Mr. Speaker, on behalf of the Minister of Indian Affairs and Northern Development I am pleased to respond to the hon. member for Charlotte.
Financial accountability for federal funds is assured through the ongoing monitoring of terms and conditions for funding arrangements and annual audited financial statements.
Officials from the Department of Indian Affairs and Northern Development have received the Oromocto First Nation audit for the 1996-97 fiscal year. Band members accepted the audit at a duly convened band meeting on November 24, 1997.
Departmental officials spent the week of November 24, 1997 on the reserve attending meetings dealing with co-management and the band's financial position. Officials worked in an advisory capacity for the First Nation on several issues and met with the band council. These meetings proved to be very productive. The department is currently working with the First Nation to assist in implementing the auditor's recommendations.
While the Department of Indian Affairs and Northern Development has been working with the First Nation through a co-manager, the current financial situation at Oromocto indicates a need for outside intervention. The department has contracted the services of a third party to work with the First Nation.
This will ensure there is the required financial control on the reserve and accountability to both the department and the First Nation community members. Further, the third party and a recovery team from DIAND will assist in strengthening the capacity of the Oromocto First Nation so that it will be able to assume control in the long term.
It is also important to keep in mind that First Nations are not federal agencies. While First Nations do receive and administer funds from the department for specific purposes, they may enter into contractual agreements with other parties. These are private transactions and as such, a First Nation is responsible for dealing with issues that arise between it and another party.
Departmental officials continue to work with the Oromocto First Nation to ensure that essential services are being met for eligible community members.
First nations support the need for audited financial information for management and accountability purposes. The department reviews the audits and various reports. The funding agreements make provision for the Department of Indian Affairs and Northern Development to take remedial action where a problem exists.
It is important to note that 82% of first nations and first nations organizations are managing below the line above which intervention is required.