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Audit of Compliance with the First Nation Land Management Initiative Program - Follow-up Report Status Update as of March 31, 2010
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Action Plan Implementation Status Update Report To The Audit Committee - As of March 31, 2010
Lands and Economic Development - Lands
Audit of Compliance with the First Nation Land Management Initiative Program (200601)
AEC Approval Date: 20/10/2006
| Project Recommendations | Action Plan | Expected Completion Date | Program Response |
|---|---|---|---|
| 1. The Resource Centre should monitor and assess the implementation of its recently developed documentation policies, procedures and directives to help ensure the required supporting documentation is maintained. |
a) The Resource Centre Board of Directors (RCBD) has revised the Community Approval Process Plan (CAPP), to specify for each developmental First Nation which expenses are eligible for reimbursement. The new CAPP clarifies: that the Resource Centre (RC) will only reimburse developmental First Nations that provide proper detailed supporting documentation in relation to eligible expenditures made; and what supporting detailed documentation is required prior to the release of any funding reimbursements for eligible expenditures.
b) In addition, all RC employees and contractors have been advised of the Economy, Efficiency and Effectiveness Policy. The Manager of Administration is required to prepare quarterly reports for the RCBD on compliance with all policies and procedures. |
30/09/2006 |
The LED sector is defining a strategic approach to Departmental lands activities. This approach will be presented to the Departmental Senior Executive at the Forum on Strategic Issues in December 2009. All audit action plan activities will be implemented within the context of this newly defined strategic approach to lands.
a) Implemented date: 28/09/2007 Status: Implemented Update/Rationale: There have been significant changes to the 2007/2008 CAPP in comparison to the 2006/2007 CAPP that address the audit recommendations. Continued refinements and improvements are being made in conjunction with the authority renewal process. AES: Close. |
| 2 a. The Director General of Lands Branch should consider requiring that all significant reallocations between First Nations be requested, assessed and approved on a timely basis and in writing, as specified by clause 2.1 Part B of the Comprehensive Funding Arrangement. |
The Director General, Lands Branch ensures that all reallocations between First Nations are approved in advance and in writing, as specified by clause 2.1 part B of the Comprehensive Funding Arrangement (CFA).
During the negotiations of the 2007-2008 CFA the audit recommendation of including a definition of significant reallocations will be considered. |
30/04/2005 |
b) Implemented date: 28/09/2007
Status: Implemented Update/Rationale: Section 2.1 of the 2007/2008 CFA with the Resource Centre states, "The Recipient agrees that any change to the monthly expenditure plan and payment schedule as set out in Part E will be requested in writing to and approved in advance by the Director, FNLM." AES: Close |
| 2b. Furthermore, INAC should consider whether clause 2.1 Part B should more clearly define whether the Flexible Transfer Payment portion of the arrangement applies. Given the sometimes minor nature of the reallocations, consideration should also be given to whether it is appropriate to require the Minister to approve all changes. |
The Director General of Finance Branch has clarified that clause 2.1 Part B of the CFA National Model applies to the FTP portion of the Arrangement. This will be re-confirmed in a formal letter from Director General of Finance Branch to the First Nation Land Management (FNLM) Directorate, a copy of which will be provided to the LAB/RC.
The Director General of Finance has agreed that the Director of the FNLM Directorate should approve re-allocations of funding. |
31/03/2007 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: The DG of Finance has sent a formal letter to the FNLM Directorate agreeing that the Director of FNLM shall approve re-allocations of funding. Section 2.1 of the 2007/2008 CFA with the Resource Centre states, "The Recipient agrees that any change to the monthly expenditure plan and payment schedule as set out in Part E will be requested in writing to and approved in advance by the Director, FNLM." AES: Close |
| 3. The Director General of Finance Branch should define and document, in the Comprehensive Funding Arrangement, how interest earned by the recipient is to be treated. | The Director Generals of Finance Branch and Lands Branch will define and document, in the Comprehensive Funding Arrangement how interest earned and spent by the Recipient is to be treated. | 31/03/2007 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: Section 2.3.4 of the 2007/2008 CFA with the Resource Centre states, "If, during the Fiscal Year, Contributions and Flexible Transfer Payments amounts provided under the Arrangement are deposited into an interest bearing account, interest is considered a debt due and payable to the Minister at the end of the Arrangement. However, at year end, if the Recipient declares a surplus in its FTP, surplus funds can then be deposited into an interest bearing account and interest earned on these funds would then be retained by the recipient." AES: Close |
|
4. The Lands Advisory Board (LAB), in conjunction with the Resource Centre (RC), should evaluate the functions assigned to the Executive Director and consider the cost/benefit of reassigning certain responsibilities.
In addition, INAC should consider providing guidance, in the arrangement, with respect to compensation. |
The LAB/RC and INAC agree that, while preserving their respective autonomies, they will review on a continuing and functional basis organizational structures and linkages to ensure the most effective implementation of the Framework Agreement and service to the First Nation parties and will seek, through regular consultation, to achieve continuing improvement.
The LAB/RC has commissioned and shared with INAC a study of compensation of the members of both the LAB and RC Boards of Directors. The LAB/RC will further commission and share a study which evaluates the functions assigned to the Executive Director and considers the cost/benefit of reassigning certain responsibilities. This study will also include a review of the compensation of the Executive Director and all RC staff. INAC has considered, and decided against providing guidance in the arrangement with respect to compensation. |
31/03/2007 |
Implemented date: 31/12/07
Status: Implemented Update/Rationale: As of 31/03/2010: INAC and LAB/RC have committed to reviewing the structures of the LAB and the RC and linkages between them on an ongoing basis. The activities and expenditures of the LAB and RC are reviewed by INAC annually. It has been found that compensation paid by the LAB and RC complies with TB compensation guidelines, as detailed in CFAs. The LAB is a First Nation organization created out of the Framework Agreement on First Nations Land Management resulting from a First Nations led initiative. The maintenance of the cooperative relationship between INAC and the LAB is a commitment for INAC and of benefit to First Nations. AES: CLOSE The ADM has informed AES that the larger context of work underway in the Sector adequately addresses the original intent of the recommendation. |
| 5. The Resource Centre should consider having consistent employment contracts and related benefits. In addition, the Resource Centre should develop, communicate and follow a consistent training and education policy. | RCBD has employment contracts for all employees. RCBD will develop and implement a policy on training and educational leave. Reference to the policy on training and educational leave will be added to each employment contract (existing and future). | 30/11/2006 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: The RC has developed and implemented a policy on training and educational leave. AES: Close |
| 6. The Resource Centre should consider reviewing the appropriateness of its travel policy and consider its consistency with the spirit of the Treasury Board travel policy. | RCBD amended its travel policy consistent with the guidelines provided by the Treasury Board, as required under the 2006-2007 CFA signed on September 13, 2006. | 13/09/2006 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: The RC Board of Directors amended its travel policy consistent with the guidelines provided by Treasury Board, as set out under Section 2.5.1 of the 2007/2008 CFA. AES: Close |
| 7a. The Director General, Lands Branch and the Chairman of the Board of the Resource Centre should rationalize the Joint Implementation Committee role with that of the Lands Advisory Board and Finance Committee, and formalize its mandate. | The Joint Implementation Committee (JIC) has completed a Protocol Agreement which identifies its membership, roles and responsibilities. INAC and the LAB/RC will rationalize the JIC role with that of the LAB and Finance Committee. |
30/06/2007
Revised Completion date: 30/06/2008 |
Status: Partially implemented
Update/Rationale: As of 31/03/2010: The formalization of the ESC's mandate was established though the Protocol on Implementation signed May 14, 2009 signed by INAC, Natural Resources Canada, the LAB and RC. The protocol details the responsibilities, membership, meeting organization, communication procedures of the ESC must follow. AES: Close |
| 7b. A formal assessment of the membership and functions of the Lands Advisory Board and Resource Centre governance bodies should be completed to help ensure they are as fully representative of all stakeholders as possible. |
In March 2002 the Minister and 13 original signatories to the Framework Agreement signed Amendment No. 3 which established the current structure of the LAB.
The RC agreed to provide to INAC a written explanation of the history of the LAB and RC Governance bodies and copy of the current organizational structure, roles and responsibilities, and current staff or board members of the:
|
31/01/2007 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: The LAB has provided to the FNLM Directorate a document entitled; "The Lands Advisory Board and First Nations Land Management Resource Centre Inc, A Corporate Memory", which outlines the LAB's membership and its history. Amendment 3 of the FA establishes the current structure of the LAB. The RC has also provided the FNLM Directorate with a copy of the current organization structure, roles and responsibilities of the LAB/RC. AES: Close |
| 8. The Resource Centre and the Lands Advisory Board should continue to develop its risk profile and further develop, communicate and implement appropriate risk management actions. This should include a risk assessment as a regular part of First Nations funding considerations. | The Chair of the RCBD and the Chair of the LAB will continue to develop its risk profile and further develop, communicate and implement appropriate risk management actions, including a First Nation risk assessment as a regular part of any First Nation funding considerations, as well as an assessment at the proposed time of entry into the Framework Agreement. |
21/04/2008
Revised Completion date: 27/06/2008 |
Implementation Date:
Status: Partially Implemented Update / Rationale: The RC submitted a Risk Profile to the FNLM Directorate. Its recommendations were incorporated initially into the draft RMAF/RBAF. Subsequently into the draft program Performance Management Strategy, which is targeted for approval in June 2009. No further action is required by the RC to address the First Nation risk assessment as part of First Nation funding considerations. As of April 1, 2008, the responsibility for the provision of developmental funding to First Nations was transferred from the RC to INAC. AES: Close |
| 9a. Sufficient budget assessment and analysis should be completed by the Director General of Lands Branch to assess the reasonableness of the budget amounts before funding is approved. The funding process and related documentation requirements should be discussed and agreed to in advance by the Resource Centre and INAC. | Budget assessment and analysis were completed by the RC and INAC prior to signing the 2006-2007 CFA. This included detailed analysis of work plan, strategic overview, budget and deliverables. A similar budget assessment and analysis will be conducted prior to completing the 2007-2008 CFA. | 31/08/2006 |
Implementation date: 28/09/2007
Status: Implemented Update/Rationale: Budget assessment and analysis of the RC workplan and deliverables were completed during the development of the 2007/2008 CFA. Monthly update meetings between INAC and the RC are currently held to monitor the progress of the work plan and budget. AES: Close |
| 9b. INAC should ensure that all transfers of funds under the Comprehensive Funding Arrangement are made to the legal entity that is party to the arrangement. | The Director of the FNLM Directorate has informed the RC that future payments will be made to the RC, not the Lands Advisory Board. | 31/10/2005 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: All transfers of funds under the CFA are currently made to the Resource Centre. AES: Close |
| 10a. INAC and the Resource Centre should continue to negotiate refinements to the Comprehensive Funding Arrangement to increase its clarity and direction. In addition, the Resource Centre should ensure that future Community Approval Process Plans with First Nations are consistent with their arrangement with INAC. |
INAC and the RC negotiated significant refinements to the 2006-2007 Comprehensive Funding Arrangement and will continue to negotiate refinements to future CFAs as required.
The 2006-2007 CAPPs include the relevant clauses from the 2006-2007 CFA to ensure that the requirements of the CFA between INAC and the RC are consistent with the subsequent CAPPs between INAC, the RC and First Nations. |
30/09/2006 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: As of 30/09/2007: INAC and the RC negotiated significant refinements to the 2006-2007 Comprehensive Funding Arrangement and will continue to negotiate refinements to future CFAs as required. The 2006-2007 CAPPs included the relevant clauses from the 2006-2007 CFA to ensure that the requirements of the CFA between INAC and the RC are consistent with the subsequent CAPPs between INAC, the RC and First Nations. The 2007-2008 CAPPs are also consistent with the 2007-2008 CFA. This will continue as an annual exercise. AES: Close |
| 10.b. The Director General of Lands Branch should clarify the expectations, responsibilities and accountabilities of the Resource Centre to help ensure the efficient and effective delivery of the required services. These clarifications in roles should include roles with respect to: First Nations funding, selection of verifiers, joint ratification capacity assessment, dealing with environmental issues and other communication and reporting roles | The DG, Lands Branch and Chair, RCBD will clarify existing roles, responsibilities and accountabilities to help ensure the efficient and effective delivery of the required services. The DG Lands Branch and Chair, RCBD will establish consistent criteria to be applied in making decisions with respect to First Nations funding, selection of verifiers, capacity assessment, environmental issues and other communication and reporting roles. |
March 31, 2007
Revised Completion date: November 2007 |
Implemented date:
Status: Partially Implemented Update / Rationale: As of 31/03/2009: The 2007 Program Summative Evaluation report provides a substantive review of and recommendations on the respective roles of the key stakeholders involved in implementing the Framework Agreement on FNLM. A new proposal on the Effective Implementation and Expansion of the FNLM Regime is scheduled for winter 2009 and will provide new policy direction on funding and address capacity assessment and environmental issues. In preparation for the policy work, INAC and the RC have jointly hired KPMG to undertake a cost-benefit analysis of the FNLM regime. The study will be used to jointly develop a new funding model for the FNLM Regime. INAC and the RC jointly developed selection criteria and training for verifiers, and a joint training session took place in September 2008. A draft communication strategy has been jointly developed by the RC and INAC, and will be competed in the coming months. The reporting roles for the LAB/RC are outlined in the draft FNLM Performance Management Strategy targeted for approval by June, 2009. In addition, the 2008/09 CFA has enhanced reporting requirements, including quarterly and annual reports, the latter to be tabled in Parliament. AES: Close |
| 10c. The Comprehensive Funding Arrangement should include the requirement for the timely reporting of capacity assessments to the Director General of Lands Branch. | The Director General of Lands Branch, jointly with the RC, will ensure that all future Comprehensive Funding Arrangements include the requirement for the timely reporting of capacity assessments to the Director General of Lands Branch. | 31/03/2007 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: As of 30/09/2007: The 2007/2008 CFA with the Resource Centre includes as an ongoing requirement, "capacity assessments conducted by the RC regarding First Nations being considered for entry into the FNLM developmental process will be provided, via electronic mail, to the Director, FNLM once they are completed. This must occur prior to a recommendation to the Minister for entry of a new First Nation into the developmental process." AES: Close |
| 10.d. The Director General of Lands Branch and the Board of the Resource Centre should continue to develop and implement an operational funding formula. |
As agreed in December 2005, January 2006, February 2006 and March 2006, both partners shared non-confidential information available to both Parties on concerns raised by First Nations with respect to base amount calculations, transitional funding and special projects. Both parties will discuss these concerns to determine which should more appropriately be dealt with in the FNLMI, within the operational funding formula. In the FNLMI within the Individual Agreement, in the FNLMI within the developmental funding formula or outside the FNLMI.
The Parties will then report to the JIC with a view to finalizing possible decisions reflecting the approach outlined in the previous paragraph that could be reflected in either the CFA or Individual Agreements, as appropriate and the implications of such decisions for funds available to the Initiative. The Parties will finalize the operational funding formula based on the decisions referred to above. |
31/03/2007 |
Status: Implemented November 2007
Update/Rationale: As of 31/03/2008 The 2007 Summative Evaluation Report provides a substantive review and recommendations with respect to the roles and responsibilities of the key stakeholders involved in implementing the Framework Agreement. A good portion the recommendations have been implemented. The review will also serve to inform the FNLM authority renewal and help clarify responsibilities and accountabilities in the implementation of the FNLM. In light of the evaluations findings, the DG Lands Branch and the Chair of the RCBD have now established consistent criteria to be used in making decisions with respect to developmental funding. Further the Department and LAB/RC have agreed to transfer the administration of developmental funding from the LAB/RC to the FNLM Directorate. The FNLM Directorate and LAB/RC have implemented consistent policies in the selection of verifiers, conducting capacity assessments, environmental issues and other communication and reporting roles. AES: Close. |
| 10 e. The Director General of Lands Branch, in cooperation with the Resource Centre, should ensure that all future Comprehensive Funding Arrangements are consistent with INAC's National model arrangement. | The Director General of Lands Branch, in cooperation with the RC, will ensure that all future Comprehensive Funding Arrangements are consistent with INAC's model National Comprehensive Funding Arrangement. | 31/03/2007 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: All aspects of the 2007-2008 CFA fit the national model with the exception of the FTP and contribution portions. Further changes and revisions for the 2008-2009 CFA, as part of the authority renewal process to rectify this situation, are contemplated. AES: Close. |
| 10 f. In addition, the Resource Centre and the Director General of Lands Branch should consider revisions to future Comprehensive Funding Arrangements that include clarifying certain expenditure reimbursement practices, a clause to permit access to the ultimate third party recipient's documents and premises as specified by Treasury Board's Policy on Transfer Payments, clarity on the calculation and use of surplus funds and additional clarity (i.e. annexes, schedules, etc.) on what is included in the agreement. |
The Director General of Lands Branch and Finance Branch will clarify in the Comprehensive Funding Arrangement what are surpluses and deficits, and how they are to be disposed of.
A revised clause clarifying that annexes and associated schedules form part of the CFA was added to the 2005-2006 CFA and will continue in future arrangements. A revised clause to permit access to the ultimate third party recipients¿ documents and premises was included in the 2005-2006 CFA and will continue in future CFAs. |
31/03/2007 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: As of 30/09/2007: A revised clause clarifying that annexes and associated schedules form part of the CFA was added to the 2005-2006 CFA and has continued in subsequent arrangements. A revised clause to permit access to ultimate third party recipients' documents and premises was included in the 2005-2006 CFA and has continued in subsequent CFAs. The current (07/08) CFA initiated a 30% holdback to avoid surplus funds as well as a mechanism by which these funds are accessed. AES: Close. |
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11. The Resource Centre should ensure that the revised payment process is documented, implemented and approved by the Finance Committee.
In addition, to ensure that appropriate payments are made, Finance Committee members should only sign cheques once the approved authorization request is received. |
The Finance Committee has implemented and documented in their meeting minutes the revised payment process which is more effective, efficient, transparent and accountable.
The Finance Committee will only sign cheques in accordance with the revised documented payment process. |
28/02/2006 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: The Finance Committee has implemented and documented in their meeting minutes the revised payment process, which is more effective, efficient, transparent and accountable. The Finance Committee now only signs cheques in accordance with the revised documented payment process. AES: Close. |
| 12a. The First Nation Land Management Directorate should identify, in consultation with the Resource Centre, appropriate performance expectations for the Resource Centre. These expectations and measures should be communicated and formalized through the Comprehensive Funding Arrangement and related reporting requirements, and timelines should be established and adhered to. | The Director General of Lands Branch will continue to identify, in consultation with the RC, appropriate performance expectations for the RC. These expectations and measures will be discussed, communicated and form formalized in future Comprehensive Funding Arrangements and related reporting requirements, and timelines will be established and adhered to. | 31/03/2008 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: The 2007-2008 CFA has clarified appropriate performance expectations for the RC. Actual results in relation to these expectations are addressed in the quarterly submission of the RC's activity reports. AES: Close. |
| 12b. The Resource Centre should in turn identify the performance expectations, measures and reporting requirements of the First Nations to help ensure that the Resource Centre can obtain the information required for its ultimate reporting to INAC. | The 2006-2007 CAPPs identify the performance expectations, measures and reporting requirements of the First Nations to help ensure that the RC can obtain the information required for its ultimate reporting to INAC. Future CAPPs will continue to do so. | 31/07/2007 |
Implemented date: 28/09/2007
Status: Implemented Update/Rationale: The 2006-2007 CAPPs identified the performance expectations, measures and reporting requirements of the First Nations to help ensure that the RC can obtain the information required for its ultimate reporting to INAC. Subsequent CAPPs have continued to do so. AES: Close. |
| 12.c. The Director General of Lands Branch and the Chairman of the Board of the Resource Centre should ensure that the Resource Centre's and First Nations' performance is measured against the relevant Results based Management and Accountability Framework performance indicators, that progress can be assessed and that any required action is taken. | The Director General of Lands Branch and the Chair, Resource Centre Board of Directors will ensure that the RC's and First Nations' performance is measured against the relevant Results-based Management and Accountability Framework jointly agreed performance indicators on a quarterly basis using a format to be determined. The Director General of Lands Branch and the Chair, Resource Centre Board of Directors will ensure that progress is assessed and that any required action is taken. | 30/06/2007 |
Status: Partially Implemented Update/Rationale: As of 31/03/2009: The RC has submitted a performance management strategy to INAC and the recommendations were incorporated into the Draft FNLM RMAF/RBAF prepared in the winter 2008 as well as in the draft FNLM performance measurement strategy targeted for approval in the spring 2009. AES: Requires final approval |
