To enter into a 10-Year Grant agreement, a First Nation must meet the eligibility criteria co-developed by Indigenous Services Canada, the Assembly of First Nations and the FMB. There are eligibility criteria to be met in the areas of:
- Financial Administration Law or By-Law
- Financial Performance
The FMB will provide reports to Indigenous Services Canada confirming that the First Nation has met the Financial Administration Law and Financial Performance eligibility criteria for the 10-Year Grant. Indigenous Services Canada makes all final decisions on grant eligibility and whether to offer a grant.
Financial Administration Law or By-Law
In order to be eligible for the 10-Year Grant, a First Nation must enact either a Financial Administration Law or By-Law that meets the FMB’s Financial Administration Law Standards and that brings into force certain minimum provisions. More information on the minimum provisions can be found in Indigenous Services Canada’s sample Comprehensive Funding Agreement model.
There are two options for law development depending on your First Nation’s preference. The standards that must be met are the same for both.
- First Nations Fiscal Management Act (FMA) Path: Where the First Nation will enact a Financial Administration Law (FAL) under section 9 of the FMA
- Indian Act Path: Where the First Nation will enact a Financial Administration By-law (FAB) under section 83 of the Indian Act
Following signing of the grant agreement, First Nations will be asked to demonstrate that these minimum provisions have been brought to life. Read more about FAL and FAB implementation testing.
- FMA Path: Financial Administration Law (FAL)
- If your First Nation is participating in the FMA and already has a FAL, you may need to update your FAL to meet the grant eligibility criteria.
- If your First Nation has its name on the Schedule to the FMA but does not yet have a FAL, this will need to be developed.
- A new or amended FAL will need to be approved by the FMB.
- FMB will support your First Nation through the FAL development and update process.
- Download a copy of the Sample FAL here.
- Indian Act Path: Financial Administration By-Law (FAB)
- If your First Nation currently operates under the Indian Act and does not wish to have its name added to the FMA, a FAB will need to be developed.
- If your First Nation already has an existing FAB under the Indian Act, you’ll need to submit your FAB to the FMB for review. If your FAB does not meet the grant eligibility criteria, you may need to repeal and replace it with a FAB that meets the grant eligibility criteria.
- Following its review, the FMB will provide advice to the Minister of Crown-Indigenous Relations who will be responsible for approving a new or amended FAB under section 83 of the Indian Act.
- FMB will support your First Nation through the FAB development and update process.
- Please contact the FMB to request a copy of the Sample FAB.
Financial Performance Review
In order to be eligible for the 10-Year Grant, a First Nation must demonstrate that it meets five selected Financial Performance Ratios.
The First Nation will need to send the FMB its most recent 5 years of audited financial statements . FMB staff will review the financial statements and use them to calculate the Financial Performance Ratios.
How the FMB supports First Nations during the 10-Year Grant journey
- Provide advice and support, as well as access to FMB-developed tools, during the 10-Year Grant funding application process
- Support the development of FALs or FABs
- Confirm that a FAL or FAB meets the FMB's standards and the grant eligibility criteria
- Analyze the financial performance of First Nations and confirm whether grant eligibility criteria is met
- Prepare and issue compliance opinion reports on grant eligibility to Indigenous Services Canada
- All FMB services are provided at no cost to the First Nation
Get in touch with the FMB
If you have any questions or need support with developing a FAL or a FAB, please contact us at 1-877-925-6665 or email@example.com