financial policies can be made more effective if membership know and understand the goals and objectives of the policy, and if administration makes a credible commitment to meeting them. • Policies can be effective if their objectives, rationale, and methods of implementation are communicated to the membership in a clear and timely manner.

14. GOVERNANCE DEVELOPMENT NETWORK Financial Management Code • A Financial Management Code generally outlines the responsibilities of the political body and the Financial management team, authorization and internal control to ensure the First Nation adheres to best practices with regards to governance. • A Financial Management Code sets out the principals of Financial Management, it is approved and Ratified by the membership, and clearly defines amendment procedures. • Once approved, the code is adopted as legislation for the First Nation.

15. GOVERNANCE DEVELOPMENT NETWORK Guiding Principles • A Financial Code can be as general or detailed as you wish. However the policy should be clear and outline some fundamental principles, e.g. • Clarity of roles, responsibilities, and objectives • Clearly identified policy goals • Who does what? • Who is responsible? • Open process for reporting policy decisions • Explanation of framework used to achieve objectives • Regulations and directives readily available to the membership • Public availability of information on policies • Public reports on major developments • Public accessibility • Accountability and assurances of integrity • Release of audited financial statements • Consistent with a Financial Policies

16. GOVERNANCE DEVELOPMENT NETWORK Avoiding Conflict • In cases when conflicts might arise, transparency in the mandate and clear rules and procedures can help in their resolution, strengthen governance, and facilitate policy and code consistency. • Including a recourse mechanism within the code such as a “breach of code” or “Conflict of Interest” ensures accountability and optimal effectiveness.

17. GOVERNANCE DEVELOPMENT NETWORK Adopting Codes • Once adopted, codes become legislation for your First Nation. • To successfully implement a Code some basic steps can be followed: • Brainstorming and community engagement: • Focus groups, surveys, maintain consistency, keep it simple • Development: • Draft a Code that reflects the best interest of the WHOLE community. • Take from community engagement findings and incorporate into code • Approval: • Codes must be approved through ratification vote and will be adopted as law of your First Nation • Implementation: • For optimal effectiveness, keep the membership informed and ensure a clear understanding of what the code entails, the purpose, goals and process. • Amendments: • Codes are only able to be changed by the community members. • Policies and procedures are able to be changed by leadership, but the changes must reflect the code to maintain a level of cohesiveness and consistency.

18. GOVERNANCE DEVELOPMENT NETWORK Can One Exist Without the Other? • Financial controls will not be affected by political change, as the principals in the code can only be changed by the community, in accordance with the amending process. • Without a code, policies are subject to changes or abandonment. Without a policy to support a code, there is essentially no specific administrative functions in place and can be too broad. • Having a robust policy to support a code is key to ensuring optimal effectiveness and support for both Administration and Membership. • Governance encompasses many functions of a community including financial management. Having Good Governance mechanisms in place will empower your community to effectively manage their own affairs and achieve their goals of self sustainability.

19. GOVERNANCE DEVELOPMENT NETWORK Moving Forward Together • We invite all members of AFOA Ontario, Manitoba and Saskatchewan to visit our website and become an online member. • AFOA Ontario has developed a Policy and Procedure Manual for Financial Management that is available electronically from Ontario Chapter. • The Governance Development network offers an example of a Financial Management Code on the website at www.governance.firstnation.ca • AFOA Ontario offers a Financial Management Policies and Procedures document available for distribution upon request

20. GOVERNANCE DEVELOPMENT NETWORK Meegwetch Valerie Pizey CAFM Coordinator President AFOA Ontario Phone 807-488-5602 Fax 807-488-5756 Email vpizey@kmts.ca Georjann Morriseau Assistant Coordinator Councillor Fort William F.N. Phone: 807-626-0399 Email: g.morriseau@hotmail.com