Professional Documents
Culture Documents
FRAMEWORK
!! Pink
Larkin engaged MNP on behalf of the Shubenacadie Band to conduct a forensic investigation into the Bands finances. !! These Recommendations have been developed jointly by Pink Larkin (legal counsel) and MNP for the Bands consideration.
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To review the financial organization of Shubenacadie Band. To analyze weaknesses and strengths of the financial structure of the Shubenacadie Band. To determine if there are potential civil or criminal wrongdoings. To make recommendations to Shubenacadie Band on how to improve financial accountability and management in the future.
OVERVIEW OF FINDINGS
(1)!
(2)!
Financial accountability was not generally present so as to ensure Council met its fiduciary duty to the Band members. Practices were especially deficient in
(1)! (2)! (3)! (4)! (5)!
OVERVIEW OF RESULTS
(1) The report of MNP will be provided to the RCMP for review for potential criminal wrongdoing. (2) The outcome of the RCMP investigation will be available to Council. (3) Continue to pursue insurance claim.
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All Councillors must act in the best interest of all of the Band members not in their own selfinterest. Decisions must be made in response to #1 and not to further any political interest. Council has a duty to ensure that previous mistakes are not repeated.
IMPLICATIONS OF INACTION
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Knowing that inherent problems exist, and that recommendations to correct them have been made, naturally requires Band Council to deal with them immediately, deliberately, and responsively. Failure to deal with the concerns expressed is a breach of your fiduciary duty and makes everyone potentially liable if similar breaches occur in the future.
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Failure to adequately address and implement the recommendations will be a significant loss of opportunity for Council and the Shubenacadie Band an opportunity which will protect and enhance the Band for years to come. Recommendations must be implemented regardless of politics.
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Implementation of recommendations is left with Council, but the ultimate responsibility to the Band members remains Councils. The Recommendations and this PowerPoint should be distributed to the Band members on the website for the purpose of community engagement.
Drafting of most relevant policies Redrafting of current policies Preparation of future policies to be drafted
(2) Council develops the policy of the Shubenacadie Band of how the SED Corp will utilize its revenues:
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i.! ii.!
what percentage of revenue is returned to the band; For what purposes; and In what amounts.
ECONOMIC DEVELOPMENT
GOVERNMENT SERVICES
Only items on the agenda can be discussed No changes to any Policy of Council unless changed in accordance with the Policy on Policies
EXAMPLE: all changes of policies to be published on the website for 30 days !! all changes of policy to be reviewed by policy sub-committee in advance of meeting with report to Council 7 days in advance !! All amendments to Policy require 75% vote (Or whatever Council decides)
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changes cannot occur upon election of a new Council except in accordance with the Policy on Policy Amendment !! Consider moving to a 3 or 4 year election cycle with a customary code or in accordance with the proposed First Nations Elections Act
GOVERNANCE RECOMMENDATIONS
!! Development
and enforcement of the Code of Ethics, including a Conflict of Interest Policy !! Recognition that the Chief and any Councillor can raise and seek enforcement of the conflict of interest rules or breaches of the Code of Ethics. !! Enhance the job descriptions of all employees of the Band.
and oversee (stringently) a fraud-risk policy to protect against misuse of Band finances. !! Manage and oversee the financial affairs of the Government Services operations of the Band.
Develop policies which authorize the independent spending by managers and directors at established levels without prior approval.
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E.g., Manager - $5000 E.g., Directors - $10,000 But can be higher if in accordance with preapproved budget
Engage a consultant to revamp, from scratch, the entire operation of the Tobacco Shop and the sale of cigarettes through the Band. Enhance security system from the ground up. Improve Point of Sale system. Integrate General Accounting System.
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Improve daily reporting of sales and cash deposits. Restrict social grants from the Tobacco Shop - these must follow an approved process.
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Conduct referendum on conversion of Wallace Hills to reservation All of Wallace Hills development will be the responsibility of Shubenacadie Economic Development Corp SED Corp to engage expert planners, developers and others to ensure maximum return Consider land lease of properties in place of sales
(2)! (3)!
Engage consultant to review the entire operations to ensure that Shubenacadie Band is maximizing its potential revenue and capacitybuilding opportunities Utilize entire fish quota Utilize licenses within the Band when economically feasible and when it ensures capacity-building
(2)! (3)!
(4)!
Engage a gaming consultant to review and advise on the operation of VLTs, etc. Is there an expansion available? Engage manager with experience who can oversee the operation and protect the Bands financial and community interests Enhance relationship with ALC