Background

Various forms of tribal cooperation were historically used by First Nations as a means of making decisions and establishing territorial jurisdiction. Since the early 1970s, tribal groupings have re-emerged as a form of co-operation between First Nations communities. Many of the tribal councils which have formed are based on cultural, religious or geographical affinity.

Since 1984 it has been departmental policy to transfer administrative responsibilities for some programs and services to First Nations controlled tribal councils. For the purpose of the policy, a tribal council is an organization established by a number of First Nations with common interest who voluntarily join together to provide advisory and/or program services to member First Nations. On behalf of their member First Nations, tribal councils act as providers and administrators of program services which are otherwise delivered by First Nations or the department. Some tribal councils also provide political representation and advocacy.

As of July 1994, there were 82 tribal councils representing 532 First Nations across Canada. Tribal councils are primarily accountable to their member First Nations. They may be funded in various categories including: organizational development, advisory services, management and administration, and service delivery. They are financially accountable to the department for those funds.

Objectives and Scope

The objectives of the audit were to review the monitoring of DIAND funding arrangements with tribal councils across the country and to assess the degree of compliance with departmental policy and procedures.

The audit reviewed a total of 75 tribal council funding agreements, for the 1993-1994 fiscal year, across all 9 regions of the country to assess whether conditions were complied with and whether reporting requirements were met. The audit covered more than ninety percent of all tribal council funding arrangements.

General Assessment

The audit found that according to departmental records many tribal councils may not be eligible for funding. The department does not have adequate updated evidence to demonstrate a tribal council's eligibility for funding. DIAND Program Directives and Program Procedures establishing eligibility for tribal council funding are not fully followed. The department's program directives outline that tribal councils must be formed from First Nations initiatives, they must incorporate, they must be accountable primarily to councils of their member First Nations, and they must have agreement with member First Nations regarding review of program effectiveness and provision of an annual financial report. The audit found that according to data on file, 84 percent of tribal councils examined do not comply with one or more requirements. The lowest degree of compliance to terms and conditions pertain to service levels and standards and periodic review of program effectiveness. The audit findings indicate, however, a higher degree of compliance to matters of First Nations agreement to initiate a tribal council and incorporation of tribal councils.

There is no systematic monitoring of tribal councils continued eligibility for funding. A departmental Program Procedure requires that this be done annually, but eligibility is considered by regions as ongoing in nature. Review of eligibility occurs informally.

Regions and districts are not in a position to formally assess the eligibility criteria requiring tribal councils to document their levels and standards of services.

Controls over the funding of tribal councils generally follow applicable departmental procedures. Regions receive and review financial information from tribal councils for purposes of monitoring the terms and conditions of the applicable funding agreements between DIAND and the tribal councils. Ninety nine percent of the tribal councils covered by the audit had provided annual audited financial statements. In some instances, however, the controls over funds and the review of audited financial statements could be strengthened.

Audit of the Tribal Council Funding (PDF 80 Kb) in PDF format.

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