A yearly budget outlines the planned spending for the First Nation over the next twelve (12) months. It should flow from the First Nation’s strategic and multi-year financial plans .
Under the FAL, Council must create a policy for making a yearly budget for the next fiscal year .
This policy must set out the yearly budgeting process, including:
- all tasks and activities that must be completed before the budget is approved
- the person who is responsible for each task or activity
- how long it will take to complete and organize these tasks or activities
This policy must also include the steps for getting the yearly budget approved, including the standards that:
- Council must approve the yearly budget of the First Nation by March 31 of each year. This approval is for the budget of the following fiscal year
- Council must approve any changes made to the yearly budget after it has already been approved
This policy must also include the steps for handling budget deficits, including:
- the factors that may cause or increase a deficit
- that Council get suggestions from the Finance & Audit Committee about how to balance the budget deficit