Financial Reporting and Audit Preparation

Addressing a Growing Need

Many First Nations governments oversee complex operations: multiple funding agreements, government business enterprises, capital projects, and social programs. Each has its own reporting rules, formats, and deadlines. Finance teams often do this work with fewer people and less funding than the job requires.

When audited financial statements fall behind, the cost is not only administrative. It can hold up access to the 10-Year Grant under the New Fiscal Relationship, delay borrowing through the First Nations Finance Authority, slow down capital projects already started, and limit new investment opportunities. Delayed financial statements reduce transparency and effective decision making.

First Nations have told us about the various challenges that interfere with timely preparation of financial reports, including:

• Difficulty in recruiting and keeping qualified finance staff, particularly in remote communities where housing and salary competition are real barriers.
• Every federal funding program has different reporting requirements, on different timelines, and in different formats.
• Existing accounting systems and Internet connectivity may not support today’s requirements.
• Auditors are in short supply, and scheduling is increasingly difficult.

Through our new FRAP service, the FMB is offering hands-on assistance to First Nations governments to get caught up with any and all late or overdue annual financial statements or other special purpose reports required under funding agreements or legislation.

FRAP Information for First Nations

FRAP builds on the FMB’s success in providing hands-on support to bring your Nation’s accounting records and financial reporting up to date and ready for audit as required.

• Customized to your Nation’s needs: your Nation sets the scope and pace of this support, and can narrow, pause, or end the work at any point
• Delivered by qualified professionals, with the FMB responsible for standards, oversight, and quality
• Designed to work alongside the auditor, advisors, and organizations your Nation already works with, not to replace them.
• No cost to your Nation
• Fully optional
• When the engagement ends, the expanded capacity, new knowledge, and reporting systems established stay in your community
• Open to all First Nations, regardless of whether they are scheduled to the First Nations Fiscal Management Act or have (or are pursuing) any certification offered by the FMB.

Supports Offered and How the FRAP Service Works

Every engagement is built around what your First Nation needs. Support may include:

• Bringing bookkeeping and reconciliations up to date, including prior years
• Accounting for investments in government business enterprises
• Preparing year-end working papers and organizing the financial statement audit file
• Assisting with the preparation of the annual financial statements and other special purpose reports
• Working alongside your Nation’s team through the financial statement audit itself
• Coaching and practical training for finance staff
• Supporting management in meeting year-end and multi-funder reporting requirements

Certain responsibilities, such as approving accounting entries, are outside the scope of FRAP and remain the responsibility of the First Nation. *

This program supports your First Nation to get caught up with any overdue financial statement audits. Your Nation’s work with us is entirely optional and free of charge.

Support to your First Nation will be provided remotely, in-community, or both – whatever works best for your Nation. Your Nation chooses the scope and timelines before any FRAP work begins – and your Nation can change these as the work proceeds. The terms and conditions of these services will be agreed-upon in a written agreement between the FMB and your First Nation.

Benefits for Your First Nation

Current audited annual financial statements are very useful to your Nation for their own sake. They tell leadership and members where the Nation stands financially. They also matter to funders, partners, and investors.

FRAP Information for Service Providers

Make a Meaningful Difference Through Your CPA Expertise

The FMB invites CPA firms and qualified finance professionals to bring their expertise to the Financial Reporting and Audit Program by submitting a proposal to provide non-assurance services. This is more than a professional engagement – it is an opportunity to make a lasting contribution by supporting First Nations governments to bring special purpose reporting and annual financial statements up to date, help coordinate and support the external audit, and build stronger financial systems for the future.

By participating, your firm can help create clear, positive results: stronger year-end close processes, improved working papers and tools, greater confidence among First Nations finance and administration employees, and smoother audit cycles over time.

As knowledge and skills are transferred, First Nations are better positioned to complete financial reporting independently and confidently. For participating CPA firms and other practitioners, the project offers meaningful client service experience, opportunities to build trusted relationships, and the satisfaction of knowing your work is helping to reduce audit effort, lower costs, and support long-term capacity development.

We welcome firms and professionals who want their skills to have a practical, measurable, and positive impact. To participate in this meaningful project and contribute to reconciliation, please contact us using the form below.

Learn More and Apply

For First Nations: To learn more about the new FRAP service, discuss your Nation’s unique needs, or apply to participate in the FRAP program, please contact us today. We expect high demand for participation, so we encourage you to apply early.

For CPA firms and CPAs: If you are a registered CPA firm or CPA and are interested in supporting the FMB and assisting First Nations governments get caught up with their year-end financial reporting, please reach out to us today.

* The following responsibilities are outside of the scope of this service and will remain with the First Nation’s management team and/or governing body:

– Approving all accounting entries, financial statements, reports, and other financial records.
– Ensuring all financial transactions are accurate, complete, and valid.
– Preventing, identifying, and addressing any fraud or inappropriate activity.
– Developing, maintaining, and overseeing effective financial controls and reporting processes.