Stoney Nation puts financial house in order

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The Stoney tribal administration for the Bearspaw, Chiniki and Wesley bands has been chafing under a third-party management system imposed on them by the Department of Indian Affairs in 1997 because of a financial deficit ($5.6 million against total revenues of $50 million) and concern about the provision of basic services to tribal members. Now that the Stoneys are showing a budget surplus for the second fiscal year in a row and have put financial and human resources policies in place, federal removal of the management firm Price Waterhouse Coopers Inc. is imminent.

Instead of the third-party manager, "they will hire a management firm which will act as a monitor," Indian Affairs' director for Treaty 8, Fred Jobin, said May 11. He added the Stoneys will likely appoint the department-approved monitor "within the next month."

"Our only condition - it be a reputable firm," said Jobin. "They're about to short-list and pick a specific firm."

A call to the Stoney office May 12 confirmed that a meeting was underway on the issue.

According to Bearspaw councillor Keith Lefthand, it might not take a month. "We're one signature away from signing the deal that will bring the monitor in," he said.

Each band has a chief and four councillors. Bearspaw and Chiniki councillors and chiefs had moved the previous week in favor of making the deal, according to Lefthand. Wesley was the only hold-out. To pass the band council resolution they need a quorum of nine and three signatures from each band.

Lefthand indicated the issue of appointing a permanent tribal administrator might have some bearing on the hold-up of the decision. May 12 he said the chiefs had talked to their main candidate that day. Messages were left for Acting Tribal Administrator Ian Getty, but he did not return Windspeaker's calls by press time.

Andre Buss is the tribe's financial manager, whom Lefthand says has been on the job "a litle over a year."

The big difference between having a monitor instead of Price Waterhouse Coopers is that the monitor will not have signing authority. The monitor's job will be to see that the tribe follows its newly created policies.

"The monitoring firm would provide (monthly) reports to both the department and to the tribe," said Jobin.

In addition to registering a budget surplus, the Stoneys have "basically paid off their deficit," he said. Jobin would not say how much of a surplus, but Getty has been reported as putting this year's surplus at $14 million. Lefthand confirmed it was "close to that."

So far as putting the surplus to work for the tribe, Jobin said the Stoneys are in the process of putting their budget together for the upcoming fiscal year, which includes community consultation.

"In terms of the surplus aside, I'm not aware of any decisions. We're talking in terms of the regular programming they're looking at.

"Keep in mind those surpluses are held in terms of trust funds from oil and gas revenue, are held by the department, and they have to access them formally through band council resolutions," Jobin said.

Jobin added, "there's a lot of criticism of First Nations that the money is not getting down to the people. Last year, over 92 per cent of all the money that the Stoney tribe generated from itself, from the department, from other sources, went to the people" for needs such as housing, social assistance and post-secondary education.

"They've also made some other significant improvements in terms of putting in place some rules. They've adopted a financial administration policy, which outlines how they manage their budget, conflict of interest policies . . . . The other issue they've been dealing with is the hiring and firing of staff. They've recently adopted a human resources policy, which will dictate to them how staff are hired, what's the process, on what basis staff are dismissed - it has to be with cause - these types of things," Jobin said.

He said it was a result of the tribe's progress on these isues that Indian Affairs negotiated a "financial monitoring agreement" with them that will kick in as the third-party manager leaves.

He also said the tribe had held community meetings to inform their members about the proposal to appoint a monitor.

Jobin said some of the Stoney administration have "expressed some concerns" about removing Price Waterhouse Coopers. He said he did not know which councillors agreed or disagreed with the proposed change.

Up to the end of March, Indian Affairs paid Price Waterhouse Coopers. The tribe has been picking up the $40,000 to $70,000 a month tab since April 1, according to Lefthand, which doesn't sit too well with him. He feels now the Stoney finances are under control the money could be better put towards housing. Lefthand, who is in his first term as councillor, stresses he is only speaking on behalf of his band.

"For the Bearspaw band, we're ready for a while now to move ahead with our monitoring for the tribe and removing third party. The reason is, I think the job is done from third party and I think what concerns the Bearspaw council, we're paying way too much money as it is paying third party from tribal funds. . . . We're hurting towards our housing, and we feel we could use that money to upgrade our homes for our people."

He adds, "personally I think this is a good thing that happened to the Stoney tribe. I think it could have been done differently, but we had to do something, because our deficit was going out of hand there the past years. But I think that's under control now. Accountability, I think, is going in the right direction."