“Working Together to Build Stronger Communities”
Good Governance and
Effective Financial
Management
GOVERNANCE DEVELOPMENT NETWORK AND AFOA
ONTARIO
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The Governance Development Network (GDN) is
an organization that promotes the sharing of
information and experiences in governance
development amongst all First Nations. The
organization takes pride in providing accessible
governance tools and mechanisms within First
Nation communities through empowerment and
networking.
GOVERNANCE DEVELOPMENT NETWORK
What is the Governance
Development Network?
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“To plan and facilitate a governance
network for all First Nation
Communities interested in supporting
each other in the development of
effective governance tools and
processes.”
GOVERNANCE DEVELOPMENT NETWORK
Mission
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“All First Nations are self sufficient and
have the capacity and understanding
to develop and achieve strong
protocols that support transparency
and accountability to their
membership.”
GOVERNANCE DEVELOPMENT NETWORK
Vision
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• Networking workshops were held in Ontario to provide
an opportunity for Leadership and Administration to
network and determine if there was a need for accessible
governance mechanisms.
• Following discussions with various First Nations
communities and organizations, the participants felt it
was necessary to establish a governance networking
committee that will continue to host community
networking forums in governance development.
GOVERNANCE DEVELOPMENT NETWORK
Where The Governance
Development Network Began
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Following the workshops, the participants identified:
• The need to move forward in building governance capacity for
their communities.
• An interest in networking to share, learn from one another and
find support and reinforcement.
• The need for assistance with developing processes other than
those in the Indian Act to move forward in taking back jurisdiction
over their own affairs
• The desire to move toward self-government and sustainability.
• The common interest and similar challenges while they developed
their governance tools and processes;
• That all communities are different and that community
involvement is a key element in developing effective and
sustainable governance mechanisms.
GOVERNANCE DEVELOPMENT NETWORK
Gathering Information
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The GDN focuses on all aspects of governance and interactively
engages participants and provides an environment that
encourages professional skill development through:
• Hands on exercises
• Youth involvement
• Round Table discussions
• Cultural presentations by Elders linking traditional governance
with modern day applications
• Networking and sharing of experiences
• Presentations by organizations
• Community highlights from various First Nations
GOVERNANCE DEVELOPMENT NETWORK
Active listening,
Active Learning
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The core of every First Nation, is the people. Setting goals and
implementing policies and codes developed and endorsed by
your community, provides positive outcomes such as:
•Effective Leadership
•Skilled and Motivated Administration
•Community empowerment
•Administrative Tools i.e. codes, policies
•Community Tools – i.e. laws, standards
•Sound, Sustainable and accountable foundation to direct and guide
the community.
• Results that the community can measure.
GOVERNANCE DEVELOPMENT NETWORK
Setting Goals
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The Governance Development Network and AFOA Ontario
recently signed a Memorandum of Understanding (MOU) in
June 2011 to:
• Work together to assist First Nations in Ontario
• Develop financial codes and policies for community governance;
• Improve financial management within communities by
implementing sound governance tools.
GOVERNANCE DEVELOPMENT NETWORK
Relationship Building
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The GDN has identified the need to expand its outreach beyond
Ontario to explore models of good governance and promote
nation to nation networking. Why?
• To assist and provide guidance for First Nations who want to
achieve long term sustainability.
• To promote best practices from other communities.
• To assist with incorporation of traditional governance with
modern day applications
• To obtain and share resource/research materials from First
Nations across Canada to include on our website.
GOVERNANCE DEVELOPMENT NETWORK
National Involvement
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• Financial management is ineffective without sound
governance mechanisms in place to influence and
motivate a transparent and accountable framework
within administration for First Nation Communities.
• The GDN facilitates sessions geared towards building
capacity, and developing professional skills through:
•
•
•
•
Empowerment
Nation to nation networking
Education
Providing accessible tools and models that are easily
adaptable within First Nation communities
• An online database of resources and completed
initiatives
GOVERNANCE DEVELOPMENT NETWORK
Why Good Governance?
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Good governance influences the overall design, operational
techniques, and procedures of administration. Implementing
sound policies and codes within First Nations:
• Increases transparency and accountability
• Strengthens the ability of managing their affairs, including financial
management
• Introduces quality performance management
• Improves policies to enhance fiscal management
• Improves financial policies and practices
• Enhances and promotes a strong governance and accountable
framework
• Promotes efficient reporting practices
• Creates an environment based on integrity, core ethical values and
competence
GOVERNANCE DEVELOPMENT NETWORK
Good Governance and
Financial Management
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• A financial policy is used to clearly communicate with the
membership if there are ever questions about how the
Financial Manager is dealing with the financial affairs of the
First Nation.
• The political body of the First Nation approves the policy
which outlines the details to support a Financial Code.
• Financial policies can be made more effective if membership
know and understand the goals and objectives of the policy,
and if administration makes a credible commitment to
meeting them.
• Policies can be effective if their objectives, rationale, and
methods of implementation are communicated to the
membership in a clear and timely manner.
GOVERNANCE DEVELOPMENT NETWORK
Purpose of a Financial Policy
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• A Financial Management Code generally outlines the
responsibilities of the political body and the Financial
management team, authorization and internal control to
ensure the First Nation adheres to best practices with
regards to governance.
• A Financial Management Code sets out the principals of
Financial Management, it is approved and Ratified by the
membership, and clearly defines amendment
procedures.
• Once approved, the code is adopted as legislation for the
First Nation.
GOVERNANCE DEVELOPMENT NETWORK
Financial Management Code
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• A Financial Code can be as general or detailed as you wish. However
the policy should be clear and outline some fundamental principles,
e.g.
• Clarity of roles, responsibilities, and objectives
• Clearly identified policy goals
• Who does what?
• Who is responsible?
• Open process for reporting policy decisions
• Explanation of framework used to achieve objectives
• Regulations and directives readily available to the membership
• Public availability of information on policies
• Public reports on major developments
• Public accessibility
GOVERNANCE DEVELOPMENT NETWORK
Guiding Principles
• Accountability and assurances of integrity
• Release of audited financial statements
• Consistent with a Financial Policies
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• In cases when conflicts might arise, transparency in the
mandate and clear rules and procedures can help in their
resolution, strengthen governance, and facilitate policy and
code consistency.
• Including a recourse mechanism within the code such as a
“breach of code” or “Conflict of Interest” ensures
accountability and optimal effectiveness.
GOVERNANCE DEVELOPMENT NETWORK
Avoiding Conflict
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• Once adopted, codes become legislation for your First Nation.
• To successfully implement a Code some basic steps can be followed:
• Brainstorming and community engagement:
• Focus groups, surveys, maintain consistency, keep it simple
• Development:
• Draft a Code that reflects the best interest of the WHOLE community.
• Take from community engagement findings and incorporate into code
• Approval:
• Codes must be approved through ratification vote and will be adopted as
law of your First Nation
• Implementation:
• For optimal effectiveness, keep the membership informed and ensure a
clear understanding of what the code entails, the purpose, goals and
process.
• Amendments:
• Codes are only able to be changed by the community members.
• Policies and procedures are able to be changed by leadership, but the
changes must reflect the code to maintain a level of cohesiveness and
consistency.
GOVERNANCE DEVELOPMENT NETWORK
Adopting Codes
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• Financial controls will not be affected by political change, as
the principals in the code can only be changed by the
community, in accordance with the amending process.
• Without a code, policies are subject to changes or
abandonment. Without a policy to support a code, there is
essentially no specific administrative functions in place and
can be too broad.
• Having a robust policy to support a code is key to ensuring
optimal effectiveness and support for both Administration and
Membership.
• Governance encompasses many functions of a community
including financial management. Having Good Governance
mechanisms in place will empower your community to
effectively manage their own affairs and achieve their goals of
self sustainability.
GOVERNANCE DEVELOPMENT NETWORK
Can One Exist
Without the Other?
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• We invite all members of AFOA Ontario, Manitoba
and Saskatchewan to visit our website and become
an online member.
• AFOA Ontario has developed a Policy and Procedure
Manual for Financial Management that is available
electronically from Ontario Chapter.
• The Governance Development network offers an
example of a Financial Management Code on the
website at www.governance.firstnation.ca
• AFOA Ontario offers a Financial Management
Policies and Procedures document available for
distribution upon request
GOVERNANCE DEVELOPMENT NETWORK
Moving Forward Together
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Valerie Pizey CAFM
Coordinator
President AFOA Ontario
Phone 807-488-5602
Fax 807-488-5756
Email vpizey@kmts.ca
Georjann Morriseau
Assistant Coordinator
Councillor Fort William F.N.
Phone: 807-626-0399
Email:
g.morriseau@hotmail.com
GOVERNANCE DEVELOPMENT NETWORK
Meegwetch
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