Report 6—First Nations Specific Claims—Indigenous and Northern Affairs Canada

Audit at a Glance Report 6—First Nations Specific Claims—Indigenous and Northern Affairs Canada

What we examined (see Focus of the audit)

First Nations have long had grievances related to the non-fulfillment of historic treaties or the mismanagement of Indian lands and monies. The Government of Canada has made successive attempts to address these issues.

In 1948, a joint committee of the House of Commons and Senate acknowledged the need to appraise and settle First Nations claims and grievances in a just and equitable manner. The committee also recommended the creation of an independent administrative tribunal to adjudicate Indian claims and grievances.

This audit focused on whether Indigenous and Northern Affairs Canada adequately managed the resolution of First Nations specific claims.

We examined the design and implementation of the systems and practices of Indigenous and Northern Affairs Canada to determine whether it adequately managed the specific claims process to provide reasonable assurance that

  • First Nations had adequate access to the specific claims process,
  • claims were resolved and documented in line with selected aims of Justice at Last, and
  • complete results were reported to allow Parliament and Canadians to understand how well the government was handling specific claims.

Why we did this audit

This audit is important for two main reasons. First, there have been instances where the Crown has not fulfilled its treaty obligations or has mismanaged First Nations’ funds or other assets. Second, the government committed to fundamental changes to the specific claims process through Justice at Last: Specific Claims Action Plan to address these historical obligations.

What we concluded

We concluded that Indigenous and Northern Affairs Canada did not adequately manage the resolution of First Nations specific claims as defined for the purpose of this audit. Funding cuts and lack of information sharing between the Department and First Nations posed barriers to First Nations’ access to the process for resolving specific claims.

Indigenous and Northern Affairs Canada met its commitment to assess specific claims in three years. Certain systems and practices that the Department put in place to accelerate the negotiation of claims hindered the resolution of some First Nations claims. The Department failed to increase the use of mediation services and did not use available information and feedback to improve program performance.

Indigenous and Northern Affairs Canada’s selective reporting on the specific claims process provided an incomplete picture of results, which made it difficult for parliamentarians and Canadians to accurately assess overall program success.

What we found

Resolving specific claims

Overall, we found that Indigenous and Northern Affairs Canada did not adequately manage the resolution of First Nations specific claims. We found that the Department’s reforms to the process introduced barriers that hindered First Nations’ access to the specific claims process and impeded the resolution of claims. These barriers included certain practices that did not encourage negotiations; cuts to funding for claims preparation and negotiation; and limited information sharing between the Department and First Nations. We also found that the Department was aware of First Nations’ concerns about these barriers, but was unable to demonstrate that it had a formal process to gather, monitor, and respond to information and feedback about these concerns and make required improvements.

This is important because on many occasions, the government has acknowledged its outstanding lawful obligations to First Nations. The government committed, most recently in 2007, to address these obligations with a reformed process to resolve specific claims. The Department acknowledged the need to adequately assist First Nations to participate in the specific claims process. This process emphasizes negotiating settlements as the primary vehicle for resolving claims. When First Nations cannot settle claims through this process, they may withdraw their claims or pursue them through the Specific Claims Tribunal or the courts. These alternatives have led to further delays and could lead to higher costs for both the government and First Nations, and to strained relations between the two parties.

  • Barriers in Indigenous and Northern Affairs Canada’s specific claims process hindered the resolution of some First Nations claims

    Recommendation. In cooperation with First Nations, Indigenous and Northern Affairs Canada should make its negotiation practices to expedite small-value claims (up to $3 million) acceptable to both parties.

    Recommendation. Indigenous and Northern Affairs Canada should work with First Nations to develop and implement a strategy to use mediation more frequently.

    Recommendation. Indigenous and Northern Affairs Canada should update its website to reflect the full range of negotiation practices for all types of specific claims.

    Recommendation. In cooperation with First Nations, Indigenous and Northern Affairs Canada should develop a clear and consistent methodology for funding to First Nations to adequately support the research and preparation of claims.

    Recommendation. In cooperation with First Nations, Indigenous and Northern Affairs Canada should develop evidence-based methodology for loan funding to adequately support First Nations’ participation in the negotiation process.

    Recommendation. Indigenous and Northern Affairs Canada should work with First Nations to ensure that its process to resolve claims includes a step where First Nations are made aware of the facts that the Department of Justice Canada will rely on to assess whether First Nations claims disclose an outstanding lawful obligation for the Government of Canada.

Reporting results

Overall, we found that Indigenous and Northern Affairs Canada’s public reports were incomplete and did not contain the information needed to understand the actual results of the specific claims process. More specifically, the Department did not publicly report some negative results of the process.

This is important because the government has been trying for several decades to implement an effective process to resolve specific claims and discharge the Crown’s outstanding lawful obligations to First Nations. Incomplete reporting may lead to faulty conclusions about program success.

Entity Responses to Recommendations

Indigenous and Northern Affairs Canada agrees with our recommendations, and have responded (see List of Recommendations).

Related Information

Report of the Auditor General of Canada
Type of product Performance audit
Topics
Audited entities
Completion date 31 July 2016
Tabling date 29 November 2016
Related audits

For more information

Media Relations
Tel.: 1-888-761-5953
E-mail: infomedia@oag-bvg.gc.ca

Twitter: OAG_BVG