Financial Misconduct
Under the FAL, Council must create a policy for reporting instances where the rules and standards of the FAL or of Council policies have not been followed. This includes errors or misconduct in the First Nation’s financial administration or any misuse of money or resources.
This policy makes sure:
- Councillors, officers, employees, contractors and agents who are involved with financial administration activities must report any suspected misuse of money or resources or other suspicious activities within the First Nation’s financial administration
- reports of violations and the identity of the person who reported the violation are kept private
- the recording, safekeeping, and maintenance of all reported violations and any records created during the investigation of those violations
- to protect the person who reported the violation from any acts that may occur as a result of the report
- the reported violation will be looked into and investigated
- the person who is being reported is not being treated unfairly or with inaccurate judgement
- appropriate actions are taken by Council if a violation has happened. These actions must be recorded
- yearly reports are to be made to Council about the success of its policies and procedures
- the policies and procedures are communicated to everyone involved in activities of the First Nation
- the policies and procedures are included in the contracts of contractors and in the appointments of agents and committee members
Compliance with FAL
Council must create a policy to make sure all rules and standards of the FAL are being followed.
This policy includes the steps to:
- track the costs that would happen if the rules and standards of the FAL are not followed
- get the money or property back that was used or lost because of the failure of a person to follow the rules and standards of the FAL
Compliance with Other Legislation
Some First Nations manage their land under provisions of the First Nations Land Management Act. Under the FAL, Council must create a policy to make sure that the rules and standards of this Act are followed.
As well, the policy must make sure that any land code is made by the First Nation as needed or allowed under the Act. The First Nation must keep members informed about how it manages the land and handles the money earned from the land.
If a First Nation has a financial code under the First Nations Oil and Gas and Moneys Management Act, the FAL requires that Council create a policy to make sure that the rules and standards of this act are followed. As well, the policy must make sure that any financial code is made by the First Nation as needed or allowed under the Act.