You can develop your Financial Administration Law (FAL) to meet your First Nation’s specific needs and goals. The FMB has a sample law to make it easier for you to develop your own law. It reduces the time and resources you need to develop your FAL.
Sections of a FAL
The FAL contains several sections. Together, these sections form a set of governance and finance practices. When you pass the law, you commit your First Nation to living by these practices. The main sections are:
Administration
This part sets out the roles and responsibilities of the people who manage your First Nation’s finance practices and bring your FAL to life, including Councillors, committee members, employees, and contractors.
Financial Management
This part sets out practices around how every part of your First Nation’s finances will be managed. This includes:
- planning and budgeting
- controls for managing revenues and expenses
- rules for borrowing
- risk management
- finance reporting
- information technology
Capital Projects
This part details practices around how your First Nation manages its assets, such as roads, buildings, computers, and so on. It also covers finance practices around new capital projects, such as the construction of a new building.
Miscellaneous
This part depends on your First Nation. For example, it could cover oil, gas, and land management.
Conflicts of interest
This part sets out rules to help the people who manage your First Nation avoid or reduce the impact of conflicts of interest.