FINANCIAL MANAGEMENT BYLAW

FINANCIAL MANAGEMENT BYLAW FIRST NATIONS FINANCIAL CODE TOOLBOX ABORIGINAL FINANCIAL OFFICERS ASSOCIATION OF BC FINANCIAL MANAGEMENT AND ACCOUNTABILITY PROJECT FEBRUARY 2004

Aboriginal Financial Officers Association of BC Copyright 2004

TABLE OF CONTENTS INTRODUCTION... 4 FINANCIAL MANAGEMENT BYLAW... 5 I. GENERAL... 5 Definitions... 5 Compliance With Policy... 5 II. COUNCIL RESPONSIBILITIES... 5 III. FINANCIAL DECISION-MAKING PROCESS... 6 General Meetings... 6 Open Meetings... 7 Minutes of Meetings... 7 Finance Portfolio... 7 Finance Committee... 7 Annual Budget... 8 Expenditures... 9 Contracts and Tenders... 9 Monthly Financial Statement... 9 Annual Audit... 9 IV. CONFLICT OF INTEREST GUIDELINES... 10 V. FINANCIAL INFORMATION DISCLOSURE... 11 Purpose... 11 VI. DISCLOSURE... 11 VII. DISPUTE RESOLUTION... 11 Council Decisions... 11 Administrative Decisions... 12 Mediation and Arbitration... 12 APPENDIX A - Conflict of Interest... 13 APPENDIX B - Disclosure... 17 APPENDIX C - Contracts and Tenders... 20 APPENDIX D - Optional Committees & Boards... 22

INTRODUCTION A key component of the First Nations Financial Code Toolbox is the ability for First Nations to make laws and enforce them. The Financial Management and Accountability Project Committee agreed that a sample financial management by-law would be an important part of the Financial Code Toolbox. Section 83 of the Indian Act provides for the development of laws in a variety of areas. Some First Nations have undertaken the development of a financial management by-law, in particular those that are entering into the areas of taxation, claims management and economic development. Key components of this chapter include: 1. Council Responsibilities This covers the area of planning and budgeting for service and capital projects and hiring of competent financial management staff. As well, council responsibilities in the areas of annual budgeting, expenditures, information on contracts and tenders, financial statements and audit requirements are covered. 2. Conflict of Interest Guidelines In the development of financial management by-laws conflict of interest guidelines are needed to ensure transparency in financial management procedures. A sample policy is provided to assist in this area. 3. Financial Information Disclosure This area relates to the need for accountability to membership and access to financial information. Disclosure also deals with Council members requirement to provide information about potential financial benefits through Council decisions. 4. Dispute Resolution This section of the by-law ensures there is a process for redress when a band member feels they may be adversely affected by a Council or administrative decision. This area also includes a process for mediation or arbitration. In conclusion, law making is an important part of First Nations governance and requires sound judgement in its creation. Provided that laws are based on a shared vision and constitutional provisions so they will meet the needs of the community. This will in turn provide a solid base for health, social and economic development. Page 4 of 26 Financial Management By-Law

FINANCIAL MANAGEMENT BYLAW WHEREAS the First Nation proposes to pass a bylaw for the financial management of the First Nation, and; WHEREAS the Chief and Council of the First Nation are empowered under section 83 1 of the Indian Act R.S.C., Chapter 1-5 to make bylaws for the purpose of the appropriation and expenditure of monies to defray First Nation expense; NOW THEREFORE the Membership of the meeting enacts as a bylaw the following: First Nation at the duly convened I. GENERAL Definitions 1. The following terms, whenever used in this policy, will have the meanings respectively ascribed: Band means the First Nation. Band Council Resolution means a motion of Council that has been approved by a majority of Council members at a duly convened meeting. Committee means a committee of the First Nation. Council means Chief and Council of the First Nation duly elected by means of the custom of the First Nation as approved by the Minister of Indian and Northern Affairs. Member means a member of the First Nation. Membership means the membership of the First Nation. Compliance With Policy 2. The Council, Employees and Committee members will act in accordance with this bylaw. 3. The Council, Employees and Committee members will not disclose confidential financial information unless authorized by this bylaw. II. COUNCIL RESPONSIBILITIES 4. Council shall conduct First Nation business in a manner that ensures sound financial management by carrying out the following duties and responsibilities: Financial Management By-Law Page 5 of 26

(c) (d) (e) (f) (g) (h) (i) (j) Planning and budgeting for monies and other resources for local services and capital projects; Hiring the Band Manager (or other appropriate title) who shall oversee the work of the First Nation employees; Ensuring there is full financial accountability to First Nation members at all times and to funding agencies as required under any agreement with those agencies; Ensuring that First Nation employees responsible for maintaining financial records and management of First Nation programs are qualified for the position to which they are appointed or that they receive adequate training on the job in respect to their duties and become qualified within a reasonable period of time; Permitting access by all First Nation members under the supervision of Council, or its designate, at reasonable times during regular working hours, to the minutes of Council and the general membership meetings, bylaws, Band Council Resolutions, budget, audited financial statements and any other financial information as may be permitted under this bylaw; Ensuring that the records of the First Nation are kept in a secure and safe condition at the first Nation s administration office; Setting policies and procedures of the First Nation to safeguard the resources of the First Nation and maximize the well-being of the First Nation Members; Ensuring that all investments in financial instruments are made in accordance with the Financial Institutions Act; Acting honestly, in good faith and in the best interests of the First Nation, and Exercising the care, diligence and skill of a reasonably prudent person. III. FINANCIAL DECISION-MAKING PROCESS 5. Council, Employees and Committee members will be provided with all financial information necessary to carry out their roles and responsibilities. General Meetings 6. The First Nation will hold General Meetings not less than times annually. 7. Council will communicate and report to Membership at General Meetings on all important financial issues that affect the First Nation. Any amount in excess of Page 6 of 26 Financial Management By-Law

which was not budgeted for (See sections 16-21) will be brought to Membership for discussion and approval. 8. Council and program managers will provide regular performance reports at General Meetings. 9. Council will hold community workshops and information sessions for Membership prior to Council making substantive changes to financial administration policy or prior to embarking on major financial projects. Open Meetings 10. Council will provide notice of Council and General Meetings to Membership. OPTIONAL: (c) Delivering it to each household on reserve; Posting it in two conspicuous places on the reserve, one of which shall be in Band Administration Office, and Mailing it to all off-reserve Band members (when addresses are known). 11. Regular meetings of Council and General Meetings will be open to Members. No Member will be excluded from a Regular Council or General Meeting except for improper conduct. Minutes of Meetings 12. Council will keep minutes of all Council and General Meetings. The minutes of Council and General Meetings will be made available to Membership at the next regular meeting. Council will provide copies of minutes to Members upon request. Minutes of Council meetings held in camera will not be disclosed to Members. Finance Portfolio 13. Council will appoint a Councilor to hold the Finance Portfolio for the First Nation. Finance Committee 14. Council shall appoint a special committee on financial matters (the Finance Committee ). The Councilor who holds the Finance Portfolio will be the chairperson for the Finance Committee. In addition to the Finance Portfolio Councilor, the Finance Committee will be comprised of the Band Manager (or other appropriate title), financial Officer, Managers employed by the First Nation and one First Nation Member. The Chief of the First Nation will be an ex-officio member of the Finance Committee and be Financial Management By-Law Page 7 of 26

entitled to vote at all meetings. A quorum of the Finance Committee will be a majority of those appointed who are present. 15. The general duties of the Finance Committee are as follows: (c) (d) To consider all financial matters referred to them by Council; To consult with Council before making recommendations to Membership; To report to Council from time to time as often as the interests of the First Nation may require; and To recommend such action by Council in relation to First Nation finances as they deem necessary. 15.1 Optional Committees and Boards (see Appendix D ) Annual Budget 16. Council will oversee the preparation of the Annual budget for each fiscal year. 17. Each program manager of the First Nation will prepare the program budget for the operation of the program, and will submit the prepared budget to Council. For each program budget, Council may increase allocation of funds, reduce allocation of funds, or reallocate funds to different programs or sectors. Council will consolidate program budgets into an annual budget for the First Nation. 18. The Annual Budget will be presented by Council to Membership at a General Meeting for discussion. 19. Council must approve the Annual Budget for the First Nation for each fiscal year by Band Council Resolution. 20. Council may amend the Annual budget at any time before or after its implementation by Band Council Resolution, subject to provisions in paragraph 7. 21. A copy of the Annual Budget will be: Available during reasonable business hours of any business day at the First Nation office for inspection by any Member upon a request for such inspection made to the Band Manager (or other appropriate title), and Provided to any Member upon a written request made to the Band Manger (or other appropriate title) and payment of a reasonable photocopy fee, if requested by the Band Manager (or other appropriate title). Page 8 of 26 Financial Management By-Law

Expenditures 22. All payments and financial commitments of the first Nation will be in accordance with the Annual Budget or in accordance with Band Council Resolution. Contracts and Tenders 23. The Band must have a policy for CONTRACTS AND TENDERS. (See Appendix C for sample) Monthly Financial Statement 24. No later than the 21 st day of each month, the Financial Officer will prepare and deliver to the Band Manager (or other appropriate title) a Financial Statement in respect of all First Nation finances for the preceding month showing: (c) A statement of revenue and expenditures made; A balance sheet, and Any other information that may be required or requested by the Band Manager (or other appropriate title). 25. Monthly Financial Statements will be presented by the Band Manager (or other appropriate title) or Financial Officer at the next regular meeting of Council. 26. Program Managers may be requested by Council to make a financial activity report to Council for the next regular meeting of Council. Annual Audit 27. Membership will appoint by Band Council resolution an Auditor at the Annual General Meeting to audit the books and records of the First Nation. 28. The Auditor will be a member of a recognized professional accounting association authorized to conduct audits. 29. The Auditor is entitled to access the following First Nation information: All books, records, account and vouchers; Information from any Program Manager necessary for the completion of the audit; Financial Management By-Law Page 9 of 26

(c) (d) (e) Council resolutions, bylaws and minutes; Administration and financial regulations, and Agreements, contracts, and any other related documents required by the Auditor to complete the Audit. 30. The Auditor is entitled to attend any Council or General Meeting, and to receive every notice and other communication relating to such meetings that a Member and Councilor are entitled to receive. In addition, the Auditor is entitled to be heard at any Council or General Meeting that he or she attends on any part of the business of such meeting that concerns him or her as Auditor for the First Nation, or that concerns Financial Statements of the First Nation. 31. Council will provide the Auditor with instructions concerning the Audit, and through the Financial Officer, will assist the Auditor in the completion of the Audit. 32. The Audit will include all transactions involving First Nation finances. The Audit must be in accordance with generally accepted auditing standards. The Audit will include a general review of the adequacy of the accounting procedures and systems of control employed to preserve and protect the assets of the Band. 33. The Audit must be presented to Council by July 15 and accepted by Council by Band Council Resolution not later than July 31 of each year. The audit report must be signed by at least two Councilors. 34. The Auditor or Financial Officer will present the Audit to Council and Membership at the Annual General Meeting of the First Nation. 35. An original copy of every annual Audit will be kept at all times by the First Nation as part of the permanent financial records of the First Nation. 36. A copy of the Audit will be: Available during reasonable business hours on any business day at the First Nation office for the inspection of any Member upon a request for such inspection made to the Band Manager (or other appropriate title), and Provided to any Member upon a written request to the Band Manager (or other appropriate title) and payment of a reasonable photocopy fee, if required by the Band Manager (or other appropriate title). IV. CONFLICT OF INTEREST GUIDELINES 37. A Conflict of Interest will arise when: Page 10 of 26 Financial Management By-Law

A Councilor, Employee, Committee member or Board member/director exercises an official power or performs an official duty or function in the execution of his or her office, job or committee and at the same time knows or ought to know that in the performance of the duty or function or in the exercise of the power there is opportunity to receive a Financial Benefit for themselves or to provide a Financial Benefit to a Related Person, or A Councilor s, Employee s, Committee member s or Board member/director s personal interests supersede or compete with their dedication to the best interest of the Band. Any person who holds an office, including that a Chief or Councilor, or employment with the Band, its departments or agencies, shall not use that office or employment for personal gain to the detriment of the interest of the Band. 38. The Band must have CONFLICT OF INTEREST POLICY as APPENDIX A to this document. (See attached Sample) V. FINANCIAL INFORMATION DISCLOSURE Purpose 39. The purpose of this Policy is to make the First Nation more accountable to Membership by giving Membership a general right of access to financial records of the First Nation in the custody or under the control of the First Nation. This Policy also sets out specific limited exceptions to the Membership s right of access to certain financial records. The Band must have a policy as (APPENDIX B ) (See attached sample). VI. DISCLOSURE 40. If a decision is to be made by Band Council that may result in a member of Band Council, or his immediate family, receiving any financial benefit, such Member shall make a full and complete disclosure to Band Council of his financial interest at a meeting of Band Council. The Band must have a POLICY ON DISCLOSURE as APPENDIX B to this document. (See attached sample) VII. DISPUTE RESOLUTION Council Decisions 41. Prior to Council meeting to make a decision that may adversely affect the financial interests of a Member, Council will: Provide notice of the meeting to the Member disclosing the nature of the meeting, and Financial Management By-Law Page 11 of 26

Provide the Member with an opportunity to be heard either orally or in writing. This section does not apply to Members who are Employees or contractors of the First Nation. 42. Council will advise the Member of the decision and will disclose factors used in making their decision that adversely affects the financial interests of a Member. Administrative Decisions 43. A Member may appeal a decision within 30 days to the Band Manager (or other appropriate title) or First Nation administration that adversely affects them financially by providing Council a written notice to appeal and containing the reasons of appeal. 44. Upon receipt of written notice to appeal from a Member, Council will hear the Member s appeal within 30 days at a Council meeting in accordance with section 40. Mediation and Arbitration 45. In the event of a dispute between Council and Membership in respect of this policy, the dispute may be resolved by either mediation or arbitration if Membership at a General Meeting resolves to settle the dispute by either mediation or arbitration. APPROVED AND PASSED at a duly convened meeting of the Membership of the First Nation this day of,. Chief Councillor Councillor Councillor Councillor Page 12 of 26 Financial Management By-Law

APPENDIX A - Conflict of Interest SAMPLE ONLY Conflict of Interest Rules 1. Each Committee Member is responsible for furthering and supporting the mandate of the First Nation in providing quality services to the population of the First Nation and is expected to act with integrity and impartiality, by placing the interests of such population ahead of any self or private interests and in so doing such person adheres to the following rules: (c) (d) (e) (f) (g) (h) (i) Avoids circumstances that may result in actual or perceived conflicts of interest; Acts in a manner which promotes and enhances the confidence of the population in the First nation as a service delivery provider; Acts honestly and in the best interest of the First Nation; Does not advocate on behalf of a Member of the population being served by the First Nation, but refer the matter to the appropriate First Nation personnel to contact such Member of the population and conduct the necessary inquiries and do the necessary actions to provide services to such Member of the population. A Committee Member can contact such service provider and ask for an update as to the status of such service provisions; With respect to services provided by the various programs of the First Nation, a Committee Member is prohibited from intervening or advocating on behalf of a person or family being the subject of the respective program services, where there is a process or procedure in place to adequately assess the issue of such person or family and such process or procedure is being followed. If a Committee Member is approached by a Member of the population receiving services from the First Nation, to intervene, such Committee Member declines to do so, and immediately refers such person to the appropriate service providers within the First Nation; Complies with the policies, procedures and protocols established by the First Nation in the provision of service delivery; Complies with the provisions of the Operations Manual; Does not use his or her position, authority or influence to gain an advantage in favour of an individual Member of the population receiving services from the First Nation verses another individual; Financial Management By-Law Page 13 of 26

(j) (k) (l) (m) (n) (o) (p) (q) (r) Does not release confidential case information to any person; Does not release confidential or restricted information with respect to operations of the First Nation, unless expressly authorized by motion of the Government; Does not request information for themselves on an individual basis for purposes other than fulfilling their duties and responsibilities with respect to services and operations of the First Nation, unless and until release of such information has been approved by motion of the Government or the respective Committee; Does not interfere, either directly or indirectly, with the reporting of child neglect or abuse, or with children in the care of the First Nation or with respect to a criminal offence or other illegal act; Removes him or herself from their official duties and responsibilities associated with the First Nation in the event such Committee Member is under investigation by the First Nation or the police for alleged neglect or abuse of a child, or violence against a person or a criminal offence, and shall not resume such Committee duties and responsibilities until the matter is formally resolved; Does not place himself or herself under obligation to any person, or individual Member of a Committee member, who might benefit from special considerations on their part; Avoids participation in official First Nation matters where such Committee Member has a personal or financial interest or appears to have such an interest that may be incompatible with an unbiased exercise of judgment; Does not participate in any official First Nation matters where there is a personal or financial interest that is incompatible with an unbiased exercise of judgment where rules of conduct or procedure to avoid the potential conflict of interest are inappropriate, and have not been agreed to by the Government or applicable Committee, and If a Committee Member intervenes on behalf of a Member of the population being served by the First Nation, such action does not necessarily constitute a conflict of interest; however, in the event any Committee Member uses his or her position, authority or influence to assist in meeting the best interests of the receiver of the services of the First Nation in co-operation with the First Nation, such action would generally be interpreted as proper and not a matter of conflict of interest. Conflict of Interest Procedures Page 14 of 26 Financial Management By-Law

2. The following procedures apply in circumstances where there is a conflict of interest concerning a Committee Member: Admitted Conflict A Committee Member who is, or perceives him or herself to be in a conflict of interest immediately discloses this matter, orally or in writing to the applicable Committee, at a meeting of such Committee or the Government, and does not participate in the discussion and or vote when in conflict of interest; Reported Conflict (c) (d) (e) (f) (g) In the event a Committee Member perceives any other any Member of the same applicable Committee to be in actual or perceived conflict of interest, such Member immediately reports that matter, orally or in writing, to the Administrative Director of the First Nation, who immediately submits such report to the applicable Committee, as the case may be, for review at the regular meeting of such applicable Committee; Upon receipt of a disclosure or report respecting a conflict of interest, the Member who is the subject of the alleged conflict of interest may remove him or herself voluntarily from all further discussions and activities pertaining to the mater in question; If the Member who is the subject of the alleged conflict of interest does not voluntarily remove himself or herself from all further discussions and activities pertaining to the matter in question, the applicable Committee investigates the alleged conflict of interest in the absence of the person alleged to be in conflict to determine whether the facts substantiate a conflict, and formally advises the person of their findings; If the Member is found to be in a conflict, the applicable Committee may agree to establish rules of conflict or procedures that avoid the conflict and ensure that they are adhered to by the person in conflict; If the Member is found to be in conflict, the applicable Committee ensures that the person in conflict does not participate in applicable Committee matters and any related matters that give rise to the conflict; Except in the case of the Government, in the event a Member in conflict persists in involving him or herself in the matter or related matters that gave rise to the conflict, he or she is regarded as having acted contrary to the interests of the First Nation, and may be terminated from the applicable Committee by a majority vote of the applicable Committee at a meeting of such applicable Committee; Financial Management By-Law Page 15 of 26

(h) (i) The minutes of the applicable Committee meeting records the disclosure or report of the conflict of interest and the action taken in this regard; A Committee Member who has been removed due to a conflict of interest is automatically disqualified from sitting on such Committee and is immediately removed from the Committee, and thereupon a substitute Member is appointed in accordance with the appointment provisions contained within the Operations Manual. Page 16 of 26 Financial Management By-Law

APPENDIX B - Disclosure SAMPLE ONLY Disclosure Rules 1. It shall be the duty of each and every Chief or Councillor to disclose to the Band Council any real or perceived financial interest of any other Councilor. (c) (d) At the meeting at which the decision is first considered; If the Chief or Councillor or his immediate family was not, at the time of the meeting referred to in, going to receive a financial benefit from the decision, then at the first meeting after he becomes aware of the financial interest; At the first meeting after the Chief or Councillor becomes aware of the financial interest; or In writing to Band Council. 2. Immediately upon the disclosure hereof the Chief or Councillor having the financial interest shall withdraw from the meeting of Council and shall not participate in any discussions or vote concerning the matter. 3. The Minutes of the Band Council meeting shall record the detail of the disclosure made pursuant to this section, including the point of departure and re-entrance of the Chief and/or Councillor to the meeting. 4. Every Chief and/or Councillor shall account to the Band for any financial interest made as a result of the decision of Band Council, unless: The Chief and/or Councillor has disclosed his financial interest as required by this section, and has followed the procedures set out; and The Chief and/or Councillor have abstained from voting on the decision. 5. No vote shall be taken on a matter in which a Chief and/or Councillor or Councilors have disclosed a financial interest and have withdrawn from the meeting unless the number of the remaining Councilors present constitutes a quorum. *FINANCIAL INFORMATION DISCLOSURE How to Make a Request for Disclosure Financial Management By-Law Page 17 of 26

6. To obtain access to a financial record, a Member must make a written request to the Band Administrator for a copy of the financial record or make a verbal request to examine the financial record. 7. The Band Administrator must make every effort to assist Members who make a request for the disclosure of financial records. First Nation Response 6. The Band Administrator must respond openly, accurately and completely to the Member within 30 days from the date a request is received, unless more time is required. If more time is required, the Band Administrator will tell the applicant when the response can be reasonably expected. 7. In a response, the Band Manager must advise the Member in writing: Whether or not the Member is entitled to have the financial record or part of the record disclosed to him or her; If access to the financial record or to part of the record is refused, (i) (ii) the reason for the refusal the Member may request a review of the Band Administrator s decision by Council pursuant to Part of this policy 8. If the Member is entitled to have the financial record disclosed to him or her and it can be reasonably reproduced, the Member must be permitted to examine the financial record at the Band office during regular business hours of any business day. Exceptions to disclosure 9. The Band Manager must refuse to disclose to an applicant, financial information that: (c) Would reveal the deliberations of Council or any of its committees, including any advice, recommendations, or policy considerations submitted or prepared for submission to the Council or any of its committees held at any in camera session; Provides legal opinions that are subject to solicitor client privilege; Contains other privileged documents that could reasonably expect to reveal information received in confidence from Government, Band, Society, Corporation, or harm the conduct of negotiations relating to aboriginal selfgovernment or treaties; Page 18 of 26 Financial Management By-Law

(d) (e) Could reasonably be expected to harm the financial or economic interests of the Band; or Would be an unreasonable invasion of a third party s personal privacy, including personal financial information relating to eligibility for a receipt of employment benefits, income assistance, education benefits or social service benefits, unless the financial information pertains to the payment of money, honorariums, contract fees, and employment benefits of a Councillor received from the Band for which the Band Manager must fully disclose upon request by a Member. Third Party Disclosure 10. The Band may disclose a Member s financial information to anther government body only if that financial information is required to ensure that the Member is complying with all eligibility requirements for Financial Benefits of programs administered by the Band. Financial Management By-Law Page 19 of 26

APPENDIX C -Contracts and Tenders SAMPLE ONLY: 1. For all capital construction project totaling over $, the Band Council shall require bids from three independent contractors. Selected bids shall be based upon experience of the contractor, price of the bid, quality of services and goods to be provided and the ability of the bidder to employ and/or train Band members. If three bids are not forthcoming by tender closing dates, bids received by that date would be considered. 2. Contracts and tenders may be only accepted by Band Council resolution. All terms of contracts and tenders are to be determined by Band council Resolution. 3. Council may appoint by resolution the department or agency managers and other persons as authorized to approve the purchase of goods and services. Any expenditure in the awarding of contracts must receive the prior approval of the Band Council. 4. All orders for work, goods and services provided the Band must be recommended to Council by the department or agency manager authorized to approve the purchase of goods or services. 5. Each order for work, goods or services over fifteen thousand dollars or such greater amounts as approved by Council, unless approved in the annual budget, shall, in addition to the signature of the department or agency manager, require attestation by the Finance Manger as to availability of funds. 6. Capital purchases up to fifteen thousand dollars or such greater amounts as approved by Council may be made by a department or agency manager if approved in the annual budget without going to tender. 7. Capital purchases over fifteen thousand dollars and under five hundred thousand dollars or in such amounts as approved by Council may be made by invitations to tender. 8. Capital purchases in excess of five hundred thousand dollars or such greater amounts as approved by Council must be made by public tender. 9. In emergency situations telephone bids up to twenty thousand dollars or such greater amounts as approved by Council may be accepted by a department or agency manager providing a written confirmation follows from the bidder and a record of telephone bids is filed. 10. Invitations to tender shall include: The time and date of closing; Page 20 of 26 Financial Management By-Law

(c) (d) Sufficient details from which comparable bids can be made; The time, date, and place tenders are to opened, and The amount of security deposit if required. 11. The tendering period is not to be less than five working days, unless in an emergency situation. 12. All tenders are to be returned sealed and addressed to the Band clearly marked Tendered for... and the time and date of receipt is to be recorded on the unopened envelope of tender when received. 13. All tenders received shall be opened in public in the presence of the department or agency Manager or other person responsible for the tender process. 14. The name of the tender, project, date of bid and amount shown must be recorded. 15. The lowest tender received shall normally be accepted unless the authorized person deems it in the best interest of the Band to do otherwise. Where the lowest tender is not accepted, the reasons are to be recorded in the document by the authorized person accepting the contract. 16. Upon acceptance of a tender for the performance of work, goods, or services, a contract is to be signed by both parties and shall be kept as a portion of the records of the Band. 17. In the event that an official or employee of the Band has a personal interest in the contract, he or she shall signify the interest and thereafter refrain from taking part in the discussion or participation in the awarding of the contract. 18. A fifteen-percent holdback of final payment or in such amount as may be determined by Band policy shall not be released to a contractor until all work is certified as complete and satisfactory to the Council. 19. Council may establish policies and procedures for the tender process. Financial Management By-Law Page 21 of 26

APPENDIX D - Optional Committees & Boards SAMPLE ONLY: Budget Committee 1. The Budget Committee shall consist of one, or more, member(s) of Band Council, the Band Manager (or other appropriate title), Financial Officer and one other person appointed by Band Council Resolution. The Committee shall: (c) (d) Plan and prioritize financial commitments for the ensuing fiscal year. It shall, in process, review any long term financial planning programs for both local service and capital programs that have previously been approved by Band Council Resolution and set priorities in respect to this planned and/or alternatives suggested by Band Council; Meet, as required, with Band Council, other Band committees, and Band employees to prepare a provisional budget that is to be submitted to band Council by March 15 of each year; Keep minutes of Budget Committee meetings, if required by Band Council Resolution, and keep them at the Band Administration Office and make them available to Band Council upon request, and May be called upon by Council from time to time to review any financial matters, policies and procedures of the Band. Terms of reference for this review will be established by Band Council Resolution. Audit Committee 2. The Audit Committee shall consist of one Councillor and one Band employee and Financial Officer, or his designate, who have no financial signing authority for cheques, vouchers, purchases or financial procedures, and any two other person(s) Band Council may appoint. The committee shall: (c) Have two members, including one Councilor, present to constitute a quorum; Be appointed by Band Council Resolution annually on or before January 20 of each year; Pre-audit all accounts payables and must recommend to Band Council payments of monthly accounts; Page 22 of 26 Financial Management By-Law

(d) (e) (f) (g) Report and make recommendations of accounts weekly, prior to the approval of and payable by Band Council. This report and recommendation may only be made at a duly convened Band Council meeting; Keep minutes of their meetings (if required by band Council Resolution) that will be submitted weekly to Band Council; Attend, at the request of Council, to examine or audit various accounts. The Terms of References for this examination or audit function shall be established by Band Council resolution, and Review matters with the Auditor including management letters, internal contracts, and financial statements before approval by the Band Council. Treasury Board 3. A Treasury Board of the First Nation is hereby established and shall continue in existence notwithstanding changes in its membership from time to time. 4. The Board shall consist of six (6) members appointed by the Council from time to time with one (1) member being the Band Manager. 5. Two (2) of the members of the Board shall be members of the Council. 6. The Chairperson shall be elected by the Board and serve for a term of two (2) years. 7. The Chairperson shall preside over the meetings of the Board and shall, between meetings of the Board, exercise or perform such duties or functions of the Board as the Board may determine. 8. The Board shall be responsible for: (c) (d) (e) (f) The management and control of the collection of First Nation funds; The management and control of the expenditures and disbursements of the First Nation; The maintenance of records of the financial activities of the First Nation; The preparation of the annual budget in accordance with the priorities approved by Council; The preparation of the annual audit of the First Nation; The reporting and recommending to Council of financial matters, and Financial Management By-Law Page 23 of 26

(g) All other matters relating to the financial affairs of the First Nation not assigned by another by-law or Council resolution to any department or agency. 9. The Board shall prepare or cause to be prepared any amendment to the annual budget for the First Nation that shall be submitted to the Council for review and approval. 10. The Board shall maintain or cause to be maintained the financial records of the First Nation through the Office of the Treasurer and the managers of the departments or agencies. 11. The Board may prescribe the form and content of the financial records and establish the accounting systems of the First Nation. 12. A member of the Treasury Board may be removed from office: (c) By the Chairperson if the member has missed three (3) consecutive scheduled meetings of the Treasury Board; By a majority of Council on the recommendation of the Chairperson for the member s removal; or By a unanimous vote of Council. 13. The Band Manager (or other appropriate title) shall act as the senior administration officer of the Treasury Board and shall assist the Board in carrying out its duties. The Band Council shall articulate the specific nature of the duties of the Band Manager (or other appropriate title) and these will include the planning, organizing, implementing and evaluating of these functions. 14. To facilitate the role and responsibilities of the Band Manager (or other appropriate title), a Financial Officer shall be appointed by the Council and is responsible to the Band Manager (or other appropriate title) for the following: (c) (d) The conduct of the administration necessary to discharge the administrative responsibilities of the board, including staff supervision; The administrative supervision of the compilation and preparation of the overall annual budget; The preparation of annual financial statements and long-term financial projections and cash flows as required from time to time by the Board; Monitoring adherence to any agreement and funding arrangements entered into by the first Nation or any department or agency; Page 24 of 26 Financial Management By-Law

(e) (f) (g) Administration and supervision of the financial records and reporting systems; The maintenance of records of all receipts and expenditures in such a manner so as to facilitate the annual audit, and Any other task assigned by the Board. 15. The Board shall be responsible for the hiring of the Financial Officer subject to the ratification of the Council, and dismissal of the Financial Officer shall be in accordance with the personnel policies of the First Nation as established by Council. Council s Role 16. The Council shall appoint two (2) Councillors, one of whom is the Councillor who holds the finance portfolio and two (2) persons from the general First Nation membership to serve as members of the Board for a period consistent with the term of office of the Band Council. 17. The Council shall receive and approve the annual audit of the First Nation. 18. The Council may, upon the recommendation of the Board or upon its own motion, approve of an exception to this by-law by an amending by-law in accordance with section 83 of the Indian Act. Financial Management By-Law Page 25 of 26

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