Audit Schedules for First Nations

Audit schedules are supplementary financial statements that provide detailed information in specific areas of a First Nation’s finances, accompanying the annual audited financial statements. They are “schedules” (often presented as tables or appendices) that focus on particular topics critical for transparency and compliance. For First Nations, three key audit schedules are required:

Schedule of Remuneration and Expenses – Chief & Council:

A detailed list of each Chief and Councillor, how many months they served in the fiscal year, the remuneration paid to each, and the expenses reimbursed to each.

Remuneration: includes salaries, wages, commissions, bonuses, fees, honoraria, dividends and any other monetary or non-monetary benefits (excluding expense reimbursements).

Expenses: costs reimbursed for travel, accommodation, meals, hospitality, and incidentals.

This schedule shows exactly what was paid to the First Nation’s elected officials in all their roles (including any other capacity in consolidated entities) over the year.

Schedule of Remuneration and Expenses – Unelected Senior Officials:

Similar to the above, but for senior employees of the First Nation (unelected officials such as the Band Manager/Chief Administrative Officer, Directors of major programs, or other key management). It lists each official (or their position) with the months employed in the year, their salary or salary range, any other remuneration (e.g. bonuses or allowances, including expense reimbursements), and a breakdown of expenses reimbursed as part of that remuneration.

This schedule provides transparency into the pay of top management who are not elected leaders.

(Note: Names of individuals in this schedule may be omitted or presented as optional, focusing on positions, to respect privacy while still disclosing compensation ranges.)

Schedule of Revenue and Expenses – by Program/Service:

A financial summary for each funded program, service, or project the First Nation operates. Each program gets its own schedule. The schedule outlines all revenues/funding sources for that program (e.g. ISC contributions, other government funding, own-source revenue) and all expenses for the program, typically categorized by type (salaries, travel, supplies, etc.). It will include the budget vs. actual figures for the year, and often the prior year’s figures for comparison. It should also clearly show any surplus or deficit for the program and what happens with unexpended funds (e.g. carried forward as deferred revenue).

Essentially, each of these schedules is like a mini income statement for the specific program, demonstrating that funds were spent on their intended purpose.

These audit schedules are prepared in addition to the main consolidated financial statements. They do not form part of the audited financial statements themselves; they are separate documents/reports that accompany the financial statements.

For example, the FNFTA explicitly states that the Schedule of Remuneration and Expenses (Chief & Council) is a distinct document and must be independently audited or reviewed by the auditor.

The ISC financial reporting requirements similarly specify that remuneration schedules should not be included within the financial statements binder but provided as standalone schedules.

FNFTA: First Nations Financial Transparency Act

In practice, these schedules provide stakeholders with targeted information: community members can see leadership pay and benefits, and funding agencies (as well as the community) can see how each program’s funding was utilized. They are an important transparency tool, presented in a structured format mandated by ISC and legislation.

Audit schedules exist to ensure transparency, accountability, and compliance in First Nations’ financial management, for both community members and funders.

Public Accountability & Transparency

The First Nations Financial Transparency Act (FNFTA) was enacted to enhance accountability by requiring First Nations to publicly disclose their audited financial statements and a schedule of Chief and Council remuneration and expenses.

By publishing these figures (often on the First Nation’s website or the Indigenous Services Canada First Nations Profiles website), community members and the public gain a clear view of how much leaders are paid and what expenses were reimbursed. This openness helps build trust in leadership and administration by showing that financial information isn’t hidden. It also deters misuse of funds, since there is a clear expectation that any compensation or spending will be visible to the community.

Compliance with Funding Agreements (ISC/CIRNAC Requirements)

Most First Nations receive significant funding through contribution agreements with Indigenous Services Canada (ISC) or Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC). These agreements come with financial reporting requirements that include providing the audit schedules discussed.

ISC’s Financial Reporting Requirements (FRR) guide specifies that First Nations must submit their financial statements along with Annex schedules (for programs and remuneration) as part of year-end reporting. This allows the departments to demonstrate that funds were spent as intended under the terms of each program. In short, the schedules help prove compliance.

For example, if a First Nation received funding for an education program, the program’s revenue/expense schedule will show that education funds were indeed spent on education activities.

Insight and Management Purposes

Beyond meeting external requirements, the schedules also serve internal purposes. They provide leadership and managers with a clear breakdown of finances by program and by leadership compensation. Seeing all program surpluses or deficits in one place helps in decision-making, such as whether to carry over unspent funds or adjust budgets.

The remuneration schedules, on the other hand, put a spotlight on governance costs (which can be useful for community discussions or benchmarking against other communities). They also clarify any misconceptions by explaining exactly what counts as remuneration vs. expenses for officials (ensuring, for instance, that travel reimbursements are not mistaken for personal income).

Relationship to Audited Financial Statements

The consolidated audited financial statements present the overall financial position and results of the First Nation (and its entities).

The audit schedules exist to provide additional detail in areas that the consolidated statements typically do not itemize.

For example:

• the financial statements might show a single line for “Administration expenses” or “Chief and Council expenses,” whereas the Schedule of Remuneration breaks that down by individual.
• the financial statements show total revenues and expenses by department in notes, but the program schedules break them out by funding source and object in detail.

In effect, the schedules support and tie into the audited statements.

If you added up all the program schedules, you would reconcile to the totals in the financial statements (assuming all programs are covered), thus they help validate the numbers. They exist partly because funders (and communities) want more granular info than the high-level statements provide.

However, because these schedules can contain personal-level or program-level details, they are kept separate from the main statements and handled with care in terms of distribution.

In summary, these schedules are about demonstrating good governance. They ensure First Nations governments are open about the compensation of leaders and the use of funds for community programs, thereby fulfilling both legal obligations (like FNFTA) and funding requirements while also benefiting internal management and community oversight.

Primary responsibility for preparing audit schedules rests with the First Nation’s management and finance staff, not with the external auditor. This is an important point, as sometimes there’s a misconception that auditors will “handle it.”

Management’s Responsibility

The finance department (Director of Finance, Finance Manager, or CFO) of the First Nation is responsible for gathering the data and producing these schedules accurately. According to standard practice and ISC guidelines, management must ensure the schedules are prepared in accordance with the required instructions (such as the ISC Year-End Financial Reporting Handbook) and reflect the actual records of the First Nation.

Management is also responsible for implementing internal controls and record-keeping to support the figures in the schedules. For example, the finance team should maintain documentation of all payments to Chief and Council, all expense claims, and the financial transactions of each program throughout the year, so that they can compile the schedules after year-end. They should also review the completed schedules for accuracy and completeness (e.g., ensuring every Councillor is listed, every funded program has a schedule, and the numbers reconcile with the general ledger and the main financial statements).

Chief & Council / Senior Leadership

While the finance staff prepares the documents, the political leadership (Chief and Council) and senior administrators have a role in oversight and sign-off. Typically, once the schedules are prepared, an authorized representative of the First Nation (often the Band Manager or a member of Council with a finance portfolio) must approve and sign the schedules or the financial statements package. The leadership should ensure that management is fulfilling its duties in preparing these reports.

In addition, Council members should be aware of and understand their own reported figures (remuneration and expenses) before they are published, to avoid surprises and be prepared to explain them to community members if needed. Good governance practice would be to brief the Council on the content of the schedules prior to finalization and publication.

External Auditor’s Role

An independent auditor (or accounting firm) is engaged to audit or perform a review engagement on the schedules, similar to the audit of the financial statements. However, the auditor’s role is only to verify and express an opinion (or conclusion) on the schedules, not to prepare them. The auditor will look at the figures that management has compiled.

For example, verifying that the amounts for each Councillor match payroll records and expense reports, or that the program revenues and expenses match the accounts and then issue a report.

FNFTA and ISC require that the Schedule of Chief & Council Remuneration be accompanied by an auditor’s report or a review engagement report for that schedule. Similarly, ISC’s policy requires an auditor’s or review report for the Senior Officials schedule (and if the funding agreement calls for it, possibly the program schedules may be audited in some cases). If the auditor conducts a review (a lighter form of assurance than an audit) on a schedule, they’ll provide limited assurance (stating that nothing has come to their attention of concern) rather than a full audit opinion.

In all cases, the presence of the auditor’s report provides credibility, but any findings or required corrections will be referred back to management to address since management prepared the data.

Common Misconceptions Clarified

• “Aren’t the auditors supposed to do these schedules?” – No. Auditors test and verify the information, but it’s up to the First Nation’s staff to actually compile and present the schedules. If management doesn’t prepare them, the audit/review cannot be completed. Auditors may provide a template or guidance, but the numbers come from the First Nation’s records, and management signs off on them.
• “We can skip the schedule if the auditor didn’t ask for it.” – No. Even if an auditor is focused on the main financial statements, the funding agreement and FNFTA mandate these schedules. They are often submitted to funders and (for the Chief/Council schedule) made public separately. It’s not optional, and auditors will usually refuse to sign off if required schedules are missing.
• “The schedules are part of the financial statements.” – Not exactly. They are separate documents (especially the Chief & Council schedule, per FNFTA) and usually not bound inside the main statements report. Think of them as appendices: they accompany the financial statements package. One reason is that the audited financial statements follow GAAP/PSAS, whereas the program revenue/expense schedules, for example, are more of a funding accountability report (often unaudited) for ISC’s purposes. Keeping them separate avoids confusion between the audited financial statements and these supplementary schedules.

In summary, the First Nation’s finance team prepares the schedules, leadership oversees and approves them, and independent auditors review them for accuracy. All parties need to work together to ensure the schedules are completed properly and on time.

Preparing audit schedules requires following specific guidance so that the content and format meet official requirements. The key references and standards include:

Indigenous Services Canada (ISC) Financial Reporting Requirements

ISC (along with CIRNAC) publishes a Reporting Guide / Year-End Financial Reporting Handbook that outlines exactly what First Nations need to include in their financial reports. Within this guide, the 2025-2026 Financial Reporting Requirements (FRR) document explains each required schedule in detail:

• Annex A for Program Revenues/Expenses
• Annex B for Chief & Council
• Annex C for Senior Officials

It provides templates and definitions, some of which we have used in this tool. For example, the FRR defines “remuneration” and “expenses” as per the FNFTA and lists the columns and notes that each schedule should have. First Nations should closely follow this guidance to ensure nothing is omitted. (We have aligned our downloadable templates with these ISC templates.)

The FRR also clarifies which schedules need to be audited or can be unaudited, and how they relate to the funding agreements. Keeping a copy of the latest ISC Reporting Guide on hand is highly recommended for finance officers.

First Nations Financial Transparency Act (FNFTA)

The FNFTA (2013) is a federal law that principally requires two things: (1) Annual Consolidated Financial Statements of the First Nation, audited, and (2) a Schedule of Remuneration and Expenses for Chiefs and Councillors, with an independent auditor’s or review report, to be prepared and made public.

The Act provides the formal definitions of remuneration and expenses that should be used (we quoted these earlier). It also sets a timeline: these documents must be disclosed within 120 days of fiscal year-end (for a March 31 year-end, that typically means by July 29).

FNFTA applies to “bands” under the Indian Act that are not self-governing via a modern treaty. Even if a First Nation’s funding agreement with ISC changes, as long as FNFTA is in effect, the community must publish those two items. So in practice, the FNFTA drives the public-facing portion of the audit schedules (chief & council report), while ISC’s funding requirements drive the more detailed internal schedules (programs and senior staff reports).

Public Sector Accounting Standards (PSAS/PSAB)

First Nations, when preparing their consolidated financial statements, generally follow Public Sector Accounting Standards (PSAS) as recommended by the Public Sector Accounting Board. These are the same standards used by governments in Canada and ensure consistency and credibility in financial reporting.

Now, how does this relate to the audit schedules?

The main financial statements (which the schedules support) are prepared according to PSAS (also known informally as GAAP for the public sector). For example, PSAS will dictate how revenues and expenses are recognized (accrual accounting) and how entities are consolidated.

The program revenue & expense schedules should be prepared on an accrual basis as well (the ISC guide explicitly says this), meaning you include incurred expenses and earned revenues for the year even if not yet paid/received, matching how they’d appear in the audited statements. However, some aspects of the schedules are specific to ISC’s requirements and not standard PSAS presentations.

Example:

• PSAS financial statements wouldn’t normally include a detailed schedule for each program, but ISC requires it for accountability.
• The remuneration schedules are more about transparency than accounting treatment; they basically list cash outlays and benefits, which is information derived from the accounts but presented per individual rather than by accounting category.

While PSAS is the underlying framework for the financial statements, the format and detail of the schedules are governed by ISC and FNFTA rules.

These schedules are considered special purpose financial reports. They are prepared “in accordance with the instructions in the ISC Year End Financial Reporting Handbook” rather than full GAAP. Users should be aware of this distinction but can take comfort that the numbers ultimately trace back to the audited PSAS-compliant financial statements.

CIRNAC/ISC Circulars and Other Guidance

Occasionally, additional directives come from funders. If there are changes in what needs to be reported (new programs, or changes to FNFTA if any), ISC might update their Data Collection Instrument (DCI) forms or circulars. Always ensure you have the latest instructions for the year in question (they can change slightly year to year). A First Nation’s funding agreement might refer to a specific reporting package (e.g., “F-0080” is the code for the First Nations annual audited financial reporting package). Under package F-0080, for instance, it spells out exactly which schedules are required.

In 2025-26, F-0080 required: audited consolidated financials, audited Chief & Council schedule, audited senior officials schedule, and unaudited program schedules. Being aware of these package requirements helps ensure you don’t miss a component.

Disclaimer: Regional or Other Funding Requirements: (Note: While this guide focuses on the general federal requirements, remember that some regions or specialized funding programs may have additional reporting needs. A provincial funding authority or a Health funding agreement might ask for a specific schedule or statement. Always check the specific funding agreements for any unique schedule requirements beyond the core ISC/FNFTA ones. The templates provided here cover the standard ones common to most ISC/CIRNAC.

Preparing audit schedules can be a manageable task rather than a scramble, if approached with good practices. Below are practical tips to help First Nations finance teams compile the required schedules efficiently and accurately, while minimizing audit issues and extra costs.

Integrate Schedule Tracking into Year-Round Processes

Don’t wait until year-end to gather information. Throughout the fiscal year, maintain logs or spreadsheets for key items:

• For Chief & Council remuneration, keep a running record of each individual’s payments and reimbursements. Many finance systems can tag transactions by individual or you can use a simple spreadsheet to total up each Council member’s salary, honoraria, travel, etc. This way, when it’s time to create the schedule, you already have the numbers tallied (and you can just verify them against the general ledger).
• For Senior Officials, do the same: identify which positions qualify (usually the Band Manager, department directors, any other senior leadership with significant salaries). Track their salary, bonuses, and any expense reimbursements over the year. Ensure you know their start/end dates if they were not employed for the full 12 months (needed for the “number of months” column).
• For Programs, set up your chart of accounts to facilitate program reporting. Ideally, each program or funding agreement has its own set of account codes or project codes in your accounting software. Record all revenues and expenses with the appropriate program tags. If you do this, then producing a program schedule is often as simple as running a report by program code that shows all revenues and expenses, then formatting it into the required schedule template.
• Use Templates and Standard Formats: Start with the provided templates (see the end of this guide for downloadable templates for each schedule type). Using a standard format ensures you include all required columns and notes. Populate the templates with your data. Templates also help with consistency year to year, which makes both internal review and external audit easier.
• If ISC has example schedules (Annexes A, B, C as in the Reporting Guide), mirror those in layout and wording. Make sure to use the exact definitions of remuneration and expenses in any notes section, and break down the revenues/expenses in a logical manner consistent with ISC’s expectations (e.g., categorize expenses into common categories like salaries, travel, supplies, etc., as shown in Annex A).

Gather Supporting Documentation Early

Before the auditors arrive or the reporting deadline:

• Collect all Council meeting minutes or resolutions related to remuneration (if there was a resolution setting honorarium rates or bonuses). Auditors might ask for those to verify that payments were authorized.
• Ensure all payroll records for the year are complete and any T4s or summaries agree with what you’re reporting as salaries.
• Pull together expense reports and receipts for any travel or other reimbursements paid to Chief/Council and Senior Officials. This helps you double-check that all such payments are included and categorized correctly, and you’ll have them ready if the auditor wants to sample some.
• For each program schedule, compile the funding agreements and any amendments, as well as a summary of budget vs. actual. You should be able to explain any significant variances (e.g., if a program has a big surplus or deficit, or if an expense category went way over budget, be ready to explain why, perhaps certain projects were delayed, etc.). Having this info on hand will speed up responding to auditor queries and will also help when reporting to your Council or funders.

Reconcile to the Audited Financials

A critical step is to tie the numbers in the schedules back to your main financial statements and trial balance.

• The total of all program revenues and expenses across every program schedule should reconcile to the totals in your consolidated statement of operations (or at least to the portion of operations that covers funded programs). If it doesn’t, find out why! Maybe some accounts weren’t assigned to programs, or you missed a program.
• The total expenses for Chief & Council in the remuneration schedule should equal the amount recorded in your books (often, bands record Council expenses under a specific department or governance expense line – make sure the schedule’s sum matches that, excluding anything not considered “remuneration” by definition).
• For Senior Officials, if names are optional and you report only by position, ensure no one is double-counted and that you include all who meet the “senior official” criteria (some funding agreements might define who counts as a senior official, e.g. anyone with a salary above a certain threshold or specific titles like CEO/Executive Director). Reconcile the total compensation shown in this schedule with your payroll expense accounts for management salaries.

Plan Timeline & Responsibilities

Mark the 120-day deadline on your calendar and work backward. A good practice is to have draft schedules ready soon after the audit fieldwork is done. Assign team members to specific schedules. One person handles assembling the remuneration schedules while another works on program schedules, then do a cross-review. Have the Chief or Band Manager review the completed Chief & Council schedule for accuracy (names spelled correctly, correct figures) before it goes to audit.

Starting early also means if the auditor finds an issue, you have time to correct it without panicking against a deadline.

Consult and Communicate

If anything is unclear (whether a certain benefit should be counted in remuneration, or how to treat a unique funding), reach out for guidance. You can consult ISC’s regional office or refer to AFOA resources for clarification. It’s better to ask questions early than to guess and potentially get it wrong. Also, communicate with your auditors in advance, some audit firms provide a checklist of required schedules and might even share a sample format they expect. Knowing their expectations allows you to prepare exactly what they need, which can save time (and audit fees).

Use Accrual Accounting & Cut-off Properly

Ensure you apply accrual accounting in the schedules (as required by ISC). This means:

• Include all expenses incurred during the year in the program schedules, even if they haven’t been paid yet (they might be in accounts payable). For example, if a service was provided in March but the invoice is paid in April, it should still appear in the expenses for the year ended March 31.
• Similarly, include all revenue earned (funding that was for that fiscal year) even if cash arrived after year-end. If funding was received in advance for next year, defer it (don’t count it as current-year revenue). This matters for showing accurate surplus/deficit positions and unexpended fund balances.
• Make sure any unexpended funds at year-end are clearly shown. ISC expects disclosure of opening and closing deferred revenue balances for each program where applicable. A tip is to have a line in the program schedule for “Prior year unexpended funding (opening balance)” and one for “Ending unexpended balance carried forward” if needed. This will align with how deferred revenue is handled in the financial statements. It also signals to readers and funders that, for example, “We didn’t spend $X of the funds this year; here’s that amount carried to next year or to be returned, as per agreement.”

Review for Common Errors (and fix them before audit)

See the next section on common errors and risks, use it as a checklist. Before you finalize the schedules, double-check for those potential errors (that you haven’t accidentally excluded an expense, or misclassified a Chief’s travel reimbursement as remuneration).

Catching and correcting errors yourself is far better to having the auditor find them or, worse, an ISC officer pointing them out after submission.

Cost-Saving Tip – Leverage Review Engagements

If permitted in your agreement, opt for a review engagement rather than a full audit on the schedules (aside from the main statements which must be audited). The FNFTA allows the Schedule of Remuneration & Expenses to be accompanied by either an audit report or a review engagement report. A review is less extensive (and less expensive) than an audit, while still providing limited assurance. Many First Nations choose a review for the Chief & Council schedule.

Similarly, the Senior Officials schedule can often be done as a review engagement. This can reduce audit costs while meeting requirements. They’ll still look at the information but with fewer procedures than an audit. Just ensure the quality of information is high; even in a review, if something is materially inaccurate, the auditors will require changes.  

Even well-prepared finance teams need to be vigilant about some frequent errors when it comes to audit schedules. Here are common errors and risks – with advice on how to avoid them:

Misclassification of Remuneration vs. Expenses

One of the biggest risks is mixing up what should go under “remuneration” and what should go under “expenses” on the leadership schedules. For example, a travel allowance or mileage reimbursement must be reported as an “expense”, not as part of salary. Conversely, any cash honorarium or stipend is “remuneration” even if it wasn’t through payroll. Stick strictly to the definitions provided by FNFTA/ISC.

A common mistake is to omit certain benefits from remuneration (if a Chief had a vehicle provided – a non-monetary benefit, its equivalent value should be included in remuneration). Failing to include a benefit or including an expense in the wrong column can result in non-compliance and potentially required corrections.

How to avoid:

Use the definitions as a checklist. Before finalizing, take each person and verify:

• Did I include all forms of pay they received (salary, honoraria, bonuses, any gift cards or dividends from band-owned companies, etc.) in remuneration?
• Did I include all reimbursements for travel/hospitality in expenses (and nothing more)?
• Cross-check against payroll and accounts payable ledgers to catch any items that might have been coded incorrectly.

Missing or Incomplete Program Schedules

Another frequent issue is forgetting to produce a schedule for a program or not breaking out the details correctly. If your First Nation had, say, 10 different funded programs, there should be 10 separate revenue/expense schedules (plus possibly one for capital projects if applicable). Sometimes, confusion arises if funding was received late or if programs are small, however ISC expects a schedule for each program/service/activity project identified in the funding agreement.

Each schedule should show both revenue and expense details. A mistake would be to only list expenses and assume revenue is known, you must explicitly show the revenue (funding) that came in for that program, even if it’s a single line item.

Another completeness aspect is including budget and prior year figures where required. Leaving those columns blank (without explanation) can be seen as an omission.

How to avoid:

• Review the funding agreement or list of ISC “DCI” reporting requirements to ensure every required schedule is accounted for.
• Use a checklist of programs. It can help to mirror the exact program names from your funding agreement in the schedule titles for clarity. If any program had $0 expenditures (maybe funding arrived very late and you carried it over), still include the schedule showing the revenue and that the funds are unexpended (so that it’s documented).

Improper Handling of Unexpended Funds or Surpluses

How you report funds that weren’t fully spent is crucial. A common error is to net them away or not report them clearly. For example, if a program received $100,000 and spent $90,000, simply showing revenue = 90k and expenses = 90k (as if balanced) is incorrect. The schedule needs to show the full $100k revenue, $90k expense, and then indicate the $10k surplus (which likely is deferred or to be repaid).

ISC’s guidelines specifically mention to present unexpended funds and the opening/closing deferred revenue balances in the schedules. If this is not shown, it could appear as if you either didn’t get the full funding or you overspent.

How to avoid:

• Always include lines for “Prior year unexpended funding (if any)” and “Current year surplus/deficit” in the program schedule.
• If your funding agreement allows carry-forward, label surplus as deferred revenue to next year; if not, note that it’s payable back to the funder.
• Ensure this matches what’s in your financial statements for deferred revenue. By clearly accounting for every dollar, you prevent misunderstandings.
• Double-check conditional vs. unconditional funding: if it’s a fixed contribution and surplus is yours to keep, it still should be shown as income and then likely transferring to another fund.

Lack of Supporting Documentation (Audit Trail)

Even if the schedules themselves look good, not having backup documentation readily available is a risk. Auditors or ISC may flag amounts if you cannot produce evidence for them.

For example, if your Chief’s expense line is $15,000, and you can’t quickly produce receipts or expense reports that add up to that, it raises questions.

Or if a program shows “miscellaneous expense $50,000”, you need to have details of what that comprised.

How to avoid:

Keep an organized file (physical or digital) for each schedule:

• For each person on the remuneration schedules, have a small file with their payroll info, contract or appointment letter (for salary rates), and all their expense claims. That way, any figure on that schedule can be traced to source documents in seconds.
• For each program, keep a binder or folder with the general ledger printout for that program, copies of significant invoices, the funding agreement, and any relevant reports. If the auditor requests support for the $200,000 spent on “Construction” in a housing program, you can pull out the contractor invoices.
• Ensure sign-offs are in place to show controls (e.g., travel claims approved by the Band Manager). This not only helps the audit go smoothly (reducing risk of delays or a qualified audit opinion) but also means you’re prepared if leadership or community members have questions later. In the digital age, consider scanning and indexing these documents for easy retrieval (some accounting software allow attaching images to transactions, which is even better).

Not Involving Leadership Early

Sometimes the schedules can become controversial after publication, especially the Chief & Council remuneration. A risk is not briefing the Council on what will be reported. If a Councillor forgot about a payment or doesn’t realize the public will see a certain benefit, it can cause internal issues or public relation issues.

How to avoid:

Always review the final figures with Chief and Council (in camera if needed) before they are finalized. Explain what’s included and why. This ensures everyone is on the same page and can clarify any confusion (“Oh, that $5,000 was for travel to a conference, not a bonus,”). It’s better any disputes or misunderstandings are resolved privately and beforehand, rather than after the numbers are posted publicly.

Timing and Late Reporting

Missing the 120-day deadline (for FNFTA) or the funder’s deadline for submitting financials is a compliance failure and a risk. ISC can potentially withhold funding or take other measures if reports are very late. FNFTA non-compliance could technically result in action by the Minister (though in recent years enforcement has been lenient, it’s not something to rely on).

How to avoid:

• Plan backwards from the deadline.
• Aim to have all schedules ready and approved at least a couple of weeks before the deadline so that the audit can be completed and the documents can be posted.
• If you foresee any delays (like auditor scheduling issues or difficulties in collecting information), communicate proactively with ISC and, if necessary, formally request an extension before the deadline passes.
• Timely completion of these schedules reflects well on the First Nation’s administration.

By being mindful of these common issues and taking preventative steps, you can greatly reduce the risk of errors in your audit schedules. This not only keeps the auditors and funders satisfied but, more importantly, upholds the integrity of your First Nation’s financial reporting to its members.

Remember, quality and transparency in financial reporting are a cornerstone of self-governance and trust.

Disclaimer: This content is based on general federal requirements (ISC and FNFTA) as of the current date. Individual First Nations or other funding agencies may have additional or slightly different requirements. Always refer to your specific funding agreements and the most current ISC reporting guide for definitive instructions. The guidance and templates provided here aim to give a solid starting point aligned with national standards, which you can customize to your community’s needs. By implementing these practices and tools, First Nations finance professionals can confidently meet their audit schedule obligations in a practical, transparent, and efficient manner.

Templates for Audit Schedules (Downloadable Examples)

To assist in your work, below are templates for each of the three key audit schedules. These templates are modeled on the official ISC examples (Annexes B, C, and A from the ISC Reporting Guide) and are provided in a format suitable for Microsoft Excel or Word.

First Nations finance teams can adapt these for their use by filling in the specifics for your community and adjust as needed for your context.

Template 1: Schedule of Remuneration and Expenses – Chief & Council
Use this table to list each elected official and their compensation for the fiscal year.

Template 2: Schedule of Remuneration and Expenses – Unelected Senior Officials
This template captures compensation for senior management (staff) who are not part of Chief & Council.

Template 3: Schedule of Revenue and Expenses – by Program
The example format below can be replicated for each program. Replace “[Program Name]” with the specific program (e.g. Health Services, Education, Housing, Economic Development, etc., as per your funding agreement). Include the fiscal year in the heading.

• Present the revenues and expenses on an accrual basis (not cash) in line with ISC requirements. Include all funding earned for the year and expenses incurred in the year.
• The Budget column should reflect the approved budget for the program (from the funding agreement or Band’s internal budget). This provides context to spending levels.
• If the program is funded by multiple sources, list each significant source of revenue separately for transparency. For example, if both ISC and the First Nation contribute funds, show both.
• For expenses, break them into logical categories. The example categories above are common, but you should use categories that make sense for the program and match how you track them in the accounts. Ensure major expenditure types are clearly listed (avoid lumping everything under “other”).
• Each schedule should be signed off by an authorized official and submitted to ISC with the audited statements. Usually, these program schedules are unaudited, but they should still be accurate and may be reviewed by auditors for consistency.
• Keep documentation for both revenues (funding confirmation letters) and expenses (invoices, etc.) as discussed, to support these numbers.

Audit Schedule Checklist
A practical checklist to help First Nations finance teams prepare audit schedules efficiently and accurately. This checklist aligns with ISC and FNFTA requirements.