Questions and Answers Related to the First Nations Financial Transparency Act (FNFTA)

As per section 2 of the FNFTA, the legislation applies to all First Nations that are bands under subsection 2(1) of the Indian Act, of which currently there are 581. It does not, however, apply to First Nations who are a party to a comprehensive self-government agreement that has been given effect by an Act of Parliament and of which there are currently 36.

No. As per section 2 of the FNFTA, it will not extend to a First Nation party to a comprehensive self-government agreement given effect by an Act of Parliament. This is because transparency and accountability measures are already built into their agreements.

Before the FNFTA, First Nations that received funding from Indigenous and Northern Affairs Canada (INAC) had a long-standing requirement to provide their audited consolidated financial statements. For a small number of First Nations with minimal funding (typically less than $100,000), unaudited schedules of revenues and expenses were accepted. All First Nations were required to produce a Schedule of Remuneration and Expenses of chiefs and councillors, which was submitted to INAC and shared with their membership. In addition, all First Nations were required to provide an audited schedule of federal government funding, which was posted on INAC's website. First Nations had the option of providing consent for the department to publish their audited consolidated financial statements instead of providing a separate audited schedule of federal funding.

The purpose of the FNFTA was to improve the financial transparency and accountability of First Nations by requiring the public disclosure of First Nations’ financial information.

As per section 2 of the FNFTA, the legislation applies to all First Nations that are bands under subsection 2(1) of the Indian Act. It does not, however, apply to First Nations who are a party to a comprehensive self-government agreement that has been given effect by an Act of Parliament.

An audited consolidated financial statement is a financial synopsis of an entity (whether it is a First Nations Government or a business) for a period of time (usually a year, undertaken at a specific point in time). The financial statements are prepared by the First Nation and audited by an independent auditor. The act requires the publication of this information on a website maintained by or on behalf of the First Nation.

The act requires that each First Nation make their audited consolidated financial statements and a Schedule of Remuneration and Expenses available to their members as well as publish it on their Internet site, or cause those documents to be published on an Internet site. The information found in these audited consolidated financial statements relates to the assets, the liabilities, the results, as well as the other various elements of economic activities undertaken by the First Nation for a particular year. The standards with respect to what information is provided in these statements are determined by Generally Accepted Accounting Principles (GAAP).

Examples of information disclosed in the Schedule of Remuneration and Expenses to the financial statements include the salaries, wages, commissions, bonuses, fees, honoraria, dividends and any other monetary or non-monetary benefit that chiefs or councillors are receiving. The expenses of First Nation leadership, such as transportation, accommodation, meals and hospitality and incidental expenses, are included. Chiefs and councillors are also required to disclose remuneration paid to them by any entities which, according to the GAAP, are to be consolidated with the First Nation.

The FNFTA requires the publishing of a Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation on the INAC Internet site if it is provided to INAC by the First Nation or if the First Nation has already posted it on the Internet.

The Privacy Act governs disclosure of personal information by federal government institutions like INAC. Schedules of Remuneration and Expenses of First Nations' chiefs and councillors that INAC collects may contain personal information covered by the Privacy Act.

INAC would be in compliance with the Privacy Act when publishing this information since the Privacy Act (section 8) authorizes federal government institutions like INAC to disclose personal information in accordance with federal legislation like the FNFTA.

The FNFTA requires that the audited consolidated financial statements of First Nation governments be prepared annually and disclosed to community members and the public. These audited consolidated financial statements of the First Nation would include, at an aggregated level, information relating to any entities, including businesses owned in whole or in part, which, according to Generally Accepted Accounting Principles (GAAP), are to be consolidated with the First Nation.

The audited consolidated financial statements will also be accompanied by a Schedule of Remuneration and Expenses for chiefs and councillors. As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors – acting in their capacity as such and in any other capacity, including their personal capacity – by the First Nation and by any entity that, in accordance with GAAP, is required to be consolidated with the First Nation.

Yes.

The FNFTA requires First Nation governments to make the audited consolidated financial statements and Schedule of Remuneration and Expenses for chiefs and councillors available to its members. This may be achieved, for example, by distributing printed copies to all community households, and/or posting the information in readily accessible locations in the community including at the First Nation Band offices.

Section 8 of the FNFTA requires the First Nation government to publish these documents on the Internet within 120 days after the end of each fiscal year. Not every First Nation has an Internet site, therefore a community may request that another organization, such as a First Nation organization like a Tribal Council, or INAC, post the information on its behalf. Publishing these documents on a website does not fulfill the obligation held by a First Nation government to make copies available to its members.

In compliance with the legislation, INAC will also post the audited consolidated financial statements and Schedules of Remuneration and Expenses for chiefs and councillors on the departmental website once it has access to them.

As per section 8 of the FNFTA, First Nations must make their audited consolidated financial statements and Schedule of Remuneration and Expenses for chiefs and councillors available on an Internet site for a period of at least 10 years. This is consistent with practices followed in most jurisdictions to keep financial records for 7 to 10 years, and the potential to enter funding agreements up to 10 years in duration.

i. What is reportable in the Schedule of Remuneration and Expenses of First Nation A?

As per section 6 of the FNFTA, in the circumstance when the Treaty Association is consolidated with First Nation A, as required by Generally Accepted Accounting Principles (GAAP), remuneration paid as well as expenses reimbursed to a chief or councillor of First Nation A by the consolidated entity, are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As a per diem is a form of monetary benefit, it should be included as a form of remuneration in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Any travel costs that fit within this definition should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

In the circumstance when the Treaty Association is not consolidated with First Nation A, as required by GAAP, there is no requirement to include the remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

ii. What if, instead, the Treaty Association pays the First Nations for the Chiefs' travel, and the First Nations pay the Chiefs. What is reportable in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A?

The source of the funding is still the same thus, whether the remuneration and expenses are paid or reimbursed directly or indirectly by the Treaty Association, the treatment for the costs should be as follows:

In the circumstance when the Treaty Association is consolidated with First Nation A, as required by GAAP, remuneration paid as well as expenses reimbursed to a chief or councillor of First Nation A by the consolidated entity are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As a per diem is a form of monetary benefit, it should be included as a form of remuneration in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Any travel costs that fit within this definition should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

In the circumstance when the Treaty Association is not consolidated with First Nation A, as required by GAAP, there is no requirement to include remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of First Nation A.

Additionally, the amount paid by First Nation A would still be accounted for in its Financial Statements and it is suggested that proper disclosure be provided.

i. What is reportable in the Schedule of Remuneration and Expenses for Councillor D? Does the reportable amount change if Councillor D's construction business reported a net loss of $200,000 for the year?

As per section 2 of the FNFTA, the definition of "remuneration" includes "any other monetary benefits" that the councillor in this example would receive, such as contracting fees, due to the councillor's company being contracted by the First Nation or any entity that, according to Generally Accepted Accounting Principles (GAAP), is to be consolidated with the First Nation.

As the business in question is unincorporated, and thus not a separate legal entity, the Schedule of Remuneration and Expenses for chiefs and councillors should include disclosure of, in addition to the $40,000, any direct contracting fees received by the councillor and any other applicable remuneration related to such fees which they may receive, in other capacities, including personal capacity. The financial results of the business, whether a gain or a loss, are not relevant. Only the direct contracting fees would be included.

The Schedule of Remuneration and Expenses for chiefs and councillors should disclose Councillor D's proprietorship of the unincorporated construction business which was contracted by the First Nation to build houses during the fiscal year under discussion.

ii. What if, instead, Mr. D's construction business is incorporated, and Mr. D is the sole shareholder. What is reportable in the Schedule of Remuneration and Expenses for Councillor D?

As per section 2 of the FNFTA, the definition of "remuneration" includes "any other monetary benefits" that the Councillor in this example would receive, such as contracting fees, due to the Councillor's company being contracted by the First Nation or any entity that, according to GAAP, is to be consolidated with the First Nation.

As the business in question is incorporated, only the $40,000 would be disclosed in the Schedule of Remuneration and Expenses for Councillor D. Under law, a corporation is considered to be its own legal entity and can enter into legally binding contracts. As such, it would not be mandatory to disclose amounts paid to the Councillor's business for work completed on the reserve.

The Schedule of Remuneration and Expenses should disclose Councillor D's ownership of the incorporated construction business which was contracted by the First Nation to build houses during the fiscal year under discussion.

i. What is reportable in the Schedule of Remuneration and Expenses for Chief E?

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. The FNFTA also defines "expenses" as: costs of transportation, accommodation, meals, hospitality and incidental expenses.

All remuneration and expenses defined in the FNFTA, whether paid directly or indirectly to the supplier, were incurred by the First Nation and should therefore be included in the Schedule of Remuneration and Expenses for chiefs and councillors, as per section 6 of the FNFTA.

As a per diem is a form of monetary benefit, it should be included as a form of remuneration in the Schedule of Remuneration and Expenses for chiefs and councillors. Furthermore, the costs of transportation (flight) and accommodation fit within the definition of "expenses" in the FNFTA, and are therefore to be included in the Schedule of Remuneration and Expenses for chiefs and councillors as such.

ii. What if Chief F attends the same meeting as Chief E. Chief F would like to collect credit card points, so Chief F personally pays for the flight ($1,000), hotel ($500), and meals ($750), and then submits an expense claim, which the First Nation reimburses. What is reportable in the Schedule of Remuneration and Expenses for Chief F?

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors -- acting in their capacity as such and in any other capacity, including their personal capacity -- by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Therefore, the $2,250 of expenses for transportation (flight), accommodation (hotel) and meals reimbursed to Chief F should be reported in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation, as part of Chief F's expenses.

iii. What if Chief F also pays for the flights and hotel costs for three of his councillors, and is reimbursed by the First Nation F, a total of $4,000 for flights, $2,000 for hotel costs, and $3,000 for meals. The councillors do not have to pay for any costs while in Ottawa for the meeting. What is reportable in Schedule of Remuneration and Expenses for Chief F and each of the other councillors?

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors -- acting in their capacity as such and in any other capacity, including their personal capacity -- by the First Nation and by any entity that, in accordance with GAAP, is required to be consolidated with the First Nation.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Therefore, the expenses for transportation (flight), accommodation (hotel) and meals reimbursed to Chief F should be reported in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

To ensure greater accuracy in financial reporting and better represent the remuneration and expenses of chiefs and councillors on an individual basis, it is suggested that the total $9,000 (for flights, hotels and meals) be allocated amongst the three councillors based on individual expenses and be reported as such in the Schedule of Remuneration and Expenses for chiefs and councillors. Chief F would only report the amount that relates to his or her actual expenses, as reimbursed by the First Nation.

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors -- acting in their capacity as such and in any other capacity, including their personal capacity -- by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

Although GBE's controlled by the First Nation are included in the reporting entity of the First Nation, the Chartered Professional Accountants of Canada (CPA Canada) Public Sector Accounting Handbook does not require GBE's, such as DevCorp Inc., to be consolidated on a line-by-line basis with the First Nation. The CPA Canada Public Sector Accounting Handbook does, however, require that the GBE's be included in the consolidated financial statements using the modified equity method of accounting. Therefore, the GBE is included in the Consolidated Financial Statements, and the $10,000 received by Councillor G needs to be included in the Schedule of Remuneration and Expenses.

Additionally, as per section 2 of the FNFTA "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As such, the $75,000 each, received by Councillor G and Councillor H respectively, should be reported in the Schedule of Remuneration and Expenses for chiefs and councillors as this amount was paid directly by the First Nation and is a form of remuneration, as per the definition in the FNFTA.

As per section 6 of the FNFTA, in the circumstance when the Band-owned business is consolidated with the First Nation, as required by Generally Accepted Accounting Principles (GAAP), remuneration paid as well as expenses reimbursed to a chief or councillor of the First Nation by the consolidated entity, are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

Except in very unusual circumstances, a Band-owned business will always be included in the consolidated financial statements of the First Nation, as required by GAAP. Accordingly, the remuneration paid and expenses reimbursed would be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors -- acting in their capacity as such and in any other capacity, including their personal capacity -- by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

If the entity paying the remuneration and reimbursing the travel is not included as part of the First Nation reporting entity, as defined by GAAP, then there is no requirement to report the amounts in the Schedule of Remuneration and Expenses for chiefs and councillors.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits.

In fiscal year 2014, the loan amount was considered repayable. Therefore it does not fit within the definition of "remuneration" as per section 2 of the FNFTA. Consequently, it should not be reported in the Schedule of Remuneration and Expenses for chiefs and councillors. However, it should be accounted for in the financial statements and it is suggested that it be accompanied by a note outlining details regarding the loan such as recipient name, loan amount and its term, interest rate charged, periodic repayment amounts and basis for forgiveness / write-off (if applicable). Please refer to the Chartered Professional Accountants of Canada (CPA Canada) Handbook(s) for guidance on disclosure.

In fiscal year 2015, the forgiveness of the $5,000 loan should be reported as remuneration in the Schedule of Remuneration and Expenses for chiefs and councillors as it now aligns with the definition as per section 2 of the FNFTA. Loans and advances (including non-repayable loans), and any associated forgiveness or write-off, given to the chief or councillor by the First Nation and by any entity that, in accordance with GAAP, is required to be consolidated with the First Nation, should be disclosed in the audited consolidated financial statements. Additionally, it is suggested that the notes of the audited consolidated financial statements outline details regarding the loan such as recipient name, loan amount and its term, interest rate charged, periodic repayment amounts and basis for forgiveness / write-off (if applicable). Please refer to the Chartered Professional Accountants of Canada (CPA Canada) Handbook (s) for guidance on disclosure.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. It also defines "expenses" as: costs of transportation, accommodation, meals, hospitality and incidental expenses.

The $80,000 is neither remuneration nor a travel expense of Chief K, and should not be reported in the Schedule of Remuneration and Expenses for chiefs and councillors as its disclosure requirements in section 6 of the FNFTA only pertains to chiefs and councillors.

Only the $35,000 salary of Chief K should be reported on the Schedule of Remuneration and Expenses for Chief K, as it fits within the definition of "remuneration" in the FNFTA.

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors -- acting in their capacity as such and in any other capacity, including their personal capacity -- by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

Furthermore, subsection (3) of section 6 of the FNFTA requires that an auditor's report or review engagement report accompany the Schedule of Remuneration and Expenses for chiefs and councillors. However, "personal financial information" needs to be properly clarified in order to determine if this fits into the scope of the aforementioned reports. It is expected that the accounting records of the First Nation would be sufficient to determine the remuneration and expenses for chiefs and councillors without the need to review their personal financial information.

The purpose of the FNFTA is to enhance the financial transparency and accountability of First Nations. In the spirit of this, disclosure should be as accurate, complete and timely as possible in order to facilitate effective decision making by the users of the financial statements. As per subsection (3) of section 6 of the FNFTA, an auditor's report or review engagement report must accompany the Schedule of Remuneration and Expenses for chiefs and councillors. Although the Schedule of Remuneration and Expenses for chiefs and councillors does not contain a signature section, as per the model in Financial Reporting Requirements (previously known as the Year-End Reporting Handbook), we recommend chiefs and councillors consult with their auditor to determine if signing off on personal income will be required for the auditor's report or review engagement report.

i. The community's Tribal Council?

As per section 6 of the FNFTA, in the circumstance when the Tribal Council is consolidated with the First Nation, as required by Generally Accepted Accounting Principles (GAAP), remuneration paid as well as expenses reimbursed to a chief or councillor of the First Nation by the consolidated entity, are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As such, compensation and honoraria both fit within the definition of "remuneration" and should be included in the Schedule for chiefs and councillors.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Any travel expense reimbursements that fit within this definition should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

In the circumstance when the Tribal Council is not consolidated with the First Nation, as required by GAAP, there is no requirement to include the remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

ii. A Child and Family Services organization (e.g. agency) dedicated to the community but not controlled by Chief and Council?

As per section 6 of the FNFTA, in the circumstance when the Child and Family Services organization is consolidated with the First Nation, as required by GAAP, remuneration paid as well as expenses reimbursed to a chief or councillor of the First Nation by the consolidated entity, are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As such, compensation and honoraria both fit within the definition of "remuneration" and should be included in the Schedule of Remuneration and Expenses for chiefs and councillors.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Any travel expense reimbursements that fit within this definition should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

In the circumstance when the Child and Family Services organization is not consolidated with the First Nation, as required by GAAP, there is no requirement to include the remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

iii. A resource extraction company which provides direct travel reimbursements to elected officials for meetings to discuss activities which may impact the Band's traditional territories?

As per section 6 of FNFTA, in the circumstance when the resource extraction company is consolidated with the First Nation, as required by GAAP, remuneration paid as well as expenses reimbursed to a chief or councillor of the First Nation by the consolidated entity, are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As such, compensation and honoraria both fit within the definition of "remuneration" and should be included in the Schedule of Remuneration and Expenses for chiefs and councillors.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Any travel expense reimbursements that fit within this definition should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

In the circumstance when the resource extraction company is not consolidated with the First Nation, as required by GAAP, there is no requirement to include the remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

iv. Arm's length Aboriginal not-for-profit organizations which provide travel reimbursements to elected officials for attending meetings on various issues?

As per section 6 of the FNFTA, in the circumstance when the Aboriginal not-for-profit organizations are consolidated with the First Nation, as required by GAAP, remuneration paid as well as expenses reimbursed to a chief or councillor of the First Nation by the consolidated entity, are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As such, compensation and honoraria both fit within the definition of "remuneration" and should be included in the Schedule of Remuneration and Expenses for chiefs and councillors.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Any travel expense reimbursements that fit within this definition should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

In the circumstance when the Aboriginal not-for-profit organizations are not consolidated with the First Nation, as required by GAAP, there is no requirement to include the remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

v. A community trust where the trustees are elected by community members and include elected officials?

As per section 6 of the FNFTA, in the circumstance when the community trust is consolidated with the First Nation, as required by GAAP, remuneration paid as well as expenses reimbursed to a chief or councillor of the First Nation by the consolidated entity, are to be disclosed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As such, compensation and honoraria both fit within the definition of "remuneration" and should be included in the Schedule of Remuneration and Expenses for chiefs and councillors.

As per section 2 of the FNFTA, "expenses" is defined as: costs of transportation, accommodation, meals, hospitality and incidental expenses. Any travel expense reimbursements that fit within this definition should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

In the circumstance when the community trust is not consolidated with the First Nation, as required by GAAP, there is no requirement to include the remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors – acting in their capacity as such and in any other capacity, including their personal capacity – by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As such, as the personal use of a cell phone or Band owned vehicle is considered a "non-monetary benefit" and should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

The auditor should use his or her professional judgement in determining the materiality of non-monetary benefits.

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors -- acting in their capacity as such and in any other capacity, including their personal capacity -- by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

In the circumstance when the entity is not consolidated with the First Nation, as required by GAAP, there is no requirement to include the remuneration paid and expenses reimbursed in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors – acting in their capacity as such and in any other capacity, including their personal capacity – by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

As per section 2 of the FNFTA, "remuneration" is defined as: any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits -- other than the reimbursement of expenses -- and non-monetary benefits. As pension payments are considered a form of monetary benefit, if the pension payments are paid to a chief or councillor by the First Nation or by any entity that, in accordance with GAAP, is required to be consolidated with the First Nation, then they should be included in the Schedule of Remuneration and Expenses for chiefs and councillors of the First Nation.

As per section 6 of the FNFTA, the Schedule of Remuneration and Expenses for chiefs and councillors of a First Nation should include remuneration paid as well as expenses reimbursed to its chiefs and councillors -- acting in their capacity as such and in any other capacity, including their personal capacity -- by the First Nation and by any entity that, in accordance with Generally Accepted Accounting Principles (GAAP), is required to be consolidated with the First Nation.

The language of the FNFTA does not expressly require First Nations to report remuneration paid and expenses reimbursed to a chief or councillor as a result of his or her official capacity separately from remuneration paid and expenses reimbursed to the same individual as a result of his or her other capacities, including personal capacity.

The decision on whether these amounts are shown separately for each source or as a global figure rests with the First Nation and its accountants for the purposes of compliance with the FNFTA. It can be expected however, that many First Nations will choose to report remuneration separately from different sources, because of the transparency benefits and the clear communication associated with presenting information in this manner.

No. The FNFTA does not set salaries for chiefs and councillors. First Nations are responsible for setting the appropriate level of remuneration for chiefs and councillors. The FNFTA provides for the public disclosure of the Schedule of Remuneration and Expenses for chiefs and councillors, which improves accessibility to the information which, in turn, allows the membership to decide if levels of compensation are appropriate.