Recommendation 1

That the Government of Canada, as part of the discussions for a new fiscal relationship, revise the funding formula with a view to provide adequate funding based on needs and population growth.

Recommendation 2

That the Government of Canada, as part of the discussions for a new fiscal relationship, provide First Nation communities and urban organizations with access to long-term and flexible funding arrangements; and that mutual accountability measures be developed.

Recommendation 3

That Indigenous and Northern Affairs Canada, in consultation with First Nations, take immediate steps to revise the Default Prevention and Management Policy with the overarching goal of transitioning activities to Indigenous-led institutions; and that interim reforms:

• provide early engagement and capacity building opportunities as the first step of default prevention and management;
• revise the criteria for triggering default management so that intervention only occurs as a last resort to provide support for financial management;
• ensure that debt recovery plans are jointly developed between the First Nation and the co-manager or third-party manager;
• improve the monitoring and assessment of third-party managers and co-managers;
• establish enforceable timelines and service standards for third-party managers and co-managers that include penalties for failing to meet the stated obligations;
• strengthen the qualification requirements for third-party managers; and
• develop a new model to finance intervention costs, where Indigenous and Northern Affairs Canada pays the full cost of intervention.

Recommendation 4

That Indigenous and Northern Affairs Canada table a report in the House of Commons within five years of tabling the Government response to this report outlining the progress made towards implementing this report’s recommendations, reducing the number of First Nations under default management and transitioning default management and financial capacity building activities to Indigenous-led institutions, including an update of the issues and challenges encountered.

Recommendation 5

That the Government of Canada remove restrictions placed on financing for First Nations under default management, such as those placed on Ministerial Loan Guarantees.

Recommendation 6

That the Government of Canada support innovative pilot projects, such as mentorship programs, that address financial defaults and enhance financial management.

Recommendation 7

That the Government of Canada take immediate steps to support arms-length Indigenous financial organizations to establish capacity building programs to support financial management in First Nations communities; and that these independent organizations be properly resourced to provide these services.

Recommendation 8

That the Government of Canada take immediate steps to support arms-length Indigenous financial organizations to provide training and certification opportunities in financial management and financial literacy to local band councils and administration staff; and that these services be appropriately funded.