Council must create a policy to review and go over the financial reporting risks as part of its review of other risks.
This policy must state that the First Nation must report and document any activities that may lead to the risk of the following:
- incorrectly reporting information in the First Nation’s financial statements (quarterly and annual). This includes any wrong information about financial reporting standards and timelines, getting information from sources and determining the meaning of this information, and the financial closing process at the end of each reporting period
- not reaching the planned levels of financial performance for the First Nation
- not carrying out the duties of the First Nation that are needed
This policy must state that the First Nation must create and document ways to watch for risks and keep them under control or manage them when they are seen.