Fact Sheet - First Nations Oil and Gas and Moneys Management Act (FNOGMMA): Moneys Provisions
The First Nations Oil and Gas and Moneys Management Act (FNOGMMA) came into force on April 1, 2006. There are two parts to the legislation. The first part enables First Nations to manage and regulate on-reserve oil and gas activities. The second part enables First Nations to assume control of their capital and revenue trust moneys held by Canada. First Nations can choose to opt in to one or both of these options. In other words, a First Nation does not have to have oil and gas to take on moneys management.
FNOGMMA is completely optional. First Nations can decide whether they want to use its provisions or remain under the Indian Act. First Nations that decide to opt into FNOGMMA can still participate in, and benefit from, any federal government program. Through FNOGMMA, First Nations can choose to manage their trust moneys without the involvement of the Minister.
First Nations do not need oil and gas to use FNOGMMA
First Nations do not have to be oil-producing to use the moneys portion of this legislation. They only need to have trust moneys held for them in the Consolidated Revenue Fund by Canada. Any First Nation that has trust moneys held by Canada can consider the moneys provisions of FNOGMMA as an option.
How does a First Nation assume control of its moneys under FNOGMMA?
First Nations that wish to control their trust moneys under FNOGMMA must meet certain criteria. These criteria include developing a financial code that meets the requirements of FNOGMMA. The community must also ratify both the First Nation's decision to opt into FNOGMMA as well as the required financial code.
Direct access to Band funds means more opportunities
This legislation places direct and immediate decision-making authority over the management of capital and revenue trust moneys in the hands of First Nations. Since the Indian Act will no longer apply to the administration of capital and revenue trust moneys, First Nations will not have to obtain the Minister's approval to expend their capital and revenue moneys for community projects and expenses.
This alternative approach to the management of First Nations' trust moneys provides more opportunities for First Nations and can help unlock the potential for economic development opportunities. FNOGMMA allows First Nations to be accountable to their members, and provides them the flexibility required to respond more rapidly to community needs.