Council must also create a policy for the First Nation’s local revenues spending (expenditure) law.
This policy must include the standards that require:
- a law by Council establishing a budget at least once a year for spending revenues raised under the First Nation’s property taxation law
- the approval of the law by the First Nations Tax Commission
- the approval of any changes to the budget by the Council. This must be done within the required time frame (under section 10 of the First Nations Fiscal Management Act). and as soon as possible after the start of the fiscal year
The policy must also limit the spending of local revenues by stating that the money may only be used:
- as approved in a budget that has been approved by the First Nations Tax Commission
- in one of the following situations:
- if no law has already been made, the First Nation can make a spending law that approves the money that has been spent
- if a law has already been made, the First Nation must decide that the money was spent because of an urgent need. The First Nation must make the necessary changes to the law as soon as possible after spending the money to approve the money that has been spent