First Nations power authority financing to be improved

Nishnawbe Aski Development Fund has received $73,800 in FedNor funding to improve the operation of diesel generating stations in remote First Nation communities.
“NADF has been asked by the independent power authorities (IPAs) to develop a new chart of accounts to upgrade their financing procedures,” said Brian Davey, NADF’s executive director.
“The reason why we’re upgrading the financing procedures is right now the IPA’s financial operations are in many cases co-mingled with the band financing, so it is difficult to tell what the revenues are or what the expenses are. There’s no separate books.”
The funding was provided through FedNor’s Northern Ontario Development Program, which supports projects that strengthen community economic development, enhance business growth and facilitate innovation throughout the region.
“Our government is pleased to help First Nations develop the skills and expertise required to implement effective solutions to meet their energy production needs,” said Tony Clement, minister for FedNor. “Today’s announcement will enable participating communities to explore opportunities for collaboration, joint training and energy development designed to strengthen the regional economy.”
The funding is aimed at providing northwestern Ontario’s IPAs with financial and business management software to enhance the operation of diesel generating stations in remote First Nation communities. Among other things, the software will help the First Nation businesses manage cash flow and capital expenses, record purchases, standardize billing and assist with identifying efficiencies.
“Thanks to support from FedNor and the federal government, independent First Nation power authorities will be able to explore new ways of doing business to improve their operations and enhance management productivity,” said Arlene Meekis, NADF chair.
Davey said the IPAs will be able to use the financial records to access subsidies that are currently provided to Hydro One Remote communities.
“The IPAs don’t get subsidized, so they are always in a stranglehold,” Davey said.
Davey said the local Meyers Norris Penny LLP (MNP) office in Thunder Bay has been retained by NADF to do an assessment of the current financial systems in each of the IPAs. MNP is one of Canada’s largest chartered accountancy and business advisory firms.
“We then ask what is the best software, what is the best networking system that we can put in place that allows to produce the financial statements that we need,” Davey said. “They’re assessing various software packages, networking packages. Not only that, they’re checking on the type of financial recording that is required from the provincial standards.”
Davey said the project should be completed by the end of the summer.
“There are at least four communities interested in moving ahead out of the nine (IPA communities),” Davey said. “So we are going to start with them and then hopefully bring on the others.”