About the First Nations Financial Transparency Act
On March 27, 2013, the act received Royal Assent in Parliament.
On this page
Overview
The First Nations Financial Transparency Act was introduced to support financial transparency in First Nations communities. It required First Nations, defined as an Indian bands under the Indian Act, that receive federal funding to share certain financial information with their members as well as publish it online.
This included:
- audited consolidated financial statements
- a schedule of chief and council remuneration and expenses
- the auditor's written report or review engagement report related to the schedule of remuneration and expenses
Beginning in the 2014 to 2015 fiscal year, the Minister of Indigenous Services was also required to publish, on the departmental website, the audited consolidated financial statement and the schedule of remuneration and expenses for each First Nation, when received.
Updates
Since 2015:
- Indigenous Services Canada issued a statement indicating that:
- compliance measures under the act have stopped
- any funding previously withheld was reinstated
- court actions against First Nations for non-compliance were suspended
- First Nations leaders advocate for accountability measures that respect primary accountability of First Nations governments to their citizens.
Engagement history
In 2017, Indigenous Services Canada held an engagement with First Nations to inform a new approach to mutual transparency and accountability. This included in-person sessions, surveys and other opportunities to share feedback.
Current approach
The act remains in effect. However, since 2015, the Government of Canada no longer enforces compliance measures under the act.
The current approach focuses on working in partnership with First Nations leadership to co-develop approaches to transparency and accountability.
Court remedies under the act remain available. Federal administrative enforcement is no longer pursued.
Why this changed
This shift reflects a move towards a nation-to-nation relationship based on respect, cooperation and the recognition of rights.
The focus is now on supporting First Nations-led accountability rather than government-imposed requirements.
What this means today
First Nations continue to share financial information with their members.
The Government supports First Nations-led approaches to mutual accountability, including:
- fiscal governance capacity
- institutional supports
- data governance
More than 300 First Nations financial administration laws already include provisions for sharing audited financial statements with citizens.
Contact us
Contact your Indigenous Services Canada regional office funding agreement contact or email the New Fiscal Relationship Secretariat: nrf-nfr@sac-isc.gc.ca.