Good Governance and

Good Governance and
Effective Financial
Management

GOVERNANCE DEVELOPMENT NETWORK AND AFOA
ONTARIO


1

“Working Together to Build Stronger Communities”

What is the Governance




Development Network?


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.


2

GOVERNANCE DEVELOPMENT NETWORK

Mission

“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
.”


3

GOVERNANCE DEVELOPMENT NETWORK

Vision

“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
.”


4

GOVERNANCE DEVELOPMENT NETWORK

Where The Governance
Development Network Began


•
N
etworking
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.


5

GOVERNANCE DEVELOPMENT NETWORK

Gathering Information

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.


6

GOVERNANCE DEVELOPMENT NETWORK

Active listening,



Active
Learning

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


7

GOVERNANCE DEVELOPMENT NETWORK

Setting Goals

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.


8

GOVERNANCE DEVELOPMENT NETWORK

Relationship Building

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
.




9

GOVERNANCE DEVELOPMENT NETWORK

National Involvement

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.


10

GOVERNANCE DEVELOPMENT NETWORK

Why Good Governance?

•
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



11

GOVERNANCE DEVELOPMENT NETWORK

Good Governance and




Financial Management

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



12

GOVERNANCE DEVELOPMENT NETWORK

Purpose of a Financial Policy

•
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.


13

GOVERNANCE DEVELOPMENT NETWORK

Financial Management Code

•
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.





14

GOVERNANCE DEVELOPMENT NETWORK

Guiding Principles

•
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

•
Accountability and assurances of
integrity

•
Release
of audited financial
statements

•
Consistent with a Financial Policies



15

GOVERNANCE DEVELOPMENT NETWORK

Avoiding Conflict





•
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.


16

GOVERNANCE DEVELOPMENT NETWORK

Adopting Codes

•
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.







17

GOVERNANCE DEVELOPMENT NETWORK

Can One Exist



Without the Other?

•
F
inancial
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
f
inancial management. Having Good Governance
mechanisms in place will empower your community to
effectively manage their own affairs and achieve their goals of
self sustainability.

18

GOVERNANCE DEVELOPMENT NETWORK

Moving Forward Together

19

•
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

Meegwetch

20

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