Creating Good Financial Practices
A Financial Management System (FMS) Certificate proves to your Council, citizens, lenders, business partners, and others that you use the administrative and finance practices outlined in your Financial Administration Law (FAL), that you are ‘living by your FAL.’
FMS Certification also allows borrowing members to remain in good standing with the First Nations Finance Authority (FNFA). A is a First Nation that has been approved by the FNFA to borrow from it.
Who Can Get Certified?
FMS Certification is open to First Nations that have:
- enacted and received the FMB’s approval of their FAL
- successfully brought their FAL to life in their First Nation and can demonstrate that the FAL is being followed.
Why Get Certified?
The FMS Certificate shows that your First Nation has put in place good finance practices for the long-term. Getting certified brings:
- confidence to citizens, lenders, business partners, and others that your First Nation runs its affairs well and in a transparent and accountable way; and
- good standing with the FNFA, which provides loans to First Nations at rates similar to those available to other governments in Canada.
How the FMS Certification Works
Getting ready for Financial Management System (FMS) Certification usually takes a few years, depending on the current state of your governance and finance practices. The amount of effort and resources needed to put in place administrative governance and finance practices depends on the First Nation. We can support your First Nation to work toward an FMS Certificate through the process of bringing your FAL to life.
The formal testing process by the FMB described below takes place once after you have brought your Financial Administration Law (FAL) to life. The formal testing process by the FMB can take as little as a few weeks.
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Step 1
Bring your FAL to life
Before your First Nation asks for a Financial Management System review, you must first be sure you have brought your FAL to life. Clients receive support from dedicated FMB staff as they work to live by their FAL.
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Step 2
Financial Management System review
Once you have worked through the full “Bring your FAL to life” process, your First Nation’s Council can provide the FMB with a Council Resolution asking for FMS Certification. (Contact your Capacity Development Manager to access the Council Resolution Template for FMS Certification.)
Council Resolution Template for FMS Certification
We will contact you to ask for certain documents and to work out a timeline, based on the availability of your staff.
The FMB’s testing involves:
- reviewing your and documents;
- interviewing key members of Council and staff; and
- doing some on-site testing of your First Nation’s governance and finance practices.
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Step 3
Award of Financial Management System Certificate
If you pass the testing, we will recommend your First Nation to the FMB’s Board of Directors for FMS Certification.
The Board of Directors of the FMB issues the FMS Certificate to your First Nation.
What Happens Next?
A Financial Management System Certificate provides confidence to your citizens and allows First Nations Finance Authority (FNFA) borrowing members to stay in good standing. Your First Nation must commit to continue to use the administrative governance and finance practices in your FAL to keep living by your FAL.
If you have any questions about FMS Certification, please contact us.
