An audit meeting was held on the Poundmaker reserve on Tue. Jan 8th. I could not attend. In efforts to continue pressing for dialogue, improving open communications and accountability regarding our nations money and resources, I choose to put ink and pen to paper.
I strongly believe that we need to clean up our own back yard first, improve our fiscal state and reporting of finances and resources while we demand accountability from the feds. I do not want PCN to be in the news (again) and be embarrassed like Chief Theresa Spence of Attiwapiskat over her bookkeeping fiasco. It cannot be swept aside as a mere ‘distraction’ from the bigger issues. If First Nation governments are ever to earn some respect from many non-First Nation tax payers and their own first nation citizens, they must start acting like democratic governments. It’s a two-edged sword.
This is not to take away the bigger issues of treaty implementation, water protection, the housing shortage, job creation and community economic development at a grander scale. But is that not why we fund the agencies, the tribal councils, the FSIN and AFN’s to begin with? I believe it is their role to continue the fight for change at a broader level. For the meantime, we need to straighten out and strengthen our own community first and foremost. We must be healthy, have a vision and a plan and start producing better results. A lot of this is our responsibility. We need to be leaders within and start making positive change for the betterment of the PCN.
Below is a copy of my letter to continue the road to recovery, democracy and self-determination. Hiy hiy.
______________________________________________________________________________________________________________________
January 8, 2013
Chief and Council
Poundmaker Cree Nation
P.O. Box 220
Paynton, SK
S0M 2J0
Re: POUNDMAKER CREE NATION CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2011
Unfortunately I will be unable to attend the audit meeting scheduled for January 8, 2013 at the reserve due to my employment commitments.
Upon receipt and initial review of the financial statements I have made a few observations. In addition to my letter to Chief Duane Antoine dated July 17, 2012, which I have not yet received a written response to, I have further questions. I also offer some recommendations in order to remedy the serious negative fiscal situation our Nation is in.
Observations and Questions
1. The Band is now almost $5,000,000 in net debt. This is huge for a relatively small Band. How are we going to tackle this deficit in a serious way? Please tell the people the interest the Band is paying per day/month/year on this debt.
2. There have been advances to Band members in the tune of $436,000 which is bad debt. Who are these individuals and why is the Band office acting like an interest free lender? This must stop and repayments be made immediately.
3. Advances to Chief and Council total $24,351. Colin Favel owns $13078. Have these advances been repaid and why is the Band office a lender when they should be going to a bank or credit union like everyone else.
4. The general overdraft if approx. $700,000 and the line of credit is only $575,000. Why?
5. The Bands gaming (SIGA Casinos) income of $360,000 annually is committed to debt (Credit Union). Is it not going against the intent of the FSIN Gaming Agreement with the Province? I am confident the income from casinos is intended to social, cultural and economic development and not to pay down accumulated debts. Please explain who this debt repayment is linked to the policy. Correct me if I’m wrong.
6. Royalty founding (Oil and Gas) of $160,000 is committed to debt (Credit Union) when Royalties appear to be in the $1.1Million range but expenditures allocated against it appear to be in the $1.3Million range before debt servicing. Why?
7. There are more than one lawsuit pending. Why were there lawsuits to begin with and in case the Band loses, what will it cost to Band in legal defense fees and payout to the complainant?
8. The Band General Account owes $224,589 to what appears to be a co-managed Capital Management account. Please explain.
9. The cumulative dollar amounts for social & health, administration, infrastructure, housing and own source appear to be negative and will be even more negative without some controls. How are you planning to gain control and stop the potential ongoing debt to grow?
10. TLE and Lands Management has $320,000 in bad debts, including band member advances, $100,860 in Council salary that was not recorded there last year and including the bad debt overspent by $408,000. Please explain.
11. Christmas distribution of $151,000 in this report is on target for a cumulative overspending of $212,412. Why do we continue to pay this out when the well is dry?
12. Poundmaker Oil has bad debts of $116,119 and meeting and travel expenses totaling $192,972. What is the return on this investment? Please provide a complete separate report dating back five years so we can understand this company record better.
Recommendations for Improving the Fiscal State of PCN
1. Control spending and adopt processes of record keeping at the highest standard. If we are talking about true self-determination as a goal then let’s act like a real well managed government. Keep good books and in a timely way.
2. Hire a qualified CFO as the lead and an arms-length from the elected leadership. Allow him/her to work closely with program management team.
3. Establish a finance committee and process (centralized, weekly reviews, spending plan and a one day/week cheque day)
4. Establish a budget for each program with spending forecasts. Stick to them as much as possible.
5. Don’t spend what you don’t have.
6. No more advances to staff and have those who owe money repay the nation. The Band Office is not a lender.
7. Establish a new economic development strategy with a new group with the mandate to generate revenue. An organization that is accountable to the people and the C & C. Research has shown that we must separate business from politics.
8. Consolidate some loans and negotiate for a new low interest rate.
9. Report to the community on a quarterly basis.
That’s all I have for now. I look forward to your written response.
Attached is a copy of my July 17, 2012 correspondence to Chief D. Antoine. No response to date.
êkosi.
Respectfully,
Milton Tootoosis
Citizen-PCN
c.c. Citizens of the Poundmaker Cree Nation Honourable John Duncan, Minister of AANDC
Effective Governance 101 
This just in….Chief Spence inherited the fiscal mess from the previous Chief of her nation. She needs to reference that fact. I still cannot believe that the Band’s co-manager, who is very well compensated, has not kept a better basic accounting system. It leads me to question now what the role, responsibility, powers and accountability a Co-Manager or Third Party Manager for that matter, is empowered with. It really makes me wonder how Jessie Primeau, former PCN Co-manager, allowed such a long delay of reporting to the citizenship and an increased net debt of the Band. Is he, and other Co-Managers, merely cheque preparers and if so, any accounting clerk can do that job. It is time to review the role and responsibilities of the entire finance team.
Sheila Fraser, former Auditor General for the feds, did report that changes needed to be made re: First Nation fiscal policy. Time to read her report.