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Aboriginal Financial Officers Association of Canada

INSIDEFirstNationAdministrators – Is it timefor aprofessional associationand certification?

What is PerformanceReportingandwhyshouldmyFirstNation learnmoreabout it?

In searchof goodgovernance forFirstNationspensionplans

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Aboriginal Financial Officers Association of Canada

AMessage from the AFOA Chair & President & COO . . . . . . . 1

Atlantic Initiatives – Comprehensive CommunityPlanning & the Governance Framework . . . . . . . . . . . . . . . . . . . 2

Are you working on developing financial policies,procedures,by-laws or other financial control tools? . . . . . . 9

You could become a Certified Aboriginal FinancialManager (CAFM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

How to become a CAFM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Build the skills you need to get the job done well –Certified Aboriginal Financial Management Program . . . 12

First Nation Administrators – Is it time for aprofessional association and certification? . . . . . . . . . . . . . . 14

In Search of Good Governance for First NationsPension Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

How-To Guides for the Aboriginal Manager andElected Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

AFOA’s Annual Aboriginal Youth FinancialManagement Conference Awards . . . . . . . . . . . . . . . . . . . . . . . . 26

CommunityWorkshops Now Available –AFOA InstructorsWill Come toYou! . . . . . . . . . . . . . . . . . . . . . . 40

What is Performance Reporting andwhy shouldmyFirst Nation learnmore about it? . . . . . . . . . . . . . . . . . . . . . . . . . 42

Strategic Planning on First Nations. . . . . . . . . . . . . . . . . . . . . . . 46

Important changes to First Nations Financial Reportingrequirements are coming – Will you be prepared? . . . . . . . 53

Playing Safe is Risky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Aboriginal Management Certificate Courses . . . . . . . . . . . . . 60

Today’sWorkers – Tomorrow’s Seniors and Elders . . . . . . . . 62

The Financial Planning Growth Process . . . . . . . . . . . . . . . . . . 64

Tableof

Contents

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Subscription InformationAFOA members receive free subscription to JAM: The Journal ofAboriginal Management. The Journal will be published twice ayear – once in the spring and once in the winter. The Journal willbe mailed to members.

Non-members can subscribe to JAM for $50.00 a year. To get asubscription, call AFOA toll free at 1-866-722-2362 or visit AFOAat www.afoa.ca.

Advertising InformationAFOA is distributed to all 1,300 AFOAmembers,over 800NationalConference delegates andmade available to all First Nations andInuit across the country. These are the people with the purchas-ing power who spend millions of dollars a year on products andservices.Advertisers gain valuable exposure to key decision-mak-ers in Aboriginal communities and organizations. Corporationswho advertise in JAM also contribute to enhanced Aboriginal fi-nance and management in this country and, ultimately, make acontribution to the enhancement of the quality of life amongAboriginal peoples.

AFOA welcomes advertisers for JAM:The Journal of AboriginalManagement. All advertisements are in full colour.

Corporate Members Other

Full page,inside front or back cover $3,000 $4,000Full page $2,000 $3,000Half page $1,000 $1,500

ISBNInformation

JAM The Journal of Aboriginal Management

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Aboriginal Financial Officers Association of Canada

TheAboriginal Financial Officers Associationof Canada (AFOA) isvery pleased to introduce a new look to JAM: The Journal ofAboriginal Management – A Journal for all Aboriginals acrossCanadaworking in the finance andmanagement fields.This newlookwas designed to be consistent with all AFOA’s products andreinforce the notion that education inmanagement and financeis essential to our prosperity and to the success of the next gen-eration.

Whether you work in your community administration or in programand service delivery, in a health or educational organization, in a de-velopment or capital corporation, in a national or provincial Aborigi-nal organization, in social services or economic development, or in aprivately owned business – this Journal is intended to help you be onthe leading-edge of key Aboriginal finance and management issuesthat will impact you in your job.

This issue includes important information on strategic planning,com-prehensive community development, performance reporting, pen-sion plan governance, band management and other key issues.

This Journal is one more product from AFOA that demonstrates itscommitment to being Canada’s Aboriginal Centre for Finance andManagement Excellence. We welcome all expressions of interest tocontribute to JAM on Aboriginal management and financial issues.JAM is published twice a year.

The Aboriginal Financial Officers Association of Canada is the centrefor excellence and innovation in Aboriginal finance andmanagement.We are the only organization in Canada that focuses on the capacitydevelopment and day to day needs of those Aboriginal professionalswho are working in all areas of finance, administration and manage-ment – today’s leaders and those of the future.

Romeo Crow-Chief, CAFM Ernie Daniels, CGA,CAFMChair President & COO

AMessagefromthe

AFOAChair&President&COO

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JAM The Journal of Aboriginal Management

AtlanticInitiativesComprehensiveCommunityPlanning&theGovernanceFrameworkTracey L.Wade,MCIP, RPPChignecto Consulting Group

CCP in theAtlantic ContextIn Atlantic Canada,there are 37 First Nation communitieswith anon-reserve population of approximately 20,000, residing on34,000 hectares of land. First Nation populations are increasingby 6% annually,while the overall population of the four Atlanticprovinces is decreasing. The average age of non-Aboriginal At-lantic Canadians is 40 years, while the average age of AtlanticAboriginals is 25 years. Further, it is important to note that FirstNation reserves fall completely outside of provincial andmunic-ipal planning jurisdictions leaving First Nations to fend for them-selves in undertakingnewdevelopments or responding to issuesof severe overcrowding,capital and infrastructure requirements,water quality issues, and socioeconomic development.

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Aboriginal Financial Officers Association of Canada

Ten years ago, Atlantic First Nations were introduced to the conceptof Comprehensive Community Planning (CCP), which has been de-fined as “a holistic process that enables a community to build aroadmap to sustainability, self-sufficiency and improved governancecapacity.”i Similarly,CCP is“developing and carrying out strategies toreach a balancing act of environmental stewardship, resourcemanagement, standard of living, cultural and traditional values andsocio-economic conditions.”ii In short, comprehensive communityplanning,as withmany other planning tools,can be used to state andachieve a community’s vision of their future whatever that may be.

In all cases, CCP is meant to be comprehensive – meaning all factorsand realities of a community are to be taken into account in creatingthe plan. It is a lofty goal, to consider all internal and external factors,gather information from all sectors of a community including gov-ernment, administration,corporate influences,and communitymem-bers – from youth to seniors, including all special populations inbetween - and successfully develop a holistic strategy that will be en-dorsed by the local leadership andmade into reality over the ensuingyears.

The JointCommunityPlanningCommitteeIn response to the growing concern over social and economic reali-ties, an inadequate land base,and poor housing conditions, the JointCommunity Planning Committee (JCPC) was established in 1998.iii

Made up of several Atlantic First Nations, six federal government de-partments and planners from Dalhousie University, the goals of theJCPC were to:

1 create local examples to illustrate how community planningcould make a difference;

2 develop local expertise to initiate, guide and sustain the plan-ning effort;

3 develop resources and technological capacity at the local level;and

4 develop an awareness of what planning is.

The work of the JCPC resulted in the First Nations Community Plan-ning (FNCP) model which received much-deserved acclaim both na-tionally and internationally for its clearly-defined sequential steps,intensive community engagement, and capacity building efforts atthe local level. Having been developed in partnership with First Na-tions, themodel was recognized as the tool bywhich Aboriginal com-munities in the Atlantic could effect positive change for their peoples.

TheReality of Planning& ImplementationTo date more than 22 Atlantic First Nations have used the FNCPmodel. Most notably, Pictou Landing, Miawpukek and MembertouFirst Nations successfully incorporated their plans into the gover-nance and administration of their communities and are making tan-gible progress towards long-term community aspirations.Unfortunately, for many other First Nations, implementation – that is,the process of making the plan a reality - has been much more chal-lenging. Several factors affecting implementation of FNCP plans in-clude inconsistent funding for the process, inadequate training of FirstNation planning champions, lack of governance support, unrealistic

TraceyWadeis a professional planner withChignecto Consulting Group

where she conducts research andundertakes community develop-ment projects with several com-munities in planning, education,

and socio-economic develop-ment. In 2007,Tracey coordi-

nated the First NationsComprehensive Community

Planning initiative in the Atlanticregion on behalf of the AtlanticPolicy Congress of First Nation

Chiefs. Tracey was also one of theprimary authors for the First Na-tions Fiscal Planning Calendar

(www.fnfp.ca ).

i Indian & Northern Affairs Canada, BC Re-gion. CCP Handbook. 2006.

ii PublicWorks and Government ServicesCanada, Sharing the Story - ComprehensiveCommunity Planning - Experiences in FirstNations, Inuit and Northern Communities,

2004. www.pwgsc.gc.ca/rps/inac accessedMarch 25, 2008.

iii Atlantic Region also realized a significantinflux of community development fund-

ing resulting from the 1999 SupremeCourt decision on R.. v.Marshall, which

helped spur on broad-based communitydevelopment processes.

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expectations from com-munity members, littleor no guidance for im-plementation, and aninability of federal part-ners to respond to com-prehensive strategieswith a “silo-less” ap-proach to programs andfunding.

The FNCPmodel focuses on project-based results,which means thatimplementation on these projects (large and small) is a key measureof its success. Unlike non-Aboriginal communities whose commu-nity plans focus on regulation and policies, the FNCP model takes astrategic planning approach and identifies projects to be imple-mented. The project wish-lists incorporated into First Nation plansserved to build up high expectations of community members thattheir dreams and aspirations would be pursued (and funded) in theimmediate future. Thus, inmany cases, the resulting plans did not ad-dress the fiscal and political realities that existed on-reserve. And ifthere was real commitment on the part of the current Chief andCouncil, pursuant to the Indian Act, elections take place every twoyears inmore than 80%of the Atlantic First Nations. This instability inleadership makes consistent buy-in for the community planning ini-tiative or ongoing implementation of an approved plan very chal-lenging. In fact, strategic implementation is a challenge in anycontext, let alone in one that faces historical, cultural, political, fiscal,and capacity challenges on a daily basis. Now funding agents andFirst Nation leaders have been trying to determine where to go fromhere.

TheAtlantic CommunityPlanningCommitteeFollowing the dissolution of the JCPC,whose mandate it was to cre-ate a First Nation planning model, the Atlantic Community PlanningCommittee (ACPC)iv was established in 2005 to support the develop-ment of CCPs and their implementation. The ACPC soon recognizedthat many of the Chiefs and Councils were not prepared to take onthe implementation of the planning“projects”that resulted from theFNCPmodel. True comprehensive community planning is really a par-adigm shift from the standard management of First Nation commu-nities which is program-based, and highly reflective of the silo-approach to funding that is mandated through the federal govern-ment. As such, a broader support system needed to be conceived towork hand-in-hand with the planning process. Indeed, planning isonly a part of the larger community development context underwhich First Nation communities operate.

EnablingCCP ImplementationComprehensive Community Planning is based on the broader prem-ise that effective community development is a cyclical process wherecommunities prepare, plan, implement, and evaluate their progress,and that capacity development (at various levels) happens at eachstage of the process. This is illustrated in Figure 1 (following page).

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Figure 1: Community Development Process

The ACPC is now focusing on what can be done to ensure that At-lantic First Nations have the tools and capacity to both undertake andfollow-throughwith their planning and development processes. TheACPC is developing the“enablers;”the things thatmake the planningprocess, including implementation, happen. These enablers are: re-lationships, resources, technology, and governance.

1 Relationships. These include development of stronger internalnetworks (i.e., mobilizing community leaders, administrators andcommunity members to work toward a common vision) and ex-ternal ones (i.e., relationships with other First Nations,partnershipswith the private sector, agreements with neighbouring munici-palities, joint ventures, etc.).

2 Resources. There are three types of resources needed to see com-prehensive planning through. Beyond the physical resources of acommunity (natural and built form assets), a greater understand-ing of financial resources is necessary. Financial resources refer tothe fact that First Nations have finite budgets from federal agen-cies to build houses, infrastructure andmake capital expenditures.Planning must take this reality into consideration, and govern-ments must learn how to work creatively within that budget. Ad-ditional funding is not the only way to successfully implementCCPs at the community level. Finally,human resources and capac-ity need be considered. Perhaps the most crucial element to thecomprehensive community planning process is the need to en-sure that community members, and specifically band staff, havethe capabilities and broad understanding to allow them to un-dertake and then implement the CCPs. Specific skills development,education, training and mentoring should happen at every stageof the process for a variety of individuals (from administrators topractitioners and front-line staff ).

3 Technology. Many aspects of the CCP process are people-cen-tred; that is, they rely solely on building relationships and trust,andthen documenting ideas. However a critical aspect of good com-munity planning is having the technology to support timely andappropriate decision-making in the community.Technological in-frastructure is a keymanagement and administrative requirement

iv The ACPC is made up of representationfrom several federal government agencies,

three First Nation Chiefs and three FirstNation planners.

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in any organization in the 21st century. Emails, high speed Inter-net, and networked computers for Band staff are crucial for effi-ciency and effectiveness of band systems. Technology can also becritical to relationships by helping communities keep in touchwithmembers living off-reserve, provide outreach services, or deliverinformation which can enlist and engage potential partners. Fur-ther, and more specifically, geomatics and GIS technology allowslocal decision-makers to devise scenarios and options fromwhichthey can choose the best, based on their knowledge of commu-nity priorities and the vision. GIS is a tool used by most non-Abo-riginal communities and is a modern option to current processesthat facilitates decision-making.

4 Governance. Supportive governance and leadership towards thatcommon vision is needed to see CCPs through. The ACPC is de-veloping a governance framework that aims to improve day-to-day management and overall governance of First Nationcommunities. The intent is to provide best practices and adminis-trative models including organizational charts, policies and pro-cedures, job descriptions and Chief and Council orientations, sothat First Nation communities can improve their administrationand work toward effective implementation of their CCPs. This isoutlined more fully in the following section.

Atlantic FirstNationsGovernanceFrameworkThe Governance Framework is being developed to meet the follow-ing objectives:

> To assist First Nation communities in achieving their planning ob-jectives; in the areas of social,housing,health,education,economicdevelopment, Aboriginal Policing, Environmental Assessments,Land Management/Addition to Reserve Lands, and Elections;

> To move beyond project based results and begin transformativeresults by implementing community plans;

> To help First Nation leaders understand their fiduciary responsi-bilities to theirmembership and as trustees for Public Funds in thevarious areas of programs and services that they are responsible toadminister;

> To incorporate alternative management and governance stylesthat are appropriate to First Nations; and

> To foster the development of relationships beyond communitiesto enable real management and economic opportunities.

The Governance Framework is a “tool box”made up of four primarysections that will help community leaders govern their communitiesmore effectively. The sections, which are described in detail below,include law making and executive powers; structures and systems;procedures and processes; and codes, guidelines and policies.

Section1: LegislativeandExecutivePowersThe first section of the Governance Framework will outline a First Na-tion Band Council’s ability to pass laws and the power to enforce andimplement them (for example, expropriation, imposing fines, servicefees, taxes, press charges). The Governance Framework will also pro-vide summaries and key components of the laws of general applica-tion, including, for example: Human Rights Law, the Canadian Labour

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Code,the Indian Act,Contract Law,First Nation LandManagement Act,and Environmental Laws. These laws apply to many facets in the ad-ministration of Bandprograms including health,social,education,abo-riginal policing, financial management, etc. This will not replace legaladvisory services that Bands may require from time to time, but willprovide community leaders and senior managers with a better un-derstanding of the laws and regulations under which they are bound.

Section2: StructuresandSystems–CommunicationsandAccountabilityIn this section, tools such as organizational charts will be developedand recommended asmodels for First Nations to realign program andinternal accountability. Improved communication systems betweenBand Councils and senior management; between First Nation pro-grams; between Band Councils and their members; and among FirstNations at the Atlantic level all need to be considered. Communica-tion is the key to ensuring accountability within a Band office and be-tween Band leadership and community members.

Importantly, the development of an accountability framework is an-other component of this tool box. First Nations are interested insound management tools for financial administration and supportstrategic planning and setting of priorities. In order to completely un-derstand the true intent of an accountability framework one needsto understand the transfer payments for the various programs andservices. This section of the Governance Framework will address uti-lization of budgets and how good planning is crucial to understand-ing the current financial structure and future financial picture of acommunity. Community leaders will play a significant role in the de-velopment of specific policies for their communities based on theseover-arching structures and systems.

Section3: ProceduresandProcessesThe Governance Framework will include a recommended set of pro-cedures and processes that will inform newly elected Band Councilsabout protocol and expectations from both the community and thefunding partners. Examples of products for this section include BandCouncil procedures (including everything from Band Council meet-

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ings, to expectations of Councillors), record-keeping, and decision-making processes. These written processes can be used to protectboth the community frompartisan activities aswell as the BandCoun-cil when issues arise. Procedures and policies relate to overall man-agement and to full accountability. Without a process in place thatdocuments and records everything that is done through the Band ad-ministration, the Band Councilmay become liable for issues that arise.

Section4:Codes,GuidelinesandPoliciesPerformance measurements, standardized band policies which re-spond to legislative requirements, fair and consistent hiring policies,job descriptions, personnel policies and codes of conduct for BandCouncils, Band staff and others in authority positions are some ex-amples of the tools the Governance framework will include in thefourth section. One significant development will be a template forcustom code elections. Such a template provided to First Nationswould enable them to adopt fundamental aspects of a region-wideframework while still responding to the unique desires of their com-munity members when it comes to elections. Importantly, compre-hensive community plans will play a central role here as thecommunity vision should help drive the way that procedures andpolicies are developed. For example, if openness and improved com-munications are part of the community’s vision, then policies andcodes need to reflect those priorities.

ConclusionIn truth,much of the value in any planning process is in the process it-self. The FNCPmodel has proved to have all the steps needed to suc-cessfully develop a plan and initially filled the void of planning in FirstNations. What it lacks, however, is the assurance that participatingcommunities have the resources in place (human, financial, and oth-erwise) to move from the initial interest stages, through the processand successfully into ongoing implementation. The ACPC is respond-ing through the development of a Governance Framework that willprovide BandCouncilswith the tools to govern responsively,and allowBand administration tomanage programs effectively.Atlantic First Na-tion communities and government agencies remain strongly com-mitted to comprehensive community planning,believe in its inherentvalue, and are creating the supporting enablers like the GovernanceFramework, to help First Nations move forward on their CCPs.

ArticleAbstractThe Aboriginal population is growing six times faster than the non-Aboriginal population in the Atlantic region and First Nation commu-nities are working to become a central force in the regional economy.Comprehensive community planning began in earnest ten years ago,yet today First Nations continue to struggle with implementation. Withmany lessons under its belt, the Atlantic Community Planning Commit-tee is working to developmethods to build relationships, increase ca-pacity, and create a governance framework that supportsimplementation of comprehensive community plans so that First Na-tions can take their rightful place in the economy and society as awhole. JAM

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Aboriginal Financial Officers Association of Canada

Areyouworkingondevelopingfinancialpolicies,procedures,by-lawsorotherfinancialcontroltools?AFOAhasauniquetoolthatcanhelp.The AFOA’sDistributed Knowledge System (DKS) is a unique effort reaching out to allFirst Nations communities that would like to develop practical and effective financialpolicies and procedures.DKS enables First Nations to develop their own financial poli-cies with the benefit of models, samples and the experience of First Nations who areworking on,or have completed their own policies.The key behind DKS is a softwareprogram that uses internet technology andweb-based collaboration to support FirstNations communities in their policy development process.

DKS allows members of a community to work together with others,whether on or off-reserve,in the development of the community’s financial codes. Examples of financial policies thathave been developed in other communities available in the DKS resource library.To datethere are models from over (?) communities across the country.DKS will also feature samplefinancial policies and procedures for a community to choose from - whether they are lookingto update all of their financial policies and procedures, or only sections that would add finan-cial control measures to what they already have. For example, First Nations will have access tosample policies and procedures related to signing authorities, operating budgets, policies tocontrol andmanage cell phone expenses, or contracting for professional services.

Another DKS feature provides First Nations with mentor and peer support, even when somecommunity members work in different locations.Whether on or off-reserve,DKS allows sev-eral users to work together on the development of the community’s financial codes, at thesame time! On-line support to the community is provided by a DKS Administrator who looksafter the website ensures that community workspaces are setup and working properly.

We encourage your community or Tribal Council to become involved in this First Nationsinitiative by sending us a copy of your financial codes,whether policies, by-laws, acts, orequivalent financial management tools to share with your colleagues nation-wide.(Any information used to create the samples will be credited to participating organizationswith their permission.

To make a submission, First Nations can use one of three options:

1 Emailing an electronic copy to theattention of sseebach@afoa.ca;

2 Faxing a copy to (613)722-3467; or,3 Sending either a hard copy or

electronic copy on diskette, by mailor courier to the attention of:Suzanne SeebachDirector, Programs & ServicesAboriginal Financial OfficersAssociation of Canada1066 Somerset St.West, Suite 301Ottawa,ONK1Y 4T3

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YoucouldbecomeaCertifiedAboriginalFinancialManager(CAFM)Haveyoubeenworking in the fieldofAboriginalfinancialmanagement for over five years?Haveyoutakenanumberof financialmanagement relatedcollegeoruniversity courses?If the answer to either of the above questions is yes, you could re-ceive the CAFM designation.

Haveyoubeenworking in the fieldofAboriginalfinancialmanagement for over five years?Under Special Arrangement B, individuals with over five yearsdemonstrated practical experience can receive the designation ifthey have successfully completed the CAFM Examination.You maybe eligible.

Haveyou takenanumberof financialmanagementrelated collegeoruniversity courses?In the standard application process, candidates must have success-fully completed fourteen courses which form part of the AboriginalFinancial Management program.Ten of those courses are availablein universities and colleges across the country.AFOA grants exemp-tions for those courses towards the AFM program.You may qualifyfor those exemptions. Four of the courses are available on-linethrough AFOA (see page ?)

Find out why hundreds of other Aboriginal professionals are ob-taining their CAFM designation and making a difference in theircommunities and organizations.

TheCAFMdesignation is becoming thedesignationofchoice for employers ofAboriginal financeandmanagementprofessionals.Having the CAFM designation means that you are informed, ex-perienced and skilled in Aboriginal financial management. Itmeans that you have the competencies needed to be a leader –competent in technical knowledge, general management, leader-ship and professionalism.

The CAFM targets you as a professional who can answer to thedemands of your job at the pace that is required today.

As a CAFM you also gain access to top notch products and serv-ices from AFOA that are specifically targeted for Aboriginal fi-nance and management professionals.

Thank you for reading JAM: The Journal of Aboriginal Management.

The full PDF Version of this Edition is available to

AFOA Canada Members

AFOA Canada members receive a free subscription to JAM: The Journal of Aboriginal Management.

The Journal is published semi-annually – once in February and once in September. The

Journal is mailed to all members, made available to all Aboriginal communities, organizations, educational institutes and professionals in Canada. If you would like to

advertise or submit an article for JAM, please contact Jody Anderson at janderson@afoa.ca

Non-members can subscribe to JAM for an annual fee of $50.00 per year. To obtain a

subscription, please CLICK HERE to view the Subscription form. Forms can be submitted through the information below.

If you would like to become a member or would like more information on AFOA Canada,

please CLICK HERE to view the Membership Application Form.

CONTACT: AFOA Canada 1066 Somerset St. West, Suite 301

Ottawa, ON K1Y 4T3 Tel: (613) 722-5543

Toll free: (866) 722-2362 Fax: (613) 722-3467

Web: www.afoa.ca Email: pr@afoa.ca