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2003 November Report of the Auditor General of Canada

November 2003 Report—Chapter 10

Exhibit 10.1—First Nations views on third-party management

We started our audit by asking representatives of First Nations communities for their views on third-party management and how well it works.

Some of their comments are as follows:

  • Indian and Northern Affairs Canada ought to do more work with communities before the need for third-party management arises.
  • The Department needs to establish a pool of qualified managers who can work with a community to co-ordinate capacity building.
  • Contracting for the services of third-party managers does not follow an open and transparent process.
  • The Department needs to involve the band chief and council in selecting the third-party manager, using a jointly developed process.
  • Many third-party managers do not work in the community, visiting only twice a month to deliver checks.
  • The third-party manager needs to be in the community more often to help build capacity and develop a relationship with the community.
  • The fees that managers charge for their services are high.
  • There is no process for resolving disputes over decisions made by third-party managers.