Manual for the administration of band moneys

This chapter of the manual describes the general steps involved in processing an expenditure request from the receipt of a BCR in the Department to the final release of funds, as well as affirm the authority to which this chapter applies. The steps involved in processing an expenditure request are documented in two sections.

This first section Section 1 - Process Overview provides a general overview of the phases required in processing requests. The second section Section 2 - Processes and Procedures is prescriptive in nature and illustrates the procedure to undertake the processes related to the administration of Band moneys.

Chapter 7 of this manual expands on the specific sections and purposes for which capital or revenue moneys can be utilized, as well as identify any pertinent documentation requirements. It is recommended that Chapter 6 be referenced in conjunction with Chapter 7. The purpose of this chapter is to authorize and provide a standard for AANDC headquarters, regional and district staff on the processes and procedures required in the administration of Band moneys in the form of National Expenditure Request Procedure Guidelines.

Overall accountability for departmental conformance with this chapter rests with the Assistant Deputy Ministers and Regional Directors General, and their responsibilities related to the administration of Band moneys provisions of the Indian Act and its regulations.

The expenditure of capital or revenue moneys is first initiated through a BCR. Departmental assessment Footnote 28 of an expenditure request consists of:. The manner in which an expenditure request is assessed Footnote 29 will differ according to whether the Band proposes to use its capital or revenue moneys; and in the case of revenue moneys, whether the Band has been granted section 69 authority.

Once approval has been given for a release of Band moneys the departmental officer processes the release in compliance with the terms of the decision that is either full, partial or conditional.

The expenditure of capital or revenue moneys is initiated through a BCR. Generally, a duly convened meeting is deemed to have occurred when a quorum Footnote 31 , majority of the whole Band council, has convened to pass motions.

Community consent is required for granting section 69 authority, and may be required to determine whether the community supports a proposed use of capital or revenue moneys or, where large or high risk proposals Footnote 32 are involved; or where a possible conflict of interest situation may arise; or where the Band council deems it is warranted.

The Band council adopts a motion requesting a release of their funds under the related section of the Indian Act.

The decision is formalized with a BCR which is then sent to the appropriate regional or district office of the Department. The Department is then responsible for analysing the request and assessing whether the expenditure would benefit the Band and its members except for section 69 requests , and approving or denying the request within the scope of its delegated authority. Band councils are encouraged to involve the Department at the early stages of their development of an expenditure proposal, so that appropriate documentation requirements can be identified and to facilitate the expeditious release of funds.

When a BCR requesting the expenditure of Band moneys is received within the Department the Band council will be sent an acknowledgement letter to acknowledge receipt of the expenditure request. The assigned officer actioning the BCR then begins the initial review by examining the following aspects of the request.

Have the minimum BCR information requirements been met? The Band council may later wish to resubmit a new BCR to address the deficiencies with an appropriate purpose. Should the BCR not have all of the required information i. In such cases, the Band council or an authorized member of the Bands' administration would only need to provide this information, or any minor clarification, in writing to the region or district office which clarifies the discrepancy or minor change.

Based on the nature and purpose of the expenditure request, departmental officers must assess the submission for the section or paragraph Footnote 34 of the Act under which the submission references. Support documentation must be provided by the Band council for section 64 and 66 expenditures to enable Department officials to make an informed decision on the merits of an expenditure request.

Requirements for support documentation depend on the specific purpose and nature of the expenditure request see section 3. Support documentation is not required for section 69 requests. Departmental staff must determine whether the Band has sufficient funds Footnote 35 in its trust account to satisfy the amount of the request at the time of the request.

The TFMS must be used to obtain current balances and financial commitments against Bands trust funds accounts i. If Departmental staff determine that there are insufficient funds in the Bands account to cover the expenditure request, then the departmental officer must contact the Band to inform them the BCR will be sent back to the Band council for their appropriate action. After completing the initial review, the departmental officer begins an assessment of the expenditure request.

An Indian Moneys Expenditure Request Analysis template Appendix G has been created for use by the departmental official when conducting the assessment. The assessment must establish whether the proposed expenditure is a prudent use of trust moneys and that the amount requested is reasonable for the type of expenditure being proposed. This includes establishing whether anticipated costs have been sufficiently broken down, such that there is a clear understanding of the specifics of how the funds are to be used.

Irrespective of the amount requested departmental staff must consider the impact of the release of trust funds on the account balance i. If qualified, the assessment should include information on the particular circumstances relating to the qualified audit opinion and assess whether the qualified opinion is a result of the Band's financial management.

The assessment of the expenditure request should illustrate the benefits to the community as a whole such as demonstrating reduced dependence on existing programs and services i. Environmental impacts Footnote 37 must be considered for all Band moneys expenditures, however, it is understood that many expenditures will have no impact on the environment i. Band office salaries. Such costs can be included in the amount requested from the capital or revenue account or may also be financed by the regional offices of AANDC , if appropriated funding is available for the specified purpose.

The departmental officer must identify whether there are any potential legal issues that may need to be addressed. For example, the proposal may set a precedent which may have to be assessed in light of the Minister's statutory responsibilities. In such cases, IMETA Directorate at headquarters should be consulted to determine if the matter has any national policy implications.

For issues involving the use of reserve land, it may be necessary to consult with the Lands Branch. The assessment should include a review of the Band's last available annual audited financial statements to provide confirmation that previously approved funds, of the Band's last available Audited Financial Statement s , have been expended according to their approved purpose.

The officer will the then forward a copy of the BCR via email or by facsimile. This should be done within a week of receiving the draft submission or as soon as conveniently possible. These documents will accompany the expenditure request approval package for Ministerial approval. Once the original documentation is received IMETA will confirm with the region receipt of the submission documentation, including whether all the documentation is received or there is documentation missing.

Copies Footnote 39 of these documents will then be mailed to the regional officer. Once approval has been given for an expenditure request, the departmental officer processes the release of moneys in compliance with the terms of the decision that are either full or partial.

For all capital moneys and section 69 revenue expenditures, a cheque is issued pursuant to what it has requested in its BCR i. For revenue expenditures to Bands that do not have section 69 authority, the payment is made by the Department either directly to the supplier or, if the Band has already incurred the expenses and has submitted copies of original negotiated cheques to AANDC for reimbursement to the Band.

For Band moneys budgets, or for certain projects i. This ensures that certain predetermined work is completed before further moneys are released. Chapter 7 of the manual expands on the specific sections and purposes for which capital or revenue moneys can be utilized, as well as identify any pertinent documentation requirements.

The following information concerns the specifics of processing disbursements from Band capital and revenue accounts pursuant to paragraphs 64 1 a to k , subsection 64 2 , section 66 and subsection 66 2.

An individual, who had lost their Indian status prior to Bill C Footnote 40 , could apply to be reinstated and regain membership in their Band. Subsections In addition to the general documentation requirements, the BCR requesting the PCD to Band members must also include a pay list Footnote 43 and the following information:. The responsibilities related to the administration of Band capital PCD s will vary according to:. A pay list must be compiled to identify the names of all individuals who are entitled to receive a PCD.

Where AANDC controls the Band List under section 11 of the Act, the departmental regional staff must compile a pay list which may be composed of the following sub-lists:. A sub-list of adoptees should only be developed on a need to know basis. Where the Band controls its Band List under section 10 of the Act, the Band council is solely responsible for determining who is entitled to receive the PCD , including:.

All uncollected moneys must be deposited into the individual trust accounts. In its BCR , the Band council may ask to administer the distribution to its members i.

This can be determined through discussions with staff from Funding Services by evaluating past audit reviews, or by assessing distributions the Band council may have administered in the past. All unpaid moneys must be returned to the Department for deposit into individual trust accounts by regional or district departmental officers who must then reconcile all payments made against the documentation provided by the Band council.

After a distribution of Band capital moneys has been paid out to the members of a Band, a member who was not paid at that time may be found to be entitled to arrears of that PCD. If not, the date of registration should be used to establish the child's eligibility to a distribution.

The Band council must also confirm the effective date on which the person became a member of the Band. The registration date must be on or before the date of the distribution. The departmental officer must research each case individually to ensure that a duplicate payment is not made and that the member receives the appropriate amount. The payment does not include any amounts for interest since the Indian Act contains no such authority.

A copy of the letter is attached to the relevant background information and forwarded for review and approval. Normally, a full share of a capital PCD that is payable to a minor is deposited into a departmental trust account on behalf of that minor.

However, under section The Band council must determine that such payments are "necessary or proper" for the maintenance, advancement or other benefit of the minor. Any such determination by the Band council must be proceeded by:. The Band council is solely responsible for deciding when a payment is necessary or proper for the maintenance, advancement or other benefit of a minor. Where a Band council has not made a determination under section Pursuant to section 51 of the Act, the Minister has exclusive jurisdiction over the property of mentally incompetent Indians when all of the following criteria are present:.

Consultation with regional departmental staff involved in the application of section 51 is required to determine if the Minister has assumed jurisdiction over the property of any mentally incompetent Indians who are eligible to receive a share of the PCD. Where the Minister does not have jurisdiction, but the individual is proven to be mentally incompetent, the person's PCD share will be directed to the Provincial Public Trustee, or the person appointed under provincial law to administer the individual's property.

Note : Some provinces use the term "dependent adult" in lieu of "mentally incompetent". In addition to the list of general documentation requirements, the following factors should also be considered that demonstrate benefit to the community and its members:.

The process and application of the ATR Policy and its site-specific criteria depend on how proposals are categorized. For the purchase of heavy equipment, this paragraph will apply when the asset is used primarily to construct and maintain improvements that are of permanent value to the Band or where it is a capital investment. In addition to the list of general documentation requirements the following factors should also be considered that demonstrate benefit to the community and its members:.

Covers other expenditure purposes that benefit Bands. It may encompass the following types of expenditures:.

Regions and districts should consult with AANDC headquarters when processing 64 1 k proposals to ensure that all relevant requirements are considered in the regional recommendations that will be submitted for ministerial approval. Footnote 71 Regions shall use the expenditure request analysis template. In addition to the general documentation requirements, the following information is required, where applicable:.

Where required, the regional submission should also contain the following information and documentation for expenditure proposals relating to: Band indebtedness; purchase of off-reserve land; Band owned businesses; operation of community facilities; and, the purchase of assets and equipment.

Regions must provide headquarters with their cursory review of the Band's Business Plan. Alternatively , the regional or district office may choose to engage the services of an independent expert to undertake the review on behalf of the Department. This is especially appropriate where the proposal is large or complex and the type of business is relatively specialized.

Band councils experiencing financial difficulties or indebtedness situations may request the expenditure of Band capital moneys to reduce or eliminate their indebtedness. Such expenditure requests require the Minister's approval. The Minister will consider the expenditure of Band capital trust moneys to offset any incurred debt under section 64 1 k when satisfied that al of the following conditions are met:.

When a proposal involves the purchase of non-reserve land, the regional submissions should contain the following information and documentation:. When a proposal involves the development, purchase or expansion of a Band owned business or corporation, the regional submission should contain the following information and documentation:.

Even though building costs of community facilities fall under paragraph 64 1 g , costs related to the operation of these facilities may fall under 64 1 k. When a proposal involves the purchase of major equipment or other assets, the regional submission, in addition to the general list for demonstrating benefit criteria, the following information and factors should also be considered:. Whenever reserve lands are to be used by a third party which includes a Band corporation for a business, or economic development venture located on reserve, those lands must be designated for this purpose.

In addition to the normal processing requirements and the general documentation requirements, a departmental officer will ensure that AANDC also has:. In addition to the general documentation requirements, the following will also apply and should be noted:. This subsection provides Bands with a wide range of possible expenditure purposes. In addition to the general documentation requirements, the following information, where relevant and obtainable from the Band or other sources, is required:.

The purpose of this chapter is to provide direction and clarity to AANDC headquarters, regional and district staff, and Bands on the preservation of capital trust funds and the creation of new Bands.

This chapter applies to any persons designated to carry out specific tasks and responsibilities related to the administration of capital trust funds in relation to the Band moneys provisions of the Indian Act the Act. It has been a long standing practice and policy Footnote 83 in the Alberta region to adhere to a policy of recommending to senior management that Bands limit annual capital expenditures to a level of known, or expected income for a given year , since:.

While recognizing that capital trust funds are the Band's moneys, a balance between the existence of the Indian Act , past practices relating to expenditures, and the Minister's fiduciary duty to the beneficiaries of these funds, are all factors that must be considered when reviewing an expenditure request. Section 17 of the Act, allows the Minister to constitute new Bands from an existing Band or any part thereof, such portion of the reserve lands and funds of the existing Band as the Minister determines shall be held for the use and benefit of the new Band.

Where a new Band is established from an existing one, the capital and revenue moneys held for the existing Band are generally divided on a per capita basis among the members of both Bands. Where a Band has s. The self-government process ultimately results in the signing of an agreement with a Band and the passage of specific legislation to give effect to the agreement. Each negotiation is unique to the particular Band involved. Although the form and wording of the various arrangements will vary to reflect the specific needs of a Band, there are several aspects which should be common to all agreements from a Band moneys perspective.

The purpose of this chapter is to authorize and provide general direction to AANDC headquarters, regional and district staff, and Bands on the release of Band moneys information it holds on behalf of Bands. This chapter applies to any persons designated to carry out specific tasks and responsibilities related to the administration of capital trust funds in relation to the Band moneys provisions of the Indian Act. A request is informal when it is not made under either one of these two Acts.

The release of information from departmental files and records should be provided through ordinary channels whenever possible and practical. Since the Department could be sued for inappropriate disclosure, advice should be sought from the departmental ATIP Secretariat to clarify any questions on the appropriate process to address an informal request.

AANDC must protect the interests of Bands and its members when dealing with requests for trust moneys information or records. Even though registered members of a Band have an interest in the moneys held in trust on their behalf of their communities, only their Band council represents the Band as a whole and can authorize access to those records. A Band council likely either originated the information now contained on departmental files, or it was provided with copies of this information by the Department sometime in the past.

A Band council has a fiduciary duty to account to its own members for prior moneys management and the moneys management decisions it has made and will make. The Privacy Act deals with all personal information that is collected by the federal government on Canadians. In a case where a person requests information about someone else, a written consent of release from the other individual must be obtained prior to the disclosure of the information requested. Information on a person that has been deceased for more than 20 years cannot be protected under this legislation and must be released upon request.

Paragraph 8 2 a of the Privacy Act authorizes disclosure of personal information when the release is consistent with the purpose for which the information was obtained. This chapter applies to Indian moneys released to a Band in accordance with sections 64, 66 and 69 of the Indian Act.

The Manual for the Administration of Band Moneys provides greater direction and clarity to AANDC headquarters, regional and district offices and Regional Directors General and persons designated by them to carry out specific tasks and responsibilities related to carrying out the administration of the Band moneys provisions of the Indian Act and its regulations. Approved funds which have originated as a release of Indian moneys which were not expended in whole or in part on the purpose for which the release was approved, are eligible for redeposit into the Consolidated Revenue Fund CRF.

In line with the approval and expenditure of Indian moneys responsibilities, it is essential that all approved Indian money expenditures be accounted for. Any variances identified between authorized and actual expenditures should be raised promptly with the Band and the necessary corrective action should be taken to address any concerns. Upon receipt of a Band's request to redeposit unexpended moneys, the Band will be advised that should its request be approved a redeposit of funds shall be made to the Band's account which the prior release originated.

Where it is determined that approved capital or revenue moneys expended by a Band were used for unauthorized purposes , the region must request that the Band return any such moneys for redeposit into its capital or revenue account.

Alice Abbey case. The decision stated that:. In addition, the case clarified that one effect of being a fiduciary to the members of a Band is that the actions of Chief and councillors, while in office, are subject to scrutiny. There must be no question of these elected representatives allowing their personal interests to conflict with their duty to the Band. This means that in a potential conflict of interest situation the individual Chief or councillor has an obligation to make full disclosure of his or her interest and to abstain from participating in the related discussions and vote.

From April 1, to March 31, , the annual interest rate was fixed by Order-in-Council dated October 8, as follows:. Acceptable Risk: The proposed expenditure should be considered for approval by management on the merit of the proposed eligible activity pursuant to s. Regional Judgement call: The proposed expenditure should be considered for approval by management on the merit of the proposed eligible activity pursuant to s.

Requires Higher Level Analysis: The proposed expenditure should only be considered for approval on the merit of the proposed eligible activity pursuant to s. The following are general documentation requirements described for the expenditure of Band capital moneys under paragraph 64 1 a through k and section In formulating a recommendation, for the purchase of heavy equipment or where demonstrating benefit is required, it must be demonstrated that the proposed expenditure will be of overall benefit to the Band.

The following general criteria should be considered:. The following receipt form is suggested:. Pursuant to subsection I-5, we further acknowledge that this receipt given in respect of said moneys is a sufficient discharge for the moneys and effectively exonerates Her Majesty, Her representatives and officials, from seeing to the application of the said moneys or from being answerable for its loss or misapplication.

I represent that I am the parent or legal guardian of the above named minors and that the funds received in respect to each such minor will be used for his or her benefit or will be deposited in a trust account maintained for that minor. If amount of time between 'Date Received in Region' and 'Date Routed to RDG ' exceeds two months, please provide all relevant information relating to the delay experienced such as dates, discussions and meetings held with the Band, documents requested, etc.

Provide a brief explanation for the request. Include a rationale that supports the level of urgency if applicable. Include the authority to be used to release these funds from the Bands Indian moneys account, either 64 1 or If a portion of the request was previously approved under regional authorities, include the authorities used under sections 64 1 or 66 and the previous amounts released.

Provide an explanation of how the community was made aware of the decisions made by the Band council i. If possible, provide a general overview of the political and socio-economic environment of the Band.

Explain the purpose s of the expenditure request in detail. Refer to specific supporting documentation when detailing the purpose s of the expenditure. For each capital expenditure requested in the BCR the following must be provided:. Provide a summary of the benefit to the Band members for this expenditure request. Include any employment statistics for band members, economic benefits, number of members that will directly or indirectly benefit from the request to the Band or other tangible benefits as a result of this expenditure.

Or if there is an increase in the request, there should be a corresponding rational as to why the need for additional funds i. Describe how this role may affect the assessment process, if at all.

Provide comments from the FSO regarding this expenditure request is a requirement. Include any legal factors affecting this expenditure request, such as current litigation, land claim issues, governance issues or other considerations.

Is an environmental assessment or screening needed for this request? If yes, provide a brief explanation. Where a First Nation member, who ordinarily lives on reserve, is found to be incapable of handling their own financial affairs, ISC may establish an account for the individual and manage their day-to-day income and expenditures. These accounts accrue interest. Where a First Nation member, who ordinarily lives on reserve, dies, the Minister has exclusive jurisdiction over the estate.

ISC may appoint an outside administrator provincial officer, family member, etc. Estate trust accounts are established by ISC as required in order to administer the estate. Estate trust accounts are entitled to interest, with the exception of accounts established for missing heirs. For more information, visit Estate services for First Nations.

Band moneys are managed by ISC on behalf of First Nations according to sections 61 to 69 of the Indian Act , which outline ISC's responsibilities for the collection, maintenance, disbursement and accounting of these moneys.

Capital moneys are trust moneys that come from the sale of the First Nation's surrendered lands, from an interest in the land, or from the sale of the First Nation's non-renewable resources.

There are various methods for First Nations to access band moneys, including exercising more access than the Indian Act alone currently provides:. Visit the various acts or the Manual for the administration of band moneys to learn more. Skip to main content Skip to "About this site".