Deficit Recovery Plan
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1 Deficit Recovery Plan March, 2011
2 Message from the President MNBC President, Bruce Dumont Tansi, After years of strong growth and many successful accomplishments, MNBC finds itself with an accumulated deficit of just over $2.3 million dollars which started its growth in This is due mainly to past operational problems which arose as the MNBC was focused on our peoples struggle to protect our rights and interests. We cannot and will not minimize the seriousness of our position and it is critical for us to overcome this challenge without delay. Deficit recovery is not a kneejerk reaction. It must be well thought out, responsive to changing conditions and guided by accurate information and professional advice. Your Métis Community Presidents and Board of Directors gave the Deficit Recovery Program overwhelming approval. I want to assure you the MNBC is not in financial crisis. In fact, our assets far outweigh any operating and accumulated deficit incurred during the past two years. We are pursuing a long-term vision to stream-line our operations through careful consideration of our needs and options. By restructuring our Métis Governance institutions we will begin to pay off our accumulated debt and build a solid foundation for self-sufficiency and self-government. Our plan is clear, it is direct and it is responsible. Ki nass koumitinowow MNBC Treasurer, Bob Trumbley Message from the Treasurer As your democratically elected representative, I am answerable to the Métis People. As Treasurer, I am accountable for the finances of Métis Nation British Columbia. Also, as part of our Governance Team, I have accepted the responsibility of developing the Deficit Recovery Plan. Its success or failure will impact all our Métis Citizens including our Elders, Youth, Women, and Children. These impacts will be beneficial if we are successful, but injurious if we fail. Our actions over the coming months will be immediate and will have effects on our community well into the future. The issues we face may appear to be monumental. But with focus, teamwork, cooperation and hard work, we will succeed. Our immediate steps include completing the financial, governance, and business analyses of our current state and determine how we got to this point. Without any doubt, we all share our overarching objectives to first bring our annual operating deficits to zero and then pay off our accumulated debt. We are committed to excellence in providing quality services, transparently, efficiently and effectively, on time and on budget. Bob Trumbley Cover Photos: Aaron Mercredi, MHRDA Student; Elder Phillip Gladue, MNBC Senator; Jigger Cheyenne L Hirondelle. Dawson Creek 2
3 Governance Direction Given to Undertake the Deficit Recovery Plan The Métis Nation British Columbia (MNBC) Deficit Recovery Plan, which was recently presented and supported at the Métis Nation General Assembly (MNGA), is the result of direction provided through the Métis Nation s Governance Institutions. The 2010 Annual General Meeting (AGM) unanimously adopted the following resolution. This resolution was moved by Keith Henry and seconded by Ted Ingram: That the Métis Nation British Columbia (MNBC) 2010 Annual General Meeting accept as presented the audited Métis Provincial Council of British Columbia (MPCBC) Statements of Financial Position for the year ended March 31, 2010, as provided in the MNBC Annual Report; subject to the final presentation of the deficit recovery plan and audited financial statements from the Métis Skills & Employment Training Centre being presented to the MNGA in January, As per direction provided by the AGM, the MNBC developed and presented the Deficit Recovery Plan to the MNGA. The MNGA is a critical Governance Institution of the Métis Nation made up of the democratically elected representatives of the MNBC Board of Directors and the Presidents of the Charter Communities. Following the presentation, the Plan was passed virtually unanimously with only one dissenting vote. The motion, moved by Sid Peltier, seconded by Michelle Lavergne, reads as follows: That the Métis Nation British Columbia Métis Nation Governing Assembly (MNGA) support moving forward with the Deficit Recovery Plan as presented. CARRIED (MNGA ) (1 delegate voting in the negative) Please note that these are unofficial results requiring ratification. Now, following the nearly unanimous support and direction of the MNGA, the MNBC has taken the immediate steps necessary to move forward and implement the Deficit Recovery Plan. 3
4 Deficit Recovery Plan To meet the needs of our Métis Nation, the Deficit Recovery Plan is not only to eliminate the operating and accumulated debt, but to build the solid foundation for self-sufficiency and self-government via an integrated three-track approach: Administration: Put in place the administrative structures and cost controls for improved efficiencies and effectiveness; Governance: Increase the responsiveness to changing funding and political environments. Includes alignment of governance goals and objectives with financial resources and administrative capacity needs as well as communications requirements; Economic Development: Pursue revenue generation opportunities for governance and administration support, including the costs of service delivery, debt recovery, and Charter Community events and operations. These three targeted areas (Administration, G o v e r n a n c e, B u s i n e s s & E c o n o m i c Development) are essential to deficit recovery. Actions under each are required to ensure optimal focus on management and ongoing oversight. 4
5 5
6 More on the Deficit Recovery Plan The Métis Nation British Columbia (MNBC) is the democratically-elected Métis self-government representative within our province. The Métis Nation General Assembly (MNGA) is the forum for your elected-representatives, your Board of Directors and Charter Community Presidents, to discuss issues, seize opportunities, and provide direction to our Métis Government. It was at the recent MNGA that the MNBC was given both support and direction to undertake the Deficit Recovery Plan. MNBC s deficit is the result of inadequate management structures and practices. These underlying weaknesses have now made themselves known because of changing financial policies of our funders. These are issues having roots going back deep into a decade of silos and stovepipes where crucial information was not shared and issues not properly addressed by former senior staff and elected representatives. To tackle the deficit, MNBC has responded with a Deficit Recovery Plan focussing on three tracks: Administration, Governance, and Business and Economic Development. The MNBC has developed a Deficit Recovery Plan designed to meet the needs of the Métis Nation. Not only will the plan eliminate the deficit and tackle the debt, but it will put the MNBC on a solid foundation for business and economic development. The new Deficit Recovery Plan is a road map to move forward along the three coordinated and parallel tracks, or lines of attack. MNBC will move forward on all three at the same time. These lines of attack will encompass immediate, short-term, mid-term, and long-term objectives. A communications strategy is also a central component of the deficit recovery plan. Our communications will include regular updates on the measures being taken within the framework of the plan. The first line of attack is focused on administration. The plan will put in place structures, processes, and expense controls for improved efficiencies and effectiveness. The second line of attack is focused on governance. This part of the plan will redesign the governance systems to respond quickly to changing funding and external environments. The third line of attack focuses on economic development. The plan pursues revenue generation opportunities for governance and administration support, including the costs of service delivery, debt recovery, and Charter Community events and operations. The over-arching short-term goal within the framework of the plan is to bring the fiscal year operating deficit to zero. A mid-term goal is to put in place processes and tools to prevent operating deficits in the and future fiscal years. Towards bringing the fiscal year s operating deficit to zero, the plan addresses the immediate need for financial and management coordination and controls. Effective immediately, President Bruce Dumont, took on the interim role of Chief Executive Officer (CEO). This measure ensures direct alignment and solid connection between the Board of Directors and Senior Management. This is also an immediate cost-cutting measure and saves the costs of the CEO position, in addition to the position of the Chief of Operations (CoO), both of which will not be replaced in the fiscal year. MNBC has already taken other proactive and immediate steps, and made significant cuts to administration costs, including board travel and meetings. Also, to bring the fiscal year operating deficit to zero, the plan implements other cost cutting measures and alignment methods to ensure all direct-project expenses and administration costs will be covered by revenues. For more detailed information on the plan activities please refer to the detailed Deficit Recovery Plan tracks and objectives matrix. A summary of the Matrix is below and shows the major areas of activity objectives for the Deficit Recovery Plan which is found on the MNBC website - The objectives are allocated according to each of the three approaches: Administration, Governance, and Business & Economic Development. The objectives are also designated as immediate, short-term, midterm, or long-term in nature. This provides an approximate chronology of parallel streams of activities being currently undertaken in the implementation of the Deficit Recovery Plan. 6
7 Deficit Recovery Plan Tracks and Objectives Summary Objective Administration Governance Immediate Financial & Administration Analysis & Design Governance Analysis & Design Business & Economic Development Business Ventures & Ec. Dev. Analysis & Design Short-Term Expense Controls Governance Controls Business Controlst Short-Term Cost Recovery Cost Recovery Cost Recovery Short to Mid-Term Agreements Relationships Management Management Contracts Management Short to Mid-Term Administration Structuring Governance Structuring Business Structuring Long-Term Debt Elimination Programs and Services Charter Community Watch us as we Map our Progress! The Métis Nation British Columbia is working closely with our regional offices in addressing the challenges outlined in our Debt Recovery Plan. As your Leaders, we are steadfastly dedicated to working for you and with you to ensure we collectively address the financial issues facing the Métis Nation. The DRP process allows us to look within the MNBC governance structure which as any organization, industry or government will tell you, is a constructive and Healthy Practice. With that being said, you are encouraged to watch us as we Map our Progress! Each month, the MNBC will provide a brief synopsis of our progress to date, followed each quarter, by a more detailed outline. To read the latest updates Visit MNBC website: 7
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