Financial Glossary/Terminology

Occurs when the First Nation and the supplier agree to be bound by the terms of the contract.

The independent external auditor of the First Nation appointed by the Council.

Check the accuracy of accounts and records.

A report that summarizes all money and property owned, and the investments of a business, organization, or First Nation.

A First Nation that has been approved for the borrowing of money in the form of a loan from the FNFA.

Plans or outlines of expected money and spending over a set period of time.

Property (building, land) and major equipment (furnaces, vehicles).

A project that helps to buy or improve a capital asset.

Money received and spent during a period of time.

The head of a meeting, department, committee, or board.

A finance tool that gives a complete listing of every account in an accounting system.

A set of rules and guidelines of acceptable practices for an individual, group, or organization.

A group of people who are chosen by the First Nation to perform a function.

It is received when a First Nation meets all of the standards needed to satisfy requirements of the FMB.

A situation where a person may be involved in several interests which could negatively affect the sound decision-making process of that person.

A contract is a legally binding agreement between two parties.

A long-term security issued by the First Nations Finance Authority that offers a fixed rate of interest.

Something that is owed or due, usually money.

A shortage that occurs when an organization spends more money than it has on-hand over a period of time.

The transfer of specific responsibilities from one person to another.

Steps taken to deal with job-related behaviour that does not meet expected and communicated performance standards.

Defines the legal relationship between a professional firm and its client or clients.

Software or a tool that is used to watch over and manage the First Nation’s money and property.

A person’s mastery of the skills and knowledge needed to make sound financial decisions.

A report showing that the records of the financial institute (such as a bank or credit union) agree with the records of the First Nation.

A financial institution account is an account with a company which provides financial services. This is usually a bank or credit union

Statements of the First Nation’s money and property.

A formal record of all money and property of the First Nation within a specific period of time.

All reserves of the First Nation within the meaning of the Indian Act

A 12-month period used for taxing or accounting purposes. Most First Nations have a fiscal year beginning April 1 and ending March 31 of the following year.

A wrongful or criminal act that involves lying or omitting information. This usually is done for personal or financial gain.

Accepted rules and guidelines when it comes to reporting financial data.

The process of how an organization manages decision-making. Governance describes who has power, who makes decisions, how others make their voices heard, and what goes into the reports and financial statements.

Protections for buyers or lenders against failure to perform as promised.

Refers to the people working for or volunteering for an organization.

Promises to pay for loss due to the actions of the First Nation or another party.

A security or protection against a loss or other financial burden.

A person is independent if they do not have a financial connection with the First Nation’s government.

A person is independent if they do not have a financial connection with the First Nation’s government. A more detailed definition of independence is laid out in the FAL.

An information system is a software or procedure used to organize and analyze data.

The maximum amount of risks or liability that insurance services will pay for.

Assets or items that are bought with the hope that they will gain value or provide income in the future.

A contract for renting land, buildings, etc. to someone.

A lease where each payment goes toward the purchase price of the asset or property. When the full price is paid up, the ownership is transferred to the buyer.

Sets out the First Nation’s assets in terms of costs to buy, operate, upkeep, and get rid of each over a period of time.

Revenue First Nations can earn from their reserve lands and resources. This includes taxing businesses and property on reserve lands, and charging fees for services or for using facilities on reserve lands. Local revenues can also include fees businesses and other organizations using reserve lands must pay for access to water, animal control, and other services.

Things that can bring future value such as cash, investments, buildings, real estate, equipment, and vehicles. These are known as assets.

Lays out the First Nation’s expected money and spending including capital spending for several years into the future. It helps in the financial planning of future activities as laid out in the First Nation’s strategic plan .

Net debt is measured as the difference between a First Nation’s liabilities and its financial assets. Net debt provides a measure of the future revenues required to pay for past transactions and events.

The Senior Manager, Senior Financial Officer, Tax Administrator, or any other employee of the First Nation named by Council to be an officer.

The First Nation’s name that is recognized by Indigenous Services Canada (ISC).

A visual representation of the different positions in a First Nation that clearly shows reporting relationships (who reports to who).

Rules and guidelines put into place by an organization’s leadership to make it easier to achieve the organization’s goals.

The process of determining the dollar value for a property.

A set of rules that outline the amount of tax to be paid on a property and how often it is to be paid.

A commercial document that states the types, amounts, and agreed prices for products or services.

Any property that is attached directly to land.

A request for proposals is a document which is used to seek plans and bids for items or services.

A requisition is an official demand for something to be done, given, supplied, etc.

The process of identifying what can go wrong, analyzing or evaluating the risk associated with the negative event, and determining the best way to remove or control it.

Trade-able financial property such as stocks and bonds.

The person who is responsible for the day-to-day management or administration of the First Nation’s financial management system.

The person who is responsible for the overall management of the day-to-day operations of a First Nation.

The FMB, First Nations Finance Authority (FNFA) and First Nations Tax Commission (FNTC) were created under First Nations Fiscal Management Act (FMA). These organizations work together for First Nations to provide guidance and set standards services for financial management, access to loans, and taxation.

A financial report on a specific activity.

Required or agreed levels of quality or excellence.

an outline of the desired future and direction of the First Nation, and the steps to get there.

Physical resources such as machinery, buildings, land, inventory, etc.

The person responsible for the day-to-day management of property taxes earned and property tax accounts.

The difference between taxes paid and taxes owed. This is paid out once a year, after the submission of taxes.

An invitation to would-be suppliers to provide bids on requested goods and services and to show how they would meet the contract requirements.

A tender call is a property owner’s invitation (either to everyone or to a select group) for bids to complete a particular project.

The length of time a person serves in a named position.

Define the purpose and structure of a project, committee, meeting, negotiation, or any similar situation.

A person who acts as the head of a meeting, department, committee, or board if the chairperson is not able to attend.