Harold, here is what you are being asked to present on:Key Message: Good Financial Management practices are necessary for Indigenous Nations and their organizations to be successful.Panel Purpose: Good Governance, Management and Administration Practices - Approaches to building this capacity (above). - Provide a case study success story to illustrate this.Your Panel Role: Importance of financial management and management practices, to develop professionally run governments and organizations, and an approach to learning and training in this area.
Bullet 1: Good Governance Matters - Good governance is an essential factor to the success of any endeavour, whether in the public sector or non-governmental sector. The presence of good governance practices clarifies authority, simplifies decision-making, and ensures people and organizations are accountable for their actions and decisionsBullet 2: Relate this to the administration. Roles and responsibilities are clearly identified. Process based-decision making. Accountability and transparency for actions and decisions of people and organizations.Bullet 3: Good Governments need to have the ability to pay back debt. Relate this to the need for strong financial management practices: internal controls, decision-making mechanisms in place.Bullet 4: Financial stability provides confidence to membership and stakeholders that the systems in place are sound, robust and reliable.“Achieving good governance can have a tremendous impact on your organization. Good governance:Promotes trust in the organization and its people;Improves morale among staff and stakeholders;Enhances services to the public and stakeholders;Improves decision-making and the quality of these decisions;Connects your organization - and its Board - to its membership and stakeholders;Enhances the perception of the organization among people and stakeholders;Improves the ability to weather a crisis;Improves financial stability.”Source: http://iog.ca/en/about-us/governance/why-good-governance-matters
You could refer to Squamish Community Development Plan.Membership engagement, visions for the community, capital plans, economic development, traditional territory
It’s important in this panel discussion to relate to the certifications (strong financial management practices) to how these are vital to develop professionally run governments and organizations (in all contexts, not just First Nations).
Governance and Administration
ABORIGINAL LEADERSHIP AND MANAGEMENTWISE 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 FINANCIALMANAGEMENT• 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 Management3
NEED FOR A COMMUNITY VISION / PLAN • 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.4
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 First Nation Capital Are People Governments With Markets Need Infrastructure Money 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 7
FMB CERTIFICATION FOR FIRST NATIONS 1) Financial Administration Law; and One of the two Certificates: 1) Financial Management System Certificate, or 2) 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 Good Capacity and Management - Strong financial Governance - Improved Opportunities management is management and - Relationship btw necessary for administration financial success. practices management, good - Financial - Accountability, governance and Administration Law Transparency 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/fnfmb11 11